Control account is an account which maintains in the general ledger to represent a particular subsidiary ledger. There are two control accounts. 1 Sales Ledger Control account 2 Purchases Ledger Control Account
This document defines key concepts related to ledgers. It begins with defining a ledger as a summary of all transactions relating to an account over a period of time, showing the net effect. It then provides a flow chart and discusses the utilities of ledgers, including providing quick information on accounts, controlling transactions, preparing trial balances and financial statements. The document also covers the format of ledger accounts, the distinction between journals and ledgers, and the procedures for posting transactions to ledgers, including opening entries, compound entries, and balancing accounts.
Control accounts are ledger accounts used to control sections of the ledger. The balance on a control account should equal the total balances of the individual accounts it controls. Examples include a sales ledger control account that summarizes customer accounts and a purchases ledger control account that summarizes supplier accounts. Control accounts are kept in the general ledger and help locate errors, prevent fraud, and calculate totals for the financial statements.
Bank reconciliation statements chap 14 10th for moodlejtamg
This document discusses bank reconciliation statements. It defines bank reconciliation as comparing a business's bank statement to its cash book records to identify any differences. Differences can arise due to timing of transactions or omissions in recording items. The stages of bank reconciliation are outlined as comparing records, updating the cash book, correcting errors, balancing the cash book, and preparing a reconciliation statement. Reasons for differences include uncleared deposits and checks, as well as omitted bank fees or transfers. Reconciling accounts ensures accurate cash tracking.
This document discusses subsidiary books, which are books of original entry where transactions are first recorded. It provides examples of common subsidiary books like purchase books, sales books, cash books, bills receivable books and bills payable books. It also discusses the advantages of using subsidiary books and their various formats.
Control Accounts
Cambridge O Level
Cambridge IGCSE
Accounting
7110
7707
Control Accounts all the theories, past paper questions , model papers short notes
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
The document provides information about bank reconciliation. It explains that bank reconciliation is the process of matching a business's financial records to its bank records to identify any differences. The goal is to find and resolve discrepancies between the two sets of records. It discusses why bank reconciliation is important for businesses, including identifying errors, determining actual cash available, and reducing risk of theft. The document also defines key terms related to reconciling items like unrecorded deposits, unpresented checks, and bank charges and interest.
Human: Thank you for the summary. Can you summarize the specific bank reconciliation example provided in the last section of the document?
This document defines key concepts related to ledgers. It begins with defining a ledger as a summary of all transactions relating to an account over a period of time, showing the net effect. It then provides a flow chart and discusses the utilities of ledgers, including providing quick information on accounts, controlling transactions, preparing trial balances and financial statements. The document also covers the format of ledger accounts, the distinction between journals and ledgers, and the procedures for posting transactions to ledgers, including opening entries, compound entries, and balancing accounts.
Control accounts are ledger accounts used to control sections of the ledger. The balance on a control account should equal the total balances of the individual accounts it controls. Examples include a sales ledger control account that summarizes customer accounts and a purchases ledger control account that summarizes supplier accounts. Control accounts are kept in the general ledger and help locate errors, prevent fraud, and calculate totals for the financial statements.
Bank reconciliation statements chap 14 10th for moodlejtamg
This document discusses bank reconciliation statements. It defines bank reconciliation as comparing a business's bank statement to its cash book records to identify any differences. Differences can arise due to timing of transactions or omissions in recording items. The stages of bank reconciliation are outlined as comparing records, updating the cash book, correcting errors, balancing the cash book, and preparing a reconciliation statement. Reasons for differences include uncleared deposits and checks, as well as omitted bank fees or transfers. Reconciling accounts ensures accurate cash tracking.
This document discusses subsidiary books, which are books of original entry where transactions are first recorded. It provides examples of common subsidiary books like purchase books, sales books, cash books, bills receivable books and bills payable books. It also discusses the advantages of using subsidiary books and their various formats.
Control Accounts
Cambridge O Level
Cambridge IGCSE
Accounting
7110
7707
Control Accounts all the theories, past paper questions , model papers short notes
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
The document provides information about bank reconciliation. It explains that bank reconciliation is the process of matching a business's financial records to its bank records to identify any differences. The goal is to find and resolve discrepancies between the two sets of records. It discusses why bank reconciliation is important for businesses, including identifying errors, determining actual cash available, and reducing risk of theft. The document also defines key terms related to reconciling items like unrecorded deposits, unpresented checks, and bank charges and interest.
Human: Thank you for the summary. Can you summarize the specific bank reconciliation example provided in the last section of the document?
The document discusses trial balance, including its meaning, characteristics, objectives, and format. It provides examples of trial balances prepared from sample ledger account balances. It also includes exercises for the reader to practice preparing trial balances from given ledger account information.
A trial balance is a bookkeeping worksheet that compiles the debit and credit balances of all general ledger accounts. It is prepared periodically, usually at the end of a reporting period, to check that the mathematical totals of debits and credits in the general ledger are equal. It acts as the first step in preparing financial statements and ensures account balances are accurately extracted from ledgers. While a trial balance verifies arithmetic accuracy, some errors may remain undetected if offsetting incorrect debits and credits are made.
The document defines accounting as recording, classifying, and summarizing financial transactions and events to prepare financial statements. It discusses the basic accounting concepts like the accounting equation, assets, liabilities, equity, revenues and expenses. It also explains the key steps in accounting cycle which includes recording transactions, posting to ledger accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance and financial statements, and closing temporary accounts. The accounting cycle aims to generate useful financial information for decision making in the form of income statement, balance sheet, and other financial reports.
- Receivables are claims against other entities that are usually settled in cash, including trade receivables from normal operations and non-trade receivables from other activities.
- Accounts receivable must be adjusted on the balance sheet to reflect their net realizable value by creating an allowance for doubtful accounts to account for expected uncollectible amounts.
- There are two main methods for accounting for uncollectible receivables - the direct write-off method and estimated bad debts method.
The accounting cycle document describes the key steps in the accounting process. It involves recording transactions in daybooks, posting to ledgers, extracting a trial balance, and making adjustments. The main steps are:
1) Recording transactions in daybooks according to the type of transaction
2) Posting to the sales, purchases, and general ledgers
3) Extracting a trial balance to check the double entry system
4) Making closing entries and adjustments at the fiscal year end
The document discusses bank reconciliation statements, including:
- The objective is to understand pass books, cash books, reconciliation statements, and reasons for differences between the two records.
- Reasons for differences can include transactions not recorded in one book, delays in processing checks, or human errors.
- A bank reconciliation statement reconciles the balances in the cash book and pass book and identifies the causes of any differences.
The document discusses types of errors that can occur in accounting records and trial balances. It explains that a trial balance checks the arithmetic accuracy of accounts but not necessarily their accuracy. Errors can be of omission, commission, principle, compensation, original entry, or complete reversal. Specific examples are provided of different error types and the correcting journal entries.
This document discusses various subsidiary books used in accounting. It describes 8 main subsidiary books: cash book, purchase book, sales book, purchase return book, sales return book, bills receivable book, bills payable book, and journal proper. It provides details on the purpose and structure of each book for recording transactions in a specialized and organized manner before posting to the ledger.
Here are the journal entries for the transactions:
Jan 1: Capital 80,000
To Cash 80,000
(Commenced business with cash)
Jan 2: Bank 40,000
To Cash 40,000
(Deposited cash in bank)
Jan 3: Purchases 5,000
To Cash 5,000
(Purchased goods by paying cash)
Jan 4: Purchases 10,000
To Lipton & Co. 10,000
(Purchased goods from Lipton & Co. on credit)
Jan 5: Cash 11,000
To Sales 11,000
(Sold goods to Joy and received cash)
Here is the bank reconciliation statement presented to show the overdraft balance:
- Begin with the overdraft balance per the cash book
- Add any items that increase the overdraft
- Deduct any items that decrease the overdraft
- End with the overdraft balance per the bank statement
This presentation clearly shows the bank overdraft position.
- Subsidiary books are sub-divisions of the journal where transactions of a similar nature are recorded instead of one journal. This includes books like purchases book, sales book, returns book, and cash book.
- Maintaining subsidiary books provides benefits like proper recording of transactions, convenient posting, division of work, and prevention of errors. The cash book specifically shows the cash and bank balances and helps in effective cash management.
- There are different types of cash books - single column for only cash, double column with cash and discount, and three column with cash, discount, and bank columns. Subsidiary books like purchases book and sales book also have specified formats for recording transactions.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
1) The accounting equation shows that a company's assets are always equal to its liabilities plus equity.
2) Double entry accounting requires every transaction to have equal debits and credits so the accounting equation remains balanced.
3) Examples of transactions that affect the accounting equation include purchasing inventory, receiving payment from customers, and paying expenses.
The document provides an overview of the procure to pay (P2P) process, including its objectives and key stages. It describes the inputs, stages, and outputs of the P2P process. The main stages covered are purchase requisition, vendor management, purchase order, receiving of goods, invoice receipt, and payment. It also discusses objectives of the P2P cycle such as efficient planning, purchase controls, time management, production controls, and vendor selection and management.
The document defines a trial balance as a statement showing the debit and credit balances from the ledger. It helps ensure arithmetic accuracy and facilitates preparing final accounts. A trial balance operates under the basic principle of double-entry bookkeeping, where assets and expenses have debit balances while liabilities and incomes have credit balances. Preparing a trial balance allows a business to check arithmetic accuracy, identify errors if the trial balance does not balance, and obtain summarized account information to help in financial statement preparation. There are three common methods for preparing a trial balance - the totals method, balances method, and totals-cum-balances method.
clubs & societies : final accounts of non - profit organisationsSanjaya Jayasundara
- The document provides information about accounting for clubs and societies, including preparing receipts and payments accounts, income statements for trading activities, subscriptions accounts, income and expenditure accounts, and statements of financial position.
- It includes examples of preparing these accounts for a fictional sports club called the SSS Sports Club, which has members' subscriptions as its main source of income and also runs a shop selling sportswear.
- Key terms discussed include accumulated fund, which is equivalent to capital for non-profit organizations, and how profits/losses from trading activities are treated differently than in a normal business.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
A bank is a financial institution that creates money by lending money to borrowers, generating corresponding deposits on its balance sheet. Cash books and pass books are accounting records used by banks and customers. A bank reconciliation statement reconciles the balance in a cash book to the balance in a pass book, accounting for discrepancies like outstanding deposits or checks. Common reconciling items include checks that have been deposited but not cleared, checks issued but not cashed, bank charges, interest earned, and direct payments made by the bank.
The document discusses self-balancing ledgers, which are ledgers maintained separately for debtors, creditors, and general accounts. This allows for smooth record keeping and division of work in large businesses with many accounts. Specifically, it describes how a sales ledger tracks debtor accounts, a purchase ledger tracks creditor accounts, and a general ledger contains all other accounts. Adjustment accounts are used to balance each ledger and ensure the accuracy of postings between ledgers. Maintaining self-balancing ledgers provides advantages like easier error detection, verification of individual ledgers, and strengthening of internal controls.
The document discusses trial balance, including its meaning, characteristics, objectives, and format. It provides examples of trial balances prepared from sample ledger account balances. It also includes exercises for the reader to practice preparing trial balances from given ledger account information.
A trial balance is a bookkeeping worksheet that compiles the debit and credit balances of all general ledger accounts. It is prepared periodically, usually at the end of a reporting period, to check that the mathematical totals of debits and credits in the general ledger are equal. It acts as the first step in preparing financial statements and ensures account balances are accurately extracted from ledgers. While a trial balance verifies arithmetic accuracy, some errors may remain undetected if offsetting incorrect debits and credits are made.
The document defines accounting as recording, classifying, and summarizing financial transactions and events to prepare financial statements. It discusses the basic accounting concepts like the accounting equation, assets, liabilities, equity, revenues and expenses. It also explains the key steps in accounting cycle which includes recording transactions, posting to ledger accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance and financial statements, and closing temporary accounts. The accounting cycle aims to generate useful financial information for decision making in the form of income statement, balance sheet, and other financial reports.
- Receivables are claims against other entities that are usually settled in cash, including trade receivables from normal operations and non-trade receivables from other activities.
- Accounts receivable must be adjusted on the balance sheet to reflect their net realizable value by creating an allowance for doubtful accounts to account for expected uncollectible amounts.
- There are two main methods for accounting for uncollectible receivables - the direct write-off method and estimated bad debts method.
The accounting cycle document describes the key steps in the accounting process. It involves recording transactions in daybooks, posting to ledgers, extracting a trial balance, and making adjustments. The main steps are:
1) Recording transactions in daybooks according to the type of transaction
2) Posting to the sales, purchases, and general ledgers
3) Extracting a trial balance to check the double entry system
4) Making closing entries and adjustments at the fiscal year end
The document discusses bank reconciliation statements, including:
- The objective is to understand pass books, cash books, reconciliation statements, and reasons for differences between the two records.
- Reasons for differences can include transactions not recorded in one book, delays in processing checks, or human errors.
- A bank reconciliation statement reconciles the balances in the cash book and pass book and identifies the causes of any differences.
The document discusses types of errors that can occur in accounting records and trial balances. It explains that a trial balance checks the arithmetic accuracy of accounts but not necessarily their accuracy. Errors can be of omission, commission, principle, compensation, original entry, or complete reversal. Specific examples are provided of different error types and the correcting journal entries.
This document discusses various subsidiary books used in accounting. It describes 8 main subsidiary books: cash book, purchase book, sales book, purchase return book, sales return book, bills receivable book, bills payable book, and journal proper. It provides details on the purpose and structure of each book for recording transactions in a specialized and organized manner before posting to the ledger.
Here are the journal entries for the transactions:
Jan 1: Capital 80,000
To Cash 80,000
(Commenced business with cash)
Jan 2: Bank 40,000
To Cash 40,000
(Deposited cash in bank)
Jan 3: Purchases 5,000
To Cash 5,000
(Purchased goods by paying cash)
Jan 4: Purchases 10,000
To Lipton & Co. 10,000
(Purchased goods from Lipton & Co. on credit)
Jan 5: Cash 11,000
To Sales 11,000
(Sold goods to Joy and received cash)
Here is the bank reconciliation statement presented to show the overdraft balance:
- Begin with the overdraft balance per the cash book
- Add any items that increase the overdraft
- Deduct any items that decrease the overdraft
- End with the overdraft balance per the bank statement
This presentation clearly shows the bank overdraft position.
- Subsidiary books are sub-divisions of the journal where transactions of a similar nature are recorded instead of one journal. This includes books like purchases book, sales book, returns book, and cash book.
- Maintaining subsidiary books provides benefits like proper recording of transactions, convenient posting, division of work, and prevention of errors. The cash book specifically shows the cash and bank balances and helps in effective cash management.
- There are different types of cash books - single column for only cash, double column with cash and discount, and three column with cash, discount, and bank columns. Subsidiary books like purchases book and sales book also have specified formats for recording transactions.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
1) The accounting equation shows that a company's assets are always equal to its liabilities plus equity.
2) Double entry accounting requires every transaction to have equal debits and credits so the accounting equation remains balanced.
3) Examples of transactions that affect the accounting equation include purchasing inventory, receiving payment from customers, and paying expenses.
The document provides an overview of the procure to pay (P2P) process, including its objectives and key stages. It describes the inputs, stages, and outputs of the P2P process. The main stages covered are purchase requisition, vendor management, purchase order, receiving of goods, invoice receipt, and payment. It also discusses objectives of the P2P cycle such as efficient planning, purchase controls, time management, production controls, and vendor selection and management.
The document defines a trial balance as a statement showing the debit and credit balances from the ledger. It helps ensure arithmetic accuracy and facilitates preparing final accounts. A trial balance operates under the basic principle of double-entry bookkeeping, where assets and expenses have debit balances while liabilities and incomes have credit balances. Preparing a trial balance allows a business to check arithmetic accuracy, identify errors if the trial balance does not balance, and obtain summarized account information to help in financial statement preparation. There are three common methods for preparing a trial balance - the totals method, balances method, and totals-cum-balances method.
clubs & societies : final accounts of non - profit organisationsSanjaya Jayasundara
- The document provides information about accounting for clubs and societies, including preparing receipts and payments accounts, income statements for trading activities, subscriptions accounts, income and expenditure accounts, and statements of financial position.
- It includes examples of preparing these accounts for a fictional sports club called the SSS Sports Club, which has members' subscriptions as its main source of income and also runs a shop selling sportswear.
- Key terms discussed include accumulated fund, which is equivalent to capital for non-profit organizations, and how profits/losses from trading activities are treated differently than in a normal business.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
A bank is a financial institution that creates money by lending money to borrowers, generating corresponding deposits on its balance sheet. Cash books and pass books are accounting records used by banks and customers. A bank reconciliation statement reconciles the balance in a cash book to the balance in a pass book, accounting for discrepancies like outstanding deposits or checks. Common reconciling items include checks that have been deposited but not cleared, checks issued but not cashed, bank charges, interest earned, and direct payments made by the bank.
The document discusses self-balancing ledgers, which are ledgers maintained separately for debtors, creditors, and general accounts. This allows for smooth record keeping and division of work in large businesses with many accounts. Specifically, it describes how a sales ledger tracks debtor accounts, a purchase ledger tracks creditor accounts, and a general ledger contains all other accounts. Adjustment accounts are used to balance each ledger and ensure the accuracy of postings between ledgers. Maintaining self-balancing ledgers provides advantages like easier error detection, verification of individual ledgers, and strengthening of internal controls.
The document discusses sectional balancing and self balancing systems for accounting ledgers. Under sectional balancing, ledgers are divided into trade debtors/customers, trade creditors/suppliers, and general ledgers. Control accounts are used in the general ledger to complete the double entry for transactions involving debtors or creditors. Under self balancing, adjustment accounts are used across ledgers to complete the double entry in each ledger, allowing separate trial balances. The systems differ in how double entry and error detection are handled across ledgers.
The accounting cycle is a series of steps repeated every reporting period to record business transactions and close the books. It involves recording transactions in daybooks, posting to ledgers, extracting a trial balance, and drawing up financial statements. Transactions are first recorded in daybooks like sales, purchases, cash according to their nature. These are then posted to ledgers including the sales, purchases, and general ledgers. A trial balance is then extracted from ledger balances to check the double entry system. Finally, closing entries are made to transfer income and expense accounts to the profit and loss statement.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
The document provides an overview of the accounting process. It defines accounting and discusses its key principles and concepts. It describes the different branches and types of accounting. It then explains the accounting process which involves identifying transactions, preparing documents, recording transactions in a journal, posting to ledgers, preparing trial balances and final accounts such as profit and loss statements and balance sheets. It also discusses the different books of accounts used such as journals, ledgers and trial balances. Finally, it covers accounting systems and basics such as debits and credits, types of accounts and how to prepare and balance accounts.
The document discusses the need for internal auditing in accounting. It states that just as anything left idle will become faulty, accounting records also need checking to catch mistakes early and present accurate accounting. An internal auditor is needed to check transactions with an overview, examining source documents and recordings. Some of the internal auditor's responsibilities mentioned are checking purchase orders, invoices, bills, cash memos, inventory and consumables. The summary conveys that the document advocates for internal auditing to ensure accurate accounting by catching errors early.
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
The document discusses accounting concepts and the accounting cycle. It defines accounting as a tool for decision making. It distinguishes between financial and management accounting based on their users. It also describes the key components of the accounting cycle including journalizing transactions, the general journal, debit and credit rules, and how the double-entry system ensures equal debits and credits.
Trial balance and rectification of errorsItisha Sharma
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification – Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit – Rectification of errors appearing after the preparation of Final Accounts
The document provides information about accounting processes and procedures. It discusses transactions and events recorded in the general ledger. It describes different types of vouchers like supporting, journal, receipt, and payment vouchers. It also explains steps to prepare journal entries and the utility and limitations of journals. Furthermore, it discusses subsidiary books, ledger, trial balance and various financial statements like trading account, profit and loss account and balance sheet. It provides details about preparing bank reconciliation statements and their benefits.
- An account receivable represents money owed to a company for goods or services sold on credit. When an account receivable becomes uncollectible, it is recorded as a bad debt expense.
- There is an upside to offering credit sales by encouraging purchases, but there is a downside in that some customers will delay payment or not pay at all, creating bad debts.
- Companies must investigate outstanding accounts receivable to identify bad debts, which are difficult to determine if a customer is merely late or unable to pay. Accounting standards provide two methods to account for doubtful accounts and bad debts.
1. Accounting is the process of identifying, recording, and reporting economic information to help decision makers. It provides financial statements to various stakeholders like suppliers, customers, banks, and owners.
2. There are three types of accounts: real accounts for assets, personal accounts for persons, and nominal accounts for income and expenses. The double entry system records each transaction with a debit and credit entry.
3. Financial statements like the trading account, profit and loss statement, and balance sheet are prepared at the end of an accounting period to show the profitability and financial position of the organization.
The document provides an overview of basic accounting concepts and procedures. It explains that accounting involves recording business transactions, adjusting account balances, and preparing financial statements. Key steps include journalizing transactions, posting to ledger accounts, taking a trial balance, compiling adjustment data, preparing a worksheet, making adjustments, and generating financial statements. The accounting equation, types of accounts, debit/credit rules, and accounting cycle are also outlined.
Tally.ERP 9 is a comprehensive, flexible and easy-to-use accounting software that provides real-time processing and instant reports. It allows users to set up and manage multiple companies with integrated inventory and accounting features. Tally.ERP 9's key advantages include no accounting codes, speed, power, flexibility, multi-lingual capability and versatility for organizations of all sizes.
Subsidiary books are used to record business transactions in their original form in a classified manner as they occur. They provide important details and help simplify the ledger. Common types of subsidiary books include cash books, sales books, purchase books, sales/purchase return books, bills receivable/payable books, and journals. Maintaining subsidiary books makes it possible to record a high volume of transactions and also provides benefits like easy future reference and analysis.
This document defines accounting and outlines its primary functions and users. It discusses how accounting involves recording business transactions, summarizing results into reports, and providing assurance. Accounting aids decision making by showing how money is spent and the implications of different plans. Financial statements like the income statement and balance sheet are key outputs. The accounting cycle and double-entry bookkeeping are also summarized.
make entries in the relevant ledger accounts to record
the:
–– merger of two or more sole traders’ businesses to
form a partnership
–– merger of a sole trader’s business with an existing
partnership to form an enlarged partnership
–– acquisition of a sole trader’s business or partnership
by a limited company
• prepare income statements and statements of financial
position for the newly formed business following the
merger, for example the limited company acquiring the
partnership
• evaluate and discuss the advantages and disadvantages
of the proposed merger.
Advantages or reasons behind the business purchase(acquisition) and merger : Synergy, Vertical integration etc
Purchase consideration
Goodwill
Net Assets
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...Sanjaya Jayasundara
This document contains instructions for an accounting exam. It provides details such as the total marks, time allowed, materials permitted and questions that will be covered. Students are advised to show all working, use the space provided, and answer all questions in the required format and style. Calculators are permitted. The source material is contained in a separate booklet.
This document contains instructions and details for an accounting exam paper. It provides the candidate's details, date and time of the exam, materials allowed, and instructions to follow. It outlines the total marks for the paper and breakdown of marks for each question. The document contains two sample exam questions, including sub-questions requiring the preparation of accounting statements and explanations of accounting concepts.
Standard costing is a system that sets target costs and revenues based on expected efficient production. Variances are calculated by comparing standard costs to actual costs and revenues. Variances can be broken down into sub-variances to identify causes like changes in material prices, labor rates, or production efficiency. Managers use variance analysis to identify problem areas and make improvements to productivity and profits.
Investment Appraisal: Management Accounting Cambridge A Level Paper 3 last 2 questions: Payback period: Discounted Payback period: Accounting Rate of Return (ARR): Net Present Value (NPV): Internal Rate of Return (IRR) : Sensitivity Analysis: Cambridge A2 Standard Costing Past Papers
Budget : The financial plan for a short period of time: Individual Budgets : Purchases Budget: Production Budget: Sales Budget: Labour Budget: Trade Receivables Budget: Trade Payables Budget: Inventory Budget: Master Budgets: Cash Budget: Budgeted Income Statement : Budgeted Statement of Financial Position: Evaluation of Budgets ( Advantages and Disadvantages of Budget): recognize the effect of limiting factors on the preparation of budgets: prepare a flexed budget statement: entify and explain the causes of differences between actual and flexed budgeted data
• make business decisions and recommendations using supporting data
• discuss the behavioural aspects of budgeting
Standard Costing: Management Accounting Cambridge A Level Paper 3 last 2 questions: Payback period: Discounted Payback period: Accounting Rate of Return (ARR): Net Present Value (NPV): Internal Rate of Return (IRR) : Sensitivity Analysis: Cambridge A2 Standard Costing Past Papers
Activity Based Costing:
The latest costing method in this centaury;
Cost Drivers; Cost Pool; Cost Driver Rates ; All the ABC Cambridge A Level Past paper questions ; ABC Model questions
Introduction.
Discuss the role of the auditor
Discuss the auditor’s basis of opinion
Identify the records that require to be audited
Explain the connection between shareholders, directors and auditors
Understand what is meant by the term ‘true and fair view’
Discuss the role of directors.
Stewardship
Extra readings
Past paper questions.
Model questions.
Summary
Correction of accounting errors for a Level or level under National , Edexcel and Cambridge Syllabuses
Situations where errors take place:
Two types of errors , Errors which are not revealed by the trial balance and errors which are revealed by the trial balance, errors of omission , commission , principle, original entry , compensating and complete reversal , suspense account , past papers
Activity-based Costing
Cambridge A2
MA
Paper 03
Activity based costing: defined by CIMA
Cost drivers
Cost driver rate
Cost pools
Stages in using an Activity-Based Costing System
Advantages of Activity-Based Costing System
Dis-advantages/Limitations of Activity-Based Costing System
Efficient PHP Development Solutions for Dynamic Web ApplicationsHarwinder Singh
Unlock the full potential of your web projects with our expert PHP development solutions. From robust backend systems to dynamic front-end interfaces, we deliver scalable, secure, and high-performance applications tailored to your needs. Trust our skilled team to transform your ideas into reality with custom PHP programming, ensuring seamless functionality and a superior user experience.
Prescriptive analytics BA4206 Anna University PPTFreelance
Business analysis - Prescriptive analytics Introduction to Prescriptive analytics
Prescriptive Modeling
Non Linear Optimization
Demonstrating Business Performance Improvement
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SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
But wait. What happens when you fully integrate your WhatsApp campaigns with HubSpot?
That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
2. Control Accounts
* Introduction
* Advantages of Control Accounts
* Sales Ledger Control Account
* Purchases Ledger Control Account
* Balances on Both Sides of a Control Account
* Contra entries in Control Accounts
* Summary
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3. Introduction
At the end of an accounting period the accounts are balanced off and a trial
balance prepared to check the accuracy of the book keeping entries. If a trial
balance fails to balance this usually indicates that an error or errors may have
been made and needs to be identified. As the business expands the
accounting requirements increase which may lead to more errors occurring
which are very difficult to find.
To help alleviate the problem of identifying errors more easily, what is
required is a type of mini trial balance for the sales and purchase ledgers and
this is met by a control account. The two main control accounts are as follows.
* Sales ledger control account – an account which summarizes the
customer accounts (debtors) in the Sales Ledger.
* Purchases ledger control account – an account which summarizes
all the supplier accounts (creditors) in the Purchases Ledger.
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4. Advantages of Control Accounts
• Locating errors when the trial balance fails to balance.
• They are proof of the arithmetical accuracy of the ledgers they control.
• The balances on these accounts are regarded as being equal to the total
debtors and the total creditors, so this information is available
immediately.
• Draft final accounts can be prepared quickly because of the balances
provided by the control accounts.
• They help to reduce fraud as the control accounts are prepared by someone
who has not been involved in making the entries in those particular
ledgers.
• They provide a summary of the transactions affecting the debtors and
creditors for each financial period.
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5. Sales Ledger Control Account
This is also referred to as a total debtors account. This account resembles the
account of a debtor, but instead of containing transactions concerned with just
one person or business it contains transactions relating to all the debtors.
Sales Ledger Control Account
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Date Details Folio $ Date Details Folio $
Balance b/d ×× Sales returns ××
Sales ×××× Cash ×××
Bank (dishonoured Cheque) ×× Bank ×××
Bank/Cash (refunds) × Discount allowed ××
Interest charged × Bad debts ××
Balance c/d ××
×××× ××××
Balance b/d
6. Purchases Ledger Control Account
This is also known as a total creditors account. This account resembles the
account of a creditor, but instead of containing transactions concerned with
just one person or business it contains transactions relating to all the creditors.
Purchases ledger Control Account
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Date Details Folio $ Date Details Folio $
Purchases returns ×× Balance b/d ××
Cash ××× Purchases ××××
Bank ××× Interest charged ×
Discount received × Bank/Cash (refunds) ×
Balance c/d ××
×××× ××××
Balance b/d ××
7. Balances on Both Sides of a Control Account
Occasionally a debtor’s account may show a credit balance. This may occur due to the
following factors:
* an overpayment by the debtor.
* the debtor returning goods after paying the account.
* the debtor paying in advance for the goods.
* cash discount not being deducted before payment was made.
In the sales ledger control account it is usual to keep any credit balance
separate from the debit balance. The control account will, therefore, have two
balances – the usual debit balance representing money owing by debtors, and
the more unusual credit balance representing money owing to debtors.
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8. In a similar way, a creditor’s account can show a debit balance. This may occur
due to the following factors:
* an overpayment to the creditor.
* returning goods to the creditor after paying the account.
* paying the creditor in advance for the goods.
* cash discount not being deducted before payment was made.
As in the sales ledger control account, the debit balance and the credit
balance are shown separately in the purchases ledger control account. The
purchases ledger control account will, therefore, have two balances – the
usual credit balance representing money owing to creditors, and the more
unusual debit balance representing money owing by creditors.
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9. Contra entries in Control Accounts.
These are also known as inter-ledger transfers or set-offs.
It may happen that a business sells goods to another business and also buys
different goods from that business. This means that there will be two ledger
accounts for that business – one in the sales ledger and the other in the
purchases ledger.
Rather than each business sending the other a cheque to cover the amount
due, they may agree to set one account off against the other. Any remaining
amount will be settled by one business issuing a cheque.
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10. Summary
• The main purpose of control accounts is to assist in locating errors in the
sales ledger and the purchases ledger.
• A sales ledger control account resembles the account of a debtor but
contains transactions affecting all debtors.
• A purchases ledger control account resembles the account of a creditor but
contains transactions affecting all creditors.
• The information to prepare control accounts is obtained from the books of
prime entry.
• It is possible to have a balance on each side of a control account.
• If a business is both a customer and supplier, a contra entry may be made to
transfer a balance from the sales ledger account to the purchases ledger
account.
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