Worksheet -8: Process and Impact Analysis of Financial Transactions

No Transactions Accounts Nature Cash/ Impact on Accounting Impact on Impact on Impact on

involved of credit /non Equation Income Balance Final Cash
accounts cash statement Sheet flow
involved transaction statement
1 Rent paid Rent Expenses Cash Decrease in cash and Treated as Decrease in Operating
Cash Assets decrease in equity expenses cash and
decrease in
equity
2 Rent received Rent Income Cash Increase in cash and Treated as Increase in Operating
Cash Assets increase in equity income cash and
increase in
equity
3 Rent due Rent Expenses Credit Increase in liability Treated as Increase in NA
Rent due Liability and decrease in equity expenses liability and
decrease in
equity
4 Rent paid in advance Advance rent Asset Cash Increase in one asset NA Increase in Operating
Cash Asset (advance rent) and one asset
decrease in another and
asset (cash) decrease in
another
asset
5 Rent received in Cash Asset Cash Increase in asset and NA Increase in Operation
advance Advance rent Liability increase in liability asset and
increase in
liability
6 Furniture purchased Furniture Asset Cash Increase in furniture NA Increase in Investing
Cash Asset Decrease in cash furniture

1
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 Decrease in
cash
7 Furniture sold Furniture Asset Cash Increase in cash NA Increase in Investing
Cash Asset Decrease in furniture cash
Decrease in
furniture
8 Depreciation on Furniture Asset Non cash Decrease in furniture Treated as Decrease in NA
furniture Depreciation Expenses Decrease in equity expenses furniture
Decrease in
equity
9 Collection from Cash Asset Cash Decrease in debtors NA Decrease in Operation
debtors Debtors Asset Increase in cash debtors
Increase in
cash
10 Payment to creditors Creditors Liability Cash Decrease in cash NA Decrease in Operation
Cash Asset Decrease in liability cash
Decrease in
liability
11 Bad debts Bad debts Expenses Non cash Decrease in debtors Treated as Decrease in NA
Debtors Assets Decrease in equity expenses debtors
Decrease in
equity
12 Bad debts recovery Cash Assets Cash Increase in cash Treated as Increase in Operation
Bad debts Income Increase in equity income cash
recovery Increase in
equity
13 Goods purchased on Goods Asset Credit Increase in asset NA Increase in NA
credit (assumed not Creditors Liability Increase in liability asset
sold) Increase in
liability
14 Goods purchased Purchases Expenses Cash Decrease in cash Expenses Decrease in Operation
(assumed to be sold) Cash Assets Decrease in equity cash

2
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 Decrease in
equity
15 Sale of goods on Debtors Asset Credit Increase in debtors Income Increase in NA
credit Sales Income Increase in equity debtors
Increase in
equity
16 Sold goods for cash Cash Assets Cash Increase in cash Income Increase in Operation
Sales Income Increase in equity cash
Increase in
equity
17 Discount allowed to Discount Expenses Non cash Decrease in debtors Expenses Decrease in NA
debtors Debtors Assets debtors
Decrease in equity Decrease in
equity
18 Discount allowed by Discount Income Non cash Decrease in liability Income Decrease in NA
creditors Creditors Liability Increase in equity liability
Increase in
equity
19 Bank loan taken Cash Asset Cash Increase in asset NA Increase in Finance
Bank loan Liability Increase in liability asset
Increase in
liability
20 Repayment of bank Cash Asset Cash Decrease in asset NA Decrease in Finance
loan Bank loan Liability Decrease in liability asset
Decrease in
liability
21 Issue of equity share Bank Asset Cash Increase in assets NA Increase in Finance
capital Equity share Equity Increase in equity assets
capital Increase in
equity
22 Repayment of equity Bank Asset Cash Decrease in asset NA Decrease in Finance
share capital Equity share Equity Decrease in equity asset

3
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 capital Decrease in
equity
23 Issue of preference Bank Assets Cash Increase in assets NA Increase in Finance
share capital Preference Equity Increase in equity assets
Share capital Increase in
equity
24 Issue of Debenture Bank Assets Cash Increase in assets NA Increase in Finance
Debenture Liability Increase in liability assets
Increase in
liability
25 Repayment of Bank Assets Cash Decrease in asset NA Decrease in Finance
Debenture Debenture Liability Decrease in liability asset
Decrease in
liability
26 Dividend paid Dividend Expenses Cash Decrease in asset Expenses Decrease in Finance
Bank Assets Decrease in equity asset
Decrease in
equity
27 Dividend received Dividend Income Cash Increase in assets Income Increase in Investment
Bank Assets Increase in equity assets
Increase in
equity
28 Interest paid Interest Expenses Cash Decrease in assets Expenses Decrease in Finance
Bank Assets Decrease in equity assets
Decrease in
equity
29 Interest received Interest Income Cash Increase in asset Income Increase in Investment
Bank Assets Increase in equity asset
Increase in
equity
30 Appreciation on Building Asset Non cash Increase in assets Income Increase in NA
building Appreciation Income Increase in equity assets

4
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 Increase in
equity
31 Depreciation on Depreciation Expenses Non cash Decrease in assets Expenses Decrease in NA
building Building Assets Decrease in equity assets
Decrease in
equity
32 Commission paid Commission Expenses Cash Decrease in assets Expenses Decrease in Operation
Cash Assets Decrease in equity assets
Decrease in
equity
33 Commission Commission Income Credit Increase in assets Income Increase in NA
receivable Accrued Assets Increase in equity assets
commission Increase in
equity
34 Commission Commission Income Cash Increase in assets Income Increase in Operation
received Cash Assets Increase in equity assets
Increase in
equity
35 Goods lost Goods Assets Non cash Decrease in asset Expenses Decrease in NA
Goods lost Expenses Decrease in equity asset
Decrease in
equity
26 Cash lost Cash lost Expenses Cash Decrease in assets Expenses Decrease in Operation
Cash Assets Decrease in equity assets
Decrease in
equity
27 Stores purchased Stores Assets Cash Decrease in assets NA Decrease in Operation
Cash Assets Increase in assets assets
Increase in
assets
28 Consumption of Stores Assets Non cash Decrease in assets Expenses Decrease in NA
stores Consumption Expenses Decrease in equity assets

5
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 of stores Decrease in
equity
29 Stationery purchased Stationary Assets Cash Decrease in asset NA Decrease in Operation
Cash Assets Increase in assets asset
Increase in
assets
30 Consumption of Stationary Assets Non cash Decrease in asset Expenses Decrease in NA
stationery Consumption Expenses Decrease in equity asset
of stationary Decrease in
equity
31 Insurance premium Insurance Expenses Cash Decrease in asset Expenses Decrease in Operation
paid Cash Cash Decrease in equity asset
Decrease in
equity
32 Insurance claim Claim Income Cash Increase in assets Income Increase in Operation
received Bank Assets Increase in equity assets
Increase in
equity
33 Insurance claim Claim Asset Credit Increase in assets Income Increase in NA
receivable receivable Income Increase in equity assets
Claim Increase in
equity
34 Claims payable Claims Expenses Credit Increase in liability Expenses Increase in NA
Claims Liability Decrease in equity liability
payable Decrease in
equity
35 Compensation paid Compensatio Expenses Cash Decrease in asset Expenses Decrease in Operation
n Assets Decrease in equity asset
Bank Decrease in
equity
36 Compensation Compensatio Expenses Credit Increase in liability Expenses Increase in NA
payable n& Decrease in equity liability

6
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 Outstanding Liability Decrease in
compensation equity
37 General expenses General Expenses Cash Decrease in asset Expenses Decrease in Operation
paid expenses & Assets Decrease in equity asset
Cash Decrease in
equity
38 Travelling expenses Travelling Expenses Cash Decrease in asset Expenses Decrease in Operation
paid expenses & Assets Decrease in equity asset
Cash Decrease in
equity
39 Sales commission Sales man Expenses Cash Decrease in asset Expenses Decrease in Operation
paid commission Assets Decrease in equity asset
& Decrease in
Cash equity
40 Furniture purchased Furniture Asset Cash Decrease in asset NA Decrease in Investment
Cash Asset Increase in asset asset
Increase in
asset
41 Machinery Machinery Asset Cash Decrease in asset NA Decrease in Investment
purchased Cash Asset Increase in asset asset
Increase in
asset
42 Equipment Equipment Asset Cash Decrease in asset NA Decrease in Investment
purchased Cash Asset Increase in asset asset
Increase in
asset
43 Cheqques received Bank Asset Cash Decrease in asset NA Decrease in Operation
from customers Debtors Asset Increase in asset asset
Increase in
asset
44 Cheques received Bank Asset Cash Decrease in asset NA Decrease in Operation
from customer Debtors Asset Increase in asset asset

7
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com
 cancelled Increase in
asset
45 Bills receivable Bills Asset Credit Decrease in asset NA Decrease in NA
received from receivable & Asset Increase in asset asset
debtors Debtors Increase in
asset
46 Bills receivable Bank & Asset Cash Decrease in asset NA Decrease in Operation
collected Bills Asset Increase in asset asset
receivable Increase in
asset
47 Bills payable cleared Bills payable Liability Cash Decrease in liability NA Decrease in Operation
Bank Assets Decrease in assets liability
Decrease in
assets
48 Bills payable issued Creditors Liability Credit Decrease in liability NA Decrease in NA
to creditors Bills payable Liability Increase in liability liability
Increase in
liability
49 Noting charges paid Noting Expenses Cash Decrease in asset Expenses Decrease in Operation
for bills dishonored charges & Assets Decrease in equity asset
Bank Decrease in
equity
50 Bills payable Creditors Liability Credit Decrease in liability NA Decrease in NA
cancelled issued to Bills payable Liability Increase in liability liability
creditors Increase in
liability

8
Dr.Chandra Mohan Patnaik, Professor, KIIT School of Management , KIIT University, Bhubaneswar, Odisha , Hello: 9668224322,
bcmpatnaik@ksom.ac.in, bcmpatnaik@gmail.com