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Accounting assignment MBA 1 sem
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88 views28 pagesAccounting Assignment 2
Accounting assignment MBA 1 sem
Uploaded by
pravinkoliapCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 28
# Assignment No-td * Dake! 10-2004
abjecd Monagement Accounting, a
— | Nome’ Tnamear Aditya Sanjay. = _—
Sue. 1) Define Binancial_tcounlig _xglain Dentore noel &
Cc
wWers of acc anid Informahian.
aed ‘Financial Accounting i is_a specific beonch of —
accounting Mv
_—Summarids
__transachia
t operahionS Ove a L of time. ee
i)in Show | a Hintndel cece ounting,
— bara n
a paccess af recoraling »
of
Ch in tabi Choi dos So
__transa fon are
invalued Jaecorded <
i)alsa, Financial accounting ine sale egthe _
bank-ke £ Pinancial feansachions ._
bike puscllaaes sa leg, recehuahles ables 4 _
| -AlLaccnuntans Fat boc) the
eo
ol ly Accepted Accountin Paci net belcsinles
Coren) Fox creation of “income.
Cash Flow Stertéments 5 sbalpnice Sheslt
_Sharehalder's— eniusttyy —stasleennents
fal accounting — mops
eee dice te
ond. a cousiel GE a
-gauget mopggurre).c or porate perfar mance
vor
FOR EDUCATIONAL USE \) The we gulator bodies have stadeal
“Some basic ° incipled TO Standardis
the process. Un the US, Companies
Follow the guidlines oF. GrARP .
wh) AN Financial transactions evolve
“around S& basic Com ponends we.,
Assets , Uabilies 5 intome , enepenses go
equity -
vi) Pane examole, SS cash is Withrann fam
“a Bonk ¢m_the company's chook uncler
the double- entry. Sys sboth Cash®d —
lank Would be abfectod. Under douhble- |
|e gystern, we Call these tbDoapects ;
| debid & Great. Debit either erepences
| Lasset jnereages & Credit either
| —imerceare in Uabilier 23 nce me.
vin\the drt of tecotolia Chas sity in j\
| Qumran tne % ine&s tearcactin |
ong £ Finali +e prepare the
Firancial Xsfaterne rts [email protected] {nCome
Steclement ¢ balance shee}
— FOR EDUCATIONAL USE 4 ; @
[Tatemnal Users of Accounting: aos
Taternal_users ef accounting ore individual’ cajsin
jan_nxg anization who use financial jofasmation to_
make “decisions, plon operation £ evaluate _
pexfornace.
fThese usea¢ rely en_accouoht 1
ioe ae ely. Come bey “
t : Manageme At
pee = f
FOR EDUCATIONAL USE ( Employees # Een sloyees “rei ht use accountira 4
© - SS natalia, tou J Nerstond _the Corp anys
Financial health whith con affect
fob security salary negotiations , 4
atta 2s bona promotions
Donen’ IF the company js privately owned,
| tbe _pdneat_ate accounting information
| sO to track parofitabili pimettme nt
returns 2 the Tnandicl stebility >
|
of the busine ss. -
ternal Auditors Imlemnal cuditars assess the
: Company's Fina ne ial practices § Gantrols.
They rely_on_ accountng records to
—emture “that Ring nce Teeportyi
fs accurate & in_com pliance “ith
internal ploicies.
aatone: (2 They need accounting »
— cdoha to. manoge their specitice lola
= ——to_manage theix specidic departne.
a ___nt’s budget, expence § € res ure
: ; res
| - ensasing they operate Within
{ __thele PTnancfel_ means ae
leo nal users of accontins ant fedlvidyals
er entities outsicle-an on fhe
“Sinancial infor” to mate decisions +6 Sled
| thely welatans bin “With the campany-———————
astake fn the angginiaasion’s -
Firfarmance bat deat haus ect
infemnal fisanciat dada ey -
1 | ruestors |
| _commoel bers. —
Tho F Time ditars
_| = ~
| Faternal
~_Troallysts) Lasers of } 4 Regulatory
— Jaccourn: | - F-geo. 1e4
_ f < _ SN a |
___ Ssepliens os ao romens
a a sharehalders
a the
| ae Bats cake ney
profitability 4 -groutthpatendiol to
= FOR EDUCATIONAL USE
— ©
make Tnvegtmne at lecisions.
Gaeditors, § BANKS “Supp liens 3_& othe lenders assext
"a company)’ ¢inancial health theo! ough
_ accounting clata_+o _deleernine fre ~
Credtkowthine es before seein t Joan
or 0F Fencing _Credif.
gulag Agana eGeerert bodies, such ok
tay authorities or the secunihes
_ tach rrmission (SEC). whe —__
Financial meports ta emsuce that
the Campany i Carpilning Or +a
tau) s. & sea eect
he public (ndeme gh
Scustomat $ Covbmens, « e Meg 5 nn
AccoudHng is means of Communicating the :
mresults of business operations to various
—___pocrties_intenresteol_in_ox— Connected With — -
the business he, the owners, cseditork, — >
investors: banks & financial inshtuboass —
Government & other agencies - Hence, it ic oe
Lightly eectiabl nis + the alee 2 busines
= Account couse: epee business, —\
bub also~ Ddith —tuentiod y 4 Wha fs intense
tn_keepin g an-account “of the monetary
- |
_tranSachHang
_ + 2 Accounting Pris cip ley @ — =~ —
2 Revenue fecagnifinn feiuipletaeurns sf mrecng nized
When fh ts earned regard leat af then?’
_ = payment 4 me Cejued: _
>! 2 Recognitio Paimcinle & ef irk
P Tene (he nen they ~Gontnibude to
~ FOR EDUCATIONAL USE a
t gequisition aa stadt Bele utrent
| Tetekel value.
-ghicclivity Principles en Ls should
— “be bajed on objectue evidence 4 nat
a on personal opinion or biadk.
5) Periodicity Principle? The life of a business fs
. divided into time pemiods (suchcrs
- IC _ moths ,quandens or years) to srepoct
= its Hnantial position < results.
e Accounting @ 2 a a
Ol musinoe< Entity Ge 2 wines is
i ___trected as seperate Prom its _
i oudnert . 411 transacHang are _ -
4} aecorced From the butinesss _
- —peccpecve nat the oWhtas -
= } Monty Measunetcel § surement © Onky tean ca! Lon © poate acon |.
I arable in monetary terms are
I _recareleal ta sean —
“CGcig, Gece assumed that a businehy
; will _Continere to Operate figdsra’
todefinitely cunles¢ - there js
|
a 7 euiclence tod Hy tontoany.
| J
| @ cost Concept g Acsebs ave ave retarded in the books
ab bhele purchase prices hot at_
masket Value.
© [Dual Aspect Concept Every dransaction hat
| —tWo effects, one debit & one Coedi,
maintaining the accounting
| eae a = Lah lies owner's
- : oe: ——F bth
@| Ace 42 Revemue 2 — Saxe
- —= recognized _ | Are earned or _
| = _ —Ancuseed_jsre« OF whem Cord
Js recelved or = paid. aaa
— @ Readiaablin& Baal Revenue | ecard when _|
ft cols oy. Services ane hg
Ht Recessevethy When cath is received).
rching 2 bepemnses are matched with 29 | DvD
Revenues in the pestocl_S a |
© are incurred to gemacrate thes rever
ee = es
(. conSeruabion £ Ac ountants _shoulel_an-ticipade.
- | as peotitt ae pee Foo all |
ossible lassed . Profits Are reCorcled
sal y—whern, theyre realized ,b ut
__ losse x cuace_ « redegrineleeasstiabely. 1
"FOR EDUCATIONAL USE fv
Lonsistaney’ DARE. a methecl po asi al, tt ad
be Cans eee
Periocls: This cure Com pareatil ily.
enen Sime. —____—
9 200 iy item tea. “that signidica!
| rakity fe § id afc
| See
ot Tem ee
rea dicclacune 3 Financial statenmne nt
~~ shauld disclase alla fee)
| ee ee camps Ul foteeaina
FOR EDUCATIONAL USE ®
“gue 3) Explain to delail Featuses B application of
toy. ee _ -
cop Teuly is one of the most populax accouol
Sofware used by small 4 mecliam=Sired busines se9
to manage thelr financial transattion s,———
| maintain accounts 4 genesale—vepocts.— — -
j-4t_is porticwlacly knocdn: fox SES simp ire 4 —
& ability to hanelle complet accounting ~ _—
tasks cith ese, The lotest version of the
Which offees —___
Sofhdore is Tally paime,
| more acwanced Fecluxed ompareal te its
| prod ec 2ssore
Key. “Features of Tally & Applicabions & oe
Frepaesly Matt _ _ _ oe -
e Voucher ~ Mot: $ Tasty _prouicles ditfereot ty pet of
vouchers efike purchase +6 cules ,poymend. _
| rreceiptS & Journal usuchess F xe
_f 4aansocHans. ———
| o ledger Mgt You_can creak manos varaus|
lediaerr Ss Lendere predekined S$ custon i FO ULPS ,
yO hh the _pxopea— _categoriza Hon o£
eer dake. oo
» Double steam? Tally Follauye the Pradibionsl
Do =
account ng SayStena For accurate
Aeuble - en
FOR DUCATIONAL USE Z Sapplions -
o |
currencies Which js_
ideas eal ng with Sith inkeenaHacal_cliembsox —
m 5 Sts for me ail i + $$e00n%
Cag liters , kilograms pieces Be wo nen theres
| When treeded. 9
“|e Bing of Materials (Ba) & Tally allows | basta!
me
Pte. cleFin
A et a
ahudactocring < prrocluct | beeping a deksiled |
[ectend af aid moleaials finished goade
|
Payroll mgt a= Tally POP te pay
FOR EDUCATIONAL USE -
=
—_— .
bee oo
© Bonk — Soecdn cilliahion § Tally | ellos For seamless —
| yeconeilitatian bet? bank“ statennents fe business —
| diameisractiaast_,olpeny to idlemdi dy — disceepancios. _
ht The SaPhdaxe- Supports che gue ie
palatiin ae hoot maintemance 2 posts ma
| a a _ = :
igitel Pat ments 8 Tally con she iiepabed aK =
[voxks te prreceas. alii ital —_— ee
5) Daba Seamity faces Contsal @ Tally offs L-
— Dia seat i lo
_| Control, emsurtag nat onl fee al dt
personnel con qecessS— spelidie § Ernancial
infarmation. a
4 a _
"| amiaoeasEneaaal “aly paprectie —
pratt we ape ee
I +o Dark on the
| he er eale Hime Prom olif Cae ee oe . |
FOR EDUCATIONAL USE.
ts a ©
Aue *) Explain: cleFinition , Features :causrea & methods oF
Depreciation, Se
— - a
i= 4 Meaning 2 _
Depreciation wefers to the Syste rnaki d on
= fin the value of an asset over time due to
pe Ree ay »Obsalescence ,a7 age.
ae Tb is an. -eeeuinting method used ta alicéde
| the cost of tangible assets over thelr usehal
——} life, reflecting “assets over theirusefil [ihe
reflecting the decline tn their value ay
—+ + they are usecl fn beutines s Operations
' Features 2
| Hien ta A! seb value 2 Depreciation. presents
7 } decline in the value’ of a Sized a3 Set Over
: _time- - _
| hi. Mo Cash Expense 24 | a nan=cash expense -
| recorded in i \
it doe So inualve acy cash outflow.
he. Matching Patociple ¢ Depreciation allouss. bcetinetien
Ute paateh the Seep erate of cuaiag BA catfed with .
I the reventre 3+ gene rade 2 er time.
[bs Applies to Fined axets 2 7 Depreciahta lon is appli icable
Y>—
- _____to_taa ized
Saat FOR EDUCATIONAL USE =
ONAL USE, ee
buildings €uehides , bus nat te land.
v) Accumulate 2 The clepreciation amount accumula
te3_over the -years ,7educing the asset's
ye ook value.
vi) Affects Profite Since tt fs an epense, clepresicetce
{ seduces dhe net Income meportecl on
Financial statements: —— ——____—__.—
Gmvoli f Th fallouss accounts
Sstandazds 4 ta: ulations ,as lif? meet .
SS ads of clenaecitHan may be required
for financial — reporting &faxe puspesie.
1 4) wear } Tear? Physical cleterianatian oF assets
elu nwver Hae ike maching
er vehicle3 teacling toa seclucHan im
value. - _ _
}) Obsolescence 2 Tech nolagical_advance meott er ——
_ |“ mbt changes thos rreneler an_assets feic
tefl or oatdatecl Cerg+) Co mputers) ___t
ii) Exhauctfon’ Assets suchas natirad retoc/rce}
“Coil Dells 5 mines\ deplete over Hire
_ -casssing — clepaeciaHan _ — -
7 FOR EDUCATIONAL US @
\ ww) ‘ of Thme & The mere passing_of Hove
| recluzey tre usable life of asseFs Mibe
tt ‘Peateaccts ox Cor ye'4 hho.
accidents on clamaged Assets ma
= olue to ‘acciclemts ox ocapepticagie
—| an a enit_depacecie Has
|e methades —
TT) Weittem Dauln value Ceipy) methad 2
le the tapu methaol also kmacn_at De Lint
|) Balance method or Reduc ing Balance a
| 2s 4 eapthod Of depreciaticn tJ) bere}
| Depreciation cepense 7S calewlated as a 1
__ || fixed of a f ° \ 4+
beginning oF Sach yean : -
(Etthe amoumt 2F SF depaectulhn decease p eves +
ime og the asset's boat ualut seduces, |
| Pi Eecdures se - ee -
9) Accel Op
__b) Five Perio ee
I\ Boot Ucthlie Reclucdio rs a
I) Useful J Bor ascels thal defiatansle Sitcly |
FOR EDUCATIONAL USE -
P|
Fommuld 2 _
IRgecciolion. Deprec| ation y Book value at the
| Expemses * Rate
| :
HiStenight [tne _trethad # _
j= The stactight Line method _is_a_comenon
| _edany to calculate depreciation fer as
| asseh over Ute useful IRe. =
-—|Annual __ est of _ Pesidual valig
1] sc b oF Mrane ial Statements i:
| F{ fekdual Vala - — _
[-Thic method as cunredt that the asset wil)
| Nose vabue exeml ee
t4_stmple © Straight foowaed to apply.
begining of Yeare
a
formula 2
|DeprecaHon = Asset
a Y
Useful Life of Acsef
© Fectemes & _ -
la] Simpltel —_ — a :
‘ Conant” Bepezclalion Expenge
DEquol Aiecatien + poe eee
dj useful of assets Mh Uniform. Wage +
FOR EDUCATIONAL USE oo at} changgain Valut_methosl-£ OO
tL the chang #in ualut_ method OF depreeiation,—
| Penvect -o a the Reualuabior
_____|_methad sinvo veg calewlatteng d
L based on Changes “pe the aeced’s racket
| value rather than it axiginal Cash.
lo Bixecd Formula
on Contain ty pes ofatced¢
ea & lan Aemound [
fa
Il Jory Parnce ge
oni Basa Sans
FOR EDUCATIONAL USE Jue) Waite Shott Not 2
an 1 en cycle L system
cycle as a
ZeThe accounting
companies i
[financia) Axons
the peeporatio 5
Hewe's abvtakdewr
the systernc Gnueluedl
accounting Cycle
ayrdentifyiag Tran
Z\Recording Transat
3) Post to the |
tat Balance
S\Adjushing tobias
eed Tete Ralance
7| Finandal Statements
Closing Entoied
3) Post- Clasing Trial Balance
Q)Aceoun hog System
+ Software
*Omternal Cantrals
+ Reports £ Analytics
}Swpottonce of Accountio
Nhcewrae t Ensures thad
cl accurately £ ¢
the visk of errors. - We esr ; 2
| | ig wnpliance 2 Helps bucineaces ras a mT “7 a
_| i
am 2 Einanaial debe cnali SS
: ee
Se ie ekg haldens— .
_make jnbormid decisiant batecl an —
Aun eed ara hoalth .
[4 Under tanding the ciccoun ting cycle &
I
mt
J gt. 4 deciea n= pooking itn ans
|
=; toa.
J Sehonet palsy py
: wld ex
O94: =plaig
es - -
Need fon Bec aunting
i Accounting 4s casey for businessed 5 _
mann Ons even individuals because it
Commen, Structured Wag do frotk. analuan =
2
|| Feoenen tote Floancial h ieee ty a
Ome af the _ Primary reasons _
neecl For Accounting
DQecision- Mabing 2 Reounting
Mmencial data that § mer
} Steakeholderc crake Snformed. —
> nena! Reporting © fA = finansiah | a
Like income Miinletecat.c balance sheets (C— Ll
cash. f)\ou) statements _ Ore eosedtias to
: +| ‘undexrcdanal_ a. —Company’s Boscia haslig
-
a!
be
>
®
{ mse Manse? Aceouniing “enSures thal
> legal Compliance gtosuess.
-buginesses San saith. faxe_laud.s
_Froancdal x xequiatio Se >.
1)ficfacmaaca Eacluabia’ ® Acountir ing helps
7 ne dSure business toe ae ving
\ ios ights into pero: tab eauenue gre
Hy
4 Kenttecse_kagd -_
_|s) *) Budgeting R. Focnecestings :
tased on | eet ee dak
FOR EDUCATIONAL USE ee SESter
Pt frases =o soortsmbsb