Rohit`s Journalizing Dilemma
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Case Code: CLFIN043 Case Length: 3 Pages Period: 2022-2022 Pub Date: 2024 Teaching Note: Available |
Price: Rs.150 Organization : Sapphire Private Limited Industry : Countries : India Themes: Accounting and Control |
Abstract
The case study, ‘Rohit’s Journalizing Dilemma’ is about Sapphire Private Limited (Sapphire), a self-assembly furniture manufacturer known for its standardized and customized wooden and steel furniture. Rohit, an assistant accountant at Sapphire, faced a challenge in journalizing the transactions during his first assignment and this prompted him to seek guidance. The case highlights various scenarios requiring accounting treatment, including trade discounts, cash discounts, bad debts, donations, stolen goods, damaged inventory, capital expenditure on new outlets, and managing sample goods.
The case study helps the students understand real-world applications of accounting concepts. It also guides them in understanding and applying accounting principles to address diverse transactions. The case encourages critical thinking, the application of accounting concepts, and the development of problem-solving skills.
Issues
- Understand and apply accounting principles to address diverse transactions.
- Understand real-world applications of accounting concepts
- Recognize the impact of inaccurate record-keeping on financial statements
Introduction
Rohit worked as an Assistant Accountant at Sapphire Private Limited (Sapphire), a self-assembly furniture manufacturer in Hyderabad. He had got the job on humanitarian grounds after his father, who had worked in the company’s factory, lost both his hands in an accident in March 2022.
When he joined Sapphire, Rohit had no work experience. Although he was not well-versed in Accounting and Auditing subjects during his graduation and post-graduation days, Girish T Kumar (Girish), Accounting Department Head at Sapphire, believed that Rohit would learn over a period of time as he was an above average student.
Keywords
Accounting Principles; Business Transactions; Accounting Concepts; Impact of inaccurate record-keeping on financial statements; Trade Discount; Cash Discounts; Accounting treatment for stolen goods and damaged inventory; Bad debts; Difference between sales and samples;
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