Brahmanda Purana Puja Lakshan Vidhi 1892(Printed Text)_Alm_28 A_Devanagari -Khemraja Publisher_Part5
Accounting lakshan
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ACCOUNTINGPROCEEDPREVIOUS
WEL COME
ACCOUNTINGMAIN MENUMAIN MENU
NEXTNEXT
INTRODUCTION TO ACCOUNTING
ADJUSTMENTS
BANK RECONCILIATION
DEPRECIATION
QUIT
ACCOUNTINGMAIN MENUMAIN MENU
PREVIOUSPREVIOUS
MANGEMENT ACCOUNTING
COST ACCOUNTING
FINAL ACCOUNTS FORMATS
Accounting is an art of recording , Classifying and Summarizing , in a Significant manner and in terms of money transaction and event which are in part at Lst of a Financial Character and
interpreting the results there of
American institute of certified public Accounts
DEFINITION
PREVIOUS NEXT
FORMAT OF ACCOUNT
Date details page value Date details page value
PREVIOUS NEXT
ACCOUNTING EQUATIONS
EQUITY = ASSESTSCAPITAL + LIABILITIES = ASSESTS CAPITAL + LIABILITIES +INCOME =ASSESTS + EXPENDITURE
PREVIOUS NEXT
SUBSIDIARY BOOKS
CASH BOOK
PURCHASE DAY BOOK
SALES DAY BOOK
RETURN OUT WARDS BOOK
RETURN IN WARDS BOOK
PETTY CASH BOOK
JOURNAL PROPER
PREVIOUS
NEXT
DEALDEAL
PURCHASE
SALES
RETURN OUT WARDS
RETURN IN WARDS
DEPRECIATION, BAD DEBTS
SOURCE DOCUMENTSSOURCE DOCUMENTS
PURCHASE INVOCES
SALES INVOCES
DEBIT NOTE
CREDIT NOTE
JOURNALVOUCHERS
PREVIOUSNEXT
ERRORS OF ACCOUNTINGERRORS OF ACCOUNTING
ERRORS OF OMISSIONERRORS OF OMISSION
COMPENSATING ERRORSCOMPENSATING ERRORS
ERRORS OFPRINCIPLEERRORS OFPRINCIPLE
DUPLICATION ERRORSDUPLICATION ERRORS
PREVIOUS NEXT
Ex; pay Rs500/= for light bill.
Cash account
Light bill 500
Light bill account
Cash 500
PREVIOUS
NEXT
Ex ; received Rs1000/= for sales
Cash account
Sales 1000
Sales account
Cash 1000
PREVIOUS NEXT
Sri Lankan Accounting Standards
SL.A.S 3 – Presentation Of Financial Statements SL.A.S 5 – Inventories
SL.A.S 9 – Cash Flow Statements SL.A.S 10 - Accounting Policies, Changes In Accounting Estimates
& Errors
SL.A.S 12 -Events After the Balance Sheet Date
SL.A.S 18 - Property , Plant & Equipment
SL.A.S 36 - Provisions , Contingent Liabilities & Contingent Assets
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FINAL ACCOUNTS FORMATS
MAIN MENU NEXT
FINAL ACCOUNTSFINAL ACCOUNTS
Manufacturing AccountManufacturing Account
Trading Account Trading Account
Profit & Loss AccountProfit & Loss Account
NEXT MENU
FINAL ACCOUNTSFINAL ACCOUNTS
Profit & Loss Appropriation Account Profit & Loss Appropriation Account
Income StatementIncome Statement
Balance Sheet Balance Sheet
PREVIOUS
MANUFACUTURING ACCOUNTMANUFACUTURING ACCOUNTMANUFACUTURING ACCOUNTMANUFACUTURING ACCOUNT
Materials Opening stock x + Purchases x - Purchases (x) x
returns x
- Closing stock (x) Consumed Materials Cost x Direct wages xOther Expenses xPrime cost x Manufacturing
overhead cost x X
Manufacturing cost x
X
PREVIOUS
TRADING ACCOUNTTRADING ACCOUNT
Opening stock x+purchase x-return outwards (x) x
x- Closing stock (x)Sales cost x Gross profit x
X
Sales xReturn in wards (x)
X
PREVIOUS
PROFIT & LOSS ACCOUNTPROFIT & LOSS ACCOUNT
Establishment
expenses x
Selling & distribution
expenses x
Financial expenses x
Net profit x
X
Gross profit x
incomes x
X
PREVIOUS
PROFIT & LOSS APPROPRIATION ACCOUNTPROFIT & LOSS APPROPRIATION ACCOUNT
Interest on
Capital - A x
B x X
Salary - A x
B x X
Profit - A x
B x X
X
Profit X
Interest on
Drawings - A x
B x X
X
PREVIOUS
INCOME STATEMENT
Sales xxSales cost (x)Gross profit xx Incomes xSelling & distribution expenses xEstablishment expenses xFinancial expenses xOther expenses x (xx)Net profit before tax x Tax (x)Net profit after the tax X
PREVIOUS
BALANCE SHEETBALANCE SHEET
PREVIOUS
HORIZONTAL METHOD
VERTICAL METHOD
BALANCE SHEETBALANCE SHEET
Capital x
+profit x
Long term liabilities x
Current liabilities Accrued expenses x Income received in
Advance x
X
Fixed assests x
Intangible assests x
Current assests Accrued income x
X
PREVIOUS
BALANCE SHEET
Non current assets
Property, plant & equipment xCurrent assetsInventories x
Total assets xxEquity x
Long term liabilities x
Current liabilities x
Total equity & liabilities xx
PREVIOUS
DEPRECIATIONDEPRECIATION
STRAIGHT LINE METHODSTRAIGHT LINE METHOD DIMINISHING / REDUCING BALANCE DIMINISHING / REDUCING BALANCE
METHODMETHOD SUM OF YEARS DIGITS METHODSUM OF YEARS DIGITS METHOD REVALUATION METHODREVALUATION METHOD PRODUCTION UNITS METHODPRODUCTION UNITS METHOD
MAIN MENUMAIN MENU
STRAIGHT LINE METHODSTRAIGHT LINE METHOD
ANNUITY = COST – SCRAP VALUEANNUITY = COST – SCRAP VALUE
DEPRICIATION EFFECTIVE LIFEDEPRICIATION EFFECTIVE LIFE
NEXTNEXT
Cost – 150000Cost – 150000 Effective life – 3 YearsEffective life – 3 Years Scrap value – 30000Scrap value – 30000Count the Annuity depreciation in Straight line method.Count the Annuity depreciation in Straight line method.
40000 40000
40000
1st Year = 150000 – 30000 3
2nd Year = 150000 – 30000 3
3rd Year = 150000 – 30000 3
NEXTNEXT
40000 40000
40000
TOTAL COST = 150000TOTAL COST = 150000
TOTAL DEPRECIATION = (120000)TOTAL DEPRECIATION = (120000)
SCRAP VALUE = 30000SCRAP VALUE = 30000
++ ++
MENUMENU
REDUCING BALANCE METHODREDUCING BALANCE METHOD
R = 1 - N SR = 1 - N S CC
R R = Depreciation Percentage = Depreciation Percentage N N = Effective life= Effective lifeS S = Scrap value= Scrap valueC C = Cost= Cost
NEXTNEXT
Cost = 1000Cost = 1000
Effective life = 3 yearsEffective life = 3 years
Scrap value = 125Scrap value = 125
1. Count the depreciation percentage.1. Count the depreciation percentage.
R = 1 - 3 125 R = 1 - 3 125
1000 1000 = 1- 0.5
0.5 = 50%NEXTNEXT
2. Count the annuity depreciation in reducing 2. Count the annuity depreciation in reducing
balance methodbalance method 1st Year = 1000 50
100
2nd Year = 500 50 100
3rd Year = 125 50 100
= 500 = 250
= 125
NEXTNEXT
500500 250250
125125
++ ++
TOTAL COST = 1000TOTAL COST = 1000
TOTAL DEPRECIATION = (875)TOTAL DEPRECIATION = (875)
SCRAP VALUE = 125SCRAP VALUE = 125
MENUMENU
MANGEMENT ACCOUNTING
• RATIO ANALYSIS
MAIN MENU
RATIO ANALYSIS
• PROFITABILITY RATIOS
• LIQUIDITY RATIOS
• ACTIVITY RATIOS
• GEARING RATIOS
• INVESTORS’S RATIOS
MENU
PROFITABILITY RATIOS• GROSS PROFIT RATIO• NET PROFIT RATIO• RETURN ON INVESTMENT RETURN ON TOTAL ASSETS RETURN ON NET ASSETS RETURN ON CAPITAL EMPLOYED
PREVIOUS
GROSS PROFIT RATIO
• GROSS PROFIT = RATIO
GROSS PROFIT 100
SALES
PREVIOUS
PROFITABILITY RATIOS
NET PROFIT RATIO
• NET PROFIT RATIO = NET PROFIT 100 SALES
PREVIOUS
PROFITABILITY RATIOS
RETURN ON TOTAL ASSETS RATIO
• RETURN ON TOTAL
ASSETS RATIO = NET PROFIT AFTER 100
THE TAX + INTEREST
NET ASSETS
PREVIOUS
PROFITABILITY RATIOS
LIQUIDITY RATIOS
• CURRENT RATIO
• ACIDTEST RATIO
PREVIOUS
CURRENT RATIO
• CURRENT RATIO = CURRENT ASSETSCURRENT LIABILITIES
PREVIOUS
LIQUIDITY RATIOS
ACIDTEST RATIO
• ACIDTEST RATIO = LIQUID ASSETS
CURRENT LIABILITIES
PREVIOUS
LIQUIDITY RATIOS
ACTIVITY RATIOS
• STOCK TURNOVER RATIO• STOCK RESIDENT RATIO• DEBTORS TURNOVER RATIO• AVERAGE DEBT COLLECTION
PERIOD• TOTAL ASSETS TURNOVER RATIO• FIXED ASSETS TURNOVER RATIO
PREVIOUS
STOCK TURNOVER RATIO
• STOCK TURNOVER = RATIO
SALES COSTAVERAGE STOCK
PREVIOUS
ACTIVITY RATIOS
STOCK RESIDENT RATIO
• STOCK RESIDENT = RATIO
365 (DAYS) OR 12 (MONTHS)STOCK TURNOVER RATIO
PREVIOUS
ACTIVITY RATIOS
DEBTORS TURNOVER RATIO
• DEBTORS TURNOVER = RATIO
CREDIT SALES AVERAGE DEBTORS
PREVIOUS
ACTIVITY RATIOS
AVERAGE DEBT COLLECTION PERIOD
• AVERAGE DEBT COLLECTION PERIOD =
365(DAYS) DEBTORS
TURNOVER RATIO
PREVIOUS
ACTIVITY RATIOS
TOTAL ASSETS TURNOVER RATIO
• TOTAL ASSETS TURNOVER = RATIO
SALES TOTAL ASSETS
PREVIOUS
ACTIVITY RATIOS
FIXED ASSETS TURNOVER RATIO
• FIXED ASSETS TURNOVER =
RATIO
SALES FIXED ASSETS
PREVIOUS
ACTIVITY RATIOS
GEARING RATIOS
• DEBT EQUITY RATIO• TOTAL CAPITAL TO DEBIT• INTEREST COVER
PREVIOUS
TOTAL CAPITAL TO DEBT
• TOTAL CAPITAL = TO DEBT
CAPITAL TO DEBTTOTAL CAPITAL
PREVIOUS
GEARING RATIOS
INTEREST TO COVER
• INTEREST TO COVER
=
NET PROFIT BEFOR TAX + INTEREST
INTEREST
PREVIOUS
GEARING RATIOS
INVESTORS’S RATIOS
• EARNING PER SHARE• PRICE EARNING RATIO• EARNING YIELD
PREVIOUS
ADJUSTMENTSADJUSTMENTS
CLOSING STOCKACCRUED EXPENSESPREPAID EXPENSESINCOME RECEIVABLEINCOME RECEIVABLE IN
ADVANCE
NEXTNEXTMAIN MENU
DRAWINGSBAD DEBTSPROVISIONING FOR DOUBTFUL DEBTSEPF & ETFASSEST DESTROYED DUE TO
FIRE / DUE TO THEFTS
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
CLOSING STOCKCLOSING STOCKINVENTORY ACCOUNT DEBIT TRADING ACCOUNT CREDIT
INVENTORY TRADING
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
ACCRUED EXPENSESACCRUED EXPENSES
EXPENSES ACCOUNT DEBIT ACCRUED EXPENSES CREDIT
EXPENSES ACCRUED EXPENSES
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
PREPAID EXPENSESPREPAID EXPENSES
PREPAID EXPENSES ACCOUNT DEBIT EXPENSES ACCOUNT CREDIT
PREPAID EXPENSES EXPENSES
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
INCOME RECEIVABLEINCOME RECEIVABLE
INCOME RECEIVABLE ACCOUNT DEBIT INCOME ACCOUNT CREDIT
INCOME RECEIVABLE INCOME
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
INCOME RECEIVABLE IN INCOME RECEIVABLE IN ADVANCEADVANCE
INCOME ACCOUNT DEBIT INCOME RECEIVABLE IN ADVANCE CREDIT
INCOME RECEIVABLE
INCOME IN ADVANCE
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
DRAWINGSDRAWINGS
DRAWINGS ACCOUNT DEBIT ASSETS ACCOUNT CREDIT
DRAWINGS ASSETS
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
BAD DEBTSBAD DEBTS
BAD DEBTS ACCOUNT DEBIT DEBTORS ACCOUNT CREDIT
BAD DEBTS DEBTORS
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
PROVISIONING FOR PROVISIONING FOR DOUBTFUL DEBTSDOUBTFUL DEBTS
DOUBTFUL DEBTS ACCOUNT DEBIT
PROVISIONING FOR DOUBTFUL DEBTS ACCOUNT CREDIT
DOUBTFUL DEBTS P. F.D.D.
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
EPF & ETFEPF & ETF
EPF
ETF
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
EPFEPF
EMPLOYEE
EMPLOYER
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
EPF - EMPLOYEEEPF - EMPLOYEE
SALARY ACCOUNT DEBIT EPF ACCOUNT CREDIT
SALARY EPF ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
EPF - EMPLOYEREPF - EMPLOYER
EPF EXPENSES ACCOUNT DEBIT EPF ACCOUNT CREDIT
EPF EXPENSES EPF
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
ETFETF
ETF EXPENSES ACCOUNT DEBIT
ETF ACCOUNT CREDIT
ETF EXPENSES ETF
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
ASSEST DESTROYED DUE TO ASSEST DESTROYED DUE TO FIRE / DUE TO THEFTS FIRE / DUE TO THEFTS
ASSEST DESTROYED ACCOUNT DEBIT
TRADING ACCOUNT CREDIT
ASSEST DESTROYED TRADING
ACCOUNT ACCOUNT
X X
ADJUSTMENTSADJUSTMENTS
PREVIOUSPREVIOUS
BANK RECONCILIATION
REVISED BANK BOOK
BANK RECONCILATION SATEMENT
EXERCISE
MAIN MENU
BANK RECONCILIATION SATEMENT
STARTING WITH A REVISED BANK BOOK BALANCE
STARTING WITH A BANK STATEMENT BALANCE
PREVIOUS
BANK ACCOUNT
DATE DETAILS AMOUNT DATE DETAILS AMOUNT
1/1/09 CASH DEPOSIT 30000 1/1/09 00659930 4000
2/1/09 CHEQUE DEPOSIT 8000 5/1/09 00659931 5000
29/1/09 CHEQUE DEPOSIT 2000 20/1/09 00659932 6000
21/1/09 00659933 5000
20/1/09 DRECT REMITTANCE 2000
23/1/09 00659934 8000
23/1/09 00659935 2000
31/1/09 BALANCE 10000
40000 40000
1/2/09 BALANCE 10000
DATE PARTICULARS DEBIT CREDIT BALANCE
1/1/09 CASH 30000 30000
4/1/09 00659930 4000 26000
8/1/09 00659931 5000 21000
11/1/09 CHEQUE 8000 29000
20/1/09 D.REMIT 2000 31000
23/1/09 00659933 5000 26000
25/1/09 00659935 2000 24000
28/1/09 S.O 3000 21000
30/1/09 B.CHARGES 1000 20000
BANK STATEMENT REVISED
28/1/09 ST.ORDER 3000
30/1/09 BANK CHARGES 1000
31/1/09 BALANCE 8000
42000 42000
1/2/09 BALANCE 8000
BANK RECONCILIATION STATEMENT
REVISED CASH BOOK BAL
+
CHEQUES ISSUED BUT
NOT TRANSFER - 00659932
00659934 14000
- 22000
CHEQUES DEPOSIT BUT
NOT REALIZATION ( )
BANK STATEMENT BALANCE 20000
8000
6000
8000
2000
PREVIOUS
REVISED BANK BOOK
BALANCE XX DIRECT REMITTANCES XX
XX
STANDING ODERS XX
XX
PREVIOUS
BANK RECONCILIATION STATEMENT
REVISED CASH BOOK BALANCE XX
+ CHEQUES ISSUED BUT NOT TRANSFER XX
- XXCHEQUES DEPOSIT BUT NOT REALIZATION (XX)
BANK STATEMENT BALANCE XX
PREVIOUS
BANK RECONCILIATION STATEMENT
BANK SATEMENT BALANCE XX
+ CHEQUES DEPOSIT BUT NOT REALIZATION XX
- XXCHEQUES ISSUED BUT NOT TRANSFER (XX)
REVISED CASH BOOK BALANCE XX
PREVIOUS
QUESTIONSQUESTIONS
MAIN MENUMAIN MENU
RATIO ANALYSISRATIO ANALYSIS
DEPRECIATIONDEPRECIATION
BANK RECONCILIATIONBANK RECONCILIATION
COST ACCOUNTINGCOST ACCOUNTING
FINAL ACCOUNTSFINAL ACCOUNTS
COST ACCOUNTINGCOST ACCOUNTING
ELEMENTS OF COSTELEMENTS OF COST
METERIALS COSTMETERIALS COST
LABOUR COSTLABOUR COST
EXPENSESEXPENSES
MAIN MENUMAIN MENU
METERIALS COSTMETERIALS COST
EQUATIONSEQUATIONS
PRICE METHODSPRICE METHODS
GRAPHGRAPH
MENUMENU
PRICE METHODSPRICE METHODS
FIRST IN FIRST OUT - FIFOFIRST IN FIRST OUT - FIFO
LAST IN FIRST OUT - LIFOLAST IN FIRST OUT - LIFO
SIMPLE AVERAGE METHODSIMPLE AVERAGE METHOD
MENUMENU
FIRST IN FIRST OUT - FIFODATE DEATILES PRICE QUANTITY
1/1/09 RECEIVED 10 400
10/1/09 ISSUED ? 300
20/1/09 RECEIVED 12 500
30/1/09 ISSUED ? 300
DATE RECEIVED ISSUED BALANCE
QUANTITY PRICE AMOUNT QUANTITY PRICE AMOUNT QUANTITY AMOUNT
1/1/09 400 10 4000 400 4000
10/1/09 300 10 3000 100 1000
20/1/09 500 12 6000 600 7000
30/1/09 100 10 1000 500 6000
200 12 3400 300
30036003600
STOCK VALUE =
PREVIOUS
LAST IN FIRST OUT - LIFO
DATE DEATILES PRICE QUANTITY
1/1/09 RECEIVED 10 400
10/1/09 ISSUED ? 300
20/1/09 RECEIVED 12 500
30/1/09 ISSUED ? 300
DATE RECEIVED ISSUED BALANCE
QUANTITY PRICE AMOUNT QUANTITY PRICE AMOUNT QUANTITY AMOUNT
1/1/09 400 10 4000 400 4000
10/1/09 300 10 3000 100 1000
20/1/09 500 12 6000 600 7000
30/1/09 300 12 3600 300
34003400
STOCK VALUE =
PREVIOUS
DATE DEATILES PRICE QUANTITY
1/1/09 RECEIVED 10 400
10/1/09 ISSUED ? 300
20/1/09 RECEIVED 12 500
30/1/09 ISSUED ? 300
DATE RECEIVED ISSUED BALANCE
QUANTITY PRICE AMOUNT QUANTITY PRICE AMOUNT QUANTITY AMOUNT
1/1/09 400 10 4000 400 4000
10/1/09 300 10 3000 100 1000
20/1/09 500 12 6000 600 7000
30/1/09 300 11 3300 300
37003700
STOCK VALUE =
SIMPLE AVERAGE METHOD
10 + 12
2 =
PREVIOUS
0 {
IDEL TIMEJANUARY FEBRUARY
15000
25000
20000
30000
10000
5000
• MINIMUM STOCK LEVEL 5000
• MAXIMUM STOCK LEVEL 25000
• RE ORDER LEVEL 10000
• RE ORDER QUANTITY 20000{PREVIOUS
EQUATIONS
• RE ORDER LEVEL
• MINIMUM STOCK LEVEL
• MAXIMUM STOCK LEVEL
• ECONOMIC ORDER QUANTITY
PREVIOUS
RE ORDER LEVEL
RE ORDER LEVEL = MAXIMUM CONSUMED MAXIMUM IDEL TIME
PREVIOUS
MINIMUM STOCK LEVEL
MINIMUM STOCK LEVEL =
RE ORDER LEVEL – (AVERAGE CONSUMED AVERAGE IDEL TIME)
PREVIOUS
MAXIMUM STOCK LEVEL
MAXIMUM STOCK LEVEL = (MINIMUM CONSUMED MINIMUM IDEL TIME) + RE ORDER QUANTITY
PREVIOUS
ECONOMIC ORDER QUANTITY
2DCoEOQ =
Cs
PREVIOUS
FINAL ACCOUNTSFINAL ACCOUNTS
TRADING ACCOUNTTRADING ACCOUNT
PROFIT & LOSS ACCOUNTPROFIT & LOSS ACCOUNT
PREVIOUSPREVIOUS
ACCOUNTIN ENVIRONMENT
LEGAL ENVIORMENT PROFESSIONAL ENVIORMENT ECONOMICAL & POLITICAL ENVIORMENT SOCIL & CULTURAL ENVIORMENT TECHNOLOGICAL ENVIORMENT
PREVIOUS NEXT
QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENT
UNDERSTANDABILITYRELEVENCERELIABILITYCOMPARABILITY
PREVIOUS NEXT
CREATED BY
LAKSHAN COORAY
Tel: 0716358322 / 0755749949
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