In general sense, the event means happening of something; human life are full of events.
Economic activity of each and every person, state, country, social is an event.
According to A.L. Kholer, “An event refers to a process or a part of a process having a particular moment and a place of occurrence”.
From an accounting point of view, only those events which bring changes in the financial position of a person or an organization are recognized as financial events.
Examples of accounting event are the purchase of goods, sale of goods, asset depreciation, rent paid, dividend paid to investors etc.
Financial events are needed to record in the book of accounting.
Entire financial events are considered as events in accounting.
There are innumerable events in human life; but they are classified into two groups; non-monetary event and monetary event.
The events which are not related to money or money’s worth are called non-monetary events.
Non-monetary event does not bring any financial change.
For example, passing examination, winning the game, deliberation of speech, placing goods in order, writing of a book, agreement with party etc are non-monetary events.
The events that are related to money or money’s worth are called monetary events.
Monetary event brings financial changes to a person or an organization.
For example, day to day home expenses, shopping expenses, home building expenditure, payment of house rent, birthday expenditure, receiving gifts on birthday from relatives etc are monetary events.
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Click on link for YouTube videos topic wise : |
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Accounting Equation |
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Basic Journal Entries in Nepali |
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Basic Journal Entries |
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Journal Entry and Ledger |
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Ledger Account |
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Subsidiary Book |
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Cash Book |
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Trial Balance and Adjusted Trial Balance |
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Bank Reconciliation Statement (BRS) |
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Depreciation |
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Click on link for YouTube videos chapter wise: |
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Financial Accounting and Analysis (All videos) |
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Accounting Process |
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Accounting for Long Lived Assets |
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Analysis of Financial Statement |
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Types of Accounting Events
External events
When company does monetary activates with external parties, it is known as external event; such as:
Purchases of goods from a supplier (get service from service provider),
Cash receives from a customer or debtor,
Interest received on investment from other organization,
Sublet rent received from tenant etc.
Internal events
When company does monetary activates with internal department and branch, it is known as internal event; such as:
Transfer goods from warehouse to production department within the company,
The recording of depreciation on fixed assets,
Use of office supplies,
Prepaid insurance expired etc.
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