What kind of accounting ?

Question

Please provide me about the preparing of accounting, How should we recording?, How should I know the manner of accounting? then tell me more please about Journal and recording all expense and revenue. One more for FIFO and LIFO that it is important of accounting, What should I do? then what can i find the subject of FIFO and LIFO? I hope you will reply me the best answer. If you have any problem feel free contact me. Thanks !!!

Answer 1

You've asked so much. I don't know where to start. I'll try to answer your answer as best as possible.

You can record all your financial transactions using double entry book keeping. You can use a T - account. The concept of debit and credit is quite technical for you to understand it easily. If you do not have any background in finance and accounting, you basically cannot do recordings. What's the best I can advice you is to hire the service of a specialist. An accountant or a financial analyst. They've learned how to do journal entries and financial statement preparation in 4 years, you cannot learn that in a very limited time.

FIFO AND LIFO are both used to value your inventory/stocks. When you say FIFO (First-In, First-Out), you basically consider selling stocks that were firstly acquired to have been sold first. On the other hand, LIFO (Last-In, First-Out) considers stocks that have just been bought to be the first stocks to have been sold.

For example: if you buy a stock yesterday (10 shoes, 1 pair of shoes = $1) and you buy another set of stock today of the same item (10 shoes, 1 pair of shoes = $1.5). Assume that a customer bought 15 pairs of shoes, how much should you record as sales? It depends. If you are using LIFO, your sales should be $20 dollars. On the contracry, your sales using FIFO should be $17.50 dollars.

In the end, the one I've given you as an example is so far very basic. My best advice is, GET THE HELP OF AN ACCOUNTANT OR A FINANCIAL ANALYST. It will mean, you need to pay money but it will also mean a better and a more accurate financial statement preparation.

Cheers.

Answer 2

Accounting stands for producing unambiguos, truthful, periodic and correct statements. The four types of accounts are Journals, ledgers, Balance sheet and Income statement. If it is a corporation then you will have statemet of owners equity a partnership statement of capital employed and American accounting has a statement for cash flow for the year.
You have debit and credit for the account so called double entry book keeping. Debits are assets, expenses and uses of funds and Credits are liabilities, revenues and uses of funds. Stock holders equity, capital is credit.
Income statemetn cosnists of Sale, cost of goods sold, Selling and administrative expenses and depreciation , which gives the profit before tax. Then interest is subtracted to get Profit before tax and tax is deducted from this to get the Net Income.
For balance sheet, we have, Cash, Accounts Receievables, Inventories, Prepaid expenses, Property plant and equipment, short term investments and Long term investments on the Asset side.
On the credit side we have Accounts payable, accruals, short term liabilities and long term liabilities. Then we have the statement of owners equity where we have paid up capital, value above paid up capital, and retained earnings.
LIFO, FIFO,
are Inventory accounting methods. Last in first out means the last arrived materials or products are used or sold first and FIFO means the first arrived goods did the same above sold first or used up first.
This gives a short run up on accounting which has many rules and regulations to followup depending on which country you are in. This is the basic theory.
Last but not the least, the basic Accountin equation is, Assets = Liabilities + Owners equity.