Tishk International University FASE Accounting department Accounting

Tishk International University FASE Accounting department Accounting for IT - W2 Topic : W2 – Journal Entries - Opening Balance ACC 337, Grade 3 – Spring Semester 2021 Instructor: Dr. Kapila Uma Shankar

GREETING OF THE DAY Dear all, I hope you are all doing well. Today’s lecture topic is : Instructor: Dr. Kapila Uma Shankar PhD(Finance)., MBA., M.Com., NET.,SET.,FET.,DGA. Assistant Professor TIU, Erbil, Kurdistan, IRAQ . W2 – Journal entries - opening balance Let’s begin the today’s lesson

Recording a Payment Entry Payment voucher is used to record all bank and cash payments. For example, a company settles a creditor's bill by cheque. Go to Gateway of Tally Accounting Vouchers F5: Payment . 1. Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12: Configure . 2. For example : The company settles expenses of Conveyance, Staff Welfare, Postage and Stationery through Cash in one voucher. This entry can be passed in single entry mode where you will be crediting the Cash Ledger only once and the entry appears as shown below:

Using Single Entry Ent

Using Double entry When you have multiple debits and credits in an entry, double entry mode is the suggested way of passing the entry. Example for Payment in Voucher entry mode in double entry

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Recording a Receipt Entry Any money received from debtors against sales Invoices or on Account and for all transactions where money is received are accounted or entered into Tally ERP 9 using the Receipt Voucher. Go to Gateway of Tally Accounting Vouchers. Select F6: Receipt from the button bar or press F6.

Conti For example, if your company receives money from a customer for an earlier transaction say sales, and the same is passed through a Receipt Voucher: Credit the customer account and debit the Cash account, if you receive cash or Debit the Bank account where you need to deposit the money, if you receive Cheques.

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III. Procedure of Journal Voucher and Posting Business Transactions ( without stock items) I. II. Company creation: Create your company Ledger creation: ( go to “Accounts info” )– all items – create ledgers - enter opening balance if given note : do not create same ledger two times. I. Account name and under group III. Accounting vouchers - (To make this change go to - accounting features) Enter in accounting vouchers – press F12 then press 1. Use single entry mode for payment /receipt / contra vouchers - NO 2. Use Cr/Dr instead of By / To - NO 3. (Transactions – accounting vouchers) cash payments under payment voucher(f5) cash receipts under Receipts voucher(f6)

Problem 1:- Prepare balance sheet and income statement from the given information. Opening balance of accounting on 01/01/2020 IRAQ bank – 200,000 Capital – 300, 000. Long term loan 3 00,000 Buildings – 400,000 The following transaction was recorded on 1/1/2020. 1/1/2020: Mr. Khan brought additional capital — 200,000 5/1/2020: Furniture Purchased — 25,000 9/1/2020: Computer Purchased — 20,000 12/1/2020: Rent paid — 12,000 19/1/2020: Net bill paid — 600 Answer – Balance sheet 800,000; Profit and loss account 12600 (Net Loss)

DATE PARTICULARS LF DEBIT Cash account Dr /By To Capital account Receipt (F6) 200,000 05/01/2020 Furniture account Dr/BY To Cash account Payment (F5) 25,000 09/01/2020 Computer account Dr/BY To Cash Payment (F5) 20,000 12/01/2020 Rent account Dr/BY To Cash Payment (F5) 12000 Net bill paid Dr/BY To Cash Payment (F5) 01/01/2020 19/01/2020 CREDIT 200,000 25,000 20,000 12000 600 600

Problem 2:- Prepare balance sheet and income statement from the given information. Opening balance of accounting on 01/01/2020 IRAQ bank – 800,000 Capital – 500, 000. Long term loan 500,000 Buildings – 200,000 The following transaction was recorded on 1/1/2020. 23/1/2020: Fees received — 8,000 30/1/2020: Donation received — 20,000 30/1/2020: Printer Purchased — 3,000 30/1/2020: Cash sales 150, 000 30/1/2020: Commission received – 2000

DATE PARTICULARS LF DEBIT 23/01/2020 Cash account Dr/BY To Fee received Receipt (F6) 8000 30/01/2020 Cash account Dr/BY To Donation account Receipt (F6) 20,000 30/01/2020 Printer account Dr/BY To Cash Payment (F5) 3000 30/01/2020 Cash account Dr/BY To Sales account Receipt (F6) 150,000 30/01/2020 Cash account Dr/BY To Commission received Receipt (F6) 2000 CREDIT 8000 20,000 30000 150,000 2000

Problem 2:- prepare balance sheet and income statement from the given information Opening balance of accounting on 01/01/2020 Capital – 300, 000. Long term loan 100,000 Buildings – 200,000 Kurdistan bank account – 200,000 The following transaction was recorded on 1/1/2020. 1/1/2020: Mr. Abdul brought additional capital — 700,000 5/1/2020: Furniture Purchased — 35,000 9/1/2020: Computer Purchased — 20,000 12/1/2020: Rent paid — 22,000 19/1/2020: Net bill paid — 600 23/1/2020: Fees received — 3,000 30/1/2020: Donation received — 20,000 30/1/2020: Printer Purchased — 3,000 30/1/2020: Cash sales 150, 000 30/1/2020: Commission received – 6000

Problem3:- prepare balance sheet and income statement from the given information Opening balance of accounting on 01/01/2020 Capital – 100, 000. Long term loan 100,000 Buildings – 150,000 Bank account – 50,000 The following transaction was recorded on 1/1/2020. 1/1/202: Mr. Khan brought additional capital — 200,000 5/1/2020: Furniture Purchased — 15,000 9/1/2020: Computer Purchased — 10,000 12/1/2020: Rent paid — 1,000 19/1/2020: Net bill paid — 500 23/1/2020: Fees received — 5,000 30/1/2020: Donation received — 20,000 30/1/2020: Printer Purchased — 3,000 30/1/2020: Cash sales 120, 000 30/1/2020: Commission received – 3000

Problem 4:- prepare balance sheet and income statement from the given information Opening balance of accounting on 01/01/2020 Long term loan 300,000 Capital – 300, 000. Buildings – 400,000 City bank account – 200,000 The following transaction was recorded on 1/1/2020. 1/1/2020: Mr. Khan brought additional capital — 50,000 5/1/2020: Furniture Purchased — 5,000 9/1/2020: Computer Purchased — 2,000 12/1/2020: Rent paid — 1,000 19/1/2020: Net bill paid — 600 23/1/2020: Fees received — 4,000 30/1/2020: Donation received — 11,000 30/1/2020: Printer Purchased — 2,000 30/1/2020: Cash sales 100, 000 30/1/2020: Commission received – 1000

Finish slide by slide then go to MCQs