Table of Contents
FIN611: Advance Financial Accounting
Accounting is the process of recording, summarizing, and reporting on a company’s business operations in financial statements. These statements are the income statement, balance sheet, cash flow statement, and savings statement. FIN611 Handouts pdf
FIN611 Handouts pdf
Course Category: Accounting, Banking & Finance FIN611 Handouts pdf
Accounting For Incomplete Records, Accounting System in Non-Profit Organizations, Departmental Accounts, Branch Accounting, Partnership Accounts, Company Accounts, IASB’s Framework & Element of Financial Statement, IAS 10 – Events after the Balance Sheet Date, IAS – 37 Provisions, Contingent Liabilities and Contingent Assets, IAS – 8 Accounting Policies, Changes In Accounting Estimates and Errors, IAS – 23 Borrowing Cost, IAS – 33 Earnings Per Share, and Group Accounts, FIN611 Handouts pdf
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FIN611: Advance Financial Accounting
From the accounting system standpoint, business organizations can be divided into three broad categories:
1 Small Scale Business Entities
These include very small businesses such as; barber shops, sheep shops, man wash, general stores, electricians, etc.
2 Medium Scale Business Entities
These include medium-sized businesses such as; dry cleaners, car dealers, housing contractors, schools, etc.
3 Large Scale Business Entities
These include large business organizations such as; exporters/exporters, car manufacturers, transporters, etc.
Big business companies have a lot of resources that they can afford to pay for a formal accounting department when they will be following a double accounting system. In addition, many of these concerns are an integrated body and these must keep accounting records in order to meet the requirements of the Companies Ordinance 1984 and the International Financial Reporting Standards (IFRS).
Accounting For Small Scale Business Entities
Small businesses are usually sole proprietorship organizations. These are very small in size and cannot really run the accountant department in their organizations. They have very little set up when one seller makes multiple rolls; is a sales manager, is a purchasing manager, and is responsible for marketing and accounting matters.
These organizations do not have to keep any complex financial records, which are directed by their accountant (Qualified Accountants) to keep certain information related to cash receipts (new deposits) and payments (drawings), and related to expiration balances. of assets and liabilities.
Statement of Profit or Loss
As you have learned in your previous studies benefit is the result of a systematic Income Statement prepared with the help of a trial balance issued in a book. But here due to lack of trial balance, we cannot adjust the Income Statement.
Statement of Affairs
From the test stand, Drawings and New Money will be provided for questions but students will usually be required to calculate E-Owner’s Equity opening and closing balances as these will not be given to the question as a single value.
Difference between Balance Sheet and Statement of Affairs
The only difference is that in the Balance Sheet we place resources (Assets) against sources (Owner equity and Liabilities) in this way we get to know the financial position of the organization, whereas in the News Statement we simply calculate the equity balance of the owner. on opening/closing days of the calculation period by deducting asset liabilities. The Balance sheet equation provides assistance in calculating the owner’s equity balance and that is all.