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Extra resources for Accounting and Financial Management for I. T. Professionals

Example text

T. professionals at work must have at least basic knowledge of accounting and financial management because accounting and financial management are language of business, which makes communication possible. It is important to note that without an understanding of accounting and financial management, one cannot understand the complexities associated with business organization. IT professionals, therefore, equipped with knowledge of accounting and financial management can understand not only the complexities associated with business organization but can recognize the problem which helps in developing Data Flow Diagram (DFD) and Entity Relation Diagram (ERDiagram) easily, which are essential to software development.

It. Sales A/c Income due to sales, so Cr. it. N 16. Transactions on March 29 and 30 Rule 1 Credit transaction Rule 2 Rule 3 A/Cs Involved Nature Apply ground Rule for entry in books of account Return Inward A/c N Income decreases due to return, so Dr. it. P Sundry debtor (Raghvendra) returns goods (giver), Raghvendra A/c Rule 1 Credit transaction Rule 1 Cash transaction Rule 4 so Cr. his A/c. Rule 2 Rule 3 Rule 4 A/Cs Involved Nature Apply ground Rule for entry in books of account Bhuwan A/c P Sundry creditor (Bhuwan) receives goods (Receiver), so Dr.

2500. Prepaid Insurance or unexpired insurance or insurance paid in advance Rs. 1500. Amount withdrawn by proprietor for personal/domestic/private use Rs. 2000. Goods taken by proprietor for personal/domestic/private use Rs. 1000. Goods given as charity Rs. 800. Shyam paid Rs. 800 in full settlement against Rs. 900 due to him. Shyam becomes bankrupt and paid only Rs 500 against Rs 900 total amount due to him. An amount previously written off as bed debts has now been recovered from Shyam, the old debtor for Rs.

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