financial accounting - final accounts
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Transcript of financial accounting - final accounts
Single entry systemunit5
Single entry
Its simple
P.T.O
Don`t follow double entry system!!!!!!!!!!!!!!!!
How it is maintained
The single-entry bookkeeping method records entries once and does not "balance" the transaction out by recording an opposing credit or debit.
Business men
Single-entry accounting is simple and easy to master. It works like the accounting method people use to reconcile their check books: Checks are recorded and deposits in a checking account register. For a business, income is recorded (once) and expenses are recorded (once) and the business books are balanced just like a checking account.
Single and double
The double-entry method can be very confusing at first and often requires a knowledge of accounting practices. But when entries are properly recorded the account books will balance because the total of all credit entries will be equal to the total of debit entries.
Single entry system
In many instances single entry accounting consists of cash book in a tabular format where cash or bank receipts are recorded with positive signs and cash or bank payments are recorded by negative signs. At the end of each working day.
Places for double entry
closing balance of balances is ascertained and is carried forwarded to next day cash / bank book as opening balance. However, in its extended form sales, purchase, and receipts/payments registers are maintained separately along with party ledgers
Internal audit
Statement of profit or loss
Capital at the end Add drawings during the year Less additional capital [profit or loss during the year]
Profit if more capital
Capital at the end Add drawings
Less additional capital Less capital at the beginning Result is the profit or loss
Statement of affairs
Opening capital
Cash in hand
SOA
CREDITORS
BANK BALANCE
ASSETS
FURNITURE
CAS/BANK
STOCK
DEBTORS
CALCULATION OF CAPITAL AT THE END
CREDITORS
CAPITAL
BALANCING FIG
END
LIABILITIES
ASSETSC ASH/BANK
STOCK
DEBTORS/FURNITURE
CALCUALTION BEG AND END CAP
STATEMENT OF PROFIT OR LOSS
CLOSING CAPITAL ADD DRAWINGS LESS ADDITIONAL CAPITAL LESS OPENING CAPITAL
DO THE SUM ILLUSTATIONS AND EXCERCISES
THANK YOU END OF ALL UNITS WISH YOU GOOD LUCK