Value Proposition canvas- Customer needs and pains
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1. Meaning, objective, importance and utility of book-keeping and accountancy, basic accounting terminologies Concepts, conventions and principles Dr BRR
2. Principles of double entry book keeping and classification of accounts Primary books of accounts, meaning, utility, format writing of primary books Basis of accounts: Cash & mercantile Dr BRR
3. Cash book single, double and triple column Secondary book – ledger posting of transactions in ledger. Dr BRR
4. Petty cash book- imprest system, analytical petty cash book Bank reconciliation statement. Meaning, need importance and preparation Dr BRR
5. Kinds of errors, rectification of errors, suspense account Preparation of trial balance Final accounts. Concepts, meaning and importance. Dr BRR
6. Accounts of NTC Receipt and payment account and income and expenditure account Income & Expenditure A/c, Balance Sheet Dr BRR
7. Cost accounting concept Relationship of cost accounting and financial accounting Concept of cost analysis and its classification Dr BRR
8. Material cost, material records, inventory systems. Overheads : classification Concepts of cost units and cost centres. Allocation and absorption of overheads Elements of cost sheet Dr BRR
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10. What is Accounting? Accounting defined: [AICPA] Recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in the FINANCIAL STATEMENTS. Dr BRR
11. Regulatory Framework Co ACT, 1956: 658 sections + 14 schedules IT Act, 1961: 298 sections + 16 schedules RBI, SEBI, IRDA, TRAI, MCA or DCA, CAG Global fund raising Harmonization of financial statements at international level Ownership & management – separation International organizations-IASB, SEC What is Book Keeping? It is an art and science of recording business transactions in a set of books of account Dr BRR
12. Interested parties/Stakeholders Public Creditors/Lenders Govt Investors Customers Mgt Employees Shareholders BUSINESS FIRM Dr BRR
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14. What is Accounting Cycle? Dr. BRR Documentation Recording Classifying Summarizing Bifurcating [income statement & B/S] Dr BRR
15. What does an accounting report contain? Dr. BRR Income statement Balance sheet Cash flow statement Notes to Accounts & Accounting policies Plus Auditor’s report, Director’s report, chairman’s statement, management discussion &analysis, Corporate Governance Report Dr BRR
16. Who are stakeholders/users? Dr. BRR Investors – present & potential-amateur , analysts Employees & trade unions Lenders-financial institutions Suppliers / creditors Consumers Government-SEBI, Tax authorities, CAG, Stock exchanges, Dept of company affairs Public-general, Environmental activists, consumer forums Management Dr BRR
17. Accounting assumptions = Concepts + Conventions Dr. BRR Accrual Concept Going Concern Concept Business Entity Concept Accounting Period [Periodicity] Concept Money Measurement Concept Cost Concept Dual Aspect Concept Consistency Disclosure Conservatism Dr BRR
18. Assets, Expenses Accounts: Debit Credit Incomes, Liabilities, Equity Accounts: Debit Credit Debit Expenses or assets Credit Incomes or Liabilities Accounting Equation EQUITY = ASSETS – LIABILITES Dr BRR
19. Personal Account Accounts of persons, firms, institutions Ram a/c, Bank a/c, O/S expenses, Prepaid a/c Real Account Accounts of assets or properties Cash a/c, Building a/c, Goodwill a/c Debit The Receiver Credit The Giver Nominal Account Accounts of Expenses, incomes, gains, losses Salary, Rent, Depreciation, Discount, Commission Dr BRR Debit What Comes In Credit What Goes Out Debit Expenses or Losses Credit Incomes or Gains
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23. REVENUE RECEIPTS = INCOME REVENUE EXPENSES = EXPENSES P & L ACCOUNT [INCOME STATEMENT] BALANCE SHEET CAPITAL RECEIPTS = LIABILITES CAPITAL EXPENDITURES = ASSETS INCOME > EXPENSES -> NET PROFIT INCOME < EXPENSES -> NET LOSS Dr BRR
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25. EXERCISE 1 Classify the following in to (a) Assets, Liabilities, expenses, equity, income (b) Real, Nominal & Personal Accounts Salary, interest received, rent, building, brand, patents, client’s account [Dr.], suppliers account, goodwill, furniture, share capital, retained profits, reserves, term loan from ICICI, out standing salary, prepaid insurance, accrued interest on investment, debenture, discount, land, cash, stock, debtors, creditors, bills payable, bills receivable Dr BRR
29. Ledger Book Date Particulars Cr. Rs. Rs. Date Particulars JF JF Dr. Dr BRR
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31. Subsidiary Books Purchases book Purchases Returns book [Return O/W book] Sales book Sales Returns book [Return I/W book] book Cash book B/R book B/P book Journal Proper 14/11/2005 Exam Q No. 3 Dr BRR
32. Cash Book Types: 1. Simple Cash Book 2. Three column cash book 3. Petty cash book Simple Cash Book [Cash column only] Date Rs. Receipts Number Receipts Date Payments Voucher Number Rs. Dr. Cr. L.F. L.F. Dr BRR
33. Three column Cash Book Date Receipts Number Receipts Date Payments Voucher Number Dr. Cr. Cash Bank Cash Bank Discount Discount L.F. L.F. Dr BRR
34. Petty Cash Book Date Rs. Payments Voucher Number Rs. Total Receipts Rs. [in Rs.] Analysis of Payments Printing Wages Adv Cartage Sundries Postage L.F. Ledger Accounts Dr BRR
35. BANK RECONCILIATION STATEMENT Particulars Rs. Bank Balance as per Cash Book ADD: Cheque issued but not presented Cheque issued presented & dishonoured Income credited by banker ECS Credits Under or Over casting of cash book on Debit or Credit side respectively LESS: Cheque deposited but not credited Bank charges ECS Debits Cheque received & entered in CB but not deposited yet Cheque deposited but dishonoured Bank Balance as per Bank Pass book Dr BRR
