Unit - 2
Preparation of books of Accounts
--- Content provided by FirstRanker.com ---
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 debit side and amount column and the total of credit amount column of a ledger account.
--- Content provided by FirstRanker.com ---
Step 4. Trial Balance: prepare a list showing the balances of each and every account to verify whether the sum of 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
--- Content provided by FirstRanker.com ---
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
--- Content provided by FirstRanker.com ---
Solved problems on both the methods
--- Content provided by FirstRanker.com ---
This download link is referred from the post: VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University