CA - Accounts basicsAccounting<br />www.WinningNotes.com<br />
Agenda<br />2<br />Introduction <br />Book Keeping<br />Advantages of Book keeping<br />Accountancy, Accounting and Book k...
Introduction – Book Keeping<br />3<br />Book-keeping is that branch of knowledge which tells us how to keep a record of bu...
Advantages of Book Keeping<br />4<br />Permanent and Reliable Record keeping<br />Arithmetical Accuracy <br />To know the ...
Accounting <br />5<br />American Accounting Association defines accounting as “the process of <br />Identifying<br />measu...
Accountancy, Accounting & Book Keeping<br />6<br />Accountancy- systematic knowledge of accounting. Why and how to prepare...
Branches of Accounting<br />7<br />Financial Accounting - recording of business transactions to know the operating result ...
What’s more<br />8<br />Basic Accounting Terms – Closing stock, assets, liabilities etc<br />Basic Accounting Concepts  - ...
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Winning Notes - Accounts - Basics1

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Finance for Non-finance Executives - Start with knowing the basic accounts

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Winning Notes - Accounts - Basics1

  1. 1. CA - Accounts basicsAccounting<br />www.WinningNotes.com<br />
  2. 2. Agenda<br />2<br />Introduction <br />Book Keeping<br />Advantages of Book keeping<br />Accountancy, Accounting and Book keeping<br />Branches of Accounting<br />What more is in store<br />
  3. 3. Introduction – Book Keeping<br />3<br />Book-keeping is that branch of knowledge which tells us how to keep a record of business transactions.<br />Those transactions related to business which can be expressed in terms of money are recorded<br />As per R.N. Carter - “Book-keeping is the science and art of correctly recording in the books of account all those business transactions that result in the transfer of money or money’s worth”.<br />The objective of book keeping is to keep a record of all the business transactions to enable calculation of Profit & Loss and Assets and Liabilities of the business.<br />
  4. 4. Advantages of Book Keeping<br />4<br />Permanent and Reliable Record keeping<br />Arithmetical Accuracy <br />To know the Profit or Loss of business correctly<br />Ascertainment of Financial Position to plan for the next year as well<br />Ascertainment of the Progress of Business<br />To know how much he has to pay others and how much to receive.<br />Keep a check over assets and evaluate them every year<br />To keep control over liabilities<br />To ensure proper records for taxation and management purposes<br />To maintain legal records <br />
  5. 5. Accounting <br />5<br />American Accounting Association defines accounting as “the process of <br />Identifying<br />measuring and <br />Communicating economic information <br />to permit informed judgments <br />and decision by <br />users of the information”.<br />An accounting cycle is a complete sequence of accounting process, that begins with the recording of business transactions and ends with the preparation of final accounts<br />Business transaction  Journal  Trial Balance  P&L Account  Balance Sheet<br />
  6. 6. Accountancy, Accounting & Book Keeping<br />6<br />Accountancy- systematic knowledge of accounting. Why and how to prepare the books of accounts<br />Accounting– actual process of preparing and presenting the accounts. <br />BookKeeping– record keeping or maintenance of books of accounts<br />Users of Accounting – <br />Internal Users - owners, management, employees<br />External Users – creditors / lenders, investors, banks and other lending institutions, present and potential investors, Government, tax authorities, regulatory agencies and analysts and public at large.<br />
  7. 7. Branches of Accounting<br />7<br />Financial Accounting - recording of business transactions to know the operating result (profit or loss) of a particular period and financial position (Balance Sheet) on a particular date can be known.<br />Cost Accounting – to know the cost of material, men etc in a certain manner<br />Management Accounting – use of accounting information by management for planning, strategy formulation and decision making by the management.<br />
  8. 8. What’s more<br />8<br />Basic Accounting Terms – Closing stock, assets, liabilities etc<br />Basic Accounting Concepts - matching concept, revenue realization<br />Accounting Assumptions – going concern, accounting entity<br />Accounting Standards<br />Double Entry system of book keeping<br />Questions and Exercises<br />

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