12

Bookkeeping/Accounting

The success of any business largely depends on keeping accounts properly. Before arriving at any decision, we have to know the financial status of the business, which can only be determined if accounts are maintained properly. In any business, a number of transactions are occurring daily. These are usually accountable in terms of money. These transactions are recorded in sequence according to specific methods. This is called keeping accounts. During this session resource persons explained the importance of keeping accounts. They showed examples of a ledger, a receipt book and a stock register, and discussed their advantages and disadvantages. Participants related their experiences with community-level accounting systems in different countries. Then participants were divided into four groups to prepare simple formats to be used for keeping accounts at the community level.

Group 1
Journal Book
Date Transaction# Particulars Amount Remarks

Stock Book
Date Previous balance Receipt Total Delivery Balance Remarks

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Credit Sale Book

Date Name Particulars Quantity Amount Remarks

Ledger Book
Date Particular Transaction # Bank Cash Sale Raw Material Furniture

Rec.

Pay

Rec.

Pay

Rec.

Pay

Rec.

Pay

Rec.

Pay

Bookkeeping/Accounting

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Group 2. Keeping Accounts

1. Capital a) b) c) a) b) c) 2. 3. Equipment Raw materials and goods Money Inventory list Stock register Cash and bank

Balance Remarks

Inventory List Equipment

Date Item Unit/ Stock no. No. of receipt Price/Unit Total price Remarks

11/11/2000 11/11/2000 11/11/2000 11/11/2000

Flying pot Cutter Dryer Bowl

1/03 1/04 1/05 1/06

1205 1206 1207 1208

$20 $35 $80 $20

$20 $35 $20 $20

For banana chips -

Stock Register
Date Receipt Previous balance 100 kg 150 kg In Out Balance Remarks

11/11/2000 12/11/2000

1216

50 kg -

80 kg

70 kg

Banana Chips

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109 Cash and Bank Account Hand cash Particulars In Ou t Bal Il.n Ou t Bal In Ou t Bal. Bank Toal amount Remarks

Date

Receipt

11/11

Bookkeeping/Accounting

Group 3
Register for Production and Sales
Date Name of product Quantity Value Date of sale Quantity Value Balance

Stock Register Receipt Name of Items:

Date of purchase Quantity Rate Total Date of Issue Quantity To whom Balance

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111 Cash Book

Cash in hand
Credit Bal. Debit Credit Bal. Debit Credit Bal. Debit Credit Bal. Debit Credit

Bank fund

Sale

Raw material

Wages

Loan
Debit Credit

Particulars

* Details on purchased and issued raw materials.

Debit

Bookkeeping/Accounting

Group 4
Purchase
Date
11/11/2000 11/11/2000

Date

Particulars
Purchase account to cash Purchase

Journal No.
-

Debit
P 5,000.00 P 5,000.00

Credit
P 5,000.00 P 5,000.00

Purchase return

Cash Book
Date 11/12/2000 Particulars Balance forward Wood to cash Purchase wood as raw material P 2,000.00 P 8,000.00 Journal No. Debit Credit Balance P 10,000.00

Bank Ledger Date 11/11/2000 Particulars Bank account Norbou Receive from Norbue Check No. 007 Debit P 5,000.00 Credit P 5,000.00 Balance P 5,000.00

Sales
Date 11/11/2000 Particulars Cash account to sales account Journal No. Debit P 5,000.00 Credit P 5,000.00 Sales return

Ledger book and registry of stock will be taken from the manual, pages 74 and 76.

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