mac-1 lecture 1 - balance sheet

8/11/2019 MAC-1 Lecture 1 - Balance Sheet

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C. A. Akila Kalyanaraman


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SOURCE : http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspx
http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspx


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Balance Sheet : Financial position of an

accounting entity as of a specifiedmoment in time.

Assets are economic resources of anentity.

The claims of various parties againstthe asset are called equities(liabilities) .


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Owners Equity or Capital : the amountinvested by the owners of the accountingentity.

Current Liabilities : are expected to besatisfied or extinguished during the normal

operating cycle or one year, whichever islonger.

Accounts PayableTaxes Payable

Non Current Liabilities : Secured and/or Unsecured Loans


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Current Assets : Assets expected to berealised in cash or sold or consumed duringnormal operating cycle or a year, whicheveris longer.

Cash and Bank balancesMarketable SecuritiesAccounts ReceivableInventories

Non Current Assets : Land and Building Plant and Equipment Investment


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Money Measurement

Entity

Going Concern

Cost

Dual Aspect


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Money Measurement Concept : In FinancialAccounting , record is made only of

information that can be expressed inmonetary terms.

Entity Concept : Accounts are maintained forentities , and not for the persons associatedwith these entities.


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Type of Entity Owner Joint Stock Companies

Sole Proprietorship

Partnership Firm

AOP / Societies

Trust

Hindu Undivided Family

( HUF)

Shareholders

Sole Trader/Proprietor

Partners

Members

Trustees

Karta and Coparceners


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Going Concern Concept : Unless there isgood evidence to the contrary, Accountingassumes that an entity is a going concern.

Eg. Kirana store, Garment manufacturer

Cost Concept : applied to value Assets.Assets are economic resources of an entity.

Monetary / Current assetsNon Monetary/ Non Current assets


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In accounting, all assets are initially measuredat cost.

Monetary / Current Assets : whose cash valueis fixed by contract . Hence, first at cost andthen at FAIR value.

Eg: Inventory, Trade Securities

Non Monetary/ Non Current assets : whosereal worth may change with passage of time,but cost concept continues to be basis ofvalue.Eg: Land, Plant and Machinery, Building


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Dual Aspect Concept : All amounts owned byentity are owed to someone or the other.

The claims of various parties against theasset are called equities.2 types of equity - claims byLiabilities - persons other than ownersOwners Equity - claim of owners

Fundamental Accounting Equation

Asset = Equities Asset= Liability + Owners Equity +

Retained Earnings


14/16SOURCE : http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/
http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/


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Anthony, Hawkins, & Merchant (AHM) Chapter 2

http://www.youtube.com/watch?v=j5KxRNbakH4

http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspx

http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/
http://www.youtube.com/watch?v=j5KxRNbakH4http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspxhttp://www.youtube.com/watch?v=j5KxRNbakH4


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Thank You

mac-1 lecture 1 - balance sheet

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