Ch- 2
Data
Basie Accourliog TeAry
Accouniag kominslog
Buxinessansac ion
liansactiora is an evenl whee Cah and Cash ezuvalend
exchange bekoeem taO ponies and thal a meauoed
by meney and as a seslt taso paies taanial condition
I be hanged
heye ill be exchange Cadh
Cash on Caah euivalent
which e meae
&a sesulk to pasiex oancial condHon hllbe chaa
(i) Capikal Net okh).
Capikal is hie qmant fovesled by the onen /Bcpaies
io
in he busineu, 9FSt may be hocuht io the tcam o
mone oA Quets haxiog a mooatesy value
(Accosdtoq to bustoeks nty Coocep busineki ia Cencetad
to be Repasake and dattnc oem tik onne So captlal
it o liabilks A he businew toNand the cneal
eaan by businexs tocease the Captial, while
los ocuwiee decxease the Capilal
lCapitel
to)ixed Capitad- Copited grhvesled in Jies auel i calleal
red Caypital.(builting machinany cie.)
(5)Float
Elocing Cincadaling Chptlol - Copilal Yntskd in Qst
Dcte
Paoe
nent ameti is Called
(c) wonkin Capitel- Paet Capial which ts wsed oy
daiy openalBon buines is Called J0inq
Capital
ok Capilal uxHent AAebh- Cuent tiabile
Capital is
Sntennal abiliy
finanial claii
Dsaueing
the ouin ess we i known as
Dsing s4edwce the înve% Ernent nA Coplal the
OJneuat end year
er- payment o"i indtance paemim, payment
inlonme tex uomncash
Date
Page
* Hiabites - Kiabifes aHe oblgaon o cebt that On en lor pri
Se has to pay Soméime înthe u e
ie. t f: the amount by he busines.
Liabilries
ntonal tab Fonal tot.
The ameont paunhle he amoun payable
to the oukidou ts
toamed a enteanal
Biliks o9 Ones' Aiablfky
exe editoessBaok
equiBy byendaal! Bosaowinq ele.
i'ahiyCon be anthen Clausied
)Erediabililies None Cuse nt liabilty -
4i abD Called ong teion ialiies These iab kes
pre payable ofBon a long pesáod.
mOe than one
DR
yean
4 seleos to a lialily kohick is sually payabie atn
2eutod
er- Long-4m loan; De bentues Bonds ete.
Date
Pooe
i) Cuenh liabiliiea -
4A seleru too tiabilitye kohich is payabte ithin a
boxiod of one yeay9mth
Hxed iabihes alo becoro es Cunent liabilites în the
in shiek they
yean tn
'eR- Caeditoa,cu Payabie, Bank bwendat ete.
Ofiabiliea sohtah axe pot iabiltties ab paexen
buk on happening Apeci
oatpecial al canoalient
Can kingenley thay
may aise. Such tiabih Hes ane cale d as Con\ngent
ablie.
Ex- Cost Pendang in the Coust on liability Giuaran
OMe not added ta' the totad liabily in the ealanc
Sheet, bt ane &hbn in the toura at oai no ted
Riabitiea as Componies Acf 2013
As pey oSch edale ur of the Companies Act, 2o13
Cusonenf iabilitiey and
H) Non Cusnentastiiea
&etled inin the Comany's
4A i3 ex)ecled to be Beltted
.4! due to be Setlted sithin 19
19 months
Date
Paqe
the dale of Balonce Sheal
#pes aliog cycte measuHes the tine
me between the acqui
sabion e< Aseet on poceytng and thes 1ealisabion
io Cash oA Cash enuvalent 4) he opoyakn q cycte
Cannot be idened s. auAmed' to hove à duaion
|9 montha
Aset QHe eConomi ges otuICes Qn e ntenpeuSel
sohich Can be epaessed n tes o
OR
AlL he aluable Ahinga oxnad by the busines kohîch
qive unthez economic benek
Êx-Land, Bilding Plant and Machinesy tiunthue,
Stock cash and Book Balance oShects.
Non Cuoent sset
AJon - Cwnent asset aMe those Qusety ohich ae held
-tm se in the busines and not meant o
Hesole
Paopests, plank and equipment and întangible Ahset.
Theae aseta ane hold ton the ppase ef poducing goad
and Senuices in crde to eQN Heence and to încaetee
psaajt easning CapaciBy he tustnek
Dcte
Poçe
Cusment Aset
Cunnent Aset aHe those ase ohich Q4e held
the buaineu wotth he puapose e conenthg fhen
nto eash withio one gea
yea tio Month)
ex- ei Recievable, ebtosu Psepafd etene
Modified - CuMnent A8Aet aoe
in the 0ra of cash o conyerting frto cash stthin
pesiod
qiven Ahan Yo onthy
i)Tang:ble Ach -
Langible Osset ae those Qseh ohth have
phystea Eristance b9 Can be seen and touhed.
&r- lashock, Tus1nituae lools, MochBnesy and
Ases
Ihe Aet hfch have mo physical exiskne
on d ich have mok be Seen o9touched aHe caled
intangibie asek
g- bycod asill, Yade koask alenk Copypight Comet
he aset hose valwe deCtease ith het
Data
Page
DA with the pasqei of ime ane Called Kaan
ER- Mines, oil ells , Asely taken on licaqe etc.
Ni) iquid Assets -.
Asaet ohich Can be Convexted foto Coh
oithin VeHy oshoot - pexod ane Calle d iguid Auél
Ex- Cash io hand Cash Banlk
'undy bebto Bill Aeceinvable etc.
V) Eioaling auh
These HE kno n as cilulaing
Queti. luchuatng Cussrent as ets change
Chang, hese
walue cons lant.
oldoSPlyey, Plalioum Shaxe Puschase dthe
Company as iovestment ekc.
ViH) ncameyed Qeset -
Thse asets ohich is kept as o decuei ky
Ag anist taken.
Lonn
Loan ts taken om B I. an othex nancia,
SalitBo n and buildio of the buslnes lconpany) à
kept as
Bx) Hcttfous Auet
Thse aset aohch nei then have tmy sieal value
have
the basisegal antechotcal quound.
Dote
Pace
Thexe Nomioal auet These auet
have n0 teal Value: The ase toeated aseta on techni
They
Shownn în the Balance osheek il
Cal qround only. hey
x Advexdtü ment apense afo,Discount an iseue o
debkaes unden
hdea kiztting Commisaton, Pselininany Exjena
etc:
A ContigeDt aiek Rs a posatble asAet that rnau
aise becaui a qln that is Contqent on tutune
eaenf thot ane not ndex and enty'Contol
A Contqent aS et fs a potential asset associatkdaith
Content oin and Coniqent tosse&, Contgént Qlsch
aHe no 4ecoYded in accovnF even khen they
paobabte and the amounk Can be estmaked
&- A Conigent qoin ane Conk qent os et might be a
Aanst Comipany Rant
poent- 3 4i pscbabie the Conpany Ram toil ata
they assiil and 4eCíevedan eskimaed amourt e<
ha a Conlignt auet and a Conkent
qoin
Expendne
xpendi!une ieles to the anbunt Spen
geod
Date
Lond asesvices
Er- Payment af
puschasz o land Machinesy ete
(a) Capital Expenditne
94 suedes to an expendtkune fneuued o ac
asek
Thceastng he walue e exickag" red
fx- Puchase eq lond, Auilding unnttwe etc
(b) Revence pendituae
4t aee to an expenditwne iocwMed
dusing
s
an accaunrng peiod and benelt cokch
aliexhauaked oihin the 3ame accounng pevid
fx- Pausent
and seice etc
a calam Renk, Pachase o goodi
c) De oued Mevenue expenditAe
An expenditue ohich i8 incus1e d în Hhe
pscsenk accovnktng pesiod but ik bene<th ane incued
in the follossf ng o 4the futwe ne aceontag pexia d1.
Advoisment, phepaid frpense
Q. Expenue
Cost e Goods and evlces utllsed to ean eEDue
O4e Called as expenses
Expenses is the cost incuwned by a buineus n the pa0ceu
Dcte
Pace
HeVene.
- Nage aaziea Commission efc
1o..Revenug
Kevenue meond înCorme shich aise asa AesulE
busioess toansocttong Ond shch ncreaee the oJnA
Capital.
ex-aeef goods and euices,. eceked seot, Snterest:
ete.
Ancoge
4evene OveM eApenAes.
ie t is the p t eauned
eaMned duaing the
he tRaH.
tncome Revenue- Erpenxe.
Ancome fs alao knon as
12
Pao?t s the excess Gf olal tevenue oven total
expenae sa
ea busineM entopiue ton an acconkog
peio
Aliaeot income- A Sincek erpenes
)Net Pro} A ndôxect Sncom - AL fnd suect Erperns
1B Loss -
Lnss is the exces of toBal expenca Oven to tel yeveret
a 190 Losse All DiMect Erpensy- AlLSiect nCome
Date
Page
b).Net Las = AL DBuect Érpentes - Au Sndiueck gncome
44Puchae
G1bodsPunchased o Stesale ?s Called pochases.
Puxchase He<es to the amaunt o goode bought by a
busioess o esale o4 o tee io th» p Oduc lion
Punchae
Cash puschase Coxedit chae
Iales
hles selea to the amaunt good cod that ae alueady
bught o manudackund hy the busines
aSales
Cash ales. Caed?l ales
16.to0de
(Hoods ele to the 2A0ek
oodck in
fn htch the busines
unit is cdeading ie) qocde Mean all the itms which ae
hchasead and Sold n he 02dinamy lnwnse busnee
Dcte
Paçe
tock nu Snventsu eles to the gaod held bya
buines on ale in Odinay buines Oy
o Consumpion in the poioducion gaods 04
o%
Sevices Aan ale
a) Closiog Snck
Unsold goods at the end o the yeay is called
closta stock.
b) Opening Stock
Unsold oode at the eginning e he yean
Stock he pheuA yan ik Called Openi
Sto ck om e Cwmen yeaH
Aote -
i) Stock e Ran Makeuial
tih Stock emiinished qoods
Stoctk o'woak in rógus
v) toCk hrade
& debtoy -
Debton is apeuee o% a en to whom qpod hoe
been aold bynenvices Srendexed on edi! an paym
has not been HCeÍve d.
Date
|Q:e
dtons
a dam ohom good, have
been puxchasea
IHChasc 0h akyuices haw been taken on Csedit
and pouroenthad pot been modei i
20Vachen -
voushes is a docum enkasy evidence in Suppoz efa
buine tansacton
ex Cash Memo, nvoce, Debit note, Credit nok etc.
Discount fe any type o teducon în the rice by the
elleh to he buyeh
|ade Dis count.
Lade Dis count is the uebale allowed by th sele
ak a red pencentage of the st pice.
ManulactueJ holeaaler
|9iade Discoun
Cash DisCount
Cash DisCount is the yebak allone d to the byer
fen naking Bog mer
22- Account -
Account e a surnnoise d recovd o! selated tnsn
Cton at one pace nden q atícJar head.
