By Y P Singh
Read or Download Accounting and Financial Management for I. T. Professionals PDF
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Extra info for Accounting and Financial Management for I. T. Professionals
Discount (Nominal A/c) Trade discount (Discount not recorded in the books since it is reduced from the price payable) Cash discount (It is recorded in books of A/c since it is reduced from the amount due) Investments Investment account is a capital account as buying and selling policies and shares is not the core business. It cannot be shown in Purchase A/c. It is a real account and a separate investment account has to be maintained. Sundry Creditors Group of creditors are called sundry creditors.
Goes out, so Cr. it. 15. Transactions on March 28 Rule 1 Cash transaction Rule 1 Cash transaction Rule 1 Credit transaction Rule 2 Rule 3 A/Cs Involved Nature Cash A/c R Investment A/c R Rule 4 Apply ground Rule for entry in books of account Cash comes in, so Dr. it. Shares sold, so Cr. it. Rule 2 A/Cs Involved Cash A/c Sales A/c Rule 3 Nature R N Rule 4 Apply ground Rule for entry in books of account Cash comes in, so Dr. it. Income due to Sales, so Cr. it. Rule 2 Rule 3 A/Cs Involved Nature Investment A/c R Rule 4 Apply ground Rule for entry in books of account Profit Rs.
The information furnished by trial balance helps in identifying those items for adjustments in preparing final accounts. 4 TYPES OF ERRORS DURING BOOK-KEEPING PROCESS During book-keeping process starting from Recording of Transaction to Summarizing Transaction (trial balance) number of errors may occur because of lack of knowledge of accountant and because of clerical and arithmetical error. e. using accounting software for maintaining accounting transactions). T. Professionals Following is the types of error alongwith its impact over trial balance.