Accounting For Non Commerce Students

3,113 views
2,942 views

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,113
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
90
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Accounting For Non Commerce Students

  1. 1. ACCOUNTING FOR NON COMMERCE STUDENTS by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india [email_address] mobile : 91+9414430763
  2. 2. Balances for year 2009 Capital : 25, Plant19, Depreciation 1, repairs 1, wages 1, salares 2, income tax 1, Cash 1, building 38, depreciation on building 1, purchase 61, sales 125, bank overdraft 2, acrued income 1, salaries outstanding 1, BR 5, BP 1, Provision for bad debt 3, bad debts 1, Discount on purchase 2, debtors 17, creditors 11, opening stock 18, closing stock 15.
  3. 3. continued... write off bad debts 2, maintain provisions of 5% on debtors, goods costing 2 sent to customer on sale or returned basis on 1/3/9 recorded as actual sales. Rate of gross profit was 16.67% of sales. Rent of office 1 debited to landlord's account and were included in debtors, manager gets 10% commission on net profit after charging commission of work manager and his own. Work manager gets 5% on gross profit
  4. 4. Steps Prepare trial balance, find out adjustments to be made, make necessary adjustment for account finalisation and then prepare P & L accounts, balance sheet
  5. 5. Important rules. Income will have credit balance, expenditure will have debit balances. Assets will have debit balances and liabilities will have credit balances, based on these try to prepare trial balance. Remember, all the income and expenditure accounts are closed at the end of the year, for this transfer their balance to trading account or P & L account, assets and liabilities acccounts and personal account are not closed therefore their balances are shown in balance sheet.
  6. 6. Trial balance CREDIT SIDE : Capital : 25,bank overdraft 2, BP 1, Provision for bad debt 3 creditors 11 Discount on purchase 2, sales 125, salaries outstanding 1, TOTAL = 169 DEBIT SIDE : Plant 19, repairs 1, Depreciation 1, depreciation on building 1, wages 1, salares 2, income tax 1, Cash 1, building 38, purchase 61, acrued income 1, BR 5, , bad debts 1, debtors 19, opening stock 18, TOTAL=169
  7. 7. TRADING ACCOUNT CREDIT SIDE : sales : (125-2)=123, closing stock : (15 +1.67) total :139.67 DEBIT SIDE : Purchase (61-2)=59, wages 14, total : 73 gross profit : 66.67
  8. 8. Profit and Loss account Credit side : gross profit 66.67, income acrued 1, Prov. For bad debt (excess) 1.25 total : 67.92 Debit side : salaries (2+1), Depreciation 1, Depreciation on building 1, Repairs 1, rent 1, bad debts 1, income tax 1 total : 9 outstanding commission works manager : 3.5 Manager 5 net profit : 49.16
  9. 9. Balance sheet Liabilities : capital 25, profit 49.16 creditors 11, bank overdraft 2 , BP 1 outstanding salary 1, outstanding commission 8.38 total :97.5 Assets : building (38-1) 37, plant (18-1) 17, Debtors 15, BR 5, Cash 1, Stock 16.67 , Acrued income 1 suspense account 5 total : 97.5
  10. 10. Debtors account Balance 19 less – sale not taking place 2 less – landlord's rent 1 = 16 less bad debt written off = 1 debtors 15 make a provision on 15 @ 5% = .75
  11. 11. Provision for bad debt Opening balance : 3 less bad debt 1 closing balance 2 but we have to keep it only .75, so remaining amount will be transferred back to P & L account = 1.25
  12. 12. THANKS.... GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL NETWORK IN YOUR CITY [email_address] PGPSE – WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP

×