Basic Accounting

1. PRESENTATION ON
ACCOUNTING
Presented By
MD. Sani-Ul-Islam
Id. 172-15-9950

2. Topics
Accounting in Action.
The Recording Process.

3. Accounting in Action.[Objectives]
What is Accounting ?
The Users of Accounting ?
Basic Accounting Equation ?
The Recording Process.[Objectives]
What is Debits & Credits ?
What Journal , Ledger & Trial Balance ?
Limitations oF Trial Balance ?

4. Accounting in Action
What is Accounting ?
Accounting is an information system that identifies ,
record`s & communicates the economic events of
an organization users.

5. The users of Accounting ?
Internal Users :-
Managers.
Finance Directors.
Company Officers.
Production Supervisors.
Employees.
External Users :-
Investors.
Creditors.
Tax Authority.
Labour Unions.
Customers.

6. Basic Accounting Equation ?
Assets Liabilities Owner`s equity
Assets :-
Assets are economic resources owned by a business. Ex.
Cash in hand , Cash in Bank , Land etc.
Liabilities :-
Liabilities are Creditor`s claims against assets. Ex.
Accounts Payable, Note payable etc.
Owners equity :-
Owners Equity is the ownership claim on total assets. Ex.
Beginning Capital, Net Income etc.

7. The Recording Process
Debits & Credits ?
Debits :-
Entering an amount on the left side of an account is called
debit.
Credit :-
Entering an amount on the right side of an account is
called credit.

8. Journal , Ledger , Trial balance ?
Journal :-
Journal is an accounting record in which transactions are
initially recorded in chronological order.
Ledger :-
The entire group of accounts maintain by a company is
called the ledger.
Trial balance :-
A trial balance is a list of accounts from the ledger
showing their debits and credit balance in separate
column.

9. Limitations of trial balance ?
A transaction is not journalized.
A correct journal entry is not posted.
A journal entry is posted twice.
Incorrect accounts are used in recording and
posting.
Offsetting errors are made in recording the amount
of a transaction.

10. Thanks