recorded as a credit. All expenses and debt are recorded as debits. Asset accounts: Cash‚ bank‚ accounts receivable‚ inventory‚ land‚ buildings/plant‚ machinery‚ furniture‚ equipment‚ vehicles‚ trademarks and patents‚ goodwill‚ prepaid expenses‚ debtors (people who owe us money)‚ etc. Liability accounts: Accounts payable‚ salaries and wages payable‚ income taxes‚ bank overdrafts‚ trust accounts‚ accrued expenses‚ sales taxes‚ advance payments (unearned revenue)‚ debt and accrued interest on
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TERM PAPER OF ACCOUNTING FOR MANAGERS TOPIC:- FINANCIAL STATEMENT ANALYSIS OF JET AIRWAYS INDIA LIMITED. SUBMITTED TO NITIKA SEHGAL SUBMITTED BY SABA MASOD ROLL NO :-B 43 SEC.S1001
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working capital management precisely refers to management of current assets. A firm’s working capital consists of its investment in current assets‚ which include short-term assets such as: Cash and bank balance‚ Inventories‚ Receivables (including debtors and bills)‚ Marketable securities. Working capital is commonly defined as the difference between current assets and current liabilities. Working Capital = Current Assets-Current Liabilities There are two major concepts of working capital: Gross
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sales ledger (personal accounts of debtors) SL …. > no. of a/c of debtor ------------------------------------------------- Sales Date Detail Inv. No Folio | Amount SL | SL | | | Transfer to Sales Accounts GL | 3520 ^^^ Total credit sales Posted to Sales a/c at the end of month (in GL) Ledgers >> Sales Ledger >> personal a/c’s of debtors Purchases Ledger >> personal
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Solutions to Lecture Activities ACCT 1046 Introductory Accounting Semester 1‚ 2010 Lecture 1 Unit 1 – Business Decision Making and Accounting Lecture Activity 1 1. The accounting information system comprises four main procedures: analysis‚ recording‚ reporting and identification. The order in which they occur is: a) Reporting‚ analysis‚ recording‚ identification b) Identification‚ analysis‚ recording‚ reporting c) Analysis‚ identification‚ recording‚ reporting d) Identification‚ recording
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MODULE-2 WORKING CAPITAL MANAGEMENT Concept of Working Capital Working capital refers to short-term funds‚ need to meet operating expenses. It refers to the funds; to finance its day-to-day operations. It is concerned with current assets and current liabilities. If a firm can’t maintain a satisfactory level of working capital‚ it may become insolvent or bankrupt. Broadly there are 2 concepts of working capital‚ such as: 1. Gross Working Capital (Quantitative Concept) 2. Net working
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EXECUTIVE SUMMARY Study Topic: WORKING CAPITAL MANAGEMENT OF EASTMAN EXPORTS GLOBAL CLOTHING (P). Ltd. Objectives of the Study: To analyse the working capital management of the company. To determine the operating cycle of the unit (Spinning). To know the future need of working capital in the company. To render recommendations for effective management of working capital in the company. Time Span: A period of five financial year i.e. 2008-2011(3 Years) data has been used in the
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FINANCIAL ANALYSIS OF AMWAY Financial ratios are useful indicators of a firm’s performance and position. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials in the industry. (http://www.netmba.com/finance/financial/ratios/) There are wide ranges of relative financial performance indicators that can be used to assess various aspects of a target company’s financial performance which
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Cash Budgets These are used by management as a guide to planning‚ control and decision-making. • So we can see when commitments are due so the business can make payments on time‚ maintaining a good reputation and being able to obtain credit • To show when the business has excess funds which should be invested to earn interest in either the short-term money market‚ in a fixed term deposit‚ in government stock or in an investment account (rather than a cheque account) • To control by
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CHAPTER - II RECONSTITUTION OF PARTNERSHIP (CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS‚ ADMISSION OF A PARTNER‚ RETIREMENT/DEATH OF A PARTNER) Admission of a Partner Learning objectives:After studying this lesson‚ the students will be able to: Identify and deal effectively with the situation of reconstitution of partnership. Identify the problem arising due to admission of a partner in the firm. Calculate new and sacrifice ratio in different cases. Understand‚ calculate
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