Introduction to accounting

GENERAL ACCOUNT

Concept:

Is the technique that help us to record in monetary terms, all accounting transaction that celebrates the company providing the way to implement a control that allows accurate and timely information through the financial statements and the correct interpretation of them.

The accounting is divided into two very important fields:

Cost accounting:

Is the responsible to keep a excellent control over the production cost.

Financial accounting:

Responsible for the rules and procedures to record, quantify, analyze and interpret economics events affecting tha company's capital.

Accounting software

Classic Conta 5.0

http://www.megaupload.com/?d=T4U0PL8L

Monica 8.5

http://rs225.rapidshare.com/files/70491298/Monica_8.X_Upload_By_Fashion.zip

Gracias fashion

Catalogue Of Accounts

This is an example of a chart of accounts used to mount an accounting system

within the company.

Within which placed the balance of the account, whether active or passive,

where increases and decreases and where it happens.

CATALOGUE OF ACCOUNTS

A. Active

A.1. Assets:
A.1.0.Cajas
Main A.1.0.1.Caja (girl)
Assistant A.1.0.2.Caja
A.1.1.Bancos
National A.1.1.0.Banco euros
C.R. A.1.1.1.Banco in colons
Popular A.1.1.2.Banco dollar
A.1.2.Cuentas receivable
A.1.2.0.Cuentas trade receivables
A.1.2.1.Clientes
A.1.2.2.Otras accounts receivable
A.1.3.Pagado advance
A.1.3.0. Prepaid rent
A.1.3.1. Prepaid Insurance
A.1.4.Mercaderia in transit.
A.1.4.0.Atlas
A.1.4.1.Panasonic
A.1.4.2.LG
A.1.4.3.Toshiba
A.1.5.Inventarios
A.1.5.0.Inventario goods
A.1.5.1.Inventario supply
Deferred A.1.6.Gastos
A.1.6.0.Intereses
A.1.6.1.Seguros
A.1.6.2.Sueldos
A.1.6.3.Alquiler
A.1.7.Acumulado receivable
A.1.7.0.Interes accumulated receivables
A.1.8.Inversiones
Long-term A.1.8.0.Inversion
A.1.8.1.Inversion in transit
A.1.9.Documento receivable
A.1.9.0.Documento trade receivables
A.1.9.1.Documento financial receivables
Fixed A.2.Activos

A.2.0.Terreno
A.2.1.Edificio.
Building cumulative A.2.1.0.Depreciacion
A.2.2.Mobiliario and office equipment
A.2.2.0.Depreciacion accumulated. Furniture and equipment
A.2.3.Vehiculo
A.2.3.0.Depreciacion cumulative vehicle
A.2.4. Machinery
A.2.4.0.Depreciacion machinery
A.3.Otros assets
A.3.0.Accionistas
A.3.1.Patentes
A.3.2.Franquicias
Phone A.3.3.Derecho
A.3.4.Gasto constitution
B. Liabilities
Short-term B.1.Pasivos
B.1.0.Cuentas payable
B.1.0.1.Cuentas trade payables
B.1.0.2. Other accounts payable
B.1.1. Document short-term payables
Payable on sales B.1.2.Impuesto
B.1.3.Interes payable
B.1.4.Dividendo payable
B.1.5.Sueldos payable
B.1.6.Cargas employer
Social B.1.6.0.Cargas payable
B.1.6.1.Retenciones payable
B.1.7.Ingresos deferred.
B.1.7.0.Intereses
B.1.7.1.Alquileres
Long-term B.2.Pasivos
B.2.0.Documento to longer-term payables
B.2.0.1.Pagare
B.2.0.2.Hipoteca payable
Capital C.
Social C.1.Capital
C.1.0.Socios
Accounting C.2.Capital
C.2.0.Activos
C.3.Dividendos
Retained C.4.Utilidades
D. Expenses
Sales D.1.Gastos
Sales D.1.0.Sueldos
D.1.1.Alquiler
D.1.2.Depreciacion vehicle
Sales D.1.3.Fletes
Public D.1.4.Servcios
D.1.5.Publicidad
Administrative D.2.Gastos
Administrative D.2.0.Sueldos
D.2.1.Depreciacion furniture and equipment
Building D.2.2.Depreciacion
Machinery D.2.3.Depreciacion
D.2.4.Suministros office
E. Income
E.1.Ventas
E.1.0. Sales Discounts
Sales E.1.1.Devolucion
Accrued E.1.2.Ingresos
E.1.3.Intereses cattle

BALANCE SHEET AND STATE OF RESULT

These are an example of balance sheet and income statement with its various accounts.Clearly there may be many more but these are some of the most recognized.

BALANCE SHEETASSETS

Current assets:

Box

Banks

Accounts Receivable

Prepaid rent

Prepaid Insurance

Goods in transit

Merchandise inventory

Inventory supplies

Accrued income receivable

Deferred expenses

Long Term Investments

Temporary investments

Note receivable

Total current assets

Fixed assets:

Ground

Furniture and office equipment

(-) Furniture and equipment Accumulated depreciation

Net Furniture and Equipment

Building

(-) Accumulated Depreciation Building

Net Building

Vehicle

(-) Accumulated Depreciation vehicle

Net Vehicle

Machinery

(-) Accumulated Depreciation machinery

Net Machinery

Total fixed assets

Other assets:

Shareholders

Formation expenses

Patent

Franchise

Dial Law

Total Other Assets

Total assets

Liabilities and Capital

Passive

Current liabilities:

Trade accounts payable

Other accounts payable

Document short-term payables

Sales Tax Payable

Interest payable

Dividends payable

Wages payable

Social charges payable

Retentions payable

Deferred revenue

Total current liabilities

Long-term liabilities:

Document long-term payables

Mortgage payable

Total long term liabilities

Total liabilities

Capital:

Social Capital

Retained earnings

Dividends

Total stockholders' equity

Total liabilities and capital

STATE OF RESULT

Sales

(-) Sales Discounts

Returns on sales

Net sales

(-) Cost of sales

Shopping

(+) Freight purchases

Total purchases

(-) Discount on purchases

Purchase returns

Net purchases

(+) Final Inventory

Merchandise available for sale

(-) Initial Inventory

Cost of sales

Gross profit on sales

(-) Operating expenses:

Selling expenses:

Sales Salaries

Rental

Vehicle Depreciation

Freight Sales

Public Services

Advertising

Total cost of sales

Administrative fee:

Administrative Salaries

Furniture and equipment depreciation

Building Depreciation

Machinery Depreciation

Office Supplies

Total administrative expenditure

Total operating expenses

Net Operating Income

(+) Other income

Earnings

(-) Other costs

Interest paid No

Net income before tax

Income Tax

Retained Earnings

Accounting history

Why Study Accounting History?

The history of accounting is as old as civilization, key to important phases of history, among the most important professions in economics and business, and fascinating. Accountants participated in the development of cities, trade, and the concepts of wealth and numbers. Accountants invented writing, participated in the development of money and banking, invented double entry bookkeeping that fueled the Italian Renaissance, saved many Industrial Revolution inventors and entrepreneurs from bankruptcy, helped develop the confidence in capital markets necessary for western capitalism, and are central to the information revolution that is transforming the global economy.

There are no household names among the accounting innovators; in fact, virtually no names survive before the Italian Renaissance. It took archaeologists to dig up the early history and scholars from many fields to demonstrate the importance of accounting to so many aspects of economics and culture. The role of accountants in the ancient world is coming into clearer focus with new archaeological discoveries and innovative interpretations of the artifacts. It is now evident that writing developed over 5,000 years--by accountants. It is difficult to overestimate the importance of double entry bookkeeping. It was central to the success of Italian merchants, necessary to the birth of the Renaissance. Industrial Revolution firms required accountants to provide the information necessary to avoid bankruptcy and their role developed into a profession. Big business required capital markets that depended on accurate and useful information. This was supplied by what became an accounting profession. Today, a global real-time integrated information system is a reality, suggesting new accounting paradigms. Understanding history is needed to develop the linkages to predict this future.