15Feb, 2021

Top 5 Reasons Why young kids should learn English ?

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Top 5 Reasons Why young kids should learn English?

English is one of the world’s most widely used and commonly spoken language today and the need to learn English for kids has increased exponentially with this growth.

Most countries have now comprised the English language as a common value in communication across varieties of fields, from trade & finance to travel. It is this widespread use that has defined it as one of the most influential languages in the world and as such many parents prefer their children learning English as a second language.

International languages

English is the international language of communication and is used by hundreds of millions around the globe for entertainment, commercial and technical purposes.

Job opportunities

Increased job opportunities and higher salaries are proven outcomes to multi-language learning. Most businesses that handle international clientele, suppliers and business partners prefer to hire both native and non-native

Ability to learn

Young children have the ability to learn foreign language accent-free, while older children, especially after the age of 10-12 will almost never learn to speak English without an accent. Children are very adaptable. That’s why we often say that their brains are like a sponge.

Common languages

English is the most commonly spoken language in the world. One out of five people can speak or at least understand English! English is the international language of communication and is used by hundreds of millions around the globe for entertainment, commercial and technical purposes.

Bilinguals

Bilinguals are good at ignoring distractions and better at problem solving than monolinguals.

9Feb, 2021

Journal Entry of Exchange of Fixed Assets in Accounting

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Journal Entry of Exchange of Fixed Assets in Accounting

Fixed Assets are treated as Real Accounts in Accounting therefore When Fixed Assets are purchased they are debited and when fixed asset are sold they are credited in Accounting.

Fixed Assets are also Assets in Accounting and as per Accounting law when Fixed assets added in business they are debited and when fixed assets are deducted they are credited in business accoutning.

Example of journal entry of Fixed assets exchange in Business.

Journal entry for exchange of old machinery

Example :

Purchase Machinery Rs 100000 from Mohan Brothers in exchange of old machinery Rs 40,000 whos book Value Rs 50,000.

Make journal entry of the above transaction

Here we are puchasing one machinery in exchanging of old machinery hence machinery purchased will be debited as that machinery is added to the business wheras old machiery will be credited as its exchange with new machinery and its going our of business.

The point to be noted we have given two cost of old machiney one its book value and the other its sale value but while making journal entry we have to take its book value under consideration.

The journal entry for the same will be:

Machinery A/c Dr.	100000
P/L A/c Dr	10,000
To old Machinery A/c	50,000
To Mohan Brother	60,000
(being machinery purchased in exchange of old machinery)

As we have to make the profit and loss accounts because we have sold that machinery with a value of 40,000 whereas its book value is 50,000..

This 10,000 is a loss in the books of accounts hence loss is debited as per the rule of nominal accounts that’s why loss is debited here.

Profit on sale of Assets in Journal Entry

Purchase Machinery Rs 100000 from Mohan Brothers in exchange of old machinery Rs 60,000 whos book Value Rs 50,000.

Here

This entry is similar to above entry but difference here is that we have sold the old machinery more than its book value so keeping all the rule in mind as mention above we have to make journal entry of the same in the book of accounts .

Machinery A/c Dr.	100000
To P/L A/c	10,000
To old Machinery A/c	50,000
To Mohan Brother	40,000
(being machinery purchased in exchange of old machinery)

The difference here is we sold the old machinery with a profit of 10,000 as per nominal accounts profit is credited in books of accounts

Journal entry of Advance received from Customer and advance paid to Supplier

7Feb, 2021

Journal Entry of Outstanding salary and Prepaid Salary In Accounting

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Journal Entry of Outstanding salary and Prepaid Salary In Accounting

for more go to our blog Outstanding expense

Journal Entry of Salary outstanding expense

Salary paid for the month of Jan Rs 5,000 actual salary Rs 10,000

Journal Entry for the same will be.

Salary A/c Dr. 10,000

To cash A/c 5,000

To salary payable A/c 5000

Credit liability as Liability ADD

(being salary paid and payable salary)

Now in the month of Feb, the adjustment of salary will be made.

Salary A/c Dr. 10,000

Outstanding salary A/c Dr. 5,000

To cash A/c 15,000

(being salary paid off last month salary)

Debit liability to deduct liability – from the business.

Prepaid Salary Accounts

Journal Entry of Salay Prepaid expense

Salary paid for the month of Jan Rs 15,000 actual salary Rs 10,000

Journal Entry for the same will be.

Prepaid Salary A/c Dr. 5,000

Salary A/c Dr 10,000

To cash A/c 15,000

Debit Asset to ADD Asset + from business

(being salary paid with advance salary)

Now in the month of Feb, the adjustment of salary will be made.

Salary A/c Dr. 10,000

To cash A/c 5000

To Prepaid Salary A/c 5000

(being salary paid and adjustment of last month salary)

Credit Asset to deduct Asset – from business

Outstanding and Prepaid Salary in Profit and loss account.

During the year if outstanding and prepaid salary is to be shown in the profit and loss accounts as we have to know actual profit and loss of the financial year.

If outstanding salary of the Financial year is not paid then it to be added in the salary in the debit side of profit and loss account as it is expense of this year only.

Similarly if salary is prepaid and not adjusted during the year than it will be deducted from the salary in the debit side of Profit and loss side .

Particular

Amount

Particular

Amount

To salary

+ Outstanding salary xxx

– Prepaid Salary xxx

xxxx

Outstanding and prepaid salary in balance sheet

Outstanding salary is liability therefore it will be shown in the liability Balance sheet.

Prepaid salary is a liability therefore it will be shown in the Prepaid Balance sheet.

Outstanding salary in the Balance sheet

Liability	Amount	Assets	Amount
Outstanding Expense

Prepaid salary on the Balance sheet

Liability	Amount	Assets	Amount
		Prepaid Expense

Key difference Between prepaid salary and Outstanding salary

Prepaid Salary (advance salary )

Outstanding Salary

To add prepaid salary in

The books of accounts we have

To Debit it .

.To Add Outstanding salary

In the books of accounts, we have

To Credit it .

Prepaid salary is Asset by nature.

Outstanding Salary is Liability by nature

Prepaid salary journal entry

Outstanding salary journal entry

Prepaid Salary Dr xxx

To cash A/c xxx

(being salary paid in advance)

Salary A/c Cr. xxx

To outstanding salary A/c xxx

(being outstanding salary paid)

Adjustment of prepaid salary

Salary A/c Dr. xxx

To Prepaid Salary A/c xxx

(Being adjustment of advance

Salary)

Adjustment of outstanding salary

Outstanding salary A/c Dr xxx

To cash A/c xxx

(Being outstanding salary paid )

It deducted from Salary in Profit

And loss accounts

IT is added to profit and loss

accounts

MCQ Quiz

1Feb, 2021

Journal entry of Advance received from Customer and advance paid to Supplier

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Journal entry of Advance received from Customer and advance paid to Supplier

Advance received form Customer

When Advance received from customers that is current liabilities as its our obligation for us to deliver goods and service in future. Before going further we have to understand what is Advance paid through the accounting rule of assets and libilities

When we have to ADD Asset in business,	we have Debit that accounts
When we have to Deduct MINUS Asset in business	we have Credited that accounts
When we have to ADD Liability in business	we have Credited that accounts
When we have to Deduct MINUS Liability in business	we have Debit that accounts

A cash advance received from customer journal entry is required when a business receives a cash payment from a customer in advance of delivering goods or services. in return of it.

Advance paid to Supplier

When an advance is paid to the supplier in such condition we are adding our asset as in the exchange of our money the supplier will provide our goods and services in future .When Advance paid to supplier hat is current Asset as its our right to get deliver goods and service in future. Before going further we have to understand what is Advance paid through the accounting rule of assets and libilities as mention above table.

Example of advance received and advance paid journal entry

Example

A ltd sign a contract with B ltd for consulting services Rs 50,000 and received Rs 20,000 cash in advance.

Here things to be noted that we did not need to make a entry of contract only journal entry of advance need to be made in the book A ltd and B ltd.

In the books of A ltd

Journal Entry will Be

PARTICULAR	AMOUNT	AMOUNT
Cash A/c Dr.	20,000
To Advance from B ltd		20,000
(BEING CASH RECEIVED IN ADVANCE FROM B LTD)

Note : Advance from B ltd is liability as the money received in advance for service to be provided in future therefore its our obligation to provide service and as we are adding liabilty to our business therefore we are adding to our business.

Account	Implementation
Cash	Debit as cash is coming in business
Advance received form B Ltd	Credit as liability is added to business

In the books of B Ltd

PARTICULAR	AMOUNT	AMOUNT
Advance paid to A ltd	20,000
To cash		20,000
(BEING CASH PAID IN ADVANCE FROM A LTD)

Note : Advance paid to A ltd is assets in the bookd of B ltd as he has to receive service in future hence we are increasing our asset in business therefore we are adding it .

Account	Implementation
Advance paid to A ltd	Debit as Asset is added in business
Cash	Credit as Cash is going out

Adjustment of Advance received

Paid future remaining advance to B ltd Rs 30,000 and get a invoice from Party.

as mention above we have created our assets and libilities in the book of A

Journal entry In the books of A ltd

PARTICULAR	AMOUNT	AMOUNT
Cash A/c Dr.	20,000
To Advance from B ltd		20,000
(BEING CASH RECEIVED IN ADVANCE FROM B LTD)

Adjustment of advance in the book of A ltd

PARTICULAR	AMOUNT	AMOUNT
Advance from B ltd	20,000
To Consulting service A/c		20,000
(BEING ADVANCE ADJUSTED AGAINST SALES)

Comparison of Journal entry

ADVANCE RECEIVED FROM CUSTOMER	ADVANCE PAID TO SUPPLLIER
B is our customer	A is our supplier
When advance is received from customer Rs. 5000	When advance is paid to supplier Rs. 5000
Bank A/c Dr 5000 To B advance received A/c 5000 (Being advance received)	A advance paid A/c 5000 To bank A/c 5000 (Being advance paid)
When invoice is raised Rs 10,000	When invoice is received Rs. 1000
B advance received A/c Dr. 5000 B Dr. 5000 To Sales A/c 10,000 (being sale made)	Purchase A/c Dr 10,000 To A 5000 To A advance paid A/c 5000 (being purchase made)

Note :

B advance received is our liability.
A advance paid is our asset .
When bill are raised and received we adjust our assets and liabilities .

Advance receipt and Advance paid in balance sheet

Liabilities

Amount

Asset

Amount

Advance received

from customer

Xxxx

Advance paid

To supplier

xxxx

Journal entry of Receipt on Advace in GST in service

Advance received from the customer with GST

Mohan received Advance Rs 118,000 on 1 Jan 2021. from Krishna Traders local trader.

Particular	Amount
Bank a/c Dr.	118,000
To Krishna Traders	118.000
(being advance received from Krishna)

Now this advance include 18,000 GST amount which is

CGST 9000

SGST 9000

Now on 31 Jan 2021.

Particular	Amount
Tax on Advance a/c Dr.	18,000
To Output CGST	9.000
To Output SGST	9,000
(being tax paid in advance)

When a sale is made

Particular	Amount
Krishna Traders Dr	118,000
To Sales	100000
To Output SGST A/c	9,000
To Output CGST A/c	9,000
(being sales made )

Particular	Amount
Output CGST A/c Dr	9,000
Output SGST A/c Dr	9,000
To Tax on Advance A/c	18,000
(being an adjustment of advance)

Note no GST on advance on goods under GST but on service, it is still applicable.

Thus, advance payment under GST made in respect of the supply of goods would not attract any GST liability. However, the liability of on the advance payments for supply of services would continue to exist.

Difference between Advance received from Customer and advance paid to Supplier

Aspect	Advance received from Customer	Advance paid to Supplier
Definition	A prepayment received from a customer before delivering goods/services.	A prepayment made to a supplier before receiving goods/services.
Perspective	Supplier/Service Provider receives the advance	uyer/Customer pays the advance.
Nature	Recorded as a liability.	Recorded as an asset (prepaid expense).
Accounting Treatment	Initially, recorded as a liability account (e.g., “Advance from Customers”) When goods/services are delivered, the liability is reduced, and revenue is recognized.	Initially, recorded as an asset account (e.g., “Prepaid Expenses”). When goods/services are received, the asset is reduced, and expenses are recognized.
Purpose	Provides assurance to the supplier that the customer is committed to the purchase.	Ensures the supply of goods/services from the supplier or secures favorable terms.
Example	A company receives $1,000 in advance from a customer for a future order.	A company pays $2,000 in advance to a supplier for an upcoming shipment of goods.

31Jan, 2021

What are prepaid expense and their journal entry in Accounting?

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What are prepaid expenses and their journal entry in Accounting?

Prepaid expense

A prepaid expense is an expense that is paid in advance and its benefits is yet to received ..

A prepaid expense is an advance payment of expense before its benefits is yet to be received.

Prepaid expenses is which type of account

Prepaid expense are Asset by nature and comes under the category of Current Assets.

Journal entry of prepaid expense ?

Before understanding prepaid expense journal entry we have to understand the rule of debit and credit in accounting.

Point to remember before creating journal entry of Perpaid Expense

When we have to ADD Asset in business we have Debit that accounts
When we have to MINUS Asset in business we have Credited that accounts
When we have to ADD Liability in business we have Credited that accounts
When we have to MINUS Liability in business we have Debit that accounts

We can understand prepaid expenses with the example.

Suppose we have paid our Rent in advance paid to to its tenant Rs 10,000

Journal entry for the same will be

Prepaid Rent A/c Dr 10,000

To cash A/c Dr. 10,000

(being rent paid in advance )

Here Prepaid rent is Asset therefore its debited and added in business.

Example of Prepaid Expense

Example :- Rent paid for Jan Rs 10,000 actual rent Rs 5,000.

Journal entry for the above transaction will be.

Prepaid Rent A/c 5,000

Rent A/c 5,000

To Cash A/c 10,000

(being rent paid and prepaid )

here we have paid Rs 5,000 as advance rent which is an asset we have to adjust it in future.

Here we add Prepaid Rent because we ADD Asset to our business.

Now when the month Feb will come to the journal entry will be an adjustment of Advance rent which we have paid earlier.

Rent A/c 5,000

To Prepaid Rent A/c 5,000

(being rent paid and prepaid adj)

here we Credit Prepaid account because its minus our asset from the business

Example of Outstanding Salary expense

Salary paid for the month of Jan Rs 5,000 actual salary Rs 10,000

Journal Entry for the same will be .

Salary A/c Dr. 10,000

To cash A/c 5,000

To salary payable A/c 5000

Credit liability as Liability ADD

(being salary paid and payable salary)

Now in the month of feb the adjustment of salary will be made.

Salary A/c Dr. 10,000

Outstanding salary A/c Dr. 5,000

To cash A/c 15,000

(being salary paid of last month salary)

Debit liability to deduct liability – from business

Example of salary outstanding expense

Salary paid for the month of Jan Rs 15,000 actual salary Rs 10,000

Journal Entry for the same will be .

Prepaid Salary A/c Dr. 5,000

Salary A/c Dr 10,000

To cash A/c 15,000

Debit Asset to ADD Asset + from business

(being salary paid with advance salary)

Now in the month of feb the adjustment of salary will be made.

Salary A/c Dr. 10,000

To cash A/c 5000

To Prepaid Salary A/c 5000

(being salary paid and adjustment of last month salary)

Credit Asset to deduct Asset – from business

Adjustment at the end of Accounting year

Our accounting Start at 1 April and end on 31 of March every year

Therefore the accounts closed on 31 of the march have closing balances and the accounts on 1 April have opening balances.

Example :

Expense paid in advance at the end of the accounting year is Prepaid expense.

Suppose stationary purchase during a year Rs 12,000 but the stationary unused left Rs 5,000

therefore we have to pass an entry at the end of the accounting year

Unused stationary A/c 5,000

To stationary A/c 5,000

(being stationary unused)

Note: This unused stationery is an asset by nature and it can be transferred to next year as opening unused stationery.

Similarly, our prepaid salary, Prepaid rent, and all prepaid expense which not paid in the particular accounting period are transfer to the next accounting year as the opening.

Note: Expense is not transferred to the next accounting year its only asset and liabilities which are transfer to the next accounting year. but expense which are outstanding and prepaid are shown in Profit and loss and trading accounts.

25Jan, 2021

Top 5 programming languages for kids

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Top 5 programming languages for kids

Programming nowadays have a great skill for any child to learn and develop and connect with the outside world there are so many different programming languages, Nevertheless it can be hard to decide which one will be the best to pick for your students..

Children are not things to be molded, but are people to be unfolded.” “Play is the shortest route between children and their creative calling.” “Don’t limit a child to your own learning, for he was born in another time..

“A child educated only at school is an uneducated child.”– George Santayana

You will either step forward into growth, or you will step backward into safety.”– Abraham Maslow

SCRATCH FOR KIDS

If you have a classroom of kids who are interested in creating animations, interactive stories, art or music, then Scratch is a coding language that can be learned online.

Scratch is easy, as the platform provides an intuitive, easy-to-use visual block interface that eliminates the frustration of typing for young learners. This is an excellent starting point for programming for kids.

The important thing is that your students learn the concepts behind the programming, such as the logic behind writing a code

JAVASCRIPT FOR KIDS

Java Script plays a significant role in app development and creating websites. For the past two decades, it has been used by very many professional coders to create their magic. More than this, you can even use JavaScript to program many types of hardware, such as robots.

JavaScript usually comes as a level-up skill for kids who already have some experience with coding in Scratch or Python. Usually, it’s recommended for kids older than 10.

javascript is a powerful language with a lot of elements. It’s extremely important to first teach your kids about the variables, arrays, objects, methods, loop tables, functions, and parameters, before fully exposing them to this coding language.

Java Script is important in the language of the web, and it is an excellent kid’s coding language for students who are ready for text-based coding.

PYTHON FOR KIDS

According to Wikipedia, “Python’s design philosophy emphasizes code readability with its notable use of significant whitespace. Its language constructs and object-oriented approach aim to help programmers write clear, logical code for small and large-scale projects”

PYTHON Programming is the predominant language for Machine Learning, AI as well as Data Science.

It is also one of the easiest languages, to begin with. And of course, our Founder, Mr. Mudit Goel’s cult-favorite as well.

PHP FOR KIDS

PHP should ideally be learned after HTML, as much of what we do today with PHP involves pulling up and displaying web pages (with HTML). PHP can certainly do other things, but it’s best known for making interactive web pages. It is the programming code underneath popular website content management systems such as Drupal and WordPress.

Blockly FOR KIDS

Blockly is Google’s project. It’s a way to visually program using interlocking blocks.

CONCLUTION

These coding games for kids make coding fun and imaginative. Coding is not just about technical skills but learning to code introduces young people to building logic and creative thinking.

26Oct, 2020

Final accounts Trading Accounts Profit and Loss Accounts and balance sheet in Accounting

Final accounts Trading Accounts Profit and loss and balance sheet in Accounting

What are final Accounts

After checking the accuracy of the book of accounts through preparation of trail balance .Next step it to check the profit and loss earned during the year and also the financial position of the business
Final Accounts are the accounts, which are prepared at the end of a fiscal year. It gives a precise idea of the financial position of the business/organization to the owners, management, or other interested parties

Final accounts Trading profit and loss and balance sheet in Accounting

Final accounts have three parts

Trading A/c
Profit and Loss A/c
Balance Sheet A/c

What is Trading Account ?

Trading Accounts

Trading accounts is nominal accounts and all expense which are related to either purchase or manufacturing of goods are written on the Dr. side of the trading accounts. Similarly its Cr. side sales and sales return are written in the credit where sale return is deducted from sales .

Closing stock : If the closing stock is given inside the trial balance this will be mean that the entry is incorporated the closing stock in the books has already been passed. It would imply that the closing sock must have been deducted out of purchases accounts. Hence in such a case Closing stock will not be shown in the Trading Account but will appear on the assets side of balance sheet only.

Format of Trading Account for the year

Particular Dr.	Amount	Particular Cr.	Amount
To opening stock	Xxxx	By sales – Sales Return (return Inward)	Xxx
To Purchase -Purchase Return / Return Inward	Xxxxxx	By closing stock	XXX
To wages
To wages and salaries	Xxxx
To carriage or carriage inward	Xxx
To carriage of purchase	Xxx
To gas fuel and power	Xxx
To freight ,octroi and cartage	Xxx
To manufacturing expense	xxx
To factory lighting	Xxx
To productive expense	Xxx
To Royalty	Xxx
To Custom duty	Xx
To dock charges	xxx

To Gross profit C/d	xxx	By Net Loss C/d	Xxx
	Xxxx		xxxx

Format of Profit and loss Accounts for the year ending

Particular Dr.	Amount	Particular Cr.	Amount
To G/L B/d	Xxx	To G/P B/d	XXX
To Salary	xxx	By rent from tenant / Rent
To salaries and wages	Xxx	By discount Cr	Xxx
To rent rate and taxes	Xxx	By commission cr	Xxx
To printing and stationary	Xxx	By interest on invest.	Xxx
To mobile or telephone	Xxx	By dividend on share	Xxx
To Legal charges	Xxx	By bad debts recover	Xxx
To audit fees	Xxx	By apprentice premium	Xxx
To travelling expense	Xxx	By Profit on sale of asset	Xxx
To establishment expense	Xxx	By Income from other source	xxxx
To trade expense	Xxx	By miscellaneous receipt	Xxxx
To general expense	Xxx	By interest on drawing	Xxx
To Carriage on sales	Xxx
To carriage outward	Xxx
To charity or donation	xxx
To interest of capital	xxx


To advertisement	XXX
To commission	Xxx
To Breakage	Xxx
To Bad debts	Xxx
To export duty	Xxx
To packaging charges	Xxx
To Loss on sale of asset	Xxx
To discount	Xxx		XXX
To repairs	Xxxx		xxxxxxx
To deprecation
To bank charges	Xxxx		xxxxx
To Conveyance
To N/P transfer to capital A/C	xxxx	To N/L transfer to capital A/C	xxxx
	xxxxx		xxxxxx

Format of balance sheet as on_____

Liabilities Cr.	Amount	Assets Dr..	Amount
Bank Overdraft	XXX	Cash In hand	Xxx
Bills payable	Xxx	Bill receivable	Xxx
Sundry Creditors	Xxx	Sundry debtors	Xxx
Outstanding expense	Xxx	Short term investment	xxx
Unearned income	Xxx	Closing stock	Xx
Long term loans	Xxx	Prepaid expense	Xxx
Reserve	Xxx	Accrued income	Xxx
Capital xxxx		Furniture	XXX
– Drawing xxxx		Loose tools	xxx
+ NP / – N/L		Motor Vehicle	xxx
+ Interest of capital	Xxxx	Long term investment	xxx
– Interest on drawing		Plant and machinery
		Patent and goodwill	xxxx
	xxxx		xxxx

Preparation of Trading Profit and Loss Accounts and Balance sheet from Trading A/c

Trail balance of Sai traders the closing stock at the end of the year Rs 25,000

Debit	Amount	Credit	Amount
Stock (1/4/12)	20,000	Sundry Creditors	15,000
Purchase	75000	Purchase returns	3000
Sales Return	8,000	Sales	250,000
Freight and carriage	7,500	Commission	3,300
Wages	36,500	Capital	170,000
Salaries	12,000	Interest on Bank Deposit	2,000
Repairs	1,200	B/P	6,200
Trade expense	4,000
Rent and Taxes	24,000
Cash in Hand	5,700
B/R	4,000
Debtor	55,000
Plant and machinery	1,60,000
Withdrawal (Drawing)	16,000
Bank Deposit	20,000
	4,49,000		4,49,000

Solution of the question is

Trading A/c for the year ending

Particular Dr	Amount	Particular Cr	Amount
To opening Stock	20,000	By sales 2,50,000
To purchases 75,000		-By sales return 8000	242,000
– To P/R 3000	72,000
To freight and carriage	7,500	By closing stock	25,000
To wages	36,500

To G/P C/D	1,31,000
	2,67,000		2,67000

Profit and Loss account for the year ending

Particular Dr	Amount	Particular Cr	Amount
		By G/P B/D	131,000
To salaries	12,000	By commission	3,300
To repairs	1.200	By interest on Bank deposit	2,000
To trade expense	4,000
To rent and taxes	24,000
To N/P transfer to capital A/c	95,100

	136300		136,300

Balance Sheet as on …….

Liabilities credit	Amount	Assets debit	Amount
		Cash in Hand	5,700
Capital 1,70,000		B/R	4,000
+ N/P 95100		Debtors	55,000
– Drawing 16,600	248500	Plant and machinery	1,60,000
		Bank deposit	20,000
Sundry creditor	15,000	Closing stock	25,000
B/P	6,200

	269700		269700

Final accounts Trading profit and loss and balance sheet in Accounting with adjustment

Final Accounts with adjustment

Adjustment
Outstanding expense
Prepaid expense
Deprecation
Accrued
Unearned
Interest on capital
Interest on drawing

Adjustment transactions

The adjustment transactions transactions represent such items of incomes and expenditures, which relate to the current year and have not yet been brought into the book of accounts. Such financial transactions are adjusted after the preparation of trial balance.

Outstanding Expense

Trail balance

Particular	Amount	Amount
Wages	110,000
Salaries	2,20,000

Wages outstanding10,000

Salary outstanding 20,000

Solution

Wages A/c Dr. 10,000

To O/S Wages A/c 10,000

Particular

Amount

Particular

Amount

To wages A/c 1,10,000

+To O/S wages 10,000

120,000

Salary A/c Dr. 20,000

To O/S Salary A/c 20,000

Particular	Amount	Particular	Amount
To Salary A/c 2,20,000 +O/S salary 20,000	2,40,000

Balance sheet as on

Liabilities	Amount	Asset	Amount

O/S Salary	20,000
O/S wages	10,000

Prepaid expense

Particular	Amount	Amount
Insurance	12,000

Out of insurance Rs. 12,000 Rs 3000 is prepaid Insurance

Solution

Prepaid Insurance A/c Dr 3,000
To insurance A/c 3,000
(being insurance prepaid)

Particular	Amount	Particular	Amount
To Insurance 12,000 — Prepaid Insurance 3000	9,000

Balance sheet as on

Liabilities	Amount	Asset	Amount
		Prepaid Insurance	3,000

Depreciation adjustment

Trail Balance

Particular	Amount	Amount
Machinery	100,000

Depreciation on Machinery 10,000

Solution :

Dep. on Machinery A/c 10,000

To Machinery A/c 10,000

(Being dep on Machinery)

P/L A/c for the year ending

Particular	Amount	Particular	Amount
To Dep on Machinery	10,000

Balance sheet as on

Liabilities

Amount

Asset

Amount

Machinery 100000

– Dep. on Machinery 10,000

90,000

Accrued Income

Particular	Amount	Amount
Income		20,000

Income earned Rs 4000.

Solution

Accrued Income A/c Dr. 4,000

To income A/c 4,000

P/L A/c for the year ending

Particular	Amount	Particular	Amount
		By income 20,000 + accrued income 4,00	24,000

Balance sheet as on

Liabilities	Amount	Asset	Amount
		Accrued Income	4,00

Unearned Income

Particular	Amount	Amount
Rent		28,000

Rent received in advance Rs 4000.

Solution

P/L A/c for the year ending

Particular

Amount

Particular

Amount

By Rent 28,000

– Unearned Rent 4000

24,000

Balance sheet as on

Liabilities	Amount	Asset	Amount
Unearned Rent	4,000

Interest on capital

Particular	Amount	Amount
Capital		200,000
Drawing	20,000

Interest on capital is to charge @10%

And Interest on Drawing @ 10%

Solution

Interest on capital A/c Dr 20,000

To Capital A/c 20,000

Drawing A/c Dr. 2,000

To interest on Drawing A/c 2,000

Particular	Amount	Particular	Amount
To interest on capital A/c	20,000	By interest on drawing A/c	2,000

Balance sheet as on

Liabilities

Amount

Asset

Amount

Capital A/c 200000

–Drawing 20,000

–+ interest on capital 20,000

–– interest on drawing 2000

–+ NP/NL

20Oct, 2020

What are Ledger Account Definition, Format, Types, and Example ?

What is Accounting and how to make its journal entry

17Oct, 2020

How to make journal entry in Accounting ?

What is Accounting and how to make journal entry ?

What is accounting?

Accountancy is an ART of Recording, Classifying and Summarizing in a significant manner and in terms of money, financial transactions and events which are in part at least of a financial character and interpreting the result thereof.

“American Institute of Certified Public Accountant”

Fundamental Points of Accountancy.

In Accountancy “DEBIT” means ‘+’, ‘Addition’.
In Accountancy “CREDIT” means ‘-’, ‘Subtraction’.
In every transactions there is a ‘Receiver’ and there is a ‘Giver’.
In every transactions something comes IN the business and something goes OUT of the business.
In accountancy the ‘Transactions’ are recorded in the books of Accounts from the point of view of the BUSINESS only.
In Accountancy only Business transactions are recorded in the books of Accounts and the Personal transactions of the Owner are not recorded.
The amount which the owner invest into the business is known as CAPITAL
The amount which the owner withdraws from the business for his PERSONAL USE is known as DRAWINGS.

Non-economic activity is an activity performed with the purpose of rendering services to others without any consideration to financial gain. Example Mother cooking food for children.

In accounting we only record Economic activities only. Therefore economic activities are considered in accounting hence we divide them into three parts as shown below.

Division of activities in Acccouting

Types of activities

Economic Activities

Activities that involve money or the exchange of products or services are economic activities.

Business run for profit is example of economic activity.

Non – economic activities

Non-economic activity is an activity performed with the purpose of rendering services to others without any consideration to financial gain. Example Mother cooking food for children.

In accounting we only record Economic activities only. Therefore economic activities are considered in accounting hence we divide them into three parts as shown below.

PERSONAL ACCOUNTS

(Name)

REAL ACCOUNTS

(Feel and Touch)

NOMINAL ACCOUNTS

(All expenses losses gain and income)

RAM
SHYAM
SITA
GEETA
COMPANY
BANK A/C
Capital a/c
Drawing s a/c

LAND & BUILDING
PLANT & MACHINERY
FURNITURE & FIXTURES
CASH A/C

EXPENSES
INCOMES
PROFITS
LOSSES

Three golden Rules of Accounting

Three golden Rules of Accounting
Personal A/c	Debit (Dr.) The receiver Credit (Cr.) The Giver
Real A/c	Debit (Dr.) What comes In Credit (Cr.) What Goes out
Nominal A/c	Debit (Dr.)All expenses and Losses Credit (Cr.) All gains and Income

Application of how to make journal Entry

There are four (4) steps in the construction of a journal entry

1. Understanding the transaction.

2. Identifying the accounts to be opened.

3. Classifying the accounts as per the division of the economy.

4. Applying the rules

How to create a journal entry

How to make journal entry?

Before we go further, we understand that What is a Journal Entry?

What is Journal Entry ?

A Journal Entry is commonly a summary of the debits and credits of the transaction entry to the Journal. Journal entries are important because they give us to sort our transactions into manageable data.

A journal entry is used to register a business transaction in the accounting records of a business. We usually record a journal entry in the Journal , quickly, it may be recorded in a subsidiary ledger that is then summed up and rolled forward into the general ledger. The general ledger is then used to create financial statements for the organization.

Example of Journal entry

Date

Particular

Amount

Account Dr.

To Account

Xxxx

xxxx

Examples of journal entry.

while making journal entry as we know we have identify the account and apply golden rule .

Started business with cash Rs. 100,000.

Capital A/c (Personal)

Cash A/c (Real A/c)

Date

Particular

Amount

xxx

Cash A/c Dr.

100,000

To Capital A/c

( Being business started with the cash)

100,000

Deposited into bank Rs. 50,000.

Bank A/c (P)

Cash A/c (R)

Date

Particular

Amount

xxx

Bank A/c Dr.

To cash A/c

(being cash deposited into bank)

50,000

Purchase goods from Mohan Rs. 9000

(Note: when name is given in the transaction it means goods are purchased on credit from the party.)

Purchase A/c (Real A/c)

Mohan (Personal)

Date

Particular

Amount

Xxx

Purchase A/c Dr.

To Mohan A/c

(Being goods purchased from Mohan)

9,000

Sold goods for cash Rs 9000.

Sales A/c (Real a/c)

Cash A/c ( Real A/c)

Date

Particular

Amount

Xxx

Cash A/c Dr.

To Sales A/c

(being goods sold for cash)

9,000

5.Purchase goods by cheque Rs. 7000.

Purchase A/c (Real A/c)

Bank A/c (Personal a/c)

Date

Particular

Amount

Xxx

Purchase A/c Dr.

To Bank A/c

(being goods purchase by cheque)

7,000

6.Sold goods by cheque Rs 9000.

Sale A/c (Real a/c)

Bank (Personal A/c)

Date

Particular

Amount

xxx

Bank A/c Dr

To sales A/c

.being goods sold by cheque)

7,000

7.Sold goods from Ramesh Rs 3000.

Sale A/c (Real A/c)

Ramesh (Personal a/c)

Date

Particular

Amount

Xxx

Ramesh A/c Dr.

To sales A/c

(being goods purchase by cheque)

3,000

8..Purchase Machinery for cash Rs. 20,000.

Machinery A/c (real A/c)

Cash a/c (real A/c)

Date

Particular

Amount

xxx

Machinery A/c Dr.

TO Cash A/c.

(being machinery purchased)

20,000

9..Paid Rent Rs 8000.

Rent A/c (nominal A/c)

Cash A/c (real A/c)

Date

Particular

Amount

xxx

Rent A/c

To Cash A/c

(being rent paid)

8,000

10..Received Commission Rs 800 by cheque.

Cash A/c ( Real A/c)

Commission (Nominal A/c)

Date

Particular

Amount

xxx

Cash A/c

To commission

(being commission received)

800

Trade Discount and Cash Discount

Meaning

Trade Discount

A discount given by the seller to the buyer as a deduction in the list price of the commodity is trade discount.

Cash Discount

A deduction in the amount of invoice allowed by the seller to the buyer in return for immediate payment is cash discount.

Purpose

To facilitate a bulk sales.

To facilitate a prompt payment.

Invoice

It is shown in invoice as a deduction itself.

It is not shown in invoice.

When allowed?	Trade Discount At the time of purchase.	Cash Discount At the time of payment.
Allowed to all customers	Yes	No
Entry in books	No	Yes

Format of Bill or invoice under Trade Discount . Here trade discount is shown in the bill but not

S.NO

ITEM

PRICE

UNITS

TRADE

DISCOUNT

AMOUNT

1

X

100

!0%

9000

Total amount

9000/

Journal entry of trade discount Example:

Purchase goods from Mohan Rs 10,000 and trade discount received 10% .

10,000 X 10% = 1000

10,000 – 1000 = Rs 9000

Journal entry for the transaction will be

Date

Particular

Amount

Purchase A/c Dr.

To Mohan

( being goods purchased from Mohan)

9,000

2. Sold goods to Disha Rs 20,000 and trade discount allowed 10% .

20,000 X 10% = 2000

20000-2000= 18,000

Journal entry of transaction will be.

Date

Particular

Amount

xxx

Disha Dr. .

To Sales A/c

( being goods Sold to disha)

18,000

Journal entry of Cash discount .

Purchase Goods from Mahesh Rs 10,000

Purchase A/c (r)

Mahesh (P)

Purchase A/c 10,000

To Mahesh 10,000

(being goods purchased from Mahesh)

Paid cash to Mahesh Rs 9500 and received cash discount Rs 500.

cash discount is shown in the book of accounts.

Cash A/c (r )

Mahesh ( P)

Discount received ( N)

Date

Particular

Amount

xxx

Mahesh Dr.. .

To cash A/c

To discount received A/c

( being goods Sold to disha)

10,000

9,500

500

Sold goods to Varun Rs 20,000

Sale A/c (r)

Varun (p)

Varun Dr . 20,000

To sales A/c 20,000

(being goods sold to Varun)

Received cash from Varun Rs 19,500 and discount allowed 500

Cash A/c ( r)
Varun ( P)
discount Allowed (N)

Date

Particular

Amount

xxx

Cash A/c Dr.

Discount Allowed A/c Dr.

To Varun

(being cash paid to Varun and discount allowed)

19,500

500

20,000

28Sep, 2020

Coding for kids Java script lighthearted and playful

Javascript is a light-hearted and playful language that makes your website dynamic, interactive and professional. Kids love to see easy and funny illustrations using javascript step by step. kIds begin to learn javascript basics like string, arrays, and loops. After they hold a grip on the basics, they move on to advanced topics like building interactivity with jQuery and drawing graphics with Canvas. Kids enjoy seeing illustrations like bouncing balls, animated bees, calculator, clock, animated navigator toggle, and racing cars, etc The challenging topic stretches the minds of the children and force them to create unique projects using javascript. In JavaScript, there are three basic types of data: numbers, strings, and Booleans. Numbers are used for representing, well, numbers! For example, your age can be represented as a number, and so can your height.

Numbers in JavaScript look like this: 5;
Strings are used to represent text. Your name can be represented as a string in JavaScript, as can your email address example: this is a string
Booleans are values that can be true or false.
javascript lets you perform basic mathematical operations like addition, subtraction, multiplication, and division. To make these calculations, we use the symbols +, -, *, and /, which are called operators.
To create a new variable, use the keyword var, followed by the name of the variable. A keyword is a word that has special meaning in JavaScript. In this case, when we type var, JavaScript knows that we are about to enter the name of a new variable. For example, here’s how you’d make a new variable called nick: var abhi;
To give the variable a value, use the equal sign: var age = 12; undefined

HTML TAG FOR JAVA SCRIPT

<html lang=“en“>

<head>

<title>JavaScript</title>

<script> document.write(“Hello World <br><br>”);

document.write(“<i><b>Hello from Vista Academy<b></i>”);

</script>

</head>

<body> <h1>This my java script</h1> </body> </html>

Blog

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Job opportunities

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Journal Entry of Exchange of Fixed Assets in Accounting

Example of journal entry of Fixed assets exchange in Business.

Journal entry for exchange of old machinery

Profit on sale of Assets in Journal Entry

Journal Entry of Outstanding salary and Prepaid Salary In Accounting

Journal Entry of Salary outstanding expense

Prepaid Salary Accounts

Journal Entry of Salay Prepaid expense

Outstanding and Prepaid Salary in Profit and loss account.

Outstanding and prepaid salary in balance sheet

Outstanding salary in the Balance sheet

Prepaid salary on the Balance sheet

Key difference Between prepaid salary and Outstanding salary

MCQ Quiz

Journal entry of Advance received from Customer and advance paid to Supplier

Advance received form Customer

Advance paid to Supplier

Example of advance received and advance paid journal entry

Adjustment of Advance received

Comparison of Journal entry

Advance receipt and Advance paid in balance sheet

Journal entry of Receipt on Advace in GST in service

Advance received from the customer with GST

Difference between Advance received from Customer and advance paid to Supplier

What are prepaid expenses and their journal entry in Accounting?

Prepaid expense

Prepaid expenses is which type of account

Journal entry of prepaid expense ?

Example of Prepaid Expense

Example of Outstanding Salary expense

Example of salary outstanding expense

Adjustment at the end of Accounting year

Top 5 programming languages for kids

SCRATCH FOR KIDS

JAVASCRIPT FOR KIDS

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PHP FOR KIDS

Blockly FOR KIDS

CONCLUTION

Final accounts Trading Accounts Profit and loss and balance sheet in Accounting

What are final Accounts

Final accounts Trading profit and loss and balance sheet in Accounting

Final accounts have three parts

What is Trading Account ?

Trading Accounts

Format of Trading Account for the year

Format of Profit and loss Accounts for the year ending

Format of balance sheet as on_____

Preparation of Trading Profit and Loss Accounts and Balance sheet from Trading A/c

Trading A/c for the year ending

Profit and Loss account for the year ending

Balance Sheet as on …….

Final accounts Trading profit and loss and balance sheet in Accounting with adjustment

Final Accounts with adjustment

Adjustment transactions

Outstanding Expense

Prepaid expense

Depreciation adjustment

Accrued Income

What is the meaning of Ledger accounts ?

what is ledger account with example

Ledger accounting definition

HOW TO DO POSTING IN LEDGERS

Important point while preparing Ledger

POINT TO BE NOTED

Important Points regarding Ledgers

DEBIT AND CREDIT BALANCE OF LEDGER

What is format of Ledger ?

Format of ledger

Ledger account format

Personal A/c

Real A/c Ledger

Nominal A/c

How to make journal entry?