Here is the First unit of FYBBA Business Accounting Concept , Kindly check it and share with others

1. BUSINESS
ACCOUNTING
Presented By : Gauri More

2. 2
BUSNIESS ACCOUNTING
1.FINANCIAL
ACCOUNTING
2.ACCOUNTING
TRANSACTIONS
AND FINAL
ACCOUNT
3.BANK
RECONCILIATIO
N STATEMENTS
4.Computerised
Accounting

3. TEACH A COURSE 3
1.
Definition and
Scope
1
2.
Objective
2
3.
Accounting Concept
3
4.
Principles and
Convention
4
5.
Classification of
Accounts
5
Chap.1
FINANCIAL ACCOUNTING

4. 4
TEACH A COURSE

5. BOOK KEEPING :Keeping a detailed record of the
business transactions for a person or business.
• e.g. Invoicing services or goods sold to customers.
• Registering payments for outstanding invoices.
• Recording invoices owed to suppliers, contractors, etc.
• Issuing payments to suppliers, contractors, etc.
• Tracking and recording employee payroll activity.
• Paying employees and recording payroll taxes.
5

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Chanakya (Kautilya)

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ACCOUNTING
 Accounting is the process of recording, summarizing, analyzing, and reporting the financial transactions related to a business. It explains
how a business organization records, organizes and reports these transactions to regulators and other parties.
 Examples of accounting transactions are:
• Sale in cash to a customer.
• Sale on credit to a customer.
• Receive cash in payment of an invoice owed by a customer.
• Purchase fixed assets from a supplier.
• Record the depreciation of a fixed asset over time.
• Purchase consumable supplies from a supplier.
• Investment in another business.

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ACCOUNTANCY
 Accounting is the process of recording financial transactions pertaining to a business. The
accounting process includes summarizing, analyzing, and reporting these transactions to oversight
agencies, regulators, and tax collection entities.

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QUIZ
What are accounting source documents?
1.Pages in General Ledger
2.Listings of financial transaction
3.Documentary Evidences of Financial Transaction

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CORRECT ANSWER :
OPTION.-3

11. 11
QUIZ
Q. Accounting entries involve a minimum of how many accounts ?
1. One
2. Two
3. three

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TEACH A COURSE
ANSWER : OPTION 2
Every transaction has two journal entries: a debit and a
credit. Debits must always equal credits. Because debits
equal credits, double-entry accounting prevents some
common bookkeeping errors.

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GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
Generally Accepted Accounting Principles (GAAP) are basic accounting principles and guidelines
which provide the framework for more detailed and comprehensive accounting rules, standards and
other industry-specific accounting practices. For example, the Financial Accounting Standards Board
(FASB) uses these principles as a base to frame their own accounting standards. Thus GAAP
encompasses:
• Basic accounting principles/guidelines
• Accounting Standards usually issued by the premier accounting body of the country
• Industry-specific accounting practices to cover unusual scenarios
In India, financial statements are prepared on the basis of accounting standards issued
by the Institute of Chartered Accountants of India (ICAI) and the law laid down in the
respective applicable acts (for example, Schedule III to Companies Act, 2013 should be
compulsorily followed by all companies).

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ACCOUNTING PRINCIPAL AND CONCEPT
❖ Business Entity Concept
❖ Money Measurement Concept
❖ Going Concern Concept
❖ Accounting Period Concept
❖ Cost Concept
❖ Dual Aspect Concept
❖ Revenue Concept(Realisation Concept)
❖ Matching Concept

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16. FINANCIAL ACCOUNTING
▪ Accounting is never ending .Capable scholars devote their
lives and their intellectual energies to analysing its
phenomena.Experienced professionals accounts contribute
their best thinking to the satisfactory solution of accounting
problem.Periodic meetings of national accounting
organisations discuss the pros and cons of various accounting
practices.
▪ The modern financial accounting therefore is not merely
concerned with financial record keeping but also with a whole
range of other correlated activities involving planning
,control,decision making, problem solving, performance
measurement and evalution,co-ordinating and
directing,auditing, tax determination and planning and cost
and management accounting too.
16

17. OBJECTIVE
TEACH A COURSE 17
Systematic Recording
ofTransaction
Ascertainmant of
Working Results
Disclosure of Financial
Status
Providing Data to
Various Parties

18. 18
QUIZ
 Objective of Financial Accounting ?
1. Sytematic Recording Of Financial Transactions
2. Revealing The Financial Position Of The Firm
3. Ascertaining The Result Of Business Operations
4. Reporting Past Performance And Future Prospect
1.Only 1
2.Only 1 & 4
3. Only 1 & 3
4. All of the above

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ANSWER
OPTION : 4

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ROLE AND IMPORTANCE OF ACCOUNTING IN BUSINESS
ORGANISATION
✓ Facilitates to Replace Memory
✓ Act as Legal Evidence
✓ Assists the Managemnt
✓ Facilitates Control Over Assests
✓ Comply with legal requirements
✓ Net Result of Operations
✓ Financial Position
✓ Users to take Decisions
✓ Settlement of Tax Liability
✓ Helping in Detection of Misapporiation,Fraud and Errors
 Shows only overall Performance
 Provides only historical data
 Static in nature
 Fails to control cost
 No proper classification of cost
 Not provide cost comparison
 Fail to provide adequate information of report
 Fail to provide adequate data to management
 Not use control techniques
 Fails to ascertain break even point
ADVANTAGES DISADVANTAGES

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BASIC FINANCIAL ACCOUNTING TERMINOLOGIES
1. Entity
2.Transaction
3. CashTransaction
4. CreditTransaction
5. BarterTransaction
8.Goods
9. Expenses
10.Capital and Revenue Expenditure
11. Deferred Revenue Expenditure
12. Income ,Entry,Voucher
14. Discount
7. Drawing , Goodwill
13. Debtor,Creditor,Capital
6.Profit/Loss ,Assets

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30. 30
QUIZ
 Nominal accounts are related to:
(A) Assets
(B) Expense, losses and income
(C) Liabilities
(D) Firm or business

31. 31
ANSWER :
 OPTION : B

32. 32
QUIZ
 Accounts which keep the record of properties owned by a trader, are called
(A) Personal accounts
(B) Real accounts
(C) Nominal accounts
(D) None of these

33. 33
ANSWER
 OPTION : B

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