Sept5    Purchased a building at a price of 36,000/= paying 15,000/= cash and incurring a liability of 21,000/=, Sept 10 Sold part of land for a price of 6000/=, collectible within three months. Book Keeping Accountants classify these transactions into two types: External transactions: (often called exchange transactions) are those involving economic events between two or more independent firms. Because here we have given the best B.com Books and Notes for all 3 years. Although this is recognised by accountants its ignored. Accounting extends beyond the process of creating records and reports. The broad concepts include: NB/ In addition financial statements include notes to the accounts which contain additional information useful to the interpretation of the statements. In the event that management is planning the sale or liquidation of the business, the going concern assumption and the cost principle are set aside and financial statements are prepared on the basis of estimated sales or liquidation values. Public Accounting Bangalore University. Full payment was made on this date. Students taking B.COM exams or students preparing for any subject of CA CS CMA or other finance exam will find the file very useful. The owner’s equity at December 31 of Year 1 amounted to $66,000. Increase cash and decrease  A/C receivable . Briefly explain the purpose of accounting. 10. In other words the transactions to be recorded should be at a arms length. As a result 1980 shilling is added to 1999 shilling as though all represent the same purchasing power. Purchased a motor van at a price of $7,000 terms $1,000 cash and the balance to be paid in 30 equal monthly installments. Although revenue often consist of cash, it may consist of any asset received such as customers promise to pay in the future (an account receivable) or the receipt of property from a customer. In corporation this statement is replaced by statement of retained earnings. For example, grouping all transactions in which cash is received or paid out is a logical step in developing useful information about the cash position of a business enterprise. What factors determine the development of these principles. Your email address will not be published. Or Accounting has been referred to as the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by the users of information. If the transactions of a business are to be recorded, classified and summarized into financial statements the accountants must be able to identify clearly the boundaries of the unit being accounted for. Obtained a short term loan from the bank for business use, Owner wrote gave a typewriter used in the business to:-. The organization for which Ngura works has a policy whereby vacant positions are filled from within the organization. Such investigations and the suggestions growing from them are known as management advisory services. Explain the system of creating accounting information stating clearly major sources of such information. This can accomplished either in the financial statement or in the notes accompanying the statements. It is sometimes called statement of financial position. Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute? Corporate administration BCOM First semester notes. FUNDAMENTALS OF ACCOUNTING I 1.1 Study Note - 1 ACCOUNTING PROCESS 1.1 INTRODUCTION Business is an economic activity undertaken with the motive of earning profits and to maximize the wealth for the owners. The life of a business must be divided into a series of relatively short accounting period  of equal length. General Accounting The service includes not only the preparation and filing of tax returns but also advice as to how transactions may be completed so as to incur the smallest tax. The recording of current market values require use of estimates, appraisals or opinions all of which are much more subjective. Quality is much better than local tuition, so results are much better. Financial Accounting can be defined as the analysis classification and recording of financial transactions and the ascertainment of their effect on the performance and financial position of an organisation /business/ firm / economic entry. 1500 received from the drugstore. A Business organisation structure, governance and management B Key environmental influences and constraints on business and accounting C History and role of accounting in business D Specific functions of accounting and internal financial control E Leading and managing individuals and teams F Recruiting and developing effective employees The assets liabilities and activities of the business are kept completely separate from those of the owner of the business and from those of other businesses. The objectivity principle holds that accounting data should be reported on a factual basis ie free from personal bias. In the examination, the auditor seeks to assure that the statements fairly reflect the company’s financial position and operating results and were prepared in accordance with generally accepted accounting principles from records kept in accordance with such principles. Financial statements show the financial position of the business at the time of the report and the operating results by which it arrived at this position. Accountants employed by a single enterprise are said to be in private accounting. Management relies on the outcome of performance appraisals to identify employees for promotion. The Sept. transactions are summarized below and the effects Date: Expenses are measured by the amount of assets consumed or the amount of liabilities incurred. Public accountants are individuals who offer their professional services and those of their employees to the public for a fee, in much the same manner as a lawyer or a consulting engineer. As an example, transaction (1) would be shown as follows: Transaction      Total                Liabilities        Owner’s Equity, (1)                          +                        +                      NC. A CPA, through training and experience, is well qualified to render important service in this area. Interpretation and analysis are not the sole province of the accountant. Accounting The Accounting programme is written by Niall Lothian, formerly Professor at Edinburgh Business School, Heriot-Watt University, and John Small, Professor Emeritus at Heriot-Watt University. 14th Sept purchased office furniture and equipment on credit form general equipment inc. for 5,400 – new asset and incurrence of liabilities. Financial Accounting. A large business, on the other hand, may have more than a hundred employees in its accounting department. Not all happenings of a business can be expressed in monetary terms although they may significantly affect the business. Purchased a motor vehicle truck for cash………………. 35,000/= from Furniture Ltd. paid Kshs 20,000/= cash and the balance to be paid within 30 days. 7- Service business & trading business Service business : do not have these inventories. Download Corporate Accounting Notes, PDF, Books, Syllabus for B COM, BBA 2021.We provide complete corporate accounting notes. BCOM 2nd Semester Question Papers 2014 to 2015 3. Managers of business enterprises use the management (managerial) accounting information in setting the overall goals, evaluating the performance of departments and individuals deciding whether to introduce a new line of products etc – used a base for further or future planning. Corporate administration BCOM First semester notes 8. corporate accounting bcom notes 9. It should be noted that not all business events can be measured and described in monetary terms. The government also imposes various type of tax. Sale of an asset Corporate Accounting study material includes corporate accounting notes, corporate accounting book, courses, case study, corporate accounting syllabus, question paper, MCQ, questions and answers and available in corporate accounting pdf form. The equity of the owner is the residual claim because the claim of the creditors usually comes first. Don't show me this again. Prepare a balance sheet include a figure for the total liabilities and owners equity. 1) The business or Accounting entity concept Auditing Accounting system can be classified broadly into two main categories. This gives specific financial information to meet the demands of the management. 3. accounting statistics communication economics environment law coast accounting income tax corporate law public finance principle of management fundamental of entrepreneurship corporate accounting auditing money and financial system information technology financial management principle of marketing and all types business notes ccsu meerut and dbrau agra b.com all notes pdf … The balance sheet reports the financial position of a business at a specific point in time. Trading firms usually have inventories of goods to be resold Debit Note A cash 50%  down payment was made with payment of the balance to be made within 60days. Assets have economic value because they contain service benefits that can be used in future  operations or sold to another entity. Purchased a van for Kshs. We can use this language to communicate financial transactions and their results. This means Accounting includes the design of accounting systems, preparation of financial statements, audits, studies , development of forecasts, income tax work, computer applications to accounting processes, and the analysis and interpretation of accounting information as an aid to making business decisions. They may be tangible assets e.g land, building and equipment or intangible assets e.g legal right such as accounts receivable, patent rights or rights to use leased assets). (adsbygoogle = window.adsbygoogle || []).push({}); The body of the Balance Sheet consist of: Assets To receive study notes directly to your email, CALL / TEXT / Whatsapp 0724 962 477. B.Com Books & Study Materials in PDF Free Download for 1st, 2nd, 3rd years: Are you studying Bachelors of Commerce (B.Com) Degree? Download revision notes for Introduction to Accounting class 11 Notes Accountancy and score high in exams. Each entity is assumed to own its assets (resources) and incur its liabilities(obligations). Download KASNEB CPA Notes New syllabus here.Click on the respective units to download the sample copies for quality confirmation. 13)Prudence Get the complete study material, ppt, courses, question paper, mcq. They aslo commonly engage CPAs to conduct additional investigations for the purpose of determining ways in which their operations may be improved . The tentative nature of periodic measurements should be understood by those who rely on periodic accounting information. Did you manage to finish the test papers on time? It must reflect compensation for the sale of goods or the performance of services.  Other types of revenue are –  interest, dividends, received on shares owned and rent received. Required fields are marked *. Private Accounting This equality may be expressed in equation form for a single proprietorship business as follows: Assets = Liabilities + Owner’s equity BCOM 2nd Semester “Financial Accounting” 2015 Question Papers. –     Immediate payment of 15000/= and payment of the Balance of 21,000/= within 90 days. 7) Revenue Recognition or The Realization Principle (adsbygoogle = window.adsbygoogle || []).push({}); 7. He or she will also supervise the clerical or data processing staff in recording the transactions and preparing the reports. Accounting is a comprehensive system to collect, analyze, and communicate financial information. Early in the year, the position of the head of the research and development department fell vacant and employees were encouraged to apply for the job. On June 1 Dan Robert deposited $68,000 cash in a bank account in the name of the new business, expert Service. Sept 2: Purchased land with a small office building suitable for his accounting practice. NB/ The Balance at every date is the same as the Balance Sheet prepared on the same date in the previous section. Users of accounting information should be given the most objective factual data available. What percentage of the classes you have watched? The list of assets show what resources the business own and the liabilities and owner’s equity shows who/what supplied them (and how much each group supplied). 11) Disclosure Principle ACCOUNTING GRADE 12 SESSION (LEARNER NOTES) INFORMATION 1. In addition to an annual audit by an independent firm of CPAs , many companies maintain a staff of internal auditors, who constantly check the records prepared and maintained in each department or company branch. Accounting information provides a basis for decision making by various users. Course Name – Introduction to Accounting Course Author - Jacqueline Peters-Richardson, Ministry of Education, Trinidad and Tobago Commonwealth of Learning Edition 1.0 _____ Commonwealth of Learning ©September 2011 Any part of this document may be reproduced without … Resources of a business are recorded initially at their cost under the cost principle. Withdrawal of cash or other assets by the owner. -Owner paid his daughter fees using business money………………………. Bcom 1 sem financial accounting question paper dec 2014 2. Revenues are increases in owners equity from the sale of goods or performance of services. The recording process may be performed in many ways: that is, by writing with pen or pencil, by printing with mechanical or electronic equipment, or by punching holes or making magnetic impressions on cards or tape. The distinction between Accounting and book-keeping. This principle underlie such practises as:-. You can also download all important files for B.COM exams from the download section of CAKART. Increase one asset, decrease another asset, and increase a liability. At the end of the lesson you should be able to:-. A balance sheet is a detailed expression of the accountingequation. Increase an asset and increase owner’s equity. Download CBSE class 11th revision notes for Chapter 1 Introduction to Accounting class 11 Notes Accountancy in PDF format for free. Whenever the owner of the business transfers cash or other assets to the business, the owner’s equity increase. Liabilities 1. Bcom E Business and Accounting Notes is available for download at www.cakart.in.The excellent download file is in the format of PDF. (adsbygoogle = window.adsbygoogle || []).push({}); Accounting statements are the end products of the accounting process, but a good place to begin the study of accounting. Accounting system can be classified broadly into. a. Accountancy and Law: These two subjects are closely related to each other. Introduction to Business Accounting 1. The creditors needs the accounting information so that they can be sure that they will receive back their money. Course. When balance sheet equality is expressed in equation form, the resulting equation is called the balance sheet equation. Used a personal check to pay for the supplies. They may be immediate cash payment such as wages and salaries or promise to pay cash in the future for services received such as advertising. Five transactions of Bruno Company are summarized below in equation form, with each of the five transactions identified by a letter. Sept 6: Johnstone purchased a dirt track motorcycle which he planned to  use  on weekend trips. Write about E … This was very fortunate purchase. List the following four column headings on a sheet of paper as follows: Transaction Total assets Liabilities                          Owner’s Equity. Sold equipment on credit for a price equal to its cost. Hence  they vary from one country to another. He joined the firm five years ago as a research assistant. Business Models of E-Commerce; Model Based on Transaction Type, Model Based onTransaction Party – B2B, B2C, C2B, C2C, E-Governance. Accounting principles may also be termed as standards assumptions conventions or concepts. For example, goods and services are purchases and sold, credit is extended to customers, debts are incurred, and cash is which can be expressed in monetary terms, and must be entered in accounting records. Accountants are responsible for the accumulation of these data. 10) Consistency Principle Accounting too, is a man-made art, one in which changes and improvements are continually being made in the process of communicating business information. Land                            89,200             Office Equipment                    26,240, Building                      24,000               Cash                                      10,008, Notes payable              30,200. The matching principle governs the timing of expense recognization in financial statements. A business transaction is an exchange of goods or services, and business transactions effect the elements of an accounting equation. Revenue should be recognized at the time goods are sold or services are rendered. To remove the line, buy a license. The sum of the assets shown on the balance sheet must equal liabilities plus the equity of the owner or owners of the business. Also on this date the account payable incurred by the purchase of tools and  equipment on June 5 paid in full. Banks  commonly require an audit of the financial statements of a company applying for a suitable loan, with the audit being performed by a CPA who is not an employee of the audited concern but an independent professional person working for a fee. Notes on relation of Accounting with other Subjects. -His son as a birthday present…………………………. Please also do not forget to provide review and comments that can be useful for other students planning to download the file. Prepare a balance sheet for the business entity Johnsstone& Sons CPA at September 9,2001. For this reason therefore the current market value of the assets are of little importance to  decision makers. By this transaction an new asset, A/C receivable was acquired but the Asset land was decreased by the same amount.- No charge in total assets. Sept 10: Sold the unused part of the lot to Carter’s Drugstore for a price of 6000. The  property valuer had indicated  that the land had a current fair value 50% greater than  the  office building. Liabilities are debts owed by a business to outside parties (called creditors). These are the Introduction to Accounting class 11 Notes Accountancy prepared by team of expert teachers. Statement summarizing cash receipts and payments of the business over the same period covered by the income statements. This principle implies that particular accounting method once adopted will not be changed from period to period. Financial accounting is concerned with the preparation of final accounts. Each of the times labeled Balances contains the same items as the balance sheet previously illustrated for the particular date. It covers all arrangements and combinations or adjustments of the orthodox information to provide the Chief Executive with the information from which he can control the business e.g. 4. Owner withdrew cash from the business……………. Paid a liability of the business……………………….. 2. She decided to put in practice the skills acquire during the four-year programme. Assets are economic resources (cash and non-cash resources owned by a business. Accounting 60,000 under the name of the business. Hence, accounting is identified as ‘language of business’. This information is used in making economic decisions. The private accountant may design or help the public accountant design the system used in recording the transactions. Sold equipment for cash at a price equal to its cost. Sept 1:.Sold personal investments consisting of an apartment building and some IBM stock for a total of $198,000 cash.Deposited $80,000 of this cash in a bank account in the name of the practice Jostone& Co CPA. Accountants are always concerned with the significance of the figures they have produced. (adsbygoogle = window.adsbygoogle || []).push({}); However,regardless of what transactions a business completes, its accounting equation must remain in balance. 8) Matching Principle or Expenses reorganization These are the economic activities of a business. 2) The going – concern assumption / continuity principle. Share this article with your friends! Planning to sleep well nights before the exams? General accounting has to do primarily with recording transactions, processing the recorded data, and preparing financial and other reports for the use of management, owners, creditors, and governmental agencies. Arrange the assets in the sequence.  Expenses are decreases in owner’s equity resulting from the cost incurred in order to earn revenue. Assets should not be over valued and liabilities or obligations should not be under valued. E-business includes E-commerce but also covers internal process such as production , inventory management , products development , finance , human resources , E-business strategy is more complex , productivity and cost savings . From general transaction recording conventions to the full accounting cycle and finally to important accounts, the book The name of the statement “Balance Sheet”, earnings from profitable operations of the business, In single proprietorship, the owner has right to withdraw cash or other assets from the business at any time. This may be demonstrated with the transactions below:  Assume that Robert started a business under the name Robert Real Estate Company and deposited Kshs. Financial accounting (BCA 306) Uploaded by. .The assets of Joytech Company amounted to $96,000 on December 31 of year 1, but c) increased to $136,000 by December 31 of Year 2. These three steps we have described i.e recording, classifying, and summarizing- are the means of creating accounting information. The following events occurred during September, some of these relate to the business entity, Jostone & Co CPA, and other are personal in nature and do not affect the business entity. May not qualify as an accounting principle but implies that Accountant must be conservative in their estimates and opinions. Materiality refers to the relative importance  of an item or an event.  An item is “material “ if knowledge of the item might reasonably influence the decisions of users of the financial statements. Company Law PDF notes; Financial Management PDF notes; Financial Reporting PDF notes; Section 4. On June 15,expert Service purchased tools and equipment to do repair work for a down payment of 31,440 cash and final payment of $2,800 due in 30days. This assists the users of accounting information who need reasonably current and comparable information-relating to prior accounting periods. Financial accounting is important branch of accounting. Yes, you can see the review and comments for Bcom E Business and Accounting Notes in the comments section of CAKART download page, click on the above image. b) The balance sheet of Border Inc. shows  that the owner’s  equity is  $192,000:  It  is equal to two-third the amount to total assets. Table of Contents1 Financial Accounting1.0.1 KNEC: Diploma in Business Management – Module I1.0.2 KNEC: Diploma in Human Resource Management – Module I1.0.3 KNEC: Diploma in Supply Chain Management – Module I1.1 Topic 1: Introduction to Accounting1.2 Topic 2: Accounting Concepts, Conventions and Bases1.3 Topic 3: Source Documents1.4 Topic 4: Books of Original Entry1.5 Topic … Definition of E-commerce:- Or . 2. The appraisal exercise of the organization has not been dome objectively and superiors have been awarding grades arbitrarily. This is the analysis classification and recording of financial transactions in books of Account. Trading business : are businesses that buy goods which will be resold to its buyers. On June 30, expert Service bought a motor van at a cost of $4,320. Here are Some famous Books and their Authors have a look! -Contractual provisions that may affect future cash flows eg terms and conditions of borrowing agreements commitments to buy or sell material amounts of assets. Jan5.     Performed services and was paid cash amounting to Kshs5,000/=. use of business cost accounting to determine the cost of a particular product IN A MULTI-PRODUCT ENTERPRISE Francis Rousse, Consultant, and Vu Quang Viet, United Nation Statistics Division Accounting information is useful to the following groups of people. Losses from unprofitable operations of the business. BCOM 2nd Semester “Financial Accounting” 2015 Question Papers. -Objective evidence exists as to the amount of revenue earned. 4. Download Fundamentals of Accounting Notes pdf. 5.    Jane graduated from the University with a degree in a Business Administration. Budgeting Accounting principles do not exist in nature but  are developed considering the most important objective of financial reporting. The phase of accounting that has to do with collecting, determining and controlling costs, particularly costs of producing a given product or service, is called cost accounting. To measure the profitability of an economic activity we must consider not only the revenue earned but also all the expenses incurred in the effort to produce this revenue. To keep books is to record transactions, and a bookkeeper is one who records transactions either manually with pen and ink or with a book keeping machine. Expenses Effects of transactions on the Accounting Equation. This is the establishment of budgets, standard costs and actual costs of operations, processes, activities or products; and the analysis of variances, profitability or social use of funds. Notes of operating system. Financial statements are set of accounting reports. these accounting measurements are used by stakeholders (owners, investors, creditors/bankers, etc.) Returned for credit some of the  office equipment  previously purchased on credit  but not yet paid for. Here is the recommended list of files similar to that you should also download, 1. Cancellation of liabilities requires either an outlay of assets (generally cash), or the performance of future services. (adsbygoogle = window.adsbygoogle || []).push({}); Accountants are employed in three main fields: In a public accounting, In private accounting, or in government. Below is specimen of an income statement showing the components. Owners equity is the owners interest in the assets of the business.

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