8/11/2019 Article No 01 How I Learned ABC of Financial
Accounting
2/2
FINANCIAL ACCOUNTING
Page 2
Current Assets:
Trading stocks such as day to day dry foods, coconut spoons,
some plastic types items, village
vegitables such as Me Karal, mugunuwanna, gotukola etc. The
total worth of trading stocks
was around Rs. 600.
Cash in Hand
Rs. 300 for emergency purposes and as change money.
His opening Balance Sheet in current accounting is as
follows.
Opening Balance Sheet
Capital and Equity
Long Term Liabilities
Bank Loan
Current Liabilities
Loan from Village Lender
200
300
500
Property Plant and Equipment
Wooden Rack
Balance (Budry)
Current Assets
Trading stocks
Cash in Hand
80
20
600
300
1000 1000
My mother was appointed as the Finance Manager who studied until
grade 6 and my father
took the position as owner Manager. He has purchased 3 CR Books
for accounting and ruled
by using ink pen for writing the accounts. In todays accounting
these three books could be
considered as General Ledger, Stock Register and the Cash ook .
By watching it, I thought
my father knows everything in the world specially in Accounting
and Financial Management.
He was my Hero and he was my first professor of Accounting.
I will explain further in the same topic in my next article on
How I learnt ABC of Accounting.
Written by
Jayantha Kothalawala
B.SC Mgt Sp. Hons FCA ACMA MBA-Finance
