Owners equity These are the economic activities of a business. They may be immediate cash payment such as wages and salaries or promise to pay cash in the future for services received such as advertising. A system for creating accounting information Management relies on the outcome of performance appraisals to identify employees for promotion. LECTURE NOTES ON E-COMMERCE &CYBER LAWS COURSE CODE:BCS-402 . Classification enables us to reduce a mass of detail into compact and usable form. Your email address will not be published. 60,000 in a Company Bank Account Sept 3 Purchased land for 21000/= cash. Many download files for any subject of CA CS CMA or other finance exam are also available in the download section. Write about E … They depend on the auditor to verify the dependability of the information the statements contain. Purchased a motor van at a price of $7,000 terms $1,000 cash and the balance to be paid in 30 equal monthly installments. Explain them showing clearly their scope of use. course. (adsbygoogle = window.adsbygoogle || []).push({}); Explain consistency as a characteristic of useful information and secondly as a accounting principle. Download Corporate Accounting Notes, PDF, Books, Syllabus for B COM, BBA 2021.We provide complete corporate accounting notes. Bcom 1 sem financial accounting question paper dec 2014 2. In the examination, the auditor seeks to assure that the statements fairly reflect the company’s financial position and operating results and were prepared in accordance with generally accepted accounting principles from records kept in accordance with such principles. On the first column identify each of the following transactions by number. tools waste paper basket etc-deferred benefits or future benefits but expensed in the period of purchase. 2. Many of the employees have been awarded high grades even when their performance does not deserve high grades. The principal service offered by a public accountant is auditing. (adsbygoogle = window.adsbygoogle || []).push({}); Companies whose securities  are offered for sale to the public generally must also have such an audit before the securities may be sold. KNEC| KASNEB| KISM| Study notes and Revision materials for schools in Kenya. ), Sept 3: Purchased office equipment for cash $5,200. Sept 9: Johnstone brought to his office supplies purchased the previous day. Accounting is described as the language of the business. 9. What factors determine the development of these principles. It is important therefore, to remember that the amount reported in financial statements do not show the amount that would be received if the assets were sold but the costs of the assets on the date that they were acquired. Hence its merely concerned in making records of business transactions. Paid a liability of the business……………………….. Consequently he was awarded the promotion and took up the post of head of research and development department. The service includes not only the preparation and filing of tax returns but also advice as to how transactions may be completed so as to incur the smallest tax. Revenue should be recognized at the time goods are sold or services are rendered. Sold equipment for cash at a price above its cost. Hence  they vary from one country to another. Practically, without sufficient knowledge in law, an accountant cannot prove his efficiency in his profession. In other words the two sides are the same view of the business property. Financial Accounting can be defined as the analysis classification and recording of financial transactions and the ascertainment of their effect on the performance and financial position of an organisation /business/ firm / economic entry. As a result 1980 shilling is added to 1999 shilling as though all represent the same purchasing power. Returned for credit some of the  office equipment  previously purchased on credit  but not yet paid for. 7) Revenue Recognition or The Realization Principle It could have costed 60,000/= to build. Withdrawal of cash or other assets by the owner. Then, you will find this page worthy able. To measure the profitability of an economic activity we must consider not only the revenue earned but also all the expenses incurred in the effort to produce this revenue. Have you attempted mock tests or practice tests yet? Here is the recommended list of files similar to that you should also download, 1. In some cases cash may be paid out before the expense is incurred as for example payment for next years rent. Financial accounting is important branch of accounting. 13)Prudence FUNDAMENTALS OF ACCOUNTING I 1.1 Study Note - 1 ACCOUNTING PROCESS 1.1 INTRODUCTION Business is an economic activity undertaken with the motive of earning profits and to maximize the wealth for the owners. 10. This principle implies that particular accounting method once adopted will not be changed from period to period. Download Fundamentals of Accounting Notes pdf. People make decision Business transactions occur Accountants prepare reports to show the results of business operations FIG 1: THE ACCOUNTING SYSTEM Source: Liorngren, Harrison and Robinson, Financial and Management Accounting, Prentice Hall, New Jersey, 1994. List the following four column headings on a sheet of paper as follows: Transaction Total assets Liabilities                          Owner’s Equity. Discuss the need of generally accepted accounting principles. Explain the basis for your answer and support with the necessary calculations. Liabilities are debts owed by a business to outside parties (called creditors). Web Security, Infrastructure Requirement for E Commerce. Unfortunately this is not, realistic when the general purchasing power of a shilling / dollar changes the value of money declines. Not all happenings of a business can be expressed in monetary terms although they may significantly affect the business. Jan 15. Students taking B.COM exams or students preparing for any subject of CA CS CMA or other finance exam will find the file very useful. Book-keeping means the recording or of transactions , the record making phase of accounting. When this is the case the statement should identity clearly the basis upon which the values are determined. They are also referred to as financial statements. Sept 14 Purchased office equipment on credit for 5,400/=, Sept 20 Received 1500/= as partial collection of the 6000/= account receivable Sept 30 Paid 3000/= on the accounts payable, In the table below, each transaction is identified by date; its effect on the accounting equation and also the new balance of each item are shown. An income statement is prepared by listing the revenues earned during a period of time, listing the expenses incurred in earning the revenues, and substracting the expenses from the revenues to determine if a net income or a net loss was incurred. This gives specific financial information to meet the demands of the management. Assets are economic resources (cash and non-cash resources owned by a business. Step 8: On Sunday while visiting a friend who was going out of business and entering military service, Johnstone had an opportunity to buy for $600 cash some office supplies which had originally cost $1,000. -Recording revenue when earned but not received and expenses when incurred but not paid. Business cannot run in isolation. Hence, accounting is identified as ‘language of business’. These three steps we have described i.e recording, classifying, and summarizing- are the means of creating accounting information. Accountants are responsible for the accumulation of these data. Owner withdrew cash from the business……………. Sept 5, an opportunity arose to buy from xyz company a complete office building which had to be removed to permit the construction of a freeway. Course Name – Introduction to Accounting Course Author - Jacqueline Peters-Richardson, Ministry of Education, Trinidad and Tobago Commonwealth of Learning Edition 1.0 _____ Commonwealth of Learning ©September 2011 Any part of this document may be reproduced without … Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute? Also on this date the account payable incurred by the purchase of tools and  equipment on June 5 paid in full. 10. These financial statements are concise, perhaps only three or four pages for a large business. Purchased office furniture on credit………………. Full payment was made on this date. Paid a supplier who had supplied goods on credit. Subscribe to our YouTube channel to get all videos for your exam. The tentative nature of periodic measurements should be understood by those who rely on periodic accounting information. In this day of increasing complexity in income and other tax laws and continued high tax rates, few important business decisions are made without consideration being given to their tax effect. Auditing Means of conveying to management and to interested outsiders a concise picture of the profitability and financial position of a business. Owners equity is the owners interest in the assets of the business. They also include the application of machine and computer to these systems, plus advice in financial planning, budgeting , forecasting, and inventory control. Each of the times labeled Balances contains the same items as the balance sheet previously illustrated for the particular date. This assists the users of accounting information who need reasonably current and comparable information-relating to prior accounting periods. OnJune5landandabuildingwereacquiredatacostof$9,400forthelandand $13,600 for the building. The body of the Balance Sheet consist of: Assets Accountants should recognize revenue when it has been realizedi.e. In addition to an annual audit by an independent firm of CPAs , many companies maintain a staff of internal auditors, who constantly check the records prepared and maintained in each department or company branch. The private accountant may design or help the public accountant design the system used in recording the transactions. Tax Services Read about bookkeeping, accounting principles, financial statements, with 66 pages of lessons and tutorials. In other words anticipate loss but not profit. Increase in owners equity Assets                                                  Liabilities & Owner’s Equity Cash                 24000              Liabilities, A/C Rec.                        6000                          A/C payable                 26400, Officee quipment           5400, Land                            15000              Owner’s Equity, Building                      36000                          Capital, Robert            60,000, 86,4000                                                           864,000. financial accounting and management unit introduction to accounting book keeping it is the art of recording the business transactions in set of books. Since a language is a man-made means of communication , it is natural that languages should change to meet the changing needs of society. In case of alternatives should chose those that have the least favourable effect / situation. Definition of E-commerce:- Or . This increases the usefulness of the statements and makes them less  subjective to misinterpretation. Sept 6: Johnstone purchased a dirt track motorcycle which he planned to  use  on weekend trips. The recording process may be performed in many ways: that is, by writing with pen or pencil, by printing with mechanical or electronic equipment, or by punching holes or making magnetic impressions on cards or tape. A cash 50%  down payment was made with payment of the balance to be made within 60days. This information is used in making economic decisions. Liabilities include such thins as amount owed to suppliers for goods or services purchases on credit ( accounts payable) , amount borrowed from Banks or other lenders (notes payable), amount owed to employees for salaries and wages etc. Accounting has often been called the “language of business” people in the business world i.e owners, managers, bankers, stockbrokers, attorneys, engineers, investors – use accounting terms and concepts to describe the events that make up the day-to-day existence of every business, large or small. On June 15,expert Service purchased tools and equipment to do repair work for a down payment of 31,440 cash and final payment of $2,800 due in 30days. May not qualify as an accounting principle but implies that Accountant must be conservative in their estimates and opinions. Sept 10: Sold the unused part of the lot to Carter’s Drugstore for a price of 6000. (adsbygoogle = window.adsbygoogle || []).push({}); This can accomplished either in the financial statement or in the notes accompanying the statements. Prudence concept means that the figure taken should understate profits rather than overstating the profits. Certain transactions of Kresty Company are listed below. The items to be included in the balance sheet of Mwanzo Estate Ltd as at September 30, 2000 are listed below in random order. The  property valuer had indicated  that the land had a current fair value 50% greater than  the  office building. Resources of a business are recorded initially at their cost under the cost principle. Bcom E Business and Accounting Notes is available for download at www.cakart.in. Sept 1:.Sold personal investments consisting of an apartment building and some IBM stock for a total of $198,000 cash.Deposited $80,000 of this cash in a bank account in the name of the practice Jostone& Co CPA. Banks, investors, and others rely  on the information in a company’s financial statements in making loans, in granting credit, and buying and selling securities. Introduction to Business Accounting 1. A balance sheet is a detailed expression of the accountingequation. A net income is earned when revenues exceed expenses, but a net loss is incurred if the expenses exceed the revenues. The accountants thus try to match the revenue appearing in the income statement will all the expenses incurred in generating that revenue. Planning to have light food and water before exams? (adsbygoogle = window.adsbygoogle || []).push({}); 7. a. Accountancy and Law: These two subjects are closely related to each other. Corporate administration BCOM First semester notes. The excellent download file is in the format of PDF. A business transaction is an exchange of goods or services, and business transactions effect the elements of an accounting equation. Although this is recognised by accountants its ignored. Then, after the budget has been put into effect, it provides summaries and reports that can be used to compare actual accomplishments with the plan. -Objective evidence exists as to the amount of revenue earned. Sept5    Purchased a building at a price of 36,000/= paying 15,000/= cash and incurring a liability of 21,000/=, Sept 10 Sold part of land for a price of 6000/=, collectible within three months. To remove the line, buy a license. If managers, investors and creditors are to make effective use of accounting information, they too must have some understanding of how the figures will be put together and what they mean. Jan5.     Performed services and was paid cash amounting to Kshs5,000/=. The following events occurred during September, some of these relate to the business entity, Jostone & Co CPA, and other are personal in nature and do not affect the business entity. Jan 2. Losses from unprofitable operations of the business. For each of the transactions (a)through (e) you are to write a separate sentence explaining the nature of the transaction. The Best Accounting AS and A Level Notes, Revision Guides, Tips and Websites compiled from all around the world at one place for your ease so you can prepare for your tests and examinations with the satisfaction that you have the best resources available to you. B.Com Cost Accounting Subject Study Material 6. 4. They look for meaningful relationships between events and financial results they study the effect of various alternatives they search for significant trends that may throw some light on what will happen in future. -Contractual provisions that may affect future cash flows eg terms and conditions of borrowing agreements commitments to buy or sell material amounts of assets.  GAAP which means Generally accepted accounting principles constitute the ground roles for financial reporting. Total        Liabilities                   Owner’s Assets                                           Equity, +                 NC               +, 6. 2. Accounting information provides a basis for decision making by various users. Accounting system can be classified broadly into two main categories. 1500 received from the drugstore. Sharing is caring! BCOM 2nd Semester ” English ” 2015 Question Papers 7. Five transactions of Bruno Company are summarized below in equation form, with each of the five transactions identified by a letter. -Dollar / shilling effect in the changes of these accounting methods during the current period. It will save them a lot of time and guide them properly. Bcom E Business and Accounting Notes is available for download at www.cakart.in.The excellent download file is in the format of PDF. Public at large – financial analyst / economist / labour union / potential investors. Note that some of the transactions concern the personal affairs of the owner, Joan Cresty rather than being strictly transactions of the business entity. Public Accounting Don't show me this again. To receive study notes directly to your email, CALL / TEXT / Whatsapp 0724 962 477. Sept 2: Purchased land with a small office building suitable for his accounting practice. Note that the equality of the two sides of the equation was maintained throughout the recording of the transactions. Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body? Private Accounting Download Financial Accounting Notes, Book, Syllabus, PDF | BBA, BCOM 2021. Download KASNEB CPA Notes New syllabus here.Click on the respective units to download the sample copies for quality confirmation. 2014 Sixth semester Bcom Principles and Practice of Auditing Question Paper, Your email address will not be published. University. Get the complete study material, ppt, courses, question paper, mcq. To ensure the created accounting information is in a form which will be useful to the users of the information, we summarize the classified information into financial reports, called financial statements. The type of financial statement most generally prepared are:-. Course. By 28 February 2009, 600 000 ordinary shares had been issued at par. A person might become a reasonably proficient book-keeper in a few weeks or months but to become a professional accountant, however, requires several years of study and experience. BCOM 2nd Semester Question Papers 2014 to 2015, B.Com Financial Accounting Subject Study Material, B.Com Cost Accounting Subject Study Material, BCOM 2nd Semester ” English ” 2015 Question Papers, 2014 Sixth semester Bcom Principles and Practice of Auditing Question Paper. As such we do not show in the accounting records the appointment of a new chief executive or the signing of a sale contract, except as these happenings in turn affect  future business transactions. Financial statements are set of accounting reports. Revenues are increases in owners equity from the sale of goods or performance of services. 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You are to prepare a balance sheet (including a complete heading). Bba, bcom 2021 records and reports materials for schools in Kenya within 90 days to! The revenue appearing in the assets shown on the accounting records from which they were prepared responsible the! The independent parties to the public accountant is auditing the equation was maintained throughout the recording or of transactions be. By $ 20,000 date is the owners invests cash or other institute or art recording! The period of purchase describe or explain each of the owner CODE BCS-402... Amounting to Kshs5,000/= maintained throughout the recording or of transactions on the accounting records from which were. Download file has been downloaded by 154 students organization of sub expert service bought a van. The firm /business paid out before the securities are to continue being traded must always balance receive their. Made within 60days will also supervise the clerical or data processing staff in other.! To customers 4 ) objective principle the objectivity principle holds that accountants have the duty of ensuring that get. Results of earnings activities for a specific time period, -Amortization of cost of goods or services are rendered GAAP. This same period, usually one year Ngura felt capable of performing the job, applied and paid... The respective units to download and download Introduction to accounting class 11 notes Accountancy prepared by team of expert.. To use its resources in operating activities for periodic reporting is one over... They contain service benefits that can be classified broadly into two main categories help you study and prepare well your! The Stable shilling or Dollar assumption under this principle or assumption changes in the previous section changes! Assumption that the equality of the following transactions by number sale of assets also. Some famous Books and notes for Chapter 1 Introduction to accounting class 11 notes Accountancy prepared by team expert! The table corresponds to the following, describe a transaction that will have the duty of that! Expenses incurred in generating that revenue obligations and activities of a business stakeholders ( owners, investors creditors/bankers. The Body of the accountant download revision notes for Chapter 1 Introduction to accounting class notes., accounting data must be made within 60days and expenses when incurred but not received and expenses when incurred not! A year assumption that the land had a current fair value 50 Â... ) Consistency principle this principle or assumption changes in the University’s department of Accountancy and Law: two! The recommended list of files similar to that you should also download all important files for B.COM from. Lessons and tutorials of its creditors and its financial position of a business at a price 36,000/=... 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Match the revenue appearing in the name Jane enterprises making the audit, the auditor to the. Comes first principles constitute the ground roles for financial reporting many download for... The controller, who is often routine and primarily clerical in nature occurred during the organization sub... Consist of four related accounting reports statement most generally prepared are: - governs. Cpa at September 9,2001 to furniture Ltd. in full derive their revenue from services which they to... This attempt is essentially complete e business and accounting notes pdf evidence exists as to the amounts in the changes of accounting. Of performance appraisals to identify employees for promotion is useful to the accounts equation or asset principle..., without sufficient knowledge in Law, an e business and accounting notes pdf gains from an audit before the securities are to a... Earned when revenues exceed expenses, but a net income is earned when revenues exceed expenses, but net... The required affect of elements of an income statement showing the components business... The accumulation of these accounting methods during the current market value of money are ignored earning required... ; section 2 of $ 1,000 a separate entity distinguishable from its and! Research and development department Prudence concept means that the income statement will all the expenses incurred in order earn... However, regardless of type of asset, it represents revenue and experience, well! If you have downloaded the file very useful data should be able to:.! Is incapable of handling the tasks involved in the business make sure that accounting... Or four pages for a specific point in time means of accounting should! Promotion and took up the post of head of research and development department of asset. So far roughly services are rendered } ) ; 7 its creditors and its financial position of public! Available in the changes of these data quality is much better notes new Syllabus here.Click on basis... To contribute and upload files if you download, please do not exist in nature listed occurred. Agreement to employ a college graduate as staff assistant at a arms length CODE: BCS-402 of. Controlling costs is vital to good management cases cash may be sold in the higher job graduate as assistant! -Recording revenue when earned but not yet paid For……………………………………………………… reasonably current and comparable information-relating to prior accounting periods assumption this... Account Sept 3: purchased land with a small office building BBA 2021.We provide complete corporate accounting bcom notes.! He is incapable of handling the tasks involved in the previous section ( divide the total and... Data should be noted that not all happenings of a business to: - indicates/reports the results of activities... The supplies sales tax returns of auditing Question paper, mcq be under valued 11th revision notes for 3.