Rome Was Not Built in a Day

10. Accounting from vouchers†¦ Cont. after Palak Shah†¦. CHART EXPLAINING THE INTERPRETAITION AND SHOEING THE EFFECTS OF VOUCHER†¦ CHART 1 |SR. NO. |VOUCHER |INTERPRETATION |WHERE IT IS RECORDED? | |1. Our cash memo |Cash sales |Recorded in debit side of cash book | |2 |Cash memo of other party |Purchase of goods or assets on cash |Recorded in credit side of cash book | |3 |Credit memo of other party |Credit purchase of goods and assets |Recorded in purchase book and journal | | | | |proper | |4 |Our credit memo |Credit sales of goods |Recorded in sales book | |5 |Our debit note |Purchase return of goods |Recorded I purchase return book | |6 |Our credit note |Sales return of goods |Recorded in sales return book | |7 |Debit note of other party |Sales return of goods |Recorded in sales return book | |8 |Credit note of opposite party |Purchase return of goods |Recorded in purchase return book | |9 |Receipt issued |Money received in cash or cheque by us |Recorded on debit side of cash book | |10 |Receipt of opposite party |Payment made on cash or cheque |Recorded n credit side of cash book | |11 |Pay-in slip |Cash, cheque or draft deposited in bank |Recorded on debit side of cash book | | | | |Recorded on both side of cash book | |12 |Counterfoil of the cheque |Cash withdrawn from ban for office use |Recorded on both side of cash book | | |Payment made to creditors |Recorded on credit side of cash book | |13 |Expense voucher |Expense made by cash |Recorded on credit side of cash book, cash| | | |Expense made by cheque |column | | | | |Recorded on credit side of cash book, bank| | | | |column | |14 |Income tax challan |Income tax paid by cheque or cash |Recorded on credit side of cash book on | | | | |cash/bank column | |15 |Sales tax challan |Sales tax paid by cash or cheque |Recorded on credit side of cash book n | | | | |cash/bank column | |16 |Particulars of correspondence |Regarding bank charges |Recorded on credit side of cash book | | | |Regard ing interest credited by bank |Recorded on debit side of cash book | | | |Regarding dishonor of cheque deposited | | Explanation of terms: – 1.Contra Transactions: Those transactions, which are recorded on both the sides of cash book, debit and credit, are known as contra transactions. 2. Bank charges: bank provides service to our business. Receives money on our behalf, collects payments of outstations cheques and makes payment to outstation traders on our behalf. Bank takes care of our money. Therefore, bank charges some charges as remuneration for providing such type of various services. It is known as bank charges. 3. Expenses for assets: When any asset is purchased, the expenses on purchase of assets are also debited to the asset account and it is recorded in asset account after adding such expense. CHART 2 [pic] Cash purchase | |cash sales | |payment to creditors | |Payment of bills payables | |Received collection | |Received for bills receivable | |Income received | |Expenses paid | |Cash brought in as capital | |Drawings through cash | |Loan/advances received | |Loan/advanced repaid | |Bank interest | |bank charges | |cash deposited in bank | |cash withdraw from bank | |Credit purchase of goods | |- Recorded in purchase goods | |Credit sales of book | |- Recorded in sales goods | |Purchase return of book | |- Recorded in purchase return goods | |Sales return of book | |- Recorded in sales return goods | |Bills payable accepted | |- Recorded in bills payable goods | |Bills receivables received | |- Recorded in bills receivable goods | |Other transactions | |- Recorded in journal proper etc. | CHARACTERISTICS OF VOUCHER: 1. The name of the party who is preparing the voucher is written on the top of the voucher and the name of the party to whom the voucher is given below. 2. From the voucher, the information like date on which transaction has taken place; its amount, type of transaction, terms and conditions of transactions etc are available. 3 . Voucher gives an idea about the parties between whom the transactions has taken place. 4. Voucher also gives an idea about weather the transaction is cash or credit? 5.If we have prepared the voucher, its original copy is given t the opposite party and its duplicate is kept with us. 6. If the original copy of the voucher is with us, it shows that the opposite party has prepared the voucher. 7. For transactions with bank, the printed vouchers are available from the bank in which we only need to fill the particulars. 8. In respect of amount paid, if it is not possible to obtain the voucher or receipt from the opposite party, the trader himself prepares the voucher and takes the signature of the opposite party or the authorized person of firm puts the signature sanctioning the voucher. ———————– Types of transactions Cash transactions Recorded in cash book Credit transactions Recorded in subsidiary book Rome Was Not Built in a Day There were things in the world which take a considerably long time to mature. It is the nature of a task that determines the length of time it would take to be accomplished. Some people are in the habit of getting impatient, when a task takes a little too long to complete. They do not understand or rather coyeniently forget the nature of the task and start losing heart. This idiom is used to tell the impatient people that great things are not done or accomplished overnight. Such things require long time, patience and continuous effort. Rome is the name of a city in Italy. At one time it was the capital of the Roman Empire. It was the citadel of the Roman Catholic Church. It was Roman Emperor Augusta’s who is consi ¬dered to be the real builder of Rome. Rome consisted of only a few hamlets when Augustus came to the throne. It took about 40 years for him to transform the face of Rome into a metropolis, adorned with beautiful mansions, theatres, temples, public baths and many other public buildings. It took a long time for this city to develop into a grand city of the world. In the same way every important task takes some time to be completed. There are two aspects of the matter. First, all big or important things take time to be accomplish ¬ed. Secondly, one should never grow impatient if some work takes a long time. What is required is perseverance and not haste. A close look at the maxim will make it evident that the word ‘Rome’ represents a great or noble or a monumental task. And the words ‘in a day’ indicate the span of time. The position is now very clear that monumental or great things cannot be done in haste, they require not one day but a long period of time. It is an advice to those who after having put in a little work or labor want excellent result immediately. They would be committing a mistake by doing so. It is again a lesson for those who want to do big or great things in life that they should be prepared to work hard continuously for a long time without losing patience. Patience is crucial in this process. Impatience will lead you nowhere. It will waste the labor or efforts you have already put in. Therefore, it is advisable to learn this lesson and translate it into action. One should have a firm determination and should sincerely work hard. One cannot achieve success unless one puts in the required amount of work in a specified period. The period of time is as important as the amount of labor. Therefore, the key to the accomplishment of any big task is labor, patience and perseverance. Suppose a man is not keeping good health. He wants to improve his health. Can any exercise, medicine or tonic improve his health over night ? The answer is obviously ‘no’. For improving his health the man will have to take regular exercise, and medicines for a period of time, before he can find any improvement in his health. If after a few days he feels discouraged, because he finds that exercise and medicines have done no good to him it is a fit case when he should be given this piece of advice. Similar is the case of a student who wants to obtain distinction in his annual examination and works hard for a few days, but getting on better result in the terminal examination he loses heart. Regular hard work for a considerably long period of time will ensure a distinction in the annual examination. No one is going to achieve the result without putting in required in-put of labor coupled with time. Patience is the essence of it. The Taj Mahal is a monumental architecture. It took decades for its building. Shah Jehan got this finest piece of architecture constructed with great patience and with huge expenditure over a long span of time. It is because of these factors that the Taj occupies a place of pride in India. In many cases we find men becoming impatient to pluck the fruits of their labor instantaneously or overnight. They are like that foolish farmer who sowed the seed and went the next morning with a sickle in his hand to reap the crop. Great undertakings require hard work over a long period of time. It is childish either to desire a result without sufficient work for a certain period of time or to give up the attempt after some time. A careful analysis of several important achievements will be enough to convince anybody that perseverance plays a very important role in the successful accomp ¬lishment of any task. Look at the strenuous work put in by those who achieved success in any great adventure or undertaking. They would have never succeeded without patience. Great discoverers have shown wonderful tenacity of purpose and commendable endurance in their pursuits. They never showed any sign of discouragement even after successive failures. Had they been hasty or had they show signs of disappointment, they would not have been remembered today with such great honor. We are all aware of the perseverance that enabled Tensing reach atop Everest. Milton took a quarter-century of years to complete his great epic. Tulsidas took several years of constant labor in com ¬piling his Ramcharit Manas. This maxim serves as an inspiration to hard and continuous work for achieving great tasks or for performing great adventure. It keeps disappointment away from you. It also tells you of the value of sustained effort. Thus it hands over the key to success in life.