F POA 4 sub books

8/9/2019 F POA 4 sub books

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PRINCIPLES OFACCOUNTANCY

Amity University Dubai Campus

Foundation (Non-Technical)

Code:Second Semester Credits: 4

FAYAZ AHAM!

ASS"STANT #$%FSS%$ - ACC%&NT"N'


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PRINCIPLES OFACCOUNTANCY

Course Objetive!

The course oecti*e is to enale the

students to learn the asic conce+ts o,accountanc. The students /ill e0i*en a detailed understandin0 onaccountin0 conce+ts1 recordin0 o,

transactions and +re+aration o, 2nalaccountin0 statements.


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Subsi"iary #oo$s


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Susidiar oo3s and theirt+es

hen the numer o, transactions islar0e1 recordin0 o, all transactions inone ournal /ill not onl e

incon*enient ut also cause dela incollectin0 in,ormation re5uired.

here transactions are numerous and+articularl o, re+etiti*e and similarnature1 "t is +racticale to di*ide themain ournal in to su ournal or in*arious susidiar oo3s


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Susidiar oo3s and theirt+es

'enerall transactions can e classi2ed intoroad 0rou+s1 namel cash and non-cash

Cash recei+ts and +aments can e 0rou+ed

in one cate0or /here credit +urchases inanother cate0or

Credit sales is et another cate0or.

6ournal is sudi*ided in to such a /a that ase+arate oo3 is used ,or each cate0or o,transactions /hich are re+etiti*e in natureand are su7cientl lar0e in numer.


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Nee"

Transactions can e classi2ed and 0rou+ed con*enientlaccordin0 to their nature1 as some transactions are usuall o,re+etiti*e in nature. 'enerall1 transations are o% t&otypes!

Cas' an" Cre"it. Cash transactions can e 0rou+ed in onecate0or /hereas credit transactions can e 0rou+ed inanother cate0or. Thus1 in +ractice1 the main ournal is su-di*ided in such a /a that a se+arate oo3 is used ,or eachcate0or or 0rou+ o, transactions /hich are re+etiti*e andsu7cientl lar0e in numer.

ach one o, the susidiar oo3s is a s+ecial ournal and aoo3 o, ori0inal or +rime entr. Thou0h the usual t+e o,ournal entries are not +assed in these su-di*ided ournals1the doule entr +rinci+les o, accountin0 are strictl ,ollo/ed.


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i. Pur'ases #oo$ records onl credit+urchases o, 0oods the trader.ii. Sa(es #oo$ is meant ,or enterin0

onl credit sales o, 0oods thetrader.iii. Pur'ases Return #oo$ recordsthe 0oods returned the trader to

su++liers.i*. Sa(es Return #oo$ deals /ith0oods returned (out o, +re*ious sales) the customers.

v) Cas' boo$! "t is used ,or recordin0


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Ad*anta0es o, susidiar oo3 andsudi*ision o, ournal

Facilitates di*ision o, /or3 #rotection ,rom ,raud

Facilit in chec3in0 usiness transactions. (salesreturn +urchase return)

"ncrease in e7cienc (interest in +articular /or3)

8ess time more /or3( ma3in0 entries insusidiar oo3s is eas1 +ostin0 ta3es less time.Thus there is a sa*in0 o, much time and laour).

Full in,ormation at one +lace

Fle9ile (necessar to 3ee+ all susidiar oo31the numer o, oo3s ma increase or decrease)

$es+onsiilit o, the /or3.


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Cash oo3 Cash oo3 is the s+ecial ournal

/hich is used ,or recordin0 all cash

transactions. "t ma e de2ned asthe oo3 in /hich transactions arerecorded in detailed +articulars o,all mone recei*ed and +aid.


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FAT&$S %F CASH %%;

To 3ee+ record o, onl cash transactions

All recei+ts are recorded in deit side

All +aments are recorded in credit side

Chronolo0ical (date /ise) transaction recordin0 o, alltransactions.

#er,orms ,unction o, oth ournal and led0er.


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%ects or Need o, cash oo3

To 2nd out the total cash recei+ts andcash +aments durin0 a 0i*en +eriod.

To ascertain the alance o, cash inhand and at an3 at an time /ithoutactuall countin0 cash and e9aminin0an3 +assoo3

To *eri, the correctness o, cash inhand and an3.


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"M#%$TANTS %F CASH %%; This is a *er +o+ular oo3 and it

is maintained in all or0anisations.

i0 or small1 +ro2t and non tradin0concerns.

"t hel+s the trader to understand

the cash in hand and cash at an3. "t is eas to 2nd out an ,raudulent

acti*ities inside the or0anisation.

Documents

F POA 4 sub books