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    Accounting For Engineers

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    kanz ul emaan
    Financial accounting provides information about a business's financial resources, obligations, and economic results. It tracks assets, liabilities, revenue, expenses, and income. The basic accounting equation is that assets equal liabilities plus equity. An accounting cycle involves identifying transactions, recording journal entries, posting to ledgers, preparing trial balances, making adjustments, issuing an adjusted trial balance, and generating financial statements. Journal entries use debit and credit rules to record increases and decreases to accounts.

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    Accounting For Engineers

    Uploaded by

    kanz ul emaan
    31 views7 pages
    Financial accounting provides information about a business's financial resources, obligations, and economic results. It tracks assets, liabilities, revenue, expenses, and income. The basic accounting equation is that assets equal liabilities plus equity. An accounting cycle involves identifying transactions, recording journal entries, posting to ledgers, preparing trial balances, making adjustments, issuing an adjusted trial balance, and generating financial statements. Journal entries use debit and credit rules to record increases and decreases to accounts.

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    Accounting

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    accounting for engineers

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    Financial accounting provides information about a business's financial resources, obligations, and economic results. It tracks assets, liabilities, revenue, expenses, and income. The basic accounting equation is that assets equal liabilities plus equity. An accounting cycle involves identifying transactions, recording journal entries, posting to ledgers, preparing trial balances, making adjustments, issuing an adjusted trial balance, and generating financial statements. Journal entries use debit and credit rules to record increases and decreases to accounts.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    31 views7 pages

    Accounting For Engineers

    Uploaded by

    kanz ul emaan
    Financial accounting provides information about a business's financial resources, obligations, and economic results. It tracks assets, liabilities, revenue, expenses, and income. The basic accounting equation is that assets equal liabilities plus equity. An accounting cycle involves identifying transactions, recording journal entries, posting to ledgers, preparing trial balances, making adjustments, issuing an adjusted trial balance, and generating financial statements. Journal entries use debit and credit rules to record increases and decreases to accounts.

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    Introduction to the Financial Accounting:

    Financial accounting is the branch of accounting that gives us information about financial resources
    (assets: natural resources, land oil, gold etc, Machinery (vehicles), inventory, furniture, receivables
    resources), financial obligation (liabilities: payable (loans) and economic results (profit/loss: expenses,
    revenue) of business activity.

    Accounting Heads:

    Assets, liabilities, revenue, expense, income

    Financial management: is all about monitoring, controlling, protecting, and reporting a company’s
    financial resources. Finance manager is responsible.

    What is Finance?

    Who is Finance Manager and Accounts Manager?

    What is accounting?

    Basic equation of accounting:

    Assets = liabilities + equity

    ACCOUNTING RULES
    Heads Increase Decrease
    Assets Debit Credit
    Liabilities Credit Debit
    Income/revenue Credit Debit
    Expense Debit Credit
    Equity/capital Credit Debit

    Assets

    1. Current assets
    2. Fixed/non current assets

    Liabilities

    1. Fixed/non current liabilities


    2. Current liabilities

    Income

    Expense

    1. Operating
    2. Non-operating expense
    3. Fixed
    4. Variable
    Accounting cycle:

    1. Identifying transactions
    2. Record journal general entries
    3. Post ledger entries
    4. Unadjusted trial balance
    5. Adjusted entries
    6. Adjusted trial balance
    7. Financial statement
    8. Closing your book

    Concepts of journal entries:

    Money

    1. Importance
    2. Just for purchasing goods
    3. Not directly used
    4. Earn money for purchasing goods
    5. For goods or services (e.g: cable connection)
    6. For getting goods and services is called transactions and it is done by money
    7. For promise (we create promise and we complete promise)
    8. Profit/loss (with giving anything, without services, without promise)

    Note: Here getting means ---transaction and it means give and get..so here get means debit and give
    means credit

    EXAMPLE
    GET ---DEBIT GIVE--CREDIT
    Pen Cash
    Computer Cash
    Cash Bike
    Electricity Cash
    Services—driver Cash
    Cash Classes
    Promise—means complete in future
    Pen—30 A/P---Mr shop--30
    Mr shop--A/P---30 Cash---30

    My friend—A/R--25000 Bike---25000
    Cash---2500 My friend—A/R---25000
    Cash—15000 Bike-25000
    A/R---10000
    Cash--10000 A/R ----10,000
    Cash---50000 Bank loan 50, 000
    Bank loan 50,000 Cash 50,000
    Mobile---5000 Without giving anything so it means profit
    Loss Mobile---5000
    Loss---5000 Machine—5000 (damaged)
    Mr R—1000 A/R Goods –10,000
    Loss (bad debt)--1000 A/R—1000 (Mr R)

    Exercise: JOURNAL GENERAL ENTRIES

    Particulars Debit Credit


    Jan-1: Mr. R started business with cash Rs 50,000
    Cash 50,000
    Capital 50,000
    Being started with business
    Jan-4: purchased goods for cash Rs 700.
    Purchase 7000
    Cash 7000

    Jan-5: Purchase furniture Rs 5000


    Furniture 5000
    Cash 5000

    Jan-6: Sold goods for cash Rs 5000


    Cash 5000
    Sales 5000

    Jan-8: Purchase goods from Mr. M on credit Rs 4500


    Purchase 4500
    A/P (Mr.M) 4500

    Jan-12: Sold goods to Mr S on credit on Rs 200


    A/R (Mr S) 200
    Sales 200

    Jan-15: Paid wages 4000 and salaries Rs 2500


    Wages 4000
    Salaries 2500
    Cash 6500

    Jan-20: Received commission Rs 1200 and fees Rs 800


    Cash 2000
    Commission income 1200
    Fees income 800

    Jan-22:Sales return Mr S Rs 800


    Sales return 800
    (Mr.S)A/R 800

    Jan-27:Purchase return Rs 100 to Mr M


    A/p (Mr M) 1000
    Purchase return 1000

    Jan-28: Cash a/c debt to Mr S


    Cash 1200
    (Mr S) A/R 1200

    T account

    CASH
    Date Particular Amount Date Particular amount
    Jan-1 Capital 50,000 Jan-4 Purchase 7000
    Jan-6 Sales 5000 Jan-5 Furniture 5000
    Jan-20 Commission 1200 Jan-15 Wages 4000
    Jan-20 Fees 800 Jan-15 Salaries 2500
    Jan -28 A/R (Mr S) 1200 Jan -31 Bal c/d 39700

    58200 58200
    Feb-1 bal b/d 39700

    Purchase a/c
    Date Particular amount Date Particular amount

    Furniture
    Date Particular amount Date Particular amount

    Sales
    Date Particular amount Date Particular amount
    A/P
    Date Particular amount Date Particular amount

    A/R
    Date Particular amount Date Particular amount

    WAGES
    Date Particular amount Date Particular amount

    SALARIES
    Date Particular amount Date Particular amount

    COMISSION
    Date Particular amount Date Particular amount
    FEES
    Date Particular amount Date Particular amount

    SALES RETURN
    Date Particular amount Date Particular amount

    PURCHASE RETURN
    Date Particular amount Date Particular amount
    ABC COMPANY
    TRIAL BALANCE
    31-12-2023
    Particulars Debit Credit
    Cash 39700
    Capital 50000
    Purchase 11500
    Furniture 500
    Sales 7000
    a/p 3500
    Wages 4000
    Salaries 2500
    Commission 1200
    Fees 800
    Sales return 800
    Purchase return 1000

    Total 63500 63500

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