Accounting Variation Proforma



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 AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease70,000
           Owner’s EquityOwner’s EquityIncrease70.000

 

Jan. 3       An additional Rs. 10,000 was borrowed from a local bank as bank loan        (Hint: Liability is Source)

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease10,000
          Bank LoanLiabilityIncrease10,000

 



Jan. 5      Paid Rs. 1,500 in office Rent for the month    (Hint: Expenses always debited with its own Name)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Office RentExpenseIncrease1,500
          CashAssetDecrease1,500

 

Jan. 6       Cash Sales Rs. 1,000      (Hint: Revenue always credited with its own Name)

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease1,000
          SalesRevenueIncrease1,000

 

Jan. 9       Inventory costing Rs. 2,000 were purchased on account   (Hint: Account Payable for credit buying)

Charts of AccountsAccounting PillarsReasonsDebitCredit
InventoryAssetIncrease2,000
          Account PayableLiabilityIncrease2,000

 

Jan. 10     Credit Sales Rs. 3,000  (Hint: Account Receivable for credit sales)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Account ReceivableAssetIncrease3,000
          SalesRevenueIncrease3,000

 

Jan. 12     Purchase goods for Rs. 6,000 cash    (Hint: When goods or merchandising bought we debit purchase a/c)

Charts of AccountsAccounting PillarsReasonsDebitCredit
PurchasesExpenseIncrease6,000
           CashAssetDecrease6,000



Jan. 14     Rs. 1,200 was paid on account to the vendor/supplier  (Hint: Reducing Liability)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Account PayableLiabilityDecrease1,200
          CashAssetDecrease1,200

 

Jan. 15     Received cash from customer Rs. 3,000    (Hint: Assets realized or conversion of assets)

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease3,000
          Account ReceivableAssetDecrease3,000

 

Jan. 17     Paid insurance premium for two years Rs. 2,400    (Hint: More than one year expense is asset)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Prepaid InsuranceAssetIncrease2,400
          CashAssetDecrease2,400

 

Jan. 19     Goods return by cash customer of Rs. 200   (Hint: Sales return is always debited)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Sales ReturnContra RevenueDecrease200
          CashAssetDecrease200

 

Jan. 20     Goods return to credit supplier of Rs. 500  (Hint: Purchase return is always credited)

Charts of AccountsAccounting PillarsReasonsDebitCredit
Account PayableLiabilityDecrease500
          Purchase ReturnContra ExpenseDecrease500

 

Jan. 21     Received commission of worth Rs. 700   (Hint: Revenue always credited with its own Name)

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease700
          CommissionRevenueIncrease700

 

Jan. 22     Purchase Machinery of Rs. 10,000; Rs. 2,500 paid and for remaining sign a Note     (Hint: Compound entry)

Charts of AccountsAccounting PillarsReasonsDebitCredit
MachineryAssetIncrease10,000
          CashAssetDecrease2,500
          Note PayableLiabilityIncrease7.500

 

Jan. 22 Total services performed for Rs. 4,500, cash received Rs. 2,000 and remaining Note receivable

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease2,000
Note ReceivableAssetIncrease2,500
          SalesRevenueIncrease4,500

 

Jan. 22 Sales for client who have paid in advance in March 12

Charts of AccountsAccounting PillarsReasonsDebitCredit
Unearned SalesLiabilityDecrease3,000
          SalesRevenueIncrease3,000

 

Jan. 25 Account receivable collected for Rs.1,500

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease1,500
          Account ReceivableAssetDecrease1,500

 

Jan. 28 Purchased supplies of worth Rs. 25,000; paid 10,000 cash and remaining account payable

Charts of AccountsAccounting PillarsReasonsDebitCredit
SuppliesAssetIncrease25,000
          CashAssetDecrease10,000
          Account PayableLiabilityIncrease15,000

 

Jan. 30 Received Rs. 3,000 cash from customer to whom sales to be delivered in future

Charts of AccountsAccounting PillarsReasonsDebitCredit
CashAssetIncrease3,000
          Unearned SalesLiabilityIncrease3,000

 

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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