Accounts XI

Journals

* 10000 deposited into bank.

> bank a/c dr.-- to -- cash a/c cr..

* withdraw money from bank for personal use.

> drawing a/c dr.. -- to -- bank a/c cr..

* widthdraw money from bank for office use

> cash a/c dr. -- to -- bank a/c cr/-.

If discount given debit it and if discount taken credit it

    Government accounting

    Government accounting is the process of recording, analyzing, classfing, summarizing, communicating anf interpreting financial information about government in aggregate and in details, reflecting all transactions involving the receipts, transfer and disposition of government fund and property.

  1. purpose:Its main purpose is to depict the position of government fund.
  2. Basis of fund:Under it, accounts are maintained according to budget heads.
  3. Uses:It is maintained for the use of government offices as well as general public.
  4. Level of accounting:It is classifies into two level i.e. central level and operating level accounting.

Features

The features of new government accounting system are:

  1. Based on Double entry system :The new accounting system is based on double entry system of book keeping which states that every financial transiction has two aspects
  2. Based on budget:Budget is estimated income and expenditure in government offices for the fiscal year. All the financial transaction of the government offices are recorded and classified within limitation of budget. Gpvernment expenditures are made according to budget heads.
  3. Based financial act, rules and regulation: The process of recording, collecting and analyzing the financial transactions of government office is affected by financial acts, rules and regulations. It follows government rules and provision.
  4. Recording as per budget head: The government accounting has classified all the government exoenditures in different budget head. In order to keep control over budget and facilitate for recording, all the government revenue and expenditures are recorded as per the budget head prescribed by the concern
  5. Emphasis on banking transactions: Government accounting emphasizes on banking transactions. In order to control over budget, all the government transactions are performed through bank.

Objectives of Government accounting:

  1. To record financial transaction:Government accounting systematically and scientifically collects and keeps the record of all government offices. It records all the revenue and expenditure of government financial transaction.
  2. To provide necessary data and financial information: It is quiet difficult to prepare financial reports and statement without necessary data and financial statics. The government according thus aims to provide complete information and other data required for preparation of financial reports and statements.
  3. TO keep control over budget and get the result of operation: The government on the basis of data and information prepares the budget for coming fiscal year. It makes all the expenditures on the basis of budgets. It means all the government expenditures are made within limitation of budget. It is known as control over budget.
  4. To facilitate audit, investigation and evaluation of project : Auduting is the act of examining all the books of account maintained in the government offices. The main aim of doing so is to ensure the proper adopting of accounting principles and other financial rules and regulations. Government accounting maintains the systematic and compelete record of financial transactions. All these make the auditing work easier and economical.
  5. To maintain effective control over govermental property: Government offices use various types of physical properties such as plant machinery, furnuture, vechiles, stationery, and other materials for effective completion of the governmental activities. It facilitates the smooth flow of work in goverment offices.

Adjusted Trial Balance

  1. expenses and assets are Debit

  2. Income and liabilities are credit

Short Answer Questions:

  1. Any two limitations of Accounting?

    2. > Free from Errors

    > Based on Historical Costs

  2. Types of Cheque:

    3. > Bearer cheque : Any one can submit it and take it.

    > Order cheque : ONly the person whose name is declared.

    > Cross cheque : Direct to bank account

  3. Double Entry System:

    4. Double entry system is an Accounting method that records each transaction with at least two entries ensurung that the accounting equation remain balance.

  4. Trade Discount

    5. Trade discount refers to reduction in the list price of product or service that is offer by seller to buyer.

  5. Bank Reconciliation statement : It is prepared to indicate the item which cause disagreement between the balance as per the bank column of cash book and bank book on any given date.
  6. Book Keeping:The art of recording business dealings in sets of book.

    7. objectives of book keeping:

  7. To identify financial transaction.
  8. To keep systematic record.
  9. To keep sicentific record.
  10. To keep permanent record
  11. To classify the transaction.

    12. Importance of book keeping:

  12. Ease in making business decision
  13. Making business evaluation
  14. Proper reporting to investor
  15. Managing cash flow
  16. Accounting:Accounting is a means of collecting, summarizing, analyzing, and reporting in monetary terms, the information about business.