Tally Notes
Introduction
Accounting is a finance support system that * Records transactions. * Classifies transactions and events. * Expresses transactions in monetary terms. * Helps to monitor the financial performance and condition of Business. * Helps to evaluate the business. * Helps to establish controls for the business.
Accounting helps to arrive at the financial position of an organization at any point of time. The organization’s financial status, as on a particular date, is captured in the balance sheet, .while financial performance for the year is summarized in a profit and loss statements. Transactions
A transaction is an event that changes the organization Fanacial position and/ or its earnings.
For example, when you deposit cash in the bank, your cash balance reduces end bank balance.
Increases when you sell goods for cash, your cash balance increases and your, stock reduces.
Transactions can be classified as follows * Receipts - cash or bank * Payments — cash or bank * Purchases * Sales
Recording Transactions
The essential function of accounting is to record transactions to ascertain the 'financial status of a company as on a particular date.
The usual transaction of business is * Purchases of goods either as raw material for further processing or finished goods for resale. * Payment of expenses incurred towards business. * Sale of goods or services. * Receipts, in cash or via cheques. * Other payments, in cash and cheque.
In the course of doing business, the parties dealt with are * Supplier’s goods and services for cash or on credit. * Customers buy goods or services for cash or on credit. * Employees who provides services in exchange of salaries and wages * Banks with whom account are maintained. * Suppliers of equipment, building and others assets needed to carry on the business. * Lenders from whom you borrow money to finance your business. *
Accounting is a finance support system that * Records transactions. * Classifies transactions and events. * Expresses transactions in monetary terms. * Helps to monitor the financial performance and condition of Business. * Helps to evaluate the business. * Helps to establish controls for the business.
Accounting helps to arrive at the financial position of an organization at any point of time. The organization’s financial status, as on a particular date, is captured in the balance sheet, .while financial performance for the year is summarized in a profit and loss statements. Transactions
A transaction is an event that changes the organization Fanacial position and/ or its earnings.
For example, when you deposit cash in the bank, your cash balance reduces end bank balance.
Increases when you sell goods for cash, your cash balance increases and your, stock reduces.
Transactions can be classified as follows * Receipts - cash or bank * Payments — cash or bank * Purchases * Sales
Recording Transactions
The essential function of accounting is to record transactions to ascertain the 'financial status of a company as on a particular date.
The usual transaction of business is * Purchases of goods either as raw material for further processing or finished goods for resale. * Payment of expenses incurred towards business. * Sale of goods or services. * Receipts, in cash or via cheques. * Other payments, in cash and cheque.
In the course of doing business, the parties dealt with are * Supplier’s goods and services for cash or on credit. * Customers buy goods or services for cash or on credit. * Employees who provides services in exchange of salaries and wages * Banks with whom account are maintained. * Suppliers of equipment, building and others assets needed to carry on the business. * Lenders from whom you borrow money to finance your business. *