Introduction to acccounting chapter 4 recording transactions(ledger)

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This document discusses source documents and common documents used in accounting for recording transactions in a ledger. Source documents provide evidence that transactions occurred and include bills, invoices, receipts, vouchers, order forms, and cheque stubs. Common documents include invoices, delivery orders, purchase orders, debit notes, credit notes, cheque books, bank pay-in slips, receipts, vouchers, and statements. Statements show the net amount owed by a customer for a given time period such as a month.

Economy & Finance Business

BIT 163 INTRODUCTION TO ACCOUNTING (RECORDING TRANSACTION LEDGER) CHAPTER FOUR

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Recording of Special Transactions of Accounting in Saparate books, includes : 1."Cash Book" for Cash, Bank & Discount transactions 2. "Purchase Book" for Credit purchases of goods 3. "Returns Outward Book" for Return of Credit purchases goods 4. "Sales Book" : Credit Sale of goods 5."Return Inwards Book" for Return of Credit Sold goods; 6. "Bills Receivable" book: Details of Bills drawn & 7. "Bills Payable" Book. 8. "Journal Proper": for the remaining Transactions. For more information visit - http://www.takshilalearning.com or call +91-8800999280

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Financial Assets: Debit vs Equity Securities.pptx

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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes. Two major Types: Debt Securities and Equity Securities. Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset. • The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government). • The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity. • The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments. • Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks. Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.  Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.  Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument <a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth. Concluding remarks Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.

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