Question
Name the steps followed in accounting process.
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Answer
Accounting process begins with the origin and identification of business transaction and is followed by recording, classification and summarization of business transactions culminating in preparation of trial balance and financial statements, i.e., Profit & Loss Account and Balance Sheet. Following steps are followed in accounting process:
| Identification of Transactions | $\Rightarrow$ | Preparation of Vouchers | $\Rightarrow$ | Recording in books of original entry | $\Rightarrow$ | Posting to Ledger | $\Rightarrow$ | Preparation of Trial Balance and Financial Statements |
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Similar questions
Record the following transactions in a bank column cash book for December 2016:
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|
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₹
|
|
01
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Started business with cash
|
80,000
|
|
04
|
Deposited in bank
|
50,000
|
|
10
|
Received cash from Rahul
|
1,000
|
|
15
|
Bought goods for cash
|
8,000
|
|
22
|
Bought goods by cheque
|
10,000
|
|
25
|
Paid to Shyam by cash
|
20,000
|
|
30
|
Drew from Bank for office use
|
2,000
|
|
31
|
Rent paid by cheque
|
1,000
|
From the following transactions, state the nature of accounts and state the accounts which will be debited and credited:
- Ganesh started business with Cash ₹ 2,00,000.
- Purchased goods for Cash ₹ 60,000.
- Sold goods for cash ₹ 75,000.
- Purchased goods from Nakul on Credit for ₹ 80,000.
- Sold goods to Bhushan on Credit for ₹ 50,000.
- Paid Cash to Nakul ₹ 20,000.
- Received Cash from Bhushan ₹ 10,000.
- Paid salary ₹ 20,000.
On 15th February, 2019, X sold goods to Y for ₹ 60,000. On the same day, Y accepted a bill drawn upon him by X for three months for ₹ 60,000. X immediately discounted the bill at 15% p.a. at his bank and Y met the bill on maturity. Make Journal entries in the books of both the parties.
Prepare accounting equation from the following:
Asset = Cash ₹ 2,39,000 + Furniture ₹ 35,000 + Goods ₹ 20,000 = ₹ 2,94,000; Liabilities = Creditors ₹ 40,000 + Capital ₹ 2,54,000 = ₹ 2,94,000
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₹
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|
(a)
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Kunal started business with cash
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2,50,000
|
|
(b)
|
He purchased furniture for cash
|
35,000
|
|
(c)
|
He paid commission
|
2,000
|
|
(d)
|
He purchases goods on credit
|
40,000
|
|
(e)
|
He sold goods (costing ₹ 20,000) for cash
|
26,000
|
Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Deposit of Cash into Bank?
Deposit of Cash into Bank?
Journalise the following transactions:
|
2019
|
|
|
March 5
|
Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
|
|
March 10
|
Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.
|
Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount 10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.
What is retirement of a bill of exchange?
What is Sub-division of Journal?
Prepare Purchases Return Book of Aruna Stores, Kolkata from the following transactions and post them into Ledger: