MGT101 Financial Accounting GDB No. 01 Solution and Discussion opened on November 27,2013 Close on November 29, 2013.

[+ M.Tariq Malik]

Graded Discussion Board

FINANCIAL ACCOUNTING (MGT101)

 

Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on November 27, 2013 for discussion and last date for posting your discussion will be November 29, 2013.

Topic/Area for Discussion

 “Cash accounting Vs. Accrual accounting system”

 

This Graded Discussion Board will cover first 12 lessons.

Note:

For acquiring the relevant knowledge, do not rely only on handouts but also watch the course video lectures and read additional material available online or in any other mode.

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[M.Yousaf]

bro thori si confusion aur door kar do. in second scenario Mr.Zahid did pay but Mr. Farhan recorded this sale as an income during March 2013 on its receipt.

Mr.Farhan na apni sale ko as a income record ki ha jab ka us ko payment hui hi nahi.

Sir Please again reply.

[muhammad irshad]

please sab ghor se suno and solve your gdb. dont be confused. it is so easy.

1. Mr. Ahsan is following accrual accounting system.Because oss ne osi date par transaction record kar lia. paisay lene ya dene se os ko koi gharaz nahe he.

2. Mr. Farhan is following cash accounting system. because oss ne february me goods sale ki hain orr onhain record tab kar raha he jab oss ko CASH milti he. yani march me.

and 2nd question i will prefer accrual accounting system.

orrrrr kuch.........???

[junaid]

100% per gharaz is leay nehi kar milna tu hai na paisa (just kiddin)

for more tip

Mr. Ahsan, purchased its a  incurred expense and he paid after 40 days. so its AAS

Mr. Farhan,  sold machinery in February and recorded this sale as income during March 2013 when he actually received the payment

second mein commercial companies cash accounting tu kar nehi sakti tu its AAS you should know why

[+ M.Tariq Malik]

CASH BASIS

Revenues are recorded when they are received, which may be before or after they are earned.

Expenses are recorded when they are paid, which may be before or after they are incurred.

Financial statements reflect revenues and expenses based on when transactions were entered rather than when revenues were earned or expenses incurred.

No method of tracking partial payments is available.

ACCRUAL BASIS

Revenues are recorded when they are earned, which may be before or after they are received.

Expenses are recorded when they are incurred, which may be before or after they are paid.

Financial statements match revenues to the expenses incurred in earning them, and more accurately reflect the results of operations.

Revenues and expenses are recorded in full, even though partial payments may be made over extended time periods.

[Muhammad Bilal MBA Finance]

yar mein tu gdb ma apne sir se abi pocha hai

mr ahsan follow cash accounting system farhan accrual system

second ans hai accrual system ab gdb solve kro jaldi sey

[Muhammad Bilal MBA Finance]

1st ans:

In this scenario, MR: Ahsan is following cash accounting system for maintaining his business record.

While, MR: Farhan is using accrual accounting technique for controlling his business.

2nd ans:

I suggest accrual accounting system for commercial organization because of certain reasons:

         

[imran]

pehla accrual ha aur dusra cash accounting system ha

2nd accrual system in pakistan

solve it jaldy