Part-Time Job!

If you are interested to do any part-time job, please contact me. Remuneration is attractive. Both male and female students may try.

Thanks.

Revised Academic Calendar!

The Registrar's Office has recently revised the academic calendar for Summer 2011. Please visit the following link to download the revised version.

Revised Academic Calendar

Please notice the makeup classes (for the missed classes due to recent hartal) scheduled to be held on the coming two thursdays.

Thanks.

Q/A Session!

Question 1: The question says purchased gasoline for $100 on account. I assume it will go to accounts payable and expenses but not in supplies. And as i pay it later in cash then i should count it in my income statement's expenses. Am i right?

Answer: Yes, this would increase both liabilities and expenses. And it would be shown in the income statement because it is an expense, not because they paid for it! Even if you pay for an expense later, you need to show it in the income statement. Paying or not paying for an expense would have different consequences in terms of cash flows.

Question 2: Part-1: In June 2, purchased a Van for $12000, by paying $2000 cash and signing a N/P for the remaining balance. Then in June 23, made a cash payment of 500 on N/P. Paying this 500 cash payment decreases N/P. So where i can write this $500 cash payment in Cash flow statement... (operating/investing activities?) and what will be the title of this transaction (decreasing N/P or delivery van)?
 Part-2: Similarly in June 17, purchase of gasoline for 150 on account, then in June 29, paid for the gasoline purpose. This transaction also decreases A/P. So in cash flow statement where i can write this transaction... in which section and under what title (decreasing A/P or expense)?

Answer: Part-1: Under investing activities, 'purchase of van' would show a negative $2,500 as total of that much cash went out from the business to purchase it.
Part-2: It would be included in cash payments for expenses under operating activities section.

Q/A Session!

Hello Sir, I have some queries and confusions,
1. I was wondering if equipments, utilities and supplies are the same thing... I mean if I create a category named 'Supplies' in the tabular summary and there's a transaction of equipments/utilities, can I put that transaction under that 'Supplies' category?
2. Where will 'purchase of Gasoline' go?
3. Delivery van is supposed to be an asset and I know the rule how to make adjustments when an asset is purchased in cash, but where will be the adjustments if the transaction is 'purchasing an asset/del.van on account?

Answers: Following are answers to the questions.
1. If whatever you create benefits you more than the current period, it will be an asset, otherwise an expense. So, equipments and supplies are assets as they usually benefit the company for multiple periods. As utility bill (eg. electricity bill) is paid every period and the benefit gets exhausted within the period, this is treated as an expense. All asset items should have separate columns. But all expenses should be recorded in the same expense column in Tabular Summary.
2. With the same logic mentioned above, purchase of gasonline for the delivery van would be an expense.
3. Increase in asset and on the other hand increase in liability (usually accounts payable if any other type is not mentioned, for example, a note payable).