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Double impact of financial transations and personal financial statments

This is the application of double entry concept. Without applying double entry concept, accounting records would only reflect a partial view of the company's affairs. Imagine if an entity purchased a machine during a year, but the accounting records do not show whether the machine was purchased for cash or on credit.

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Double impact of financial transations and personal financial statments

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  1. Double Impact of Financial Transactions & Personal Financial Statements Presented By: Vishal Thakkar ConTeTra Universal LLP Vishal.Thakkar@contetra.com +919320007891

  2. Dual Impact of Financial Transactions INCOME EXPENDITURE ASSETS LIABILITIES

  3. Examples of Financial Transactions • Salary Receipt • Rent payment • Purchase of House • Taking of Housing Loan • Buying MF Units • Loan EMI

  4. Personal P & L A/C (Monthly) Income Rs. Salary 15,000 Interest 1,000 Total Income 16,000 Expenditure Utilities 3,000 Groceries 3,000 Education 2,000 Maintenance 2,000 Total Exps. 10,000 Net Income 6,000 Loan EMI 3,000 Net Savings 3,000 Personal Balance Sheet Assets Rs. Lakhs House Property 11 Bank balances 2 Shares 1 Mutual Funds 1 Total assets 15 Liabilities Housing Loan 4 Personal Loan 1 Total Liabilities 5 Net wealth 10 Your own P & L & Balance Sheet

  5. Q & A

  6. Thank you!!

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