Daffodil International University
Ashuliya (permanent Campus ), Dhaka
Department of Business Administration
BBA Program
Term paper
Course code : ACT 101
Course name : Principle of Accounting
Submitted by –
Name : Shahaparan hossain
ID : 211-11-1215
Submitted to –
Teacher Name : Sayed farrukh Ahmed
Teacher Designation : Assistant Professor
Date of submittion 14 April 2021
Accounting in Action – Saturday, 16 January 2021, 5:49 PM
Accounting is an information system that identify , record and communication the economic activities
of an organization to the interested users.
I have learned from this chapter .
1. What is accounting ?
2. How many steps does accounting have ?
3. How the three steps work ?
4. Who uses accounting data ?
5. How internal user and external user work in there organization ?
The Recording Process – Wednesday, 24 February 2021, 2:11 PM
We have also learned about two types of transaction..
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Simple Entry: The entry that consists of only 2 accounts.
Compound Entry: The entry that consists of more than 2 accounts.
At the same time we have learned about three types of balance as well.
1. Debit Balance= Debit Balance > Credit Balance
2. Credit Balance= Debit Balance < Credit Balance
3. Zero Balance= Debit Balance = Credit Balance
Accrual basis accounting - Wednesday, 24 February 2021, 2:21 PM
Accrual accounting is one of two accounting methods; the other is cash accounting. Accrual
accounting measures a company's performance and position by recognizing economic events
regardless of when cash transactions occur, whereas cash accounting only records transactions
when payment occurs.
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Accrual accounting is an accounting method where revenue or expenses are recorded when
a transaction occurs rather than when payment is received or made.
The method follows the matching principle, which says that revenues and expenses should
be recognized in the same period.
Cash accounting is the other accounting method, which recognizes transactions only when
payment is exchanged.
Worksheet - Friday, 26 March 2021, 9:38 PM
A worksheet is a multiple-column form used in the adjustment process and in preparing financial
statements which is very important in summarising the adjusting accounts.
Three things I've learned:
1. Assets from adjusted trail balance moves to Balance sheet.
2. Liabilities to CR side of Balance Sheet.
3. Revenue and expenses to Income Statememt.
Accounting for merchandise operations - Wednesday, 7 April 2021, 10:21 PM
1. Inventory
2. Sales Revenue
3. Cost of goods sold
4. Wholesalers
5. Retailers
6. Consumers
7. Customers
Accounting for merchandise operations
A merchandising company buys and sells goods to earn a profit.
1) Wholesalers sell to retailers
2) Retailers sell to consumers
•Expenses for a merchandiser are divided into two categories:
1 ) Cost of goods sold–The total cost of merchandise sold during the period, 2) Operating
expenses
sales revenue - costs of goods sold= gross profit
gross profit- operating expense = net income/loss
Balance Sheet Columns- The major difference between the balance sheets of a service company
and a merchandising company is inventory