Accounting is a system of identifying classifying, recording, summarizing, analyzing and reporting financial data and information of organization in accordance with accepted principles, concepts, conventions, and standards and regulations.
Referred to the meaning of accounting, we can possibly said the users of accounting information can be:
• Owner(s) of the business.
They want to be able to see whether or not the business is profitable. In addition they want to know what the financial resources business are.
• A prospective buyer.
When the owner wants to sell their business the buyer will want to see such information.
• The Bank.
If the owners want to borrow money for use in the business, then the bank will need such information.
• Tax inspectors.
They need it to be able to calculate the taxes payable.
• A prospective partner.
If the owners want to share ownership with someone else, then the would- be partner will want such information.
• Investors, either existing ones or people wondering whether or not to invest their money in the business.
They could be any other users who need the accounting information for their own importance.
Tuesday, June 15, 2010
Contoh aktiviti
Tarikh
1-Jan Memasukkan wang ke dalam syarikat RM 10,000.
3-Jan Belian barangniaga secara tunai RM 2,000.
5-Jan Jualan barangniaga secara tunai RM 3,500.
8-Jan Belian barangniaga secara kredit RM 2,000.
11-Jan Membayar gaji pekerja RM 500.
15-Jan Membayar sewa pejabat RM 350.
16-Jan Jualan barangniaga secara kredit RM 1,500.
20-Jan Penghutang membayar RM 500 untuk melunas sebahagian hutang.
22-Jan Membeli alatulis pejabat RM 100.
23-Jan Membayar kepada pemiutang RM 1,000.
28-Jan Pemunya mengambil wang tunai RM 100.
31-Jan Penghutang membayar RM 1,000 untuk melunas kesemua hutangnya.
Cuba buat lejar...berpa baki imbangan duga? berapa untung atau rugi?
1-Jan Memasukkan wang ke dalam syarikat RM 10,000.
3-Jan Belian barangniaga secara tunai RM 2,000.
5-Jan Jualan barangniaga secara tunai RM 3,500.
8-Jan Belian barangniaga secara kredit RM 2,000.
11-Jan Membayar gaji pekerja RM 500.
15-Jan Membayar sewa pejabat RM 350.
16-Jan Jualan barangniaga secara kredit RM 1,500.
20-Jan Penghutang membayar RM 500 untuk melunas sebahagian hutang.
22-Jan Membeli alatulis pejabat RM 100.
23-Jan Membayar kepada pemiutang RM 1,000.
28-Jan Pemunya mengambil wang tunai RM 100.
31-Jan Penghutang membayar RM 1,000 untuk melunas kesemua hutangnya.
Cuba buat lejar...berpa baki imbangan duga? berapa untung atau rugi?
Monday, June 14, 2010
Classification of Activity
i. Revenue/ Income: Return or sales from Company’s or business activities.
a. Sales of products
b. Sales of services
c. Interest from saving
d. Gain from penalty
e. Commission received
ii. Expenditure: Payment or purchased from Company’s or business activities.
a. Purchase of stock
b. Rent
c. Insurance
d. Salary
e. Utilities
f. Fuel
iii. Asset: Company’s tangible or intangible that one possesses in operating company’s businesses.
a. Motor vehicles
b. Land
c. Building
d. Cash
e. Debtor
f. Machinery
iv. Liabilities: obligation of an entity arising from past transactions or events, in operating company’s businesses.
a. Loan from pay
b. Loan from creditor
v. Capital: capital needed by the company to finance its operations.
a. Shares issued
b. Owner owns fund
a. Sales of products
b. Sales of services
c. Interest from saving
d. Gain from penalty
e. Commission received
ii. Expenditure: Payment or purchased from Company’s or business activities.
a. Purchase of stock
b. Rent
c. Insurance
d. Salary
e. Utilities
f. Fuel
iii. Asset: Company’s tangible or intangible that one possesses in operating company’s businesses.
a. Motor vehicles
b. Land
c. Building
d. Cash
e. Debtor
f. Machinery
iv. Liabilities: obligation of an entity arising from past transactions or events, in operating company’s businesses.
a. Loan from pay
b. Loan from creditor
v. Capital: capital needed by the company to finance its operations.
a. Shares issued
b. Owner owns fund
Type of asset
1. Fixed asset or long term asset : Physical in nature. Motor vehicle, building, equipment, furniture, land
2. Current asset : Liquid in nature. The balance amount go on changing. Cash, Debtor, Income accrued
3. Non current asset : Not in physical nor in liquid form. Very hard to evaluate. Patent, copyright, goodwill
To depreciate or not to depreciate
Fixed asset value mostly are depreciated (except land) because everyday utilization. The loss in value mostly are determined at the time of purchased based on the permissible method such as reducing balance method, yearly method or straight line method etc.
Current asset are in exception of this rule.
Non current asset also depreciated but the term use to show the deterioration of value is dissimilar. We called it amortization. And the amount of losses is dependable of the condition concern such as due to company that may put under administration, probably being taking over, in the process of legal suit etc.
2. Current asset : Liquid in nature. The balance amount go on changing. Cash, Debtor, Income accrued
3. Non current asset : Not in physical nor in liquid form. Very hard to evaluate. Patent, copyright, goodwill
To depreciate or not to depreciate
Fixed asset value mostly are depreciated (except land) because everyday utilization. The loss in value mostly are determined at the time of purchased based on the permissible method such as reducing balance method, yearly method or straight line method etc.
Current asset are in exception of this rule.
Non current asset also depreciated but the term use to show the deterioration of value is dissimilar. We called it amortization. And the amount of losses is dependable of the condition concern such as due to company that may put under administration, probably being taking over, in the process of legal suit etc.
IT & Business
It just so happen that businesses perceive IT as a main instrument in organizing their resources so that efficiently doing theirs activities. As businesses becoming competitively among each others due to the availability in deriving needed resources, they started equipping with the best IT solution without take into consideration the cost that going to bear.
IT may expedite the way businesses doing thing. As before this, a company is doing thing manually in processing the orders and has to wait for the dispatching order to be received by the production department concern. Now, using the IT solution, company can conduct theirs operation through an online basis without the need of hiring a person in charge for the order and furthermore can connecting people throughout the world without to bear a higher cost. A company can also derived immediately all the necessary report which expedite the decision making process such as accounting report, production report, sales report, human resource report etc.
IT also may reduce the use of human resources in handling the task concern. What is usually done by more than 4 staffs is needed only 1 staff now, if using the IT technology. For example in receiving the orders of customers, at least 2 staff in charge in handling the orders, documenting it and also reporting to the person concern. By using the IT as a way in managing the tasks, the orders may be directed automatically to the production dept. without needed a department that received the order to handling it. The same goes in preparing the accounting report. Even though the purchasing and sales activities would not involved the accounting people directly but still because the transaction is recorded by the department concern, they can recognize what activities that happening and can monitor the report that being input without having to have a people checking and going to the department concern.
Even though the gains is clear when businesses using IT as a main instrument to running the activities, but it seem that much of companies that apply this so called IT system is not able to capture the initial expectation. Some companies even had to bear a burden in paying their liability that they used when installing the IT system. The reason why this thing happening is that;
- High Research & Development cost
- Timing of implementation
As a conclusion, for the IT development in business, in my opinion, human resource is the main factor for the successfulness of the businesses. We should treat them as an asset rather than liabilities or burden that the company has to bear. Staff training and motivation should be emphasized and at the same time planting in their mind the company reason for the existence which also the outcome that the staff could derived. Regardless the businesses using the IT system or not, if there is a full support by the staff, the success of the company can surely be gained.
IT may expedite the way businesses doing thing. As before this, a company is doing thing manually in processing the orders and has to wait for the dispatching order to be received by the production department concern. Now, using the IT solution, company can conduct theirs operation through an online basis without the need of hiring a person in charge for the order and furthermore can connecting people throughout the world without to bear a higher cost. A company can also derived immediately all the necessary report which expedite the decision making process such as accounting report, production report, sales report, human resource report etc.
IT also may reduce the use of human resources in handling the task concern. What is usually done by more than 4 staffs is needed only 1 staff now, if using the IT technology. For example in receiving the orders of customers, at least 2 staff in charge in handling the orders, documenting it and also reporting to the person concern. By using the IT as a way in managing the tasks, the orders may be directed automatically to the production dept. without needed a department that received the order to handling it. The same goes in preparing the accounting report. Even though the purchasing and sales activities would not involved the accounting people directly but still because the transaction is recorded by the department concern, they can recognize what activities that happening and can monitor the report that being input without having to have a people checking and going to the department concern.
Even though the gains is clear when businesses using IT as a main instrument to running the activities, but it seem that much of companies that apply this so called IT system is not able to capture the initial expectation. Some companies even had to bear a burden in paying their liability that they used when installing the IT system. The reason why this thing happening is that;
- High Research & Development cost
- Timing of implementation
As a conclusion, for the IT development in business, in my opinion, human resource is the main factor for the successfulness of the businesses. We should treat them as an asset rather than liabilities or burden that the company has to bear. Staff training and motivation should be emphasized and at the same time planting in their mind the company reason for the existence which also the outcome that the staff could derived. Regardless the businesses using the IT system or not, if there is a full support by the staff, the success of the company can surely be gained.
Accounting Records
Accounting is a matter of inputting data in a standard format set by authority concern. Other than that...the need to understand the principle and reason being why such transaction recorded in that particular manner is vital............so that better undertanding and can inteprate the current company's situation prudently for the benefit of the company.......furthermore,.as long as u guys remember and knew the format, surely you can prepare the accounts accordingly.
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