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By Y P Singh

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Extra resources for Accounting and Financial Management for I. T. Professionals

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In case of owner’s contribution ‘Capital A/c’ whereas in case of bank ‘Loan A/c’ in the name of bank, should be opened. 5. It is evident from journal entry Rule 5 shown above that book-keeping process follow double entry book-keeping system popularly known as Mercantile System. “Every transaction involves at least two parties, one for receiving aspect (Dr. entry) and another for giving aspect (Cr. entry), therefore, to record a single transaction simultaneously two books of account are needed (one for Dr.

Payment of Rs. 20 as brokerage) March 25 M/s Chowdhry and Co. …Dr. To Return Outward A/c 11,000 1,000 To Bank A/c 10,000 (being goods returned to M/s Chowdhry and Co. and final settlement by issuing a cheque) March 28 Cash A/c …Dr. Dr. To Profit & Loss A/c 1,300 100 100 (being 20 shares of XY and Co. Ltd. sold at Rs. 65 per share and profit transferred to Profit & Loss A/c) Contd... F. …Dr. ) 20 To Cash A/c 20 (being brokerage of Rs. 20 written off as an expense) March 28 Purchase A/c …Dr. 2,100 To Bhuwan A/c 2,100 (being purchase made on credit from Bhuwan ) March 28 Raghvendra A/c …Dr.

2. Taxation (tax planning) 3. Reporting and auditing. : 1. Cash management 2. ) 3. ) 4. Loan matters. Note: In case of medium and small-sized organization, financial controller cum chief accountant is responsible for the entire activities of finance and accounts department. T. T. professionals interact with two things viz. 1. Hardware–which includes computer and telecommunication media like phone, V-SAT etc. 2. Software–which includes customized software developed as per management’s requirement and existing software to manage database of the concerned organization using appropriate package.

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