⭐ SUMMARIZING CHANGES IN FINANCIAL POSITION [PART : 3] ⭐

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ALL ABOUT ACCOUNTING : 42nd BLOG

         💎ACCOUNTING💎

★ Accounting exercise and practices : 
Lesson : 4 [Part : 3]

Hi friends 🙏

Today's discuss remaining part of summarizing changes in financial position 

                             So let's discuss ....


★ SUMMARIZING CHANGES IN FINANCIAL POSITION :

        🔥 THE LEDGER ACCOUNTS :

A ledger accounts represent the accumulation of all information ℹ️ about changes in an asset, liability, equity, revenue or expense item in one palce. For example,  a ledger account for the asset cash would record each cash disbursement the organization made in a period as well as all cash which was received by the organization. By recording all cash that goes into and out of the organization, the ledger account provides a record of how much cash the organization has at any given time. 

Each ledger account is identified by it's account name and it's account number. The accounts are numbered based on whether they are an asset, liability, equity,  revenue or expense account. This listing is called the "Chart of accounts".


You can see a sample chart of accounts on the following page :

  ★ SAMPLE CHART OF ACCOUNTS :

* ASSETS :
1. Cash 
2. Deposits 
3. Current loans 
4. Past due loans 
5. Restructured loans 
6. Loan loss reserve 
7. Other current assets 
8. Long term investments
9. Property 
10. Equipment 
11. Accumulated depreciation 
12. Fixed assets
13. Bank balance 
14. Sundry debtors 
15. Loan and advances [Assets] 

* LIABILITIES :
1. Short term borrowing 
2. Client savings 
3. Long term debt [commercial / concessional] 
4. Restricted / deferred revenue 
5. Duties and taxes 
6. Sundry creditors
7. Salary payable 

* EQUITY :
1. Loan fund capital 
2. Retained net surplus 

* REVENUE :
1. Sale of goods/services 
2. Interest on current & past due loans 
3. Interest restructured loans 
4. Interest on investment 
5. Loan fees / service charges
6. Late fees on loans 
7. Donations - unrestricted 

* EXPENSES :
1. Interest paid on short term borrowing 
2. Interest paid on client savings 
3. Provision for loan losses 
4. Salaries and benefits 
5. Communications 
6. Curier and postage 
7. Rent
8. Utilities 
9. Equipment 
10. Equipment leasing 
11. Depreciation 
12. Bank charges 
13. Advertising and promotion 
14. Insurance 
15. Supplies 
16. Maintenance 
17. Travel and accommodation 
18. Legal fees 
19. Professional development 
20. Computer software 
21. Stationary and printing 
22. Fees or dues
23. Miscellaneous 
24. Volunteers expenses 






Remaining part of  summarizing 
changes in financial position discuss in 43rd blog... 

                            So wait my 43rd blog... 
 
                                                                             
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Comments

  1. AnonymousJuly 10, 2020 at 2:18 AM

    Thank you for your sound advice and tips for reading!

    ReplyDelete

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