Accounting
Here's the journal entries and ledger postings for the transactions, formatted in HTML:
Journal Entries in the Books of Ranjini
| Date | Account | Debit (₹) | Credit (₹) |
|---|---|---|---|
| March 1, 2021 | Cash Account | 15,000 | |
| Furniture Account | (Amount of Furniture - Assuming ₹10,000 for illustration) 10,000 | ||
| Capital Account | 25,000 | ||
| (Being business commenced with cash and furniture) | |||
| March 1, 2021 | Bank Account (HDFC) | 50,000 | |
| Cash Account | 50,000 | ||
| (Being cash deposited into bank) | |||
| March 5, 2021 | Purchase Account | 24,000 | |
| Cash Account | 24,000 | ||
| (Being goods purchased for cash) | |||
Ledger Accounts
Cash Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| March 1, 2021 | To Capital A/c | 15,000 | March 1, 2021 | By Bank A/c | 50,000 | ||
| March 5, 2021 | By Purchases A/c | 24,000 | |||||
| March 31, 2021 | By Balance c/d | (Balancing Figure) | |||||
| Total | Total |
Calculate the total for both sides and find the balancing figure to complete the ledger.
Bank Account (HDFC)
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| March 1, 2021 | To Cash A/c | 50,000 | March 31, 2021 | By Balance c/d | 50,000 | ||
| Total | Total |
This account is already balanced in this example.
Notes:
- J.F. stands for Journal Folio, which is the page number in the journal where the entry is recorded.
- The amount of furniture used is assumed. Replace the bracketed statement with the real cost of the furniture.
- c/d stands for carried down.
To calculate the trade discount on the coffee purchased from Kathmandu Mall, we need to apply the 10% discount to the original price.
Given:
- Quantity of Coffee: 30 kg
- Price per kg of Coffee: Rs. 2000
- Trade Discount: 10%
Calculation:
-
Total cost of coffee before discount:
30 kg * Rs. 2000/kg = Rs. 60,000
-
Trade discount amount:
10% of Rs. 60,000 = (10/100) * 60,000 = Rs. 6,000
Therefore, the trade discount on the coffee is Rs. 6,000.
The term "management accounting" was first officially coined in 1952 by the Management Accounting Team of the Anglo-American Council on Productivity.
This team was formed to study and promote productivity improvements, and their report helped to formalize and popularize the distinct field of management accounting.
Whether a bank loan is a current liability depends on its repayment terms.
-
Current Liability: If the portion of the bank loan is due within one year or the normal operating cycle (if longer), it is classified as a current liability.
-
Non-Current Liability: If the repayment period extends beyond one year, the loan is considered a non-current (or long-term) liability.
Therefore, a bank loan can be a current liability, but only if it meets the criteria of being due within one year.
For further information, you can refer to accounting textbooks or resources on financial accounting principles.
Accountancy, often referred to as accounting, is the process of systematically recording, measuring, and communicating financial information.
It involves:
- Identifying relevant financial transactions and events.
- Measuring these transactions in monetary terms.
- Recording and classifying the transactions.
- Summarizing and interpreting the recorded information.
- Reporting the information to interested users through financial statements and other reports.
Accountancy is essential for businesses and organizations to:
- Track their financial performance.
- Make informed decisions.
- Comply with legal and regulatory requirements.
- Communicate their financial position to stakeholders such as investors, creditors, and government agencies.
For more information, you can refer to: AccountingTools - What is accounting?