Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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MANAGEMENT IN TWENTIETH CENTURY

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The major contribution of the Industrial Revolutionwas the substitution of machine power for human power, which, in turn, made it more economical to manufacture goods in factories rather than at home. These large, efficient factories using power-driven equipment required managerial skills. Why? Managers were needed to forecast demand, ensure that enough material was on hand to make products, assign tasks to people, direct daily activities, coordinate the various tasks, ensure that the machines were kept in good working condition and work standards were maintained, find markets for the finished products, and so forth. Planning, organizing, leading, and controlling became necessary, and the development of large corporations would require formal management practices. The need for a formal theory to guide managers in running these organizations had arrived. However, it wasn’t until the early 1900s that the first major step toward developing sucha theory was taken.

Professional Managerial Era

In our present age of market driven capitalism and futuristic knowledge driven economic markets, the decisions are made and the trends are set by the professional managers. Unlike their predecessors, the captains of today’s business do not own their own companies. They must know the whole business but have control over only one small part. They must be product oriented, process conscious, financially responsible and public spirited. They must know all things, yet still function as only one cog in the wheel.

If the history of management tells us anything, it is that, no matter What happens; peace or war, prosperity or famine, this world will always be in need of good managers . . . the kind who can get society from “where it is” to “where it wants to be.” Can you be one? 

Sydney Opera House
Sydney Opera Hall is the milestone of the modern age situated in Sydney, Australia which was completed in a time period of 33 years (1940 – 1973). Sydney Opera hall consists of following:

•  1000 rooms
•  5 theaters  
•  Hall for 2679 persons

Sydney Opera Hall is 183 meter tall and 120 meter wide and its roof carries1, 056,000 tiles which were imported from Sweden and it coasted $ 102 million. Whatis the purpose to build such a unique hall? They used people and technology to achieve that purpose. The main purpose is to provide entertainment to public.

Flying Colors on PC
The most commonly used operating system on PC is also a great example to explain the topic of organized effort done by a modern IT organization. In making of one new version of an operating system, the dozens of engineers are deployed. When the first operating system was launched by the company, it took several years to launch, and today you get an operating system worth of millions on one CD. So, there are the engineers who made the operating system by some processes to give the services to the PC users /customers. The IT organization stands behind its products/services.

What is an Organization?

“It is an entity where two or more persons work together to achieve a goal or a common purpose.”
There are so many organizations around us. Daily we visit and see many organizations hospitals, colleges, factories, farms and government offices. Mosque/Church is also an example of an organization. People go there and say prayers. Activities of praying are to achieve a certain goal. Similarly, any unit in which two or more persons are working together for some purpose is called an organization.

•  People 
•  Purpose
•  Process
•  POLCA
If there is an organization, then there must be some people. They work as whole for a common purpose, so there must be a defined purpose. If an organization doesn’t have any purpose, it will not survive for long run. To achieve the purposes by using people, the processes are needed. Without any process, you cannot achieve any type of purpose or goal. If we see in our daily life, we have some goals. For achieving these goals, we use some processes. So that process is also obvious and important for an organization. The last important thing for any organization is that itrequires main pillars of management i.e. POLCA:

•  Planning
•  Organizing
•  Leading
•  Controlling

A manager must perform all theses management functions with Assurance!

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