Download VTU MBA 1st Sem 17MBA13 Accounting for Managers AM Unit 2 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 1st Semester (First Semester) 17MBA13 Accounting for Managers AM Unit 2 Important Lecture Notes (MBA Study Material Notes)

Unit - 2
Preparation of books of Accounts
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Unit - 2
Preparation of books of Accounts
After identifying and measuring the financial transactions , the
accounting cycle begins
Step 1. Journalising: Recording the transaction in the journal
Step 2. Posting: Transfer the transactions in the respective
accounts opened in the ledger
Step 3. Balancing: ascertain the difference between the total of
debit side and amount column and the total of credit
amount column of a ledger account.
Step 4. Trial Balance: prepare a list showing the balance of
each and every account to verify whether the sum of the
debit balance is equal to the sum of the credit balance.
Step 5. Income statement: prepare trading and profit & loss
account to ascertain the profit or loss for the accounting
period.
Step 6. Position statement (Balance Sheet): prepare the
Balance sheet to ascertain the financial position at the
end of accounting period.
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Unit - 2
Preparation of books of Accounts
After identifying and measuring the financial transactions , the
accounting cycle begins
Step 1. Journalising: Recording the transaction in the journal
Step 2. Posting: Transfer the transactions in the respective
accounts opened in the ledger
Step 3. Balancing: ascertain the difference between the total of
debit side and amount column and the total of credit
amount column of a ledger account.
Step 4. Trial Balance: prepare a list showing the balance of
each and every account to verify whether the sum of the
debit balance is equal to the sum of the credit balance.
Step 5. Income statement: prepare trading and profit & loss
account to ascertain the profit or loss for the accounting
period.
Step 6. Position statement (Balance Sheet): prepare the
Balance sheet to ascertain the financial position at the
end of accounting period.
Journal - Solved problems on journal entries
Preparation of ledger Accounts from the journal entries
Three column cash book - Solved problems
Preparation of Trial Balance from the ledger balances
Depreciation:
? Straight Line method
? Written down value method
Solved problems on both the methods


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