Ratio: It is the quantitative relation between two amounts showing the number of times one value contains or is contained within the other.
Accounting Ratio: It means ratio calculated on the basis of accounting information.
Ratio analysis: A ratio analysis is a quantitative analysis of information contained in a company's financial statements. Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency.
Ratios are categorized into following basic categories:
1. Liquidity Ratios
2. Solvency Ratios
3. Activity or Turnover Ratios
4. Profitability Ratios
MEANING OF COMPANY
Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.
The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
Its is the power point presentation on the topic demand. it includes various topics like definition of demand, factors affecting demand, law of demand, demand function, expansion-contraction,increase-decrease, price elasticity, income elasticity and cross elasticity. And it is most useful to the students who want to learn the concept of demand.
Purchasing Goods And Services process PowerPoint Presentation Slides SlideTeam
Purchasing Goods And Services Process PowerPoint Presentation Slides: Acquire necessary products and services using content-ready Purchasing Goods And Services Process PowerPoint Presentation Slides. Procure raw materials, officer equipment, services, supplies, furniture and facilities, technical equipment, etc for better products and services. Incorporate ready-made purchasing goods and services process PPT templates and deal with sourcing activities, negotiation and selection of goods and services that are necessary for an organization. Go through the process of ordering goods and services with the help of purchasing goods and services process PowerPoint presentation slideshow. This deck comprises of several templates for you to follow the process such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, etc. These templates are editable. Change color, text, icon and font size as per your need. Grab access to the ready-to-use purchasing goods and services PPT slides to include these in your organizational business strategy to acquire things at the best possible cost. Accelerate away to your goal with our Purchasing Goods And Services Process Powerpoint Presentation Slides. It helps you change gears.
Ratio: It is the quantitative relation between two amounts showing the number of times one value contains or is contained within the other.
Accounting Ratio: It means ratio calculated on the basis of accounting information.
Ratio analysis: A ratio analysis is a quantitative analysis of information contained in a company's financial statements. Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency.
Ratios are categorized into following basic categories:
1. Liquidity Ratios
2. Solvency Ratios
3. Activity or Turnover Ratios
4. Profitability Ratios
MEANING OF COMPANY
Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.
The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
Its is the power point presentation on the topic demand. it includes various topics like definition of demand, factors affecting demand, law of demand, demand function, expansion-contraction,increase-decrease, price elasticity, income elasticity and cross elasticity. And it is most useful to the students who want to learn the concept of demand.
Purchasing Goods And Services process PowerPoint Presentation Slides SlideTeam
Purchasing Goods And Services Process PowerPoint Presentation Slides: Acquire necessary products and services using content-ready Purchasing Goods And Services Process PowerPoint Presentation Slides. Procure raw materials, officer equipment, services, supplies, furniture and facilities, technical equipment, etc for better products and services. Incorporate ready-made purchasing goods and services process PPT templates and deal with sourcing activities, negotiation and selection of goods and services that are necessary for an organization. Go through the process of ordering goods and services with the help of purchasing goods and services process PowerPoint presentation slideshow. This deck comprises of several templates for you to follow the process such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, etc. These templates are editable. Change color, text, icon and font size as per your need. Grab access to the ready-to-use purchasing goods and services PPT slides to include these in your organizational business strategy to acquire things at the best possible cost. Accelerate away to your goal with our Purchasing Goods And Services Process Powerpoint Presentation Slides. It helps you change gears.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
The “Demand” for a commodity, at a given price, is the quantity of it which will be bought per unit of time at that price.
In economics, demand refers to the buying behavior of a household. When desire is backed by willingness and ability to pay for a good or service then it becomes Demand for the good or service.
It is the system in which both the aspects i.e. debit as well as credit are recorded in the books of accounts .It records transactions relating to all the accounts i.e. personal, real and nominal.
Single entry system of accounting is on of the easiest methods of preparing financial statements. This presentation discuss the various aspects of Single Entry System of Accounting
A Bill Of Exchange is an instrument in writing containing an unconditional order, signed by the maker , directing a certain person to pay a sum of money only to or to the order of a certain person or to the bearer of the instrument
A Bill Of Exchange is an instrument in writing.
It must be signed by the maker.
It contains an unconditional order.
The order must be to pay money and money only.
The sum payable must be specific.
The amount must be paid within a stipulated time.
The name of the drawee must be clearly mentioned.
It must be dated and stamped.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
The “Demand” for a commodity, at a given price, is the quantity of it which will be bought per unit of time at that price.
In economics, demand refers to the buying behavior of a household. When desire is backed by willingness and ability to pay for a good or service then it becomes Demand for the good or service.
It is the system in which both the aspects i.e. debit as well as credit are recorded in the books of accounts .It records transactions relating to all the accounts i.e. personal, real and nominal.
Single entry system of accounting is on of the easiest methods of preparing financial statements. This presentation discuss the various aspects of Single Entry System of Accounting
A Bill Of Exchange is an instrument in writing containing an unconditional order, signed by the maker , directing a certain person to pay a sum of money only to or to the order of a certain person or to the bearer of the instrument
A Bill Of Exchange is an instrument in writing.
It must be signed by the maker.
It contains an unconditional order.
The order must be to pay money and money only.
The sum payable must be specific.
The amount must be paid within a stipulated time.
The name of the drawee must be clearly mentioned.
It must be dated and stamped.
Here's a project on College Stationery Management System. The front end of this application is made on Visual Basic .NET and back end is Microsoft Access 2007. You can refer this project to develop your own projects as well. This system includes Human Computer Interaction features wherein the system generates automated speech at particular selection of tools. Students pursuing BCA, BSc(IT). BSc(CS), B.Tech and other related courses can refer this project. You can also visit www.CodingAlpha.com to view the Source Code. Alternatively, Mail me on tushar.soni@outlook.com if you need the source code.
Please Comment or Like if you find this project interesting. Thanks.
College Stationery Management System VB 6.0 and Microsoft Access ProjectTushar Soni
Here's a project on College Stationery Management System. The front end of this application is made on Visual Basic 6.0 and back end is Microsoft Access 2007. You can refer this project to develop your own projects as well. Extremely easy Graphical User Interface. Students pursuing BCA, BSc(IT). BSc(CS), B.Tech and other related courses can refer this project. You can visit www.CodingAlpha.com to view the source code. Alternatively, Mail me on tushar.soni@outlook.com if you need the source code.
Please Comment or Like if you find this project interesting. Thanks.
TYPES OF PURCHASING SYSTEM
WHAT IS A PURCHASING SYSTEM?
FUNCTIONS OF PURCHASE DEPARTMENT
SUBCONTRACTING
TENDER
BLANKET ORDER
CAPITAL EQUIPMENT PURCHASE
PETTY CASH SYSTEM
IMPORTS
E-PURCHASING
ORDER ON TELEPHONE
RATE CONTRACT METHOD
STOCKLESS PURCHASING
Accrual accounting records revenue as earned and expense as incurred. This presentation explains the concept of accrual accounting and the basic terms that entail a balance sheet.
Basic of Financial Accounting - Easy NotesFaHaD .H. NooR
These notes will provide you understanding basic of financial accounting
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
Companies issue financial statements on a routine schedule. The statements are considered external because they are given to people outside of the company, with the primary recipients being owners/stockholders, as well as certain lenders. If a corporation's stock is publicly traded, however, its financial statements (and other financial reportings) tend to be widely circulated, and information will likely reach secondary recipients such as competitors, customers, employees, labor organizations, and investment analysts.
It's important to point out that the purpose of financial accounting is not to report the value of a company. Rather, its purpose is to provide enough information for others to assess the value of a company for themselves.If financial accounting is going to be useful, a company's reports need to be credible, easy to understand, and comparable to those of other companies. To this end, financial accounting follows a set of common rules known as accounting standards or generally accepted accounting principles (GAAP, pronounced "gap").
The second chapter of my book "The System of Accounting" named ledger making is presenting on slide share with the hope of getting rewards and comments by readers.
The Accounts Payment Cycle represents the sequence of all essential steps that must be followed by the production, purchasing/procurement, and accounting departments to complete all activities required for the procurement of goods and services comprising three major phases.
12 CRITICAL SLIDES Title slide your company’s name, a sho.docxhyacinthshackley2629
12 CRITICAL SLIDES
Title slide: your company’s name, a short company description, name of presenter(s) if presenting in person.
Your elevator pitch: a succinct description of your products or services, market, and competitive advantages. Use
vibrant language, and if possible, embed audio or video to demonstrate your product or service.
Page 1 of 5
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Size of opportunity: this is what investors — VCs even more so than angels — want to know. To what size can
your company potentially grow and what are your plans for future development?
Your specific target customers: who they are and the customer needs that your product or service will meet.
The market size: numbers and dollars, past growth, growth forecasts.
Page 2 of 5
6/4/2015https://strayer.vitalsource.com/books/9781933895475/print?from=343&to=348&skip_deskt...
The competition: division of market share, how your product compares to theirs, your value proposition in
comparison to the competition’s, and barriers to entry.
Your team: who they are, their past successes and experience, and why they are qualified to do the job.
The business model: how you will distribute your product, pricing strategies, how you will reach your customers.
Page 3 of 5
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Milestones: a time line that outlines when you expect to reach key achievements.
Financials: a brief summary of key points from your income statement, balance sheet, and/or cash flow
projections.
Page 4 of 5
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Funding: how much you are asking for in this round, how many future rounds are expected, how much you will
request during those rounds, and how the funds will be used.
The investment opportunity: potential exit strategies and financial return for investors.
Page 5 of 5
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Accounts Payable/Accounts Receivable
Special Project
Policies and Procedures for Ensuring the 3-Way Match Occurs before Paying Invoice
This Special Project is worth 100 points and is due no later than June 8th, the date of the final exam. This is not a group project. Each student is required to prepare individual responses. A deduction of 20 points will be made for evidence of joint preparation. Late assignments will be given no points.
I would expect responses to vary in length but do not anticipate anything less than 3 pages.
Instructions:
Now that you are somewhat familiar with the payables function in QuickBooks, you no doubt realize that the software does not include a feature that ensures a three-way match is made/has been made prior to paying an invoice. It is largely a manual process.
You first job as the newly appointed head of the Accounts Payable departm.
The poetry is taken from my book ' Philosophical Politics' says that welfare is the essence of politics and without it, there is no politics, no wisdom, and no people.
I am writing a book named Philosophical politics based on wisdom, peoples, and welfare which describes philosophically and hope to get the interest of political minds.
The book is based on my own thoughts and ideas whatever be of anyone is not necessary to agree to any thought and ideas of any mind.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
1. THE SYSTEM OF ACCOUNTING
Volume III
WRITTEN BY:
SYED AQEEL RAZA
MASTER OF COMMERCE & POLITICS
2. PURCHASES 1
ACCOUNTING FOR PURCHASES
The purchase is the result of exchanging values for
material and work by means of money or its equivalent for
the satisfaction of need and for generating profit in
business by the process of purchasing and selling. There
are three types of businesses involve purchases and sells
as in trading business, the person purchases goods and
sells it in anticipation of gain, in manufacturing business,
the concern purchases materials, gives it any shape and
sells and in services business which has no purchase
apparently but actually the services which are given to
service provider are the purchases for which the concern
who does purchase the services pays money to service
provider.
The purchases for business is considered a kind of
temporary asset involve in profit and loss under income
statement. It may also be said a kind of expense because
of purchasing for goods or expense for goods involves in
the cost of goods sold and can also say it the helping tool
for generating profit.
Purchase plays an important role in accounting.
<THE SYSTEM OF ACCOUNTING < VOLUME III<SYED AQEEL RAZA<aqeelraza@live.com>
3. PURCHASES 2
The purchase is debited to purchase account which
increases in expense or temporary asset and cash does
credit to a cash account which decreases the assets of an
entity.
There may be following three kinds of purchasing in
accounting;
1- PURCHASE FOR PERSONAL
2- PURCHASE FOR BUSINESS
3- PURCHASE FOR EXPENSES
PURCHASE FOR PERSONAL
No purchase is allowed in business for personal use and if
the proprietor does purchase something or takes anything
from the purchased goods, he will be withdrawing his
capital or goods at value.
If the owner or partner draw cash, the drawing is debited
to drawing account; drawing is a contra capital account;
and cash is credited which is a current asset and asset is
decreasing as;
Purchase moves accounting cycle.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
4. PURCHASES 3
Drawing (Cash)/debit
Cash (credit)/asset
In case of drawing goods by owner, the drawing reduces
merchandise at the value to Inventory account.
Drawing (Stock) /debit
Inventory (credit)
At the end of the period or in balance sheet the drawing
account is reduced by owner’s equity or capitalaccount as;
Capital (Cash)/debit
Drawing (Cash)/credit
Capital (Stock)/debit
Drawing (Inventory/Credit
No purchase is allowed in business for personal use.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
5. PURCHASES 4
PURCHASES FOR BUSINESS:
- Merchandise for trading
- Materials for manufacturing
- Assets for business
- Work against services
- Direct purchases
- Goods Receipt Note (GRN)
- Debit Note
- Account payable aging
Merchandise for Trading
In trading business, merchandise is purchased for sale against
profit. The trading business involves a person or persons who buy
products and sell to customer and links with manufacturers and
service providers.
Materials for manufacturing
The manufacturing business deals with materials wherein
manufacturer does purchases materials for making goods which
he wants to make something and then sells to traders, whole
sellers and also to retailers. The manufacturing business requires
manpower which is provided by services business in the shape of
employees. Thus, manufacturing business needs the help of
trading and services. It also requires land, building, plant and
machinery for operation.
The purchase is made for sale against profit.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
6. PURCHASES 5
Assets for business
In order to operate any business, assets are purchased like
land, building, plant, machinery, furniture, office
equipment, air conditioners, etc. etc. The depreciation
does contra to the most of the assets.
Direct Expenses
Most of the purchases involve in cartage wages, labor,
customs duty, octroi, taxes etc. are the direct expenses
which we can say that the direct purchase is because of
adding in the price of goods purchased and add in the
purchase in the income statement.
Work against services
The plant, machinery, furniture, office equipment or any
asset requires services for installation, inspection, fixing
and like these works the services are purchased for the
time being and the cost includes in the asset purchased. It
does not belong to profit and loss but become the part of
the asset.
Direct expenses are involved in business purchase.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
7. PURCHASES 6
PURCHASES FOR EXPENSES
Actually, the expenses which are paid for operating
business activities decrease income or increase loss than in
other words we can say that the expenses belong to profit
and loss as low expense high profit or high expense low
income.
The purchases are made for operating business activities
as to works and goods, reduce income and do not belong
to merchandise.
TYPES OF PURCHSAES
All purchases revolve around cash purchases and credit
purchases and any purchase can be made in cash or on
credit.
- Cash Purchases
- Credit Purchases
The purchase against expense is the part of income.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
8. PURCHASES 7
Cash Purchases
The cash purchase is the purchase which is made on
payment against getting anything on the spot or exchange
of value on the spot.
When a cash purchase is made, the following double entry
is made;
Purchases (Debit/Income Statement)
Cash (Credit/Asset)
The purchase is debited to purchase account which
belongs to the cost of goods sold and cash is credited to
cash account decreases assets of an entity.
Credit Purchase
Credit purchase is the purchase which is made later under
an agreement or mutual understanding of seller and
purchaser. Like this purchase, goods are obtained without
paying cash and cash is paid later.
Cash purchase orders payments on the spot but credit on later.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
PURCHASES 8
9. The credit purchase is the liability of purchaser and asset
of seller when it made, the following doubleentry is made;
Purchase (Debit)/Income Statement
Account Payable (Credit) Liability
When the liability is paid, the balance in payable account
will be reduced and to zero as;
Account payable (Debit)/Liability
Cash (Credit)/Asset
The result of purchase is to increase in purchase account
or expense account and decrease in an asset of the entity.
A purchase also results in the increase of inventory
requires further discussion.
The result of purchase is to pay money.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
10. PURCHASES 9
THE PROCEDURE OF PURCHASING AND RECORDING
The following documents or formats for purchasing and
maintaining purchases are simply made depend on the
nature of purchase;
- Purchase Requisition
- Indent
- Requisition
- Job Order
- Purchase Order
- Delivery Order
- Goods Receipt Note (GRN)
- Debit Note
- Account Payable Aging
The formats work like ladder to support recording the
system of accounting
The formats are designed to reach the desired result and
the desired to reach the balance of quantity and cost of
the item which identified in summary of stock.
The purchase requires a procedure to control it.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
11. PURCHASES 10
PURCHASE REQUISITION
In case of having no store for consumable items, the
purchases for departments are made by purchase
requisition and the purchase requisition is the document
which is prepared before purchasing of anything either on
cash or on credit. It is an internal document which is made
by the person who wants to require the item for his
department and sends it to purchase manager. The
purchase manager submits it to chief executive officer for
approval and on approval; he arranges to buy the items
required.
The purchase requisition may contain serial number,
description, quantity and cost approximately which is
prepared by the person who wants to require the item or
items for machinery, repair, maintenance, etc. for
department and sends it to purchase department duly
signed by the departmental head. The Purchase requisition
will be checked by purchase department. The purchase
department also ascertains the cost of the item or items
approximately and submits gets it approved for purchase.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
12. PURCHASES 11
The purchase requisition is designed below or may be
designed according to the requirement;
The Purchase requisition is an order to purchase in cash.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
13. PURCHASES 12
INDENT
Indent means to ask for consumable items useable in
office like printing, stationery, and general items. It will be
required in case of having a store for these items.
The indent for issuing consumable items may be specified
below;
Indent means to ask for consumable items.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
14. PURCHASES 13
REQUISITION
The requisition may relate to production which requires
raw materials, packing materials and plant, machinery and
building require repair and maintenance.
The requisition may be designed as;
Requisition relates items required for production and building use.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
15. PURCHASES 14
JOB ORDER
Job order is a written instruction to provide a
particular goods or services in order to perform
a work according to specified requirements,
time frame, and cost estimates.
Generally, the Job order relates to services
business and for manufacturing business
wherein services or goods required.
The following kinds of formats for job order or
work order may be made;
- Material issue for production
- Acquiring services from customer
- Issuing materials to engineers for outside clients;
It is also known as a work order form.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
16. PURCHASES 15
Material issue order form;
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
17. PURCHASES 16
Job order for acquiring services from customer;
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
18. PURCHASES 17
PURCHASE ORDER:
The purchase order is an agreement
between purchaser and seller and states
that the purchaser indents to purchase
goods and confirm the legal identity of the
purchaser. It also helps in comparison with
purchase invoice because of having column
quantity, description, unit price and the
value of goods. The deduction of sales tax
or any other instruction is known by
purchase order.
The purchase order is placed to buy goods
on credit subject to the delivery order.
Purchase order means the agreement of purchase.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
20. PURCHASES 19
DELIVERY ORDER
The delivery order is a document
which confirms the delivery of goods
as per purchase order. It requires the
receiving and checking of goods by
the purchaser.
The seller sends invoice, copy of
purchase order and delivery challan
duly checked and received by the
purchaser.
Delivery order confirms the receipt goods ordered.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
21. PURCHASES 20
The form or format means to cover any transaction.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
22. PURCHASES 21
GOODS RECEIVED NOTE (GRN)
The Goods Received Note (GRN) indicates that
the goods which were ordered have been
received by the purchaser. On receiving the
goods, the purchaser does a signature on Goods
Received Note as a receipt of goods.
The goods received note contains serial
number, description of goods, pack size, price,
ordered quantity, delivered quantity, and
remarks.
This document is very important for payment of
invoice which confirms the transaction.
The goods receipt note works like delivery order.
<THE SYSTEM OF ACCOUNTING < VOLUME III< SYED AQEEL RAZA<aqeelraza@live.com>
23. PURCHASES 22
The form or format is made according to requirement.
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DEBIT NOTE
If any defect in commodities is found, the purchaser will inform
the supplier for deduction of the amount payable by debit
memorandum. If the supplier accepts the request, he will issue a
credit memorandum for the deduction of amount receivable.
The debit memorandum reduces the liability to vendor and credit
memorandum reduces accounts receivable to the vendor.
Debit note is issued for deduction against the claim.
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ACCOUNT PAYABLE AGING
Account payable aging is made to pay the amount which is
payable to supplier against purchase on credit under the
agreement of time for payment.
Account payable aging controls payments payable.
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KIND OF STORES
There may be required many kinds of stores in
businesses dealing with materials or goods relating
to trading and producing. The manufacturing
business has wide expansion involves in materials
and finished goods so that; it must have stores for
consumable and materials in finished and unfinished
forms when the trading business must have Store for
trading goods.
1 - Consumable Store
- Stationery
- Machinery, Building Materials
2- Production Materials
- Materials
- Finished goods
Goods require stores.
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CONSUMABLE STORES
In case of having Store for consumable items, it must
require stores where all general items relating to building,
plant and machinery, office equipment and others in store
1 and stationery or office supplies in store 2 must be
maintained. It depends on the volume of business.
The benefit of maintaining stores for consumable is to
save time and money because of purchasing small items in
need requires person to purchase it, the person require
time and money, and time and money can be wasted for in
shape of conveyance and purchase from retailers for tiny
items and time which can be utilized in other works.
Besides time and money, the risk of handling cash is
minimized.
In order to purchase for stores, the purchase will be made
in cash or credit from whole sellers against cheques
instead of cash.
The items are of daily use in business come under consumable store.
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The purchase order and delivery order may be used for
consumable stores in case of purchasing items on credit as
they are mostly used for purchasing goods for business on
credit.
STORE I
In case of maintaining store for general items relating to
plant, machinery, office equipment and building, the
procedure of keeping record must be considered.
STORE II
The office supplies and stationery are frequently used in
business communication and maintaining records. The
store for office supplies can be maintained which saves
time, money and risk of cash.
The stores depend on the nature of business.
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MAINTAINING OF BUSINESS STOCK
In order to maintain stock of any kind either of
consumable or of business, a device is required to
Stock register
The stock register
- Consumable items
- Business stock
1- Trading
2- Manufacturing
3- Services
CONSUMABLE ITEMS
The stock register which contains pages of every item
could work like ledger is required to control consumable
items store one and store two which I have designed
below. The format is designed to reach the desired result
and the desired for them is a balance of quantity and cost
of the item which identified in summary of stock.
The business stock must have store and recording.
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The designing of format is to focus the transaction.
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PURCHASES 31
The stock register controls stock received and issued.
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The summary of stock register facilitates in making cost of
goods sold statement.
The result of stock is a summary of stock.
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WRITER’S VIEW
The purchase involves transactions and transaction is
made through payment on cash on the spot or on later. As
soon as the purchase occurs, the accounting cycle starts.
The purchase relates to the cost of goods which is made
after passing through many processes of purchasing. The
profit or loss is generated by sale and purchase and
purchase is the part of profit and loss. In the services
business, the purchase is the service of a person acquired
for completing the job just like employees, repairers etc.
The stock maintaining is because of purchasing.
Then we can say the purchase pays an important role in
accounting because of which no concept of sale is created
and the stock maintaining is because of purchasing.
WRITTEN BY:
SYED AQEEL RAZA
MASTER OF COMMERCE & POLITICS