Here are the steps to do the opening ledger posting for the given transactions:
1. Create ledger accounts for each item - Asset, Liability and Capital accounts
2. Asset accounts
- Cash on Hand - Debit balance of Rs. 40,000
- Bank OD - Credit balance of Rs. 11,000
- Stock of Goods - Debit balance of Rs. 25,000
3. Liability account
- Capital - Credit balance of Rs. 80,000
4. Pass journal entries to record the transactions:
Cash on Hand A/c Dr. 40,000
To Capital A/c 40,000
Bank OD A/c Dr. 11,000
SAP FICO Consultant is one of the SAP modules which is in-demand and recognized internationally. SAPALLOnlineTraining offers online SAP FICO Consultant training
Oracle EBS ERP user group presentation. Originally presented in April 2007 at the COLLABORATE 07 conference in Las Vegas. Addresses EBS 11i but relevant to R12!
Inter- and Intracompany Setups
Document Sequences
Secondary Ledgers and additional setup options
Restricting ,Grouping Data and Security
Ledger Sets to Group Ledger Access
Data Access Sets
Security Rules
General Ledger Profile Options
A presentation on Asset Management in SAP. It includes important definitions, types of assets, asset life cycle, month-end activities and year-end activities.
SAP FICO Consultant is one of the SAP modules which is in-demand and recognized internationally. SAPALLOnlineTraining offers online SAP FICO Consultant training
Oracle EBS ERP user group presentation. Originally presented in April 2007 at the COLLABORATE 07 conference in Las Vegas. Addresses EBS 11i but relevant to R12!
Inter- and Intracompany Setups
Document Sequences
Secondary Ledgers and additional setup options
Restricting ,Grouping Data and Security
Ledger Sets to Group Ledger Access
Data Access Sets
Security Rules
General Ledger Profile Options
A presentation on Asset Management in SAP. It includes important definitions, types of assets, asset life cycle, month-end activities and year-end activities.
Chapter 3 ANALYZING AND RECORDING TRANSACTIONSPrinciples of EstelaJeffery653
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Chapter 3 ANALYZING AND RECORDING TRANSACTIONS
Principles of Accounting, Volume 1: Financial Accounting
PowerPoint Image Slideshow
Chapter Outline
3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements
3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
3.3 Define and Describe the Initial Steps in the Accounting Cycle
3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business Transactions on Financial Statements
3.5 Use Journal Entries to Record Transactions and Post to T-Accounts
3.6 Prepare a Trial Balance
Module 3.1 Describe Principles, Assumptions, and Concepts of
Accounting and Their Relationship to Financial Statements
The Financial Accounting Standards Board (FASB) is an independent, nonprofit organization that sets the standards for financial accounting and reporting, including generally accepted accounting principles (GAAP), for both public- and private-sector businesses in the United States.
GAAPÂ are the concepts, standards, and rules that guide the preparation and presentation of financial statements.
US accounting rules are called US GAAP.
International accounting rules are called International Financial Reporting Standards (IFRS).
Some companies that operate on a global scale may be able to report their financial statements using IFRS.
Publicly traded companies (those that offer their shares for sale on exchanges in the United States) have the reporting of their financial operations regulated by the Securities and Exchange Commission (SEC).
Teacher Notes: By having proper accounting standards such as US GAAP or IFRS, information presented publicly is considered comparable and reliable. As a result, financial statement users are more informed when making decisions.
3
The conceptual framework is a set of concepts that guide financial reporting. These concepts help ensure information is comparable and reliable to stakeholders.
Revenue recognition principle: directs a company to recognize revenue in the period in which it is earned; is earned when a product or service has been provided
Expense recognition (matching) principle: states that we must match expenses with associated revenues in the period in which the revenues were earned
Cost principle: states that virtually everything the company owns or controls (assets) must be recorded at its value at the date of acquisition
Full disclosure principle: states that a business must report any business activities that could affect what is reported on the financial statements
The Conceptual Framework
Teacher Notes: Revenue recognition is not dependent on when cash is received.
Expense recognition is not dependent on when cash is paid.
Matching is important so as not to overstate or understate income.
4
Separate entity concept: prescribes that a business may only report activities on financial statements that are specifically rela ...
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.
Module 2 - BackgroundPrinciples of AccountingConsider that acc.docxroushhsiu
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Module 2 - Background
Principles of Accounting
Consider that accounting terms are not always obvious in their meanings. If you are learning terminology or need to clarify a vocabulary item, a good reference for accounting terms is:
New York Society of Certified Public Accountants (2017) Accounting Terminology Guide - Over 1,000 Accounting and Finance Terms. Retrieved from:Â http://www.nysscpa.org/professional-resources/accounting-terminology-guide#sthash.UMS3kGjf.dpbs
For a glossary of general business terms:
Berry, T. (n.d.) Business terms glossary. BPlans. Retrieved from http://articles.bplans.com/business-term-glossary/
The Annual Report
The annual report is the way a firm summarizes its performance over the past year and where it sets a vision for the future. Publicly held companies (traded on the stock exchange) must prepare annual reports, and annual reports are usually public documents. Investors and the general public use annual reports as sources of information about the financial health of a company. We will be learning about reading annual reports to learn general accounting principles in the context of learning about a company and the industry in which it operates. Although we will not discuss all sections of an annual report, we will touch on the sections that have the most relevance to providing the HRM professional with the most helpful insights into the operations of the firm.
Front matter
This is largely text material that sets the stage for the quantitative data that follows.
The Opening letter to the Shareholders
The opening letter is generally the first section of the annual report and is a statement by the chairman of the board. The letter sets the stage for how the firmâs management wants you to view the report and the previous yearâs performance, and so in this sense sets the âstrategic intentâ of the report. A careful reading of the letter can give context to the numbers that follow by giving you clues of what to look for in terms of goals met â or problems that prevented goal attainment. The firm may be on the verge of explosive growth, or a meltdown.
Sales and Marketing
This section covers the companyâs product/service line. Typically, it also contains descriptions of key departments or groups and the work they do. By reading this section, you can deduce what products or services are most important to the firm and which divisions are seen as most critical to its success. This section can also give you clues as to what the future may hold.
The Auditorâs Letter
You might be tempted to skip this section, because it probably seems superfluous (like the terms and conditions acknowledgment on software updates. You know you donât read those!). However, you should know that by law, a publicly traded firm needs to be independently audited every year. This is to protect the investor, and the auditors will state whether or not the data the company presents is accurate and if they have sufficient controls in place to prevent frau ...
Similar to What is intercompany reconciliations (20)
Module 2 - BackgroundPrinciples of AccountingConsider that acc.docx
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What is intercompany reconciliations
1. What isintercompanyreconciliations
Intercompany reconciliation is reconciling between the two
branches of the same company located in multiple locations.
Where as one branch acts as seller to other branch when
some product is moved from Branch A to B branch.
Eg: - when Branch A sends some products to Branch B then in
this case. Branch A becomes the seller and Branch B becomes
the purchaser.
Just to put in simple words about the Inter company
reconciliation process, it is a reconciliation between the
receivables and the payables among two branches of a
company to make sure there is no cash loss within the
Business entity and to make sure if they have any
discrepancies, the reason for the difference. Also Intercompany reconciliation keeps a
record of the financial
status of a branch updated on a given period
2 :: What experience do you have with general ledger?
Experience to make entries of all cash and non cash transaction, purchase and sales for
cash and for credit
3 :: Explain What is an accrual?
Accrual basis of accounting means that the costs or revenues of events are recognized in
the period in which they occur, though the cash flows may take place in another accounting
period.
Like for a period of July 05 - October 05, if the organization was due to receive 1000K from
an individual X but has not recieved yet for some reason, will recieve in November 05. It
would be still be accounted for in the period July 05 - October 05 and not the period starting
from November 05.
4 :: Explain Which of the following is not included in the government accounting Balance
Sheet: 1) Asset, 2) Cost, 3) Liability, 4) Surplus.
5 :: Explain What qualities have you got that would make you a good accountant?
2. Aside from the obvious ones such as numeracy and interpersonal skills, key skills will
include determination and self discipline (to get through the difficult professional
examinations) and an interest in the business world generally. An ability to work in (and
ultimately lead) teams, strong analytical skills, good verbal and written communication skills
and curiosity (particularly on the audit side) are some of the others you could mention - if
you aren't strong in some of these areas then you may have problems making a persuasive
case for yourself.
You are likely to be asked many questions seeking evidence of these particular
competencies and will be expected to give examples which are backed up with evidence:
for example, if asked about your leadership qualities, you should give an example of where
you led a group successfully rather than just stating 'people always look to me to take the
lead'.
6:: Explain What is procedure for testing after implementation as functional consultant?
Testing involves a step by step check of various transactions configured in the SAP system.
Example: In case of MM we need to check say if the purchase cycle is working in the
system as it is in real business scenario i.e. whether it is generating PRs,RFQ,PO,GI,LIV
properly and there is no errors during transactions.
7 :: how strong in finance? justify sensex is the backbone of national income? Assume that
you are going to merge one company? what are the steps are u taken?
It is true that sensex is the backbone of national income. Sensex is an index that measures
the movement of the share prices of a group of major companies from different sectors of
the economy , which implies that it is a measure of shareholders' expectations of
companies' future performance based on future plans of companies and the overall
economic scenario.
8 :: What is the difference between ledger and general ledger?
General Ledger means, Those ledgers are using commonly in all types of business
organizations. eg: purchases, sales, printing&stationary, etc...Ledger means, which ledger
is created for the business organization requirement
3. 9 :: Explain What is about Future Period and Adjustment Period?
Future period means in oracle not yet opened, u can't post any entry in this period, U can
have two future periods or one displayed in calendar options, adjustment period means,
normally company may have 12 months, or 13 months as per co's requirements, if u have
13 month, Jan to Dec its 12 months, additional one month i.e dec say example 25th to 31st
Dec. So here we have 13 months, additional 5 days called adjustment period, this is use full
to enter additional entries Audit time,if your dec period is closed, u may still have 5 days
period to entry adjustment entries given by auditors.
10 :: Explain What is meant by business?
Business is an activity performed with the sole intention of earning profit. The activity may
vary according to the scope and volume.
11 :: Explain What is the significance of responsibility in oracle applications?
users cannot access the concurrent programs ( just like Forms) until unless the program is
attached to a responsibility through a ?Request Group?. Thus the responsibilities provide
the complete security by restricting access to forms, reports, tables( through data-groups)
and also to specific records ( through profile options like Set of Books Id, MO Org Id).
12 :: Please tell me what is a general ledger?
A general ledger is a complete record of financial transactions over the life of a company.
The ledger holds account information that is needed to prepare financial statements and
includes accounts for assets, liabilities, owner's equity, revenues and expenses.
13 Do you know what a general ledger account is?
A general ledger account is an account or record used to sort and store balance sheet and
income statement transactions.
Examples of general ledger accounts include:
The asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land and
Equipment.
14: Tell me about the difference between ledger and general ledger?
4. General Ledger are those ledgers are using commonly in all types of business
organizations.
Example:
purchases, sales, printing & stationary etc
Ledger is which ledger is created for the business organization requirement.
15 :: What qualities do you have that can make you a good accountant in general ledger?
Aside from the obvious ones such as numeracy and interpersonal skills, key skills will
include determination and self discipline (to get through the difficult professional
examinations) and an interest in the business world generally. An ability to work in (and
ultimately lead) teams, strong analytical skills, good verbal and written communication skills
and curiosity (particularly on the audit side) are some of the others you could mention, if you
are not strong in some of these areas then you may have problems making a persuasive
case for yourself.
16 :: Please give me your self introduction as a general ledger?
17 :: Tell me the procedure for testing after implementation as functional consultant in
general ledger?
Testing involves a step by step check of various transactions configured in the SAP system.
Example: In case of MM we need to check say if the purchase cycle is working in the
system as it is in real business scenario i.e. whether it is generating PRs, RFQ, PO, GI, LIV
properly and there is no errors during transactions.
18 :: Tell me how many periods should have in general ledger, taking into account the
annual closing?
There total periods will be 13. First 12 periods for each month and 13th period for the year
closing transactions.
19:: Which steps would you take before you approve an invoice for payment as a general
ledger?
This question measures your understanding of invoice verification process, so make sure
you have checked it out before going to the interview. Such a typical process should involve
5. checking to see if the received goods are in satisfactory manner, recording in the notebook.
One more thing, it is also good to describe the importance of each step to the interviewers.
20 :: Tell you know about Unix as general ledger?
Unix (all-caps UNIX for the trademark) is a family of multitasking, multiuser computer
operating systems that derive from the original unix, developed in the 1970s.
21 :: Why would you like to work with us as a general ledger?
More likely than not, the interviewer wishes to see how much you know about the company
culture and whether you can identify with the organization's values and vision. Every
organization has its strong points and these are the ones that you should highlight in your
answer.
22 :: What does mean by business as a general ledger?
Business is an economic activity involving the production or procurement and sale of certain
goods and services for the satisfaction of human need in the society.
23 :: What does a ledger posting means?
All the business transactions are first recorded in Journal or Subsidiary books in a
chronological order when they actually take place and from there the transactions of similar
nature are transferred to Ledger and this process of transferring is called as ledger posting.
24 :: Tell me what are control ledgers?
In a business, sometimes it is not feasible to carry accounts of all the suppliers and
customers in the main ledger. In such cases apart from general or main ledger, the control
ledgers are maintained. Control ledgers records the individual accounts. In the end of the
period, balance shown in the main ledger has to tally with the balance in the individual
ledger accounts maintained in the control ledger.
25 :: Tell me what are the purposes of maintaining control ledgers?
Purposes of maintaining control ledgers are:
â Sundry Debtors
6. â Sundry Creditors
â Advances to Staff
26:: What do you know about balancing a ledger account?
To know the net effect of all the business transactions recorded in the ledger account, the
accounts need to be balanced. Thus, Balancing of Ledger Account means the balances of
Debit and Credit side should be equal.
27 :: List some steps for balancing of ledger account?
This involves following steps:
â First total of both the sides are taken.
â Secondly difference between the totals of both the sides is calculated.
â If the debit side is in excess to the credit side then place the difference on the credit side
by writing By Balance c/fd.
â If the total of credit side is in excess to the debit side, place the difference on the debit
side by writing To Balance c/fd.
â After placing the difference on the appropriate side, make sure the totals of both the
sides are equal.
28 :: List some steps for reconciliation process at account level?
The reconciliation process at the account level typically comprises the following steps:
âBeginning balance investigation. Match the beginning balance in the account to the
ending reconciliation detail from the prior period. If the amounts do not match, investigate
the reason for the variance in the prior period. If the account has not been reconciled for
some time, it is possible that the error lies several periods in the past.
âCurrent period investigation. Match the transactions reported in the account within the
period to the underlying transactions, and adjust as necessary.
âAdjustments review. Review all adjusting journal entries recorded in the account within
the period for appropriateness, and adjust as necessary.
âReversals review. Ensure that all journal entries that should have reversed within the
period have been reversed.
âEnding balance review. Verify that the ending detail for the account matches the ending
account balance.
7. 29 :: List some steps of the concept of reconciliation of general ledger?
The concept of reconciling the general ledger can also refer to examining the general ledger
as a whole to ensure that all accounts are being aggregated into the financial statements.
This reconciliation process involves the following steps:
â Summarize the ending balances in all revenue accounts and verify that the aggregate
amount matches the revenue total in the income statement.
â Summarize the ending balances in all expense accounts and verify that the aggregate
amount matches the expense total in the income statement. This can be conducted at the
individual expense line item level in the income statement.
â Summarize all asset, liability and equity accounts and verify that the aggregate amounts
match the respective line items in the balance sheet.
30 :: Please tell us why should we hire you as a general ledger?
This is the part where you link your skills, experience, education and your personality to the
job itself. This is why you need to be utterly familiar with the job description as well as the
company culture. Remember though, it is best to back them up with actual examples of say,
how you are a good team player. It is possible that you may not have as much skills,
experience or qualifications as the other candidates. What then, will set you apart from the
rest? Energy and passion might.
31 :: How would you reconcile a general ledger?
The general ledger is the master set of accounts that aggregates all transactions recorded
for a business. When a person is reconciling the general ledger, this usually means that
individual accounts within the general ledger are being reviewed to ensure that the source
documents match the balances shown in each account. The reconciliation process is a
common activity just prior to the arrival of the auditors for the annual audit, to ensure that
the accounting records are in pristine condition.
32 :: Asset | liabilities
cash on hand 40000 bank o|d 1100 |stock of goods 25000 capital 80000
how to do opening ledger posting.
.