How to Maintain Accounts for NGOs?

Size: px
Start display at page:

Download "How to Maintain Accounts for NGOs?"

Transcription

1 January 2013 How To How to Maintain Accounts for NGOs? Regular maintenance of accounts is crucial to a well-functioning organization. Often, NGOs ignore this aspect and maintain their accounts haphazardly. This creates problems while closing accounts for the year or when seeking new funds. Accounting system for an NGO is not very different from that of other organizations. This How to supplement provides a step-by-step guide to maintaining accounts for an NGO.

2 Regular maintenance of accounts is crucial to a well-functioning organization. Often, NGOs ignore this aspect and maintain their accounts haphazardly. This creates problems while closing accounts for the year or when seeking new funds. Accounting system for an NGO is not very different from that of other organizations. This How to supplement provides a step-by-step guide to maintaining accounts for an NGO. Accounting books The basic accounting books any organization should maintain are: Vouchers books Receipts books Journal Ledger Cash book Bank Book Cash book for local funds (non FCRA grants) Cash book for FCRA funds Petty cash book Other Books which finance section of an NGO needs to oversee / manage: Fixed Asset register Advance Register Salary Register Stock Register Cheque issue register Bank Pass book / Statements Bank Reconciliation statement Vehicle Log Books Minutes Book Grant Register Contract / Agreement Register Telephone Register Attendance Register Vouchers and receipts are the most basic documents in accounting. Journals are made on the basis of vouchers and receipts. Ledger is prepared based on journal and cash book is prepared based on ledger. The final accounts summarise all of these transactions. Voucher Books and Receipt Books These books capture a transaction as and when it happens. Voucher is a document recording a liability (payment) or allowing the payment of a liability, or debt. A voucher would be held by the person or company who will receive payment. How to write a voucher: Develop a format that suits your organization. Ensure that it has the organisation logo and name How to Maintain Accounts for NGOs 2

3 It should have place for date, serial or voucher number Record name of the person, organization and kind of transaction (salary, rent, etc.), reason for transaction, amount in words and amount in Rs. Ensure the voucher is signed by the payer Receipt is a written acknowledgment of having received a payment or goods, etc. How to write a receipt: Follow a standard format - date, receipt number, transaction type, amounts etc. Signature and seal/stamp are a must after the completion of the transaction Petty Cash Book Record day-to-day small or petty expenditure in the Petty Cash Book. The opening balance of the petty cash book represents the cash in hand of the office. All expenditure and revenue recorded in the petty cash book are verifiable by vouchers. Record day-to-day small or petty expenditure in a petty cash book The opening balance of the petty cash book represents the cash in hand of the office. All expenditure and revenue recorded in the cash book are verifiable by vouchers. How to Maintain Accounts for NGOs 3

4 Record all transactions in a journal. This is the fundamental accounts book in an organization. The other accounts books are based on the journal. A fundamental principle of Accountancy is that every transaction should have debit (cash outflow) and credit (cash inflow) entries. The journal records these in detail. Ledger: Ledgers give you a clear picture of the funds spent and received under each head every month and the overall picture in one year. Ledger is prepared on the basis of the journal. It records the transactions in a systematic, accountwise format. Ledger entries are recorded under heads such as salaries, administration, programme, travelling, etc. Project-wise, funding agency-wise ledgers can also be maintained. Spend some time once in a month to update all the ledger balances and prepare trial balance to check the accuracy of the accounts. The journal does not show the balance available in an organsation, the ledger does. Calculate the trial balance in the ledger. Trial balance is the difference between the debit and credit. Cash Book The cash book records all the transactions in terms of receipts and payments. If the organization has a FCRA then two cash book are maintained, one for national projects and one for international projects. Cash book is based on the journal entries. All cash inflows are recorded in the receipts column and all cash outflows are recorded in the payments column. Trial Balances help reveal mistakes in accounts. If the book-keeping has been done properly, both sides of the trial balance will tally. In a double-entry system (each entry on debit side has an equal entry on the credit side), total of all How to Maintain Accounts for NGOs 4

5 entries on the debit side will match the total of all the entries on the credit side. Trial Balance for a ledger: debit entries= credit entries Financial Statement Financial Statements are prepared once a year, on the basis of account books maintained by the organisation. There are three main statements that a non-profit normally prepares: 1. Receipts and Payments Account 2. Income and Expenditure Account, and 3. Balance Sheet These are then checked by the auditors, who issue a report. This is called an audit report. The audit report is an important document. It gives important information about the organisation s financial health. Receipts and Payments Account The Receipts and Payments account records cash inflows and cash outflows. It is basically an annual summary of the cash book How to Maintain Accounts for NGOs 5

6 Usually, the Income and Expenditure statement of an NGO shows a tally between the two sides. However, any surplus is liable to tax and can be carried forward to the next financial year. Income and Expenditure Account Income and Expenditure Account is like an activity report for a year. It shows all the income for the year on one side (right hand side) and all the expenditure on the other side (left hand side). The difference between the two sides is shown as surplus (higher income) or deficit (higher expenditure). Usually, the Income and Expenditure statement of an NGO shows a tally between the two sides. However, any surplus Income Operating Income: This is known as EBIT (earnings before interest and taxes). Operating income comes from subtracting operating expenses and depreciation of assets from gross income Non-Operating Income / Other Income: The portion of an organization's income that is derived from activities not related to its core operations. Expenditure Operating Expenses: All the expenses which are incurred to run the business. It includes: Cost of goods sold including wages/ salaries Rent Power Office supplies Non-operating expenses: Expenses which are incurred on activities other than core activities is liable to tax and can be carried forward to the next financial year. Income and Expenditure Account Receipts vs. Income All receipts are not income. For example money received from sale of fixed assets, loans taken, advances from customers, etc. is not income. Similarly, all income may not be received during the year. For example, money for credit sales may be received in the next year. Interest earned on fixed deposits. How to Maintain Accounts for NGOs 6

7 Payments vs. Expenditure Similarly, all payments are not expenditure. For example, money paid for purchase of fixed assets, loans repaid or given to others, advances to contractors, etc. are not expenditure. In some cases, an expense may occur but may be paid for later. For example, you may have organized a mela in Feb 12, but the bill of the tent house may be paid later in April 12. In this case, if you are following accrual accounting, then this will be shown as an expense in , and as a payment in Balance Sheet: The Balance Sheet is like a status report. It depicts the assets and liabilities of the organization on a particular date (usually the end of the financial year). Liabilities are obligation of the organization arising from the past events. Assets are the resources controlled by the organization as a result of past events and from where future benefits expected to flow. Steps to write balance sheet: Identify all your liabilities and assets from various books/entries Ascertain the values of assets and liabilities. (Refer to the rule of depreciation and discounting while deciding the values) Liabilities Share Capital Reserves and Surplus Current Liabilities Assets Net Fixed Assets (Land, Buildings and intangible assets [Goodwill, Royalty etc]) Current Assets (Cash and Bank balances, short term investments and other current assets.) Investments Both sides should tally How to Maintain Accounts for NGOs 7

8 Tips for an efficient accounting system Use single master bank account which is also eligible to receive foreign funds. Maintain project-wise ledgers / accounts for donor reporting. Update books of accounts regularly. Write cash book daily. Avoid alterations / over writings. Do not use whitener (Eraz-ex). Cut and write visibly. Minimize cash payments, encourage bank payments. Avoid pre signed blank cheques. Fine alternatives to overcome problems related to availability of signatories / trustees. Avoid multiple cash books. Reconcile your bank account regularly. Conduct Physical Verification of Assets at least once in a year and document the findings Take care of your old books and records How to Maintain Accounts for NGOs 8

CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes

CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size

More information

Paper 2: Accounting _Syllabus 2008

Paper 2: Accounting _Syllabus 2008 TRIAL BALANCE and RECTIFICATION OF ERRORS Practice paper 2 1. Which of these errors does not affect agreement of Trial Balance. a) Errors of principle. b) Complete omission in subsidiary books. c) Compensating

More information

Glossary of Accounting Terms Peter Baskerville

Glossary of Accounting Terms Peter Baskerville Glossary of Accounting Terms Peter Baskerville Account for or 'bring to account': An accounting phrase used to describe the recording of a financial transaction that is required under the generally accepted

More information

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system. Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is

More information

COMPONENTS OF THE STATEMENT OF CASH FLOWS

COMPONENTS OF THE STATEMENT OF CASH FLOWS ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling

More information

ACCOUNTING STANDARD NOT-FOR-PROFIT ORGANIZATIONS

ACCOUNTING STANDARD NOT-FOR-PROFIT ORGANIZATIONS ACCOUNTING STANDARD NOT-FOR-PROFIT ORGANIZATIONS Table of contents Accounting framework Scope General concepts Specific requirements Practical illustrations Accounting framework IFRS IFRS for SMEs AFRS

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information. 0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

More information

2012 Annual Financial Statements Questionnaire

2012 Annual Financial Statements Questionnaire Nair & Chen Chartered Accountants Limited 280 Great South Rd PO BOX 74-322 Greenlane Auckland 1051, New Zealand 2012 Annual Financial Statements Questionnaire Business Name: Financial Year ended: 2012

More information

Financial Reporting for Schools. Financial Services Division

Financial Reporting for Schools. Financial Services Division Financial Reporting for Schools Financial Services Division Published by the Communications Division for Financial Services Division Department of Education and Early Childhood Development Melbourne November

More information

Review of the Accounting Process THE BASIC MODEL

Review of the Accounting Process THE BASIC MODEL THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what

More information

Definition of Accounting

Definition of Accounting SOLUTIONS TO EXERCISES Lesson 1: Definition of Accounting 1. What is accounting? What are its main functions? Accounting is the process of financially measuring, recording, summarizing and communicating

More information

Copyright Virtual University of Pakistan 1

Copyright Virtual University of Pakistan 1 Learning Objective Lesson-1 The objective of this lecture is to introduce the subject Financial Accounting to the students and give them an idea as to how did accounting develop. What is Financial Accounting?

More information

Great Aycliffe Town Council. Purchase Ordering and Payment for Goods and Services Policy

Great Aycliffe Town Council. Purchase Ordering and Payment for Goods and Services Policy Great Aycliffe Town Council Purchase Ordering and Payment for Goods and Services Policy Finance Section April 2013 1.0 Introduction 1.1 This policy sets out the Council s arrangements for ordering, receiving,

More information

THE NATIONAL BIODIVERSITY NETWORK TRUST RULES AND STANDING ORDERS

THE NATIONAL BIODIVERSITY NETWORK TRUST RULES AND STANDING ORDERS THE NATIONAL BIODIVERSITY NETWORK TRUST RULES AND STANDING ORDERS ANNEXE 2 FINANCIAL MEMORANDUM (A WORKING PAPER) TABLE OF CONTENTS Sarah Hyslop Last updated 14 th December 2011 Page 1 of 10 1. INTRODUCTION

More information

FUNCTIONS OF THE NIGHT AUDIT MAIN PURPOSE: To verify the accuracy and completeness of guest and non-guest accounts.

FUNCTIONS OF THE NIGHT AUDIT MAIN PURPOSE: To verify the accuracy and completeness of guest and non-guest accounts. The NIGHT AUDIT - Hotels operate 24X7 so Front Office regularly review and verify the accounts. - Audit is a daily review of guest account transactions at Front Office against revenue center transactions.

More information

ACCOUNTING FOR BUSINESS TRANSACTIONS

ACCOUNTING FOR BUSINESS TRANSACTIONS MODULE - 1 4 ACCOUNTING FOR BUSINESS TRANSACTIONS You visit the shop of a person known to you and observe the activities he/ she is doing. He/she is selling goods for cash and on credit, collecting payments,

More information

Coimisiún na Scrúduithe Stáit State Examinations Commission. Leaving Certificate 2014. Marking Scheme. Accounting. Higher Level

Coimisiún na Scrúduithe Stáit State Examinations Commission. Leaving Certificate 2014. Marking Scheme. Accounting. Higher Level Coimisiún na Scrúduithe Stáit State Examinations Commission Leaving Certificate 2014 Marking Scheme Accounting Higher Level Note to teachers and students on the use of published marking schemes Marking

More information

Mango s Health Check. How healthy is financial management in your not-for-profit organisation?

Mango s Health Check. How healthy is financial management in your not-for-profit organisation? How healthy is financial management in your not-for-profit organisation? Version 3 2009 Mango 2nd Floor East, Chester House, George Street, Oxford OX1 2AU Phone +44 (0)1865 423818 Fax +44 (0)1865 423560

More information

What is double entry bookkeeping?

What is double entry bookkeeping? What is double entry bookkeeping? This document is from Mango s Guide to Financial Management, freely available on www.mango.org.uk/guide Here we explain in simple plain language, what double entry bookkeeping

More information

Self-test Comprehensive Problems II 综 合 自 测 题 II

Self-test Comprehensive Problems II 综 合 自 测 题 II Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制

More information

Checklist. Internal financial controls for charities. Contents. 1. Self-assessment checklist

Checklist. Internal financial controls for charities. Contents. 1. Self-assessment checklist 1 of 9 Internal financial controls for charities Checklist Contents 1. Self-assessment checklist 1 2. Some key issues, monitoring arrangements and risk of fraud 2 3. Income 3 4. Purchases and payments

More information

Charities Accounting Standard Accounting Template Explanatory Notes

Charities Accounting Standard Accounting Template Explanatory Notes Charities Accounting Standard Accounting Template Explanatory Notes Introduction Purpose of Accounting Template The Accounting Template is designed to help smaller charities prepare and present financial

More information

Accounting, CPT Chapter 6 CA PRATHAP SS

Accounting, CPT Chapter 6 CA PRATHAP SS Accounting, CPT Chapter 6 CA PRATHAP SS INTRODUCTION Preparation of Final Accounts is the last phase of the Accounting Process. INTRODUCTION The process of accounting starts from Transaction then entered

More information

AUDIT PLAN: RECEIVABLES

AUDIT PLAN: RECEIVABLES Audit procedures for receivables AUDIT PLAN: RECEIVABLES Completeness Agree the balance from the individual sales ledger accounts to the aged receivables listing and vice versa. Match the total of the

More information

BOOKKEEPING FUNDAMENTALS TRAINING

BOOKKEEPING FUNDAMENTALS TRAINING Phone:1300 121 400 Email: enquiries@pdtraining.com.au BOOKKEEPING FUNDAMENTALS TRAINING Generate a group quote today or register now for the next public course date COURSE LENGTH: 1.0 DAYS Developing essential

More information

BASIC ACCOUNTING PRINCIPLES

BASIC ACCOUNTING PRINCIPLES 5 BASIC ACCOUNTING PRINCIPLES 5.0 INTRODUCTION We have studied economic activities which have been converted into business activities. In business activity a lot of give & take exist which is known as

More information

EasyPC Training. Accounting Basics

EasyPC Training. Accounting Basics EasyPC Training Accounting Basics Contents Accounting Basics... 3 The Accounting Equation... 3 Assets... 3 Liabilities... 3 Owner s Equity... 3 The Balance Sheet... 5 Double Entry Bookkeeping... 6 Ledger

More information

ACCOUNTING DICTIONARY

ACCOUNTING DICTIONARY ACCOUNTING DICTIONARY A Account a record summarizing all the information pertaining to a single item in the accounting equation Account balance the amount in an account Account number the number assigned

More information

Accruals and prepayments

Accruals and prepayments 5 Accruals and prepayments this chapter covers... In the last chapter we have looked at the preparation of financial statements or final accounts using the extended trial balance, or spreadsheet, approach.

More information

PREPARING FINAL ACCOUNTS. part

PREPARING FINAL ACCOUNTS. part 15_1312MH_CH09 27/1/05 8:38 am Page 87 PREPARING part 3 FINAL ACCOUNTS 9 The final accounts of sole traders 10 Accounting principles, concepts and policies 11 Depreciation and fixed assets 12 Bad debts

More information

Paper 2 Accounting (Syllabus 2008)

Paper 2 Accounting (Syllabus 2008) Section A- FINANCIAL ACCOUNTING 1. Which of the following is not a Fixed Asset? (a) Building (b) Bank balance (c) Plant (d) Goodwill [Hints: (b) Fixed asset is an asset held with the intention of being

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

More information

BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the

BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the INTERNATIONAL DIPLOMA PROGRAM ON BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the MODERN PRACTICAL METHODS OF ACCOUNTING Trained and competent bookkeeping

More information

EXERCISES. The cash from operating activities detail is provided as follows for class discussion:

EXERCISES. The cash from operating activities detail is provided as follows for class discussion: EXERCISES Ex. 14 1 There were net additions, such as depreciation and amortization of intangible assets of $389 million, to the net loss reported on the income statement to convert the net loss from the

More information

ACCOUNTING 1 (ACN101- M)

ACCOUNTING 1 (ACN101- M) 1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions

More information

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

More information

Accounting for Microfinance Organizations

Accounting for Microfinance Organizations The Russia Microfinance Project Document No.54 A U.S. Department of State/NISCUP Funded Partnership among the University of Washington-Evans School of Public Affairs, The Siberian Academy of Public Administration,

More information

Financial Accounting. (Exam)

Financial Accounting. (Exam) Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials Take a quick tour by visiting wwwaccountingcoachcom/quicktour Table of Contents (click to

More information

Accounting Basics. Prepared for First Year MBA

Accounting Basics. Prepared for First Year MBA Accounting Basics Prepared for First Year MBA Overview S No Particulars 01 Introduction to Accounting 02 Accounting Equation 03 Types of Transactions 04 Purchase and Sales 05 Types of Accounts 06 Golden

More information

STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52

STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52 STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52 Form 2, Regulation 7, Estate Agents (General, Accounts and Audit) Regulations 2008 Introduction For the purposes of Section 52

More information

110 Questions(with Answers) On Accounting Basics FREE E-book from http://basiccollegeaccounting.com

110 Questions(with Answers) On Accounting Basics FREE E-book from http://basiccollegeaccounting.com (http://basiccollegeaccounting.com) Dedicated to helping Students & Teachers NOTE: 110 Questions & Answers on True Or False on Accounting Basics ACCOUNTING CONCEPTS & DOUBLE ENTRY SYSTEM True False 1.

More information

(a) (i) Marking Scheme: 1 mark for definition and 1 mark for example.

(a) (i) Marking Scheme: 1 mark for definition and 1 mark for example. T A S M A N I A N Accounting C E R T I F I C A T E Subject Code ACC5C O F E D U C A T I O N Question 1 T A S M A N I A N Q U A L I F I C A T I O N S A U T H O R I T Y (a) (i) Marking Scheme: 1 mark for

More information

Business Accounting. 2. A bank reconciliation statement is prepared to know the causes for the differances between:

Business Accounting. 2. A bank reconciliation statement is prepared to know the causes for the differances between: Business Accounting 1. Purchase Book records: a. All Cash Purchases b. All Credit Purchases c. Credit Purchase of goods in trade d. None of the above 2. A bank reconciliation statement is prepared to know

More information

Accruals Accounts Completion Notes

Accruals Accounts Completion Notes Accruals Accounts Completion Notes Section 1 Introduction These guidance notes reflect the requirements for accounting periods ending on or after 1 April 2009. Please refer to our reporting thresholds

More information

Any business activity, be it manufacturing, servicing or trading, involves

Any business activity, be it manufacturing, servicing or trading, involves chp-12.qxd 10/18/05 12:45 PM Page 119 CHAPTER 12 Bookkeeping and Accounting and Financial Statements Any business activity, be it manufacturing, servicing or trading, involves monetary transactions. At

More information

Introduction to Accounts

Introduction to Accounts Introduction to Accounts Copyright statement Sage (UK) Limited, 2012. All rights reserved We have written this guide to help you to use the software it relates to. We hope it will be read by and helpful

More information

MIDTERM EXAMINATION. Afaaq_tariq@yahoo.com. Fall 2009

MIDTERM EXAMINATION. Afaaq_tariq@yahoo.com. Fall 2009 MIDTERM EXAMINATION Afaaq_tariq@yahoo.com Fall 2009 FIN621- Financial Statement Analysis Asslam O Alikum FIN621- Financial Statement Analysis (Session 3) solved by Afaaq n Shani Bhai with reference n numerical

More information

Chapter 6 Statement of Cash Flows

Chapter 6 Statement of Cash Flows Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions

More information

Department of Management Studies

Department of Management Studies Department of Management Studies 1 BACHELOR OF MANAGEMENT STUDIES DEGREE PROGRAMME FINANCIAL & COST ACCOUNTING MCU 1206 DAY SCHOOL 01 15/08/2015 Content Unit Slides Time (hrs.) UNIT 01 INTRODUCTION TO

More information

Procedures & program of auditing assets. Section one Procedures & program of Auditing Fixed Assets

Procedures & program of auditing assets. Section one Procedures & program of Auditing Fixed Assets CHAPTER FOUR Procedures & program of auditing assets Section one Procedures & program of Auditing Fixed Assets 1. Record and inspection 1-1 Examining due procedures of the properties of fixed assets. 1-2

More information

Manual of Accounting Policies and Procedures Bridgewater State College Foundation Bridgewater Alumni Association

Manual of Accounting Policies and Procedures Bridgewater State College Foundation Bridgewater Alumni Association Manual of Accounting Policies and Procedures Bridgewater State College Foundation Bridgewater Alumni Association Table of Contents MANUAL OF 1 ACCOUNTING 1 POLICIES AND PROCEDURES 1 BRIDGEWATER STATE COLLEGE

More information

CASH FLOW STATEMENT (AND FINANCIAL STATEMENT)

CASH FLOW STATEMENT (AND FINANCIAL STATEMENT) CASH FLOW STATEMENT (AND FINANCIAL STATEMENT) - At the most fundamental level, firms do two different things: (i) They generate cash (ii) They spend it. Cash is generated by selling a product, an asset

More information

Receipts and Payments Accounts Introductory Notes

Receipts and Payments Accounts Introductory Notes Receipts and Payments Accounts Introductory Notes Purpose of pro forma receipts and payments accounts These guidance notes reflect the requirements for accounting periods ending on or after 1 April 2009

More information

CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS

CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS C H 2 3, P a g e 1 CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS (note from Dr. N: I have deleted questions for you to omit, but did not renumber the remaining questions) 1. The primary purpose of

More information

Fiscal Procedure Sequence page number

Fiscal Procedure Sequence page number Table of Contents Fiscal Procedure Sequence page number Treasurer Responsibilities Maintenance of General Ledger Financial Statements Financial Signature/Review Policy Insurance Protection Payroll Procedures

More information

IGCSE Business Studies revision notes Finance Neil.elrick@tes.tp.edu.tw

IGCSE Business Studies revision notes Finance Neil.elrick@tes.tp.edu.tw IGCSE FINANCE REVISION NOTES Table of contents Table of contents... 2 SOURCES OF FINANCE... 3 CASH FLOW... 5 HOW TO CALCULATE THE CASH BALANCE... 5 HOW TO WORK OUT THE CASH AVAILABLE TO THE BUSINESS...

More information

FINANCIAL PROCEDURES. Belfast Music Society

FINANCIAL PROCEDURES. Belfast Music Society FINANCIAL PROCEDURES Belfast Music Society CONTENTS Purpose of document 1. Ordering supplies and services 2. Payment authorisation 3. Cheque writing and signing 4. Handling of cash 5. Salaries, payroll

More information

0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark 100

0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark 100 www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November 2009 question paper for the guidance

More information

Chapter- 3. Voucher Entries

Chapter- 3. Voucher Entries Chapter- 3 Voucher Entries In manual accounting, we record transactions through Journal Entries. In Computerized Accounting Systems (e.g. Tally), we do it through voucher entry. Normally, a transaction

More information

MAHARASHTRA STATE AGRICULTURAL MARKETING BOARD, PUNE. COMMAN ACCOUNTING SYSTEM FOR APMC s IN MAHARASHTRA STATE

MAHARASHTRA STATE AGRICULTURAL MARKETING BOARD, PUNE. COMMAN ACCOUNTING SYSTEM FOR APMC s IN MAHARASHTRA STATE MAHARASHTRA STATE AGRICULTURAL MARKETING BOARD, PUNE COMMAN ACCOUNTING SYSTEM FOR APMC s IN MAHARASHTRA STATE INDEX Sr. No. Particulars Page No. 1 Introduction 3 2 Accounting Principles & Policies 4 3

More information

Statement of Cash Flows

Statement of Cash Flows PREPARING THE STATEMENT OF CASH FLOWS: THE INDIRECT METHOD OF REPORTING CASH FLOWS FROM OPERATING ACTIVITIES The work sheet method described in the text book is not the recommended approach. We will provide

More information

BUSINESS/FARM SUPPLEMENT School Year 2015-16

BUSINESS/FARM SUPPLEMENT School Year 2015-16 Instructions for Completing the Business/Farm Supplement BUSINESS/FARM SUPPLEMENT School Year 2015-16 If you have more than one business or farm, or a business and a farm, complete a supplement for each

More information

PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST. 2012 Financial Year

PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST. 2012 Financial Year Client Name: (must be completed) PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST 2012 Financial Year Please take the time to complete this checklist as it is a very important part of the accounting process.

More information

The policy and procedural guidelines contained in this handbook are designed to:

The policy and procedural guidelines contained in this handbook are designed to: BASIC POLICY STATEMENT The Mikva Challenge is committed to responsible financial management. The entire organization including the board of directors, administrators, and staff will work together to make

More information

Preparing a Successful Financial Plan

Preparing a Successful Financial Plan Topic 9 Preparing a Successful Financial Plan LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the overview of accounting methods; 2. Prepare the three major financial statements

More information

Page 1 of 55 www.vijayadarsh.com Youtube.com/c/StayLearningNewdelhi Contact@vijayAdarsh.com +919268373738

Page 1 of 55 www.vijayadarsh.com Youtube.com/c/StayLearningNewdelhi Contact@vijayAdarsh.com +919268373738 Page 1 of 55 www.vijayadarsh.com Youtube.com/c/StayLearningNewdelhi Contact@vijayAdarsh.com +919268373738 About StayLearning StayLearning (a Division of AASS) believes in educating their students with

More information

Glossary of Accounting Terms

Glossary of Accounting Terms Glossary of Accounting Terms Accruals or Income & Expenditure Accounts This is where accounts are prepared in a way that shows not only what happened in a period, but what should have happened in the period.

More information

NATIONAL SENIOR CERTIFICATE GRADE 12

NATIONAL SENIOR CERTIFICATE GRADE 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING FEBRUARY/MARCH 2013 MEMORANDUM MARKS: 300 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere

More information

AFRICAN WOMEN S DEVELOPMENT FUND Questionnaire for assessment of the financial management capacity of Grant recipients Dear Grantee

AFRICAN WOMEN S DEVELOPMENT FUND Questionnaire for assessment of the financial management capacity of Grant recipients Dear Grantee AFRICAN WOMEN S DEVELOPMENT FUND Questionnaire for assessment of the financial management capacity of Grant recipients Dear Grantee As part of AWDF s objective of providing technical support to our grant

More information

NRP Training Series 2001 Financial Record Keeping

NRP Training Series 2001 Financial Record Keeping NRP Training Series 2001 Financial Record Keeping Copyright 2001 Minneapolis NRP - All Rights Reserved What is the role of the Treasurer? Generally, the treasurer is responsible for compiling and keeping

More information

Accounting Principles Critical to Success Presented By: C. P. Krishnan. www.cakintl.com

Accounting Principles Critical to Success Presented By: C. P. Krishnan. www.cakintl.com Accounting Principles Critical to Success Presented By: C. P. Krishnan Basic Accounting You Need to Know Assets, Liabilities, Equity, Income, & Expenses Assets Includes what you have and what people owe

More information

Business Start Up Basics III

Business Start Up Basics III Business Start Up Basics III Intro to Accounting Presented by: Suzie Dills SBDC Business Consultant Agenda Key Objectives of the Course Brief History & Definition of Accounting General Ledger Double Entry

More information

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements Achievement Standard 90976 Demonstrate understanding of accounting concepts for small entities ACCOUNTING. Externally assessed 3 credits Accounting 90976 (Accounting.) involves the recognition, definition

More information

UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT

UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT ACCRUAL BASIS JUDGE: UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT MONTH ENDING: MONTH YEAR IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED

More information

8 posting to general ledger accounts Learning outcomes

8 posting to general ledger accounts Learning outcomes PART ONE: TRIAL BALANCES chapter 8 posting to general ledger accounts Learning outcomes The learning outcomes for this chapter are to post journal entries for a double entry system to the general ledger

More information

Fundamentals of Financial Accounting

Fundamentals of Financial Accounting Fundamentals of Financial Accounting CHAPTER I Accounting in action. What is accounting? Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting

More information

BUSINESS/FARM SUPPLEMENT School Year 2016-17

BUSINESS/FARM SUPPLEMENT School Year 2016-17 Instructions for Completing the Business/Farm Supplement BUSINESS/FARM SUPPLEMENT School 2016-17 Complete a supplement for each business or farm. When completing this supplement, refer to both your 2014

More information

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year ANNUAL BUSINESS CHECKLIST 2011 Financial Year Please take the time to complete this checklist as it is a very important part of the accounting process. It helps you: Identify and provide the information

More information

Accounting Workbook Manual

Accounting Workbook Manual Accounting Workbook Manual Disclaimer: We are community accountants, not software developers. Spreadsheets are provided on an as-is basis. While we take all reasonable care that they are free from errors

More information

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2 Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total

More information

Cash Flow Forecasting & Break-Even Analysis

Cash Flow Forecasting & Break-Even Analysis Cash Flow Forecasting & Break-Even Analysis 1. Cash Flow Cash Flow Projections What is cash flow? Cash flow is an estimate of the timing of when the cash associated with sales will be received and when

More information

NATIONAL 5 Accounting

NATIONAL 5 Accounting MADRAS COLLEGE FACULTY OF TECHNOLOGIES DEPARTMENT OF BUSINESS AND COMPUTING NATIONAL 5 Accounting Course Information ACCOUNTING NATIONAL 5 COURSE AIMS AND STRUCTURE The course aims to enable learners to:

More information

Housing Benefit and Council Tax Benefit. Self employed earnings information form Please read the notes at part E before completing this form

Housing Benefit and Council Tax Benefit. Self employed earnings information form Please read the notes at part E before completing this form FOR OFFICE USE ONLY Date of issue Claim reference number Please return this form to: The Benefits Team Tel: 0118 9746000 PO Box 152 Fax: 0118 9195124 Shute End Minicom: Typetalk 0118 9746991 Wokingham

More information

SHEET 1: CASH FLOW PROJECTED

SHEET 1: CASH FLOW PROJECTED Blended Value Business Plan Cash Flow Forecast User Guide OVERVIEW The Cash Flow Forecast is the listing of the sources and expenditures of cash plus the timing of when the cash is moving in and out of

More information

Audit of Cash Balances

Audit of Cash Balances Audit of Cash Balances Chapter 23 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-1 Learning Objective 1 Show the relationship of cash in the bank to the various transaction

More information

THEME: STARTING OR BUYING A NEW BUSINESS

THEME: STARTING OR BUYING A NEW BUSINESS THEME: STARTING OR BUYING A NEW BUSINESS By John W. Day, MBA ACCOUNTING TERM: Amortization Amortization is the process of spreading the cost of intangible assets over a uniform period of time. For example,

More information

Statement of Cash Flows

Statement of Cash Flows THE CONTENT AND VALUE OF THE STATEMENT OF CASH FLOWS The cash flow statement reconciles beginning and ending cash by presenting the cash receipts and cash disbursements of an enterprise for an accounting

More information

Example Accounting/Financial Policies

Example Accounting/Financial Policies Example Accounting/Financial Policies TABLE OF CONTENTS INTERNAL CONTROLS... 2 ACCESS TO RECORDS BY MEMBERS... 3 ACCOUNTING COMPUTER FILE BACK-UP PROCEDURE... 3 ACCOUNTING METHOD... 3 AUDIT COMMITTEE...

More information

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all

More information

Chart of Accounts - Sole Trader

Chart of Accounts - Sole Trader Chart of Accounts - Sole Trader The basic road map into any accounting system is the chart of accounts. It is this chart that helps establish the information that will be captured by your accounting system,

More information

ICAP. Introduction to accounting

ICAP. Introduction to accounting ICAP P Introduction to accounting First edition published by Emile Woolf International Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring Bracknell, Berkshire, RG12 1A United Kingdom

More information

U.S. Income Tax Return for an S Corporation

U.S. Income Tax Return for an S Corporation Form 1120S U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Information about Form 1120S and

More information

Western Climate Initiative, Inc. Accounting Policies and Procedures

Western Climate Initiative, Inc. Accounting Policies and Procedures Western Climate Initiative, Inc. Accounting Policies and Procedures Adopted May 8, 2013 WESTERN CLIMATE INITIATIVE, INC ACCOUNTING POLICIES AND PROCEDURES Adopted May 8, 2013 Table of Contents I. Introduction...

More information

Guide to Starting Self Employment or Business. Guide No.6 in the Tax Guide Series

Guide to Starting Self Employment or Business. Guide No.6 in the Tax Guide Series Guide to Starting Self Employment or Business Guide No.6 in the Tax Guide Series About This Guide This Guide has been prepared to help someone starting out in a new business or self employment venture

More information

In this chapter, we build on the basic knowledge of how businesses

In this chapter, we build on the basic knowledge of how businesses 03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize

More information

The following facts are discussed in this chapter.

The following facts are discussed in this chapter. 9 The following facts are discussed in this chapter. 9.1 Bank Account Recording of cash deposits in the bank account Recording of cheque deposits in the bank account Issuing of cheques for payments Dishonouring

More information

What are the elements of an accounting system?

What are the elements of an accounting system? What are the elements of an accounting system? An accounting system is comprised of accounting records (checkbooks, journals, ledgers, etc.) and a series of processes and procedures assigned to staff,

More information

Consolidated balance sheet

Consolidated balance sheet Consolidated balance sheet Non current assets 31/12/2009 31/12/2008 (*) 01/01/2008 (*) Property, plant and equipment 1,352 1,350 1,144 Investment property 7 11 11 Fixed assets held under concessions 13,089

More information

Audit Guidelines. The Annual Church Audit. by Dan Busby. Key Concepts. Idea! Use this document as a checklist for your annual audit.

Audit Guidelines. The Annual Church Audit. by Dan Busby. Key Concepts. Idea! Use this document as a checklist for your annual audit. The Annual Church Audit by Dan Busby Audit Guidelines Church board members have a long list of responsibilities. Among these is the responsibility for the money that flows through the church. Included

More information