By Y P Singh
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Extra resources for Accounting and Financial Management for I. T. Professionals
March 10 Paid telephone rent for the year by cheque Rs. 500. March 11 Bought one typewriter for Rs. ’ on credit. March 15 Sold goods to Ram for Rs. 12,000. March 17 Sold goods to Raj Kumar for Rs. 2,000 in cash. March 19 Amount withdrawn from bank for personal use Rs. 15,00. March 21 Received cash from Ram Rs. 11,900 and discount allowed Rs. 100. March 22 Paid Rs. 5,800 into bank. March 23 Bought 50 shares in ABC Co. Ltd. at 60 per share, brokerage paid Rs. 20. March 25 Goods worth Rs. 1,000 found defective were returned to M/s Chowdhry and Co.
2. Distinguish between: l Financial Accounting l Cost Accounting l Management Accounting Q. 3. How does the accounting information assists management in the solution of strategic business problems? Q. 4. “Accounting as an aid to management in solving tactical business problems”. Comment. Q. 5. Financial accounting has the basic objective of providing financial information to the parties outside the business. Parties inside the business also need information of monetary character and otherwise. Which system of accounting provides this information, and what information is generated for the guidance of the managers to take decisions?
Cash A/c R Cash goes out, so Cr. it. Rule 2 Rule 3 A/Cs Involved Nature Apply ground Rule for entry in books of account Cash A/c Travelling R Cash comes in, so Dr. it. Expenses A/c N Expense on travelling, so Dr. entry. Sales A/c N Income due to Sales, so Cr. it. Rule 4 Some important transactions along with journal (primary) entries, are given below: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Invoice received from Shyam Rs. 5000. Goods returned to Shyam or Shyam admitted claim for Rs.