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Smart Accountant Training for beginners- Day 2.pptx
The document outlines a comprehensive overview of a Smart Accountant course, detailing the structure and contents of a Chart of Accounts (CoA), which is essential for recording and categorizing financial transactions. It explains the significance of CoA in managing financial data for better understanding and reporting of a business's financial health. Additionally, it covers various account types, their organization, and the role of CoA in ensuring accurate financial operations and analyses.
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Smart Accountant Training for beginners- Day 2.pptx
- 1. Welcome to Smart Accountantclass 200 Hrs 60 Hrs 140 Hrs Chart of Accounts 3 Months, 200 Hours 60 Hours of Class 140 Hours of Practicals
- 2. Registered Office M-51, RamakrishnaVihar, IP Extn. Patparganj, New Delhi – 110092 Registered Corporate Office Office No. 404, 410 & 411 Devika Tower, Chander Nagar, Ghaziabad – 201011 Contact 0120-4113633 9560054515 7840054515 www.virtualgroup.in 3 Months, 200 Hours 60 Hours of Class 140 Hours of Practicals
- 3. • Chart ofAccounts • Importance • Liabilities • Assets • Income • Expenditure Chart of Accounts Liabilities Assets Importance Chart of Accounts Income Expenditure
- 4. Chart of Accounts Achart of accounts (COA) is list of the accounts used by a business entity to record and categorize financial transactions. COA is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity. The accounts are listed in the order of assets, liabilities, owner's equity, revenue, and expenses. The chart of accounts establishes how the business will operate, what information will be captured, and what information will subsequently be readily retrievable by the system for reporting and other needs. Liabilities Assets Importance Chart of Accounts Income Expenditure
- 5. Chart of Accounts Haveyou ever wondered after hearing such phrases from accountants like "It's not in the chart of accounts. We don't know how to enter your transaction" or "We can't process your invoice without an account number." In case of new general ledger nothing moves forward unless chart of account has been finalized. While many non-financial managers feels that the client is unnecessarily slowing down payment by discussing chart of accounts too much. That's not really their purpose. Anyone who has some financial understanding knows that this structure needs to be finalized first before other discussions can start since it has a serious impact on the entire general ledger design. Liabilities Assets Chart of Accounts Importance Income Expenditure
- 6. Chart of Accounts Theentire recording process of any accounting system requires a basic organization of data so that the accounting data can be clubbed into meaningful accounts and represented in a way useful for the users and stakeholders. For example – purchases on credit from vendors through invoices can be later summarized and reported with some clarity as to what was purchased, why it was purchased, what organization(s) benefited from those expenditures, and what is the unpaid liability on account of all those purchases. Liabilities Assets Chart of Accounts Importance Income Expenditure
- 7. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure GroupHead Ledger's Name Type of Account Debit/Creditin VoucherEntry Proprietor's Capital Account Real Credit Partner's Capital Account Real Credit Share Capital Account Real Credit Drawings, Household Expenses, Self Insurance Policies Real Debit Liab ilities Chart of Accounts Capital Account
- 8. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure Group Head Ledger's Name Type of Account Debit/Creditin VoucherEntry General Reserve Real Credit Capital Reserve Real Credit Investment Allowance Reserve Real Credit Surplus of Income overExpenditure Real Credit Surplus of Expenditure overIncome Real Debit Chart of Accounts Liab ilities Reserves and Surplus
- 9. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry Bank Term Loan against Machinery, Building, Equipment etc Real Bank Car Loan or any other loan secured on any asset Real Money received from Directors and its Relatives Real Advances received from Customers Real Bank Overdraft Real Bank CC Limit Real At the time of Disbursement of Loan Credit At the time of Repayment of Loan - Lumpsum / EMI Debit Chart of Accounts Liab ilities Secured Loans Unsecured Loans
- 10. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure Group Head Ledger's Name Type of Account Debit/Creditin VoucherEntry Leave Encashment Provisions Real Credit Gratuity Provisions Real Credit Income Tax Provisions Real Credit Audit Fee Provisions Real Credit Legal and Filing fee Provisions Real Credit Chart of Accounts Liab ilities Provisions
- 11. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry GST Real VAT Real Sales tax Real Service Tax Real Excise Duty Real At the time of Liability Creation (Generally Sales) Credit At the time of Discharge of Liability Created (Generally Payment) Debit At the time of Input Credit Creation (Generally Purchase) Debit TDS - Contractor, Professional, Rent, Commission etc. At the time of Deduction of Tax Credit At the time of Discharge of Liability Created (Generally Payment) Debit Chart of Accounts Liab ilities Duties and Taxes
- 12. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure GroupHead Ledger'sName Typeof Account Debit/Creditin VoucherEntry Supplierswhosale goodstousonCreditterms Personal Atthe time ofpurcahse onCreditTerms Credit Atthe time ofmakingpaymenttoCrediotors Debit Chart of Accounts Liabilities Sundry Creditors
- 13. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure Group Head Ledger's Name Type of Account Debit /Credit in VoucherEntry Salary, Wages and Bonus Payable Real Credit Expenses Payable Real Credit Employee Benefits - PF Payable Real Credit Employee Benefits - ESI Payable Real Credit Credit Card Bills Payable Real Credit At the time of Payment of Current Liabilities Real Debit Chart of Accounts Liab ilities Current Liabilities
- 14. Chart of Accounts Importance Assets Chartof Accounts Liabilities Income Expenditure GroupHead Ledger'sName Typeof Account Debit/Creditin VoucherEntry DifferentLocations/Branchesare coveredhere Real Atthe time ofreceiptofMaterial orServicesfromBranch Credit Atthe time ofsendingofMaterial orServicestoBranch Debit Chart of Accounts Liabilities Branch/ Division
- 15. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry Building Real Debit Computers Real Debit Furniture and Fixtures Real Debit Fire Fighting Equipment Real Debit Office Equipment Real Debit Generator / Invertors Real Debit Land Real Debit Plant and Machinery Real Debit Printers / Photocopiers Real Debit At the time of sale of any Fixed Assets Credit Chart of Accounts Assets Fixed Assets
- 16. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure GroupHead Ledger's Name Type of Account Debit/Credit in VoucherEntry Shares Real Debit Debentures Real Debit Bonds, Govt. Securities Real Debit Mutual Fund Real Debit FDR's Real Debit Share Applicvation Money given Real Debit Infrastructure Bonds Real Debit At the time of sale of any investyment Credit Chart of Accounts Assets Investment
- 17. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure Group Head Ledger's Name Type of Account Debit/Creditin VoucherEntry Bank CurrentA/c Real Bank Saving A/c Real Cash Real Petty Cash Real ImprestAdvance' Real Atthe time of Receiptof Funds / Cash Deposit Debit Atthe time of Paymentorcash Withdrawal Credit Chart of Accounts Assets Bank Account Cash-in-Hand
- 18. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure GroupHead Ledger's Name Type of Account Debit/Creditin VoucherEntry Stock in General Real Debit Stock in case of Manufacturer Stock-in-Hand - Raw Material Real Debit Stock-in-Hand - Finished Goods Real Debit Stock-in-Hand - Work in Progress Real Debit Stock-in-Hand - PackingMaterial Real Debit Stock-in-Hand - Fuel Stores Real Debit Stock of Spare Parts and any otherpart generally in use Real Debit Chart of Accounts Assets Stock-in-Hand
- 19. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure Group Head Ledger's Name Type of Account Debit/Credit in VoucherEntry Interest Accrued on Deposit Real Debit Tax Deducted at Source (Receivable) Real Debit Tax claims Refund / Receivable Real Debit GSTRefund Receivable Real Debit VATRefund Receivable Real Debit Service Tax Refund Receivable Real Debit Excise SADRefund Receivable Real Debit Insurance Claim Receivable Real Debit Chart of Accounts Assets Current Assets
- 20. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure GroupHead Ledger's Name Type of Account Debit/Creditin VoucherEntry EarnestMoney Deposit Real Debit TenderDeposit Real Debit Depositswith Real Debit Electricity Supply company Real Debit Telephone service company Real Debit Municipality Real Debit Landlord againstRent Real Debit Assets Deposits(Assets) Chart of Accounts
- 21. Chart of Accounts Importance Liabilities Chartof Accounts Assets Income Expenditure GroupHead Ledger'sName TypeofAccount Debit/Creditin VoucherEntry AdvanceagainstSalarytoStaff Real Debit AdvancetoCreditors/Suppliers Real Debit AdvanceforExpenses Real Debit ShortTermAdvances Real Debit Chart of Accounts Assets Loansand Advances(Assets)
- 22. Chart of Accounts Importance Liabilities Chartof Accounts Income Assets Expenditure GroupHead Ledger'sName Type of Account Debit/Creditin VoucherEntry Sales Nominal Credit SalesReturn Nominal Debit JobWork Nominal Credit ConsultancyFee Nominal Credit Commission,Brokerage etcforTraders Nominal Credit Sales DirectIncome Chart of Accounts I ncom e
- 23. Chart of Accounts Importance Liabilities Chartof Accounts Income Assets Expenditure Group Head Ledger's Name Type of Account Debit/Creditin VoucherEntry Sales Tax Refund Nominal Credit Claims Refund Received Nominal Credit Discount on Purchases Nominal Credit Share Divident Income Nominal Credit Misc. Receipts Nominal Credit Interest received from Bonds, Bank deposits, Loan Given, Deventures, Customer Nominal Credit ForTraders Chart of Accounts I ndirect I ncom e
- 24. Chart of Accounts Importance Liabilities Chartof Accounts Income Assets Expenditure Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry Sales Tax Refund Nominal Credit Claims Refund Received Nominal Credit Discount on Purchases Nominal Credit Share Divident Income Nominal Credit Misc. Receipts Nominal Credit Interest received from Bonds, Bank deposits, Loan Given, Deventures, Customer Nominal Credit Excise Duty Drawback Nominal Credit Profit on sale of Assets Nominal Credit Sale of Scrap Nominal Credit Commission, Brokerage Received Nominal Credit For Manufacturer Chart of Accounts I n d irect I nco m e
- 25. Chart of Accounts Importance Liabilities Chartof Accounts Expenditure Assets Income GroupHead Ledger'sName Type of Account Debit/Creditin VoucherEntry Purchase Nominal Debit Purchase Return Nominal Credit In case we are notaware aboutthe correct accountof atransaction, such entry is parked forthe time beingin Suspense account Nominal Debit/ Credit Atthe time of passingthe entry Debit/ Credit Atthe time we know the correctaccountof the transaction Reversal entry Suspense Chart of Accounts Expenses Purchase
- 26. Chart of Accounts Importance Liabilities Chartof Accounts Expenditure Assets Income Group Head Ledger's Name Type of Account Debit /Creditin VoucherEntry Packing Material Nominal Debit Packing Expenses Nominal Debit Commission, Brokerage on Purchases Nominal Debit Freight on Purchase Nominal Debit Handling Expenses on Purchase Nominal Debit Labourand Wages Nominal Debit OtherTrading taxes which are non refundable like Entry Tax Nominal Debit ForTraders Chart of Accounts Direct Expenses
- 27. Chart of Accounts Importance Liabilities Chartof Accounts Expenditure Assets Income Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry Packing Material Nominal Debit Packing Expenses Nominal Debit Fuel Consumed Expenses Nominal Debit Laboratory Materail Nominal Debit Consumable and Stores consumed Nominal Debit Labour and Wages at Factory Nominal Debit Freight on Purchase Nominal Debit Octroi on Purchase Nominal Debit Factory Power Expenses Nominal Debit Material Purchase Nominal Debit Loading / Unloading on Purchase Nominal Debit Chart of Accounts Direct Expen ses For Manufacturer
- 28. Chart of Accounts Importance Liabilities Chartof Accounts Expenditure Assets Income Group Head Ledger's Name Type of Account Debit / Credit in Voucher Entry Salary and Bonus Expenses Nominal Debit Staff Welfare Nominal Debit Freight on Sales Nominal Debit Incentives to Staff Nominal Debit Depreciation Nominal Debit Printing and Stationery Expenses Nominal Debit Travelling Expenses Nominal Debit Postage and Courier Nominal Debit Rent Nominal Debit Repair and Maintainance Nominal Debit Communication Nominal Debit Hire Charges Nominal Debit Insurance Nominal Debit Legal and Professional fees Nominal Debit Audit Fee Nominal Debit Advertisement Nominal Debit Sales Promotion Nominal Debit Conference Nominal Debit Exhibition Nominal Debit Interest on Loan Nominal Debit Testing Expenses Nominal Debit Bank Interest and Charges Nominal Debit Misc Expenses Nominal Debit I n d ire ct Expe n s e s For Manufacturer as well as Traders Chart of Accounts
- 29.
- 30. Chart of Accounts 1.The chart of accounts is a: A. List of checks and check numbers B. List of accounts and account numbers C. List of inventory items and item numbers D. List of Customers and customer numbers Liabilities Assets Importance Chart of Accounts Income Expenditure
- 31. Chart of Accounts 1.The chart of accounts is a: A. List of checks and check numbers B. List of accounts and account numbers C. List of inventory items and item numbers D. List of Customers and customer numbers Liabilities Assets Importance Chart of Accounts Income Expenditure
- 32. Chart of Accounts 2.Income accounts in a company are used to track: A. Costs of items sold to customers B. Sales to customers and other revenue earned C. Purchases from vendors D. Costs that have expired or been consumed Liabilities Assets Importance Chart of Accounts Income Expenditure
- 33. Chart of Accounts 2.Income accounts in a company are used to track: A. Costs of items sold to customers B. Sales to customers and other revenue earned C. Purchases from vendors D. Costs that have expired or been consumed Liabilities Assets Importance Chart of Accounts Income Expenditure
- 34. Chart of Accounts 3.What are assets? A. Resources that a company owns with future benefit B. Amounts owed to others and are future obligations C. Net worth of a company D. Amounts paid to owners Liabilities Assets Importance Chart of Accounts Income Expenditure
- 35. Chart of Accounts 3.What are assets? A. Resources that a company owns with future benefit B. Amounts owed to others and are future obligations C. Net worth of a company D. Amounts paid to owners Liabilities Assets Importance Chart of Accounts Income Expenditure
- 36. Chart of Accounts 4.Which one of the following choices is not used to modify the chart of accounts? A. Adding new accounts B. Deleting unused accounts C. Deleting accounts with balances D. Editing accounts Liabilities Assets Importance Chart of Accounts Income Expenditure
- 37. Chart of Accounts 4.Which one of the following choices is not used to modify the chart of accounts? A. Adding new accounts B. Deleting unused accounts C. Deleting accounts with balances D. Editing accounts Liabilities Assets Importance Chart of Accounts Income Expenditure
- 38. Chart of Accounts 5.The chart of accounts is a listing of the accounts presently having balances in the general ledger: Liabilities Assets Importance Chart of Accounts Income Expenditure Some accounts listed in the chart of accounts will NOT have amounts recorded in them, especially if it is early in the accounting year.
- 39. Chart of Accounts 6.Some accounting software will classify some accounts as "income" accounts, while accountants might refer to these accounts as "revenue" accounts. Liabilities Assets Importance Chart of Accounts Income Expenditure Many people use the term income when referring to sales, service fees earned, contributions received, etc.
- 40. Chart of Accounts 7.The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a "1" might signify that the account is an asset account, a "6" might signify an operating expense, etc. Liabilities Assets Importance Chart of Accounts Income Expenditure Generally, the larger and more sophisticated the company, the more digits in the account numbers. For sorting the accounts into meaningful reports the various digits do signify a specific category.
- 41. Chart of Accounts 8.The accounts shown in the chart of accounts can be broadly classified into two categories: balance sheet accounts and Assets and Liabilities Account Liabilities Assets Importance Chart of Accounts Income Expenditure Correct answer is Balance Sheet account and Profit and Loss Account
- 42. Chart of Accounts 9.Every transaction will affect two accounts Liabilities Assets Importance Chart of Accounts Income Expenditure Two is the minimum number of accounts required to record a transaction; however, many transactions involve more than two accounts.
- 43. Chart of Accounts 10.In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's Line of Business Liabilities Assets Importance Chart of Accounts Income Expenditure Correct answer is Organisation Chart
- 44. Thank You Liabilities Assets Importance Chart ofAccounts Income Expenditure