Accounting Variation Proforma
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Accounting variation Proforma has been designed for leaning types of accounts and how debit and credit rules applies on different transactions. First column is for serial number or date; second column is reserved for economic activity of an organization. Chart of accounts, accounting pillars or type of accounts, reasons why debit and credit are other column in this accounting variation proforma.
Example 1:
Use Accounting Variation Proforma for following transactions:
Jan. 2 Owners invested Cash of Rs. 70,000 in new business (Hint: Owner’s Equity is Source)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 70,000 | |
| Owner’s Equity | Owner’s Equity | Increase | 70.000 |
Jan. 3 An additional Rs. 10,000 was borrowed from a local bank as bank loan (Hint: Liability is Source)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 10,000 | |
| Bank Loan | Liability | Increase | 10,000 |
Jan. 5 Paid Rs. 1,500 in office Rent for the month (Hint: Expenses always debited with its own Name)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Office Rent | Expense | Increase | 1,500 | |
| Cash | Asset | Decrease | 1,500 |
Jan. 6 Cash Sales Rs. 1,000 (Hint: Revenue always credited with its own Name)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 1,000 | |
| Sales | Revenue | Increase | 1,000 |
Jan. 9 Inventory costing Rs. 2,000 were purchased on account (Hint: Account Payable for credit buying)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Inventory | Asset | Increase | 2,000 | |
| Account Payable | Liability | Increase | 2,000 |
Video Lecture: Accounting Variation Proforma in Urdu & Hindi-Workbook Practice
Jan. 10 Credit Sales Rs. 3,000 (Hint: Account Receivable for credit sales)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Account Receivable | Asset | Increase | 3,000 | |
| Sales | Revenue | Increase | 3,000 |
Jan. 12 Purchase goods for Rs. 6,000 cash (Hint: When goods or merchandising bought we debit purchase a/c)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Purchases | Expense | Increase | 6,000 | |
| Cash | Asset | Decrease | 6,000 |
Jan. 14 Rs. 1,200 was paid on account to the vendor/supplier (Hint: Reducing Liability)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Account Payable | Liability | Decrease | 1,200 | |
| Cash | Asset | Decrease | 1,200 |
Jan. 15 Received cash from customer Rs. 3,000 (Hint: Assets realized or conversion of assets)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 3,000 | |
| Account Receivable | Asset | Decrease | 3,000 |
Jan. 17 Paid insurance premium for two years Rs. 2,400 (Hint: More than one year expense is asset)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Prepaid Insurance | Asset | Increase | 2,400 | |
| Cash | Asset | Decrease | 2,400 |
Jan. 19 Goods return by cash customer of Rs. 200 (Hint: Sales return is always debited)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Sales Return | Contra Revenue | Decrease | 200 | |
| Cash | Asset | Decrease | 200 |
Jan. 20 Goods return to credit supplier of Rs. 500 (Hint: Purchase return is always credited)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Account Payable | Liability | Decrease | 500 | |
| Purchase Return | Contra Expense | Decrease | 500 |
Jan. 21 Received commission of worth Rs. 700 (Hint: Revenue always credited with its own Name)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 700 | |
| Commission | Revenue | Increase | 700 |
Jan. 22 Purchase Machinery of Rs. 10,000; Rs. 2,500 paid and for remaining sign a Note (Hint: Compound entry)
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Machinery | Asset | Increase | 10,000 | |
| Cash | Asset | Decrease | 2,500 | |
| Note Payable | Liability | Increase | 7.500 |
Jan. 22 Total services performed for Rs. 4,500, cash received Rs. 2,000 and remaining Note receivable
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 2,000 | |
| Note Receivable | Asset | Increase | 2,500 | |
| Sales | Revenue | Increase | 4,500 |
Jan. 22 Sales for client who have paid in advance in March 12
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Unearned Sales | Liability | Decrease | 3,000 | |
| Sales | Revenue | Increase | 3,000 |
Jan. 25 Account receivable collected for Rs.1,500
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 1,500 | |
| Account Receivable | Asset | Decrease | 1,500 |
Jan. 28 Purchased supplies of worth Rs. 25,000; paid 10,000 cash and remaining account payable
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Supplies | Asset | Increase | 25,000 | |
| Cash | Asset | Decrease | 10,000 | |
| Account Payable | Liability | Increase | 15,000 |
Jan. 30 Received Rs. 3,000 cash from customer to whom sales to be delivered in future
| Charts of Accounts | Accounting Pillars | Reasons | Debit | Credit |
| Cash | Asset | Increase | 3,000 | |
| Unearned Sales | Liability | Increase | 3,000 |
References
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
Sehgal, A., & Sehgal, D. (n.d.). Advanced Accountancy (Vol. I & II). New Delhi: Taxmann Publication Pvt. Ltd.
Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.
Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.
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