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Video Lecture: Accounting Variation Proforma in Urdu & Hindi-Workbook Practice

 

 



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.

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

 

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

 

Previous Lesson: Accounting Equation

Next Lesson: Accounting Cycle

References

Awais, Q. M. (2009). Fundamental of Financial Accounting. (2nd, Ed.) Lahore: Waheed Publication.

Bazley, M., Hancock, P., Berry, A., & Jarvis, R. (2001). Contemporary Accounting. (4th, Ed.) UK: International Thomson Business Press.

Ghani, M. A. (1992). Principles of Accounting. (13th, Ed.) Lahore: Pak Imperial Book Depot.

Gupta, R. L., & Radheswamy, M. (2009). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.

Jain, S. .., & Narang, K. N. (2014). Advanced Accountancy. New Delhi: Kalyani Publishers.

Maheshwari, S. N., & Maheshwari, S. K. (2009). An Introduction to Accountancy. (10th, Ed.) New Delhi: Vikas Publishing House Pvt. Ltd.

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