FFA Class Notes
FFA Class Notes
FFA Class Notes
oleu9 and
pmesanumg of
Accountancg finanuad informalisy i
mianuna fal manney ".
ifyma omd
ceountmgThe
art of recordmg,
elas
summauzmg
A toms o mnov
,
monu
amd
tramsacum
a Sini camt nuias
p u r t at a s , o Rna
Prnarmia
whuch a n ,
andevends the esulb hereof.
and m turprettn g
choractin,
CAAA, 1aG6)
Cye Test
Inuanal C na
S0
Cscla uot
sAgnmumt (1o)
(2-5)
rOu nesentaluso
Repost
(16)
wndemntals
ofFnanual Auounung 7lo7 2022
ONIT- Ol
Aurnnung
kuow what
h a ae
, to w
hoppennq m a
compomy ha ts ov
fer valualung
he slat o h
.
Ompamy
Assee bquy iabikty
Asset Wheh om genanale
muome/ cashtlew
ianu ty keas boomngs Any han4that has to be paud back
Equib CapitalL owrurship capatal hanud
Nornal Copntal Lmoy
mpmmy. The urst lolhli y g
T foyoack he equy to h hau hsteleus
The Combamy
A Et L Auouung Equauon
23 0 2022
Kumalus
(P) Led. Privalo
Funceplu Awoumun
al the masacuons
ppont
hat
Prneplu
Ay company Stnlid 4 enpec
Concnn
Conept
also
hulure
.
m
h
to b fnciuonal
nll he a
hak nY
mpay
d ong ncn
aumid
If
cmd owns ne Consedind
Compamy
Seperate Entuly :
w CarpAY ukenan
adial hu
Sepuate
alfueial human whuch
ConpamY trualud as cn
by h louw
enli Hed
nas pouwns by
aluways
Then wll be two aeconls -tttt be m volue d m a
can
be clam fud as
Pers onal Gwnd by porson oy
shop
(whoever has name can reau t)
Real Al
Nominal Alc
aNceumnt
tnune, kand, IP, Cosh, thuidony wny thmg
Con cmond as Cn amat by Compomy
retann u d
CServw b CunAoluud
cemt as
3 os 2022
Nau ot Accownwnq
systomal
Teovds buuntm rMscaAn m a
t tool uhuch
MomnY
amumpusna
emd conVen uns
amd on ome Pruncpl
wel n art
Os
Eu boh a S u u
Accountma piocs
PROCESS
UT PUT
INPU T
Inormalin
dunti hnm towwms
Racordmg
mony aclun
clayt
Summanimg
mal ma,
CommuunucouuMa
Business ransacluoon
Suppor ed y a s o wr olocumunt
Sales Purchase
PamaiuoM m which prmopomty Trconsoctusa hat ne
to neuned a buunes
amsumed om buyr
se For money o redlut odd Scrvces reiened to
amour busunes
wns o accsnlma
TMomagnus, Ownor (s), Pmespecuwe Buar,
Bovnesd,
Tak auori bis '% ospecuve pomtnoa, Investu
mammamial Stum 3s 2022
amoumdh o
nuome
Summarlu hs specfi pena0d
Shaulemu bwwMus r a
mwred b
he RM
And unins 's
Mionwme a
A yar.
Monh o-
m.om.cAa) Pn foY m o m i
w me aumd ear nmes
o the dhamg
ummomy
a
mnvny
2kam oned dmwng a
a pe ponuod
P mumn m
monm
Ast, uak1uby
Ravenue, xpewwa Caputad,
SUBFIEL0s OF AccoONTNG
Finanual Accounng
Manaecmant Accoutung
Cost Accounim
-he nat Tenult Fr cm
Business enk
bununns nuay md t oones (s) orne two SAperate
The
istence n t y
to o t
yThin u done so that buunes ul eounue wlo * Ownr
Or chomge ot Own
e p e n 4 of the bwine
Exom ple
the ownrs ho ura hould be
nsrane pmemuum for
ha ouuuiy
encude4 hom the apens
.Any paymevts
Comq con
openeusmal onislince r
The busiis wIl Csnti hue m
Coce no a u mles
AcCro o malkhvna toncept
mucil ve d
whim
mewed bul nat
m Nco nuud
n thuy ome ,
henn
em Paicd
dutun mmed hy
the
MCome fr the peuod à
enet & m h
2aMne
mcred
s macmg p e n s n
penwd
peud f In
pemiod but
murved
mthe to ubwmg
wnd
.KpeMM vepensu
napaurment
m a z d ao
chould b
advnce
voualon
prmaiple
ate m
Super a l i hty
and
amet
tribulud
to am
to e
Amount
balamcu h u t
deamued ehwatuly
item must
be to amme
Each added up
mut
Than be
valuahon
.&pera
hiut kgunu.
thebalana
at
on Stock n e
os on
Hrstorical Cost
shut at hu cost ot
salance
he
Assutu ghsuld be shovwn on
Cuunt valune
purchak tad o
acquialisn
at tho dalk o
s veeorokd
anet
The eest of fAked mod
cet
mcudles
all tnp endllinu
Cest The acqutchsn tt meludhd
hu
mtendid
m tedd u
u se
e..
tm b
e puu the
pmupam
amct
vms u r a n c e o
changin,
o he aKat, tne tGht
mvocc Price
chstaullalim Cot
Dual aspect Conapt
Lialoi'
40 40k
Ruauzainm
Keme Rununw should he saiasel Yconitud www wa
C o d mic ackivi tus have been com pletz d
Saln oYL
Tc0qi ud hun gods ome Sold od ouwmnUd
*CABo mays o Sa vca ninenid
Slung 9otds on
onusit Tucord
, an sale MM
MoruyWasUMemunt
Al
mas acums
measumimunt
I t pnovden a CmmAn wnt e
and 4h ekuune
ket ondi tions, tehnologunl chomga
Ma m te
bma
Uuld nst be didond
namagm
ls l22
Accountmq ConVen uor
omd tnaodisns
cus hoe usBoms
mcue
o n v e w u o n
,Th n m
wweh uw
Prudene or
iomer väusm
CAs tency
Matnaluby
all di'sclosaure
Consey va us m
Prudenue nuaksnd pnouts
Oniy
ome
hot emi ujpled pmat o s .
md mo ed m
Rvenus
Ctanly
ove miLvgnu
wih
aso na e
and loeseg
tor all
known expensa
made
u cnus
ot c ut.
'provinon valuaun
valualuon ot
amd ePe
he maporlnd prokr t
'minimizLd
Consteny
muhods
accounnq
chooe the most Sutahle
m Nenny pemuod
lovuslnl pply them com m M c
denud betug om
Cos
new mehod
Chanaus
u e d e u view.
dronaie
ekfhe
Cm hane
accowntun4 me hod
t
Change m
Materiau ty
An expunion o he nelálive gnidican or importan o
PuYport to nepmsint.
Actountun g Equation
Asseb
Account
Au iual CACcount
Nalnal Ripnestvntale
pensons persons
Per
sens
Acount | Ccoun t
a ccounts3
cnsausym
YeLordma
aoumt
m
nsen's orsonal e knowm
as a
naral
Hnanial
veLorclun
alcount
Alc An
person'Pnsonal or
Avtihual reated by law
artiutal penson
hansachons wih an atcount
personal
heial bersons
Calud an m
olher ww
g: M/s velu'cvnce Mar t
Debrt h e eciever
Pensenal
Cudit the evievar qlvev
mn
Debit what Comes
Ra outt
Credit what goes
10l0s 2022
dubt qmedhd
wwblued md u l of
Tdurluky mmoils
Debie
.
Rent Alc -
Nominal Alc
Rumt pand
redit
to Coh Ale -
Rzal Alc
A
No myau
Sa lomy AlC
A/C- De bi t
Afs Persontl
pid peasanal
Salas
redit
Cash A Real tle
IntororotAT-Homrat AAdut
Riuwnud
a n nunt
debut
Caph
mdd
Alc- homi -
to In oAf
S m a - DebiE
korshna AIC
pnd to kmushuna
Real Alc - nudit
Covo h lc
Rad Alc
Cooh Alc - Debit+
Machi num td
M a alåsbet
toMathinor y ac al. - toeert Cnudut
Ral Afc
Ca h Al RLal Debit
Rund nom Koarthi P s nal -
Credit
Korn ha Ac
L
hansacuns Ale mvolved Naluu o e | Debit ( tneded
t)
Busins hans acluam (2)
Jona enra
(Souce documnt) Enuy Ledg
Accouwig ycle
Retov dng of
soms catbn
Jous nal
Fmmued
statamenu
Ld
Closm
nrus
T komace
Adusled toua
balance
Adjstmant
Cnmuls
RLOTdmg o ramsacin:
al a veurd o Anancial ronsocunu o du by dat.
thum
coaaM m a
enal muy t manualy porlomg
auowvd m the mmal A T a Fulbsi duamy kdyer
SwY
ONIT- O02
2cc8 Jan
m cagh
Commencement of bunin 1nvnms 10000
Puchacd (amd for cash 20,000
Crude Yule
Datu Amount
Porti culavs LF Amount
CDr Rs Ter7 Rs
Arun nlc
Ho Cash lc
caaed
mmmumnt busnu
30 k
prchand gmd for Cmh
20
sold beods fr Cash
5
to tnuu
Sod godds
n ne dit
300
Pad hiesht
fo chri tes
Donalud
1200
sal ain to Ramoh
Pand
Bmk
caoh mlo
Deposited
wi hdaaton
mom mk 4k
for
wi h druwn
fnam Bemk
fo perS mal
chonrsed munnt e n
Ik
13
Capital
Rcu ed
Ront
Dr 10, 00 0
JAn
Cash alc
To Capital alc
40,000o
Beung cash brought m
Capital
D 20, DOo
2 Land alc
40 Cash alc 20, 00bo
beumg pur chascd loma)
3
Goats alc 30, ooo
to o Cosh alefc
Bemgcconsdib
cTe dil]
sales
Freus afe D 300
te Cah ale
CBeing ruugnt paid] 300
Donatun aalc
téash alc
Bemy donalin paid
Salany ale 200
to Couh alole
to Bmk alc
6oo0
Luih dawn foy parso nal ux)
nha lale
3 ko Capi tal ale
Ceemg pad mbrist3o
Cuh alc
t Raat oal e
ponsonal ac.
mk afc
oe 2022
wneluons of Jowrnal mts the
vmto
cmalyud
emaystd
tnomsachon
tach tnons
cach
fumeuon to md
md
Analyical Ths hulps to
eneded
t ntdd ospect.
aspect.
the busms
md altet
aktret the busmes
dibut aspect will f m a n cially
wil tman cially
mansacuan
hulps to uuord
wfuch
Advankage of Journa
posi bi lely ot
mors
Munumim
Namauovm
- Hefps t unalue the acunts
fo ut
t e ueconds ma actionj
wrhn t happen pom to
gect a hetaulud day
to day nfor malkon
and d etck nhe hnancia
the nalune of tmans aclim
he busuns dukor mnud by wor dung and
poubion
asput
analtsng
mle debt Cnudit
nicordid rans aclin
p l a n a u e n of
rual balanct
+0 00
Saly ale
25 00
Commson alc
oooo
+o Cash alc
4O00
Stock
wih cwmh 50,o0o, plunt T 24,000,
Stomiud bu s
50,00o
eash Alc
2 4 00o
Plant Alc Dr
4 000
Stock Al c Dr
to Capiel Nc
Cwh 8, 00 and to Ms AooYwa foa lo, bOo
So ld ooels o
Dr ,000
Cash a
0 bOO
Ms ay wal al
1, O0o
to Salus a l
sela for cash
C Beung 20cd
s o c o and
on onedil 10,co
las duomt 60o
discownt alc
o Ms Agarwal Alc
ramaacus
Jouxn aue
he 00d
Rs 1o o,
me6
wi h
bus
Anvrs Stamted
2016
ip3il Ol, he monh ne
on
moms aensrs
for
omd o Cush
Cash Cnedit looo
ture
foy
uni on
Pu chas v C
CAa
2 000
oods
Purch Store
Shoxe
khalud
Retoud
Relal Cash Sales
omd
om
fnom
12, O00
Bnehung
to Rh an
Sold foccs
ue
tor parson
al
5oO0 2000
worh
hdreuo e
ner
wi
Ow
o
ff 5D0
?5o o
Ritail stove
khalid
aud khan bro dhurs
ooo
mom
O,
R e ceved
2 oo0
pense
Paud sal arieo