No. 3 Principles of Double Entries (Part 1).ppt - COURSE TITLE FINANCIAL ACCOUNTING COURSE CODE ACC 418 TITLE PRINCIPLES OF DOUBLE \u2013 ENTRY BOOK OF

No. 3 Principles of Double Entries (Part 1).ppt - COURSE...

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COURSE TITLE : FINANCIAL ACCOUNTING COURSE CODE : ACC 418 TITLE : PRINCIPLES OF DOUBLE – ENTRY, BOOK OF ACCOUNTS AND TRIAL BALANCE REFF. : CHAPTER 3,4,5 AND 15 FINANCIAL ACCOUNTING FOR NON- ACCOUNTING STUDENTS LECTURER : KAMARUZZAMAN MUHAMMAD
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PRINCIPLES OF DOUBLE ENTRY, BOOK OF ACCOUNTS AND TRIAL BALANCE Related Chapters:- Chapter 3 - Accounting for Inventory Chapter 4 – Double Entry Principles Chapter 5 – Balancing Off The Accounts and The Trial Balance Chapter 15 – Accounting Systems and Books of Accounts
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CHAPTER 3 – ACCOUNTING FOR INVENTORIES Areas to be covered:- Define Inventory Determine the purpose of accounting for inventory Identify the movement of inventory Show the effect of the transaction on the accounting equation
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INTRODUCTION Inventories are current assets:- Held for sales in ordinary course of business In the process of production for such sales To be consumed in the production of goods or services for sales Types of Inventories Raw Materials - components on hand waiting to be used in production. Work in progress - inventory in various stages of production but not yet completed. Finish good – inventory which is completed and ready for sale and Will be our focus in this class The purpose of accounting for inventories:- To value beginning inventories To value ending inventories To determine the cost of goods sold Chapter 3
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ACCOUNTING FOR INVENTORIES Chapter 3
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ACCOUNTING FOR INVENTORIES Increase in inventories Effect of Transaction Accounts Purchase of goods Purchase expense increase Purchase account Goods return by buyer Sales revenue decrease Sales Return or Return inwards acct Chapter 3 Effect of Transaction Accounts Sale of goods Sales revenue increase Sales Account Goods return to supplier Purchase expense decrease Purchase returns or Return outwards accounts Decrease in inventories
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ACCOUNTING FOR INVENTORIES
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