#class11 accounting book-keeping & accounting ppt # Bookkeeping and accounting in Nepali

WELCOME
Class 11
Pralhad Sapkota
Pragati Secondary School,
Hetauda- 9, Makawanpur, Nepal
Opt. 1st : Accounting (103):
Unit-1: Lesson-1: Book-Keeping &
Theoretical Concept of Accounting
n]vf clen]vg tyf n]vfljlwsf]
;}4flGts cjwf/0ff

Book-keeping & theoretical concept of accounting, Prepared by Pralhad Sapkota, Pragati Secondary School Hetauda – 9, Nepal
Unit 1:
Book-Keeping & Accounting Concept: LH–34
n]vf clen]vg tyf n]vfljlwsf] cjwf/0ff
 1.1: Book-Keeping & Theoretical Concept of accounting: LH–10
n]vf clen]vg tyf n]vfljlwsf] ;}4flGts cjwf/0ff
 1.2: Recording of Transactions: LH–24
sf/f]jf/x?sf] clen]vg

1.1: Book-Keeping & Theoretical Concept of Accounting (LH–10)
n]vf clen]vg tyf n]vfljlwsf] ;}4flGts cjwf/0ff
1.1.1: Book-Keeping & accounting n]vf clen]vg / n]vfljlw
Upon completion of this lesson, students should be able to understand
 Concept & meaning, objectives, advantages, importance and evolution of
book-keeping
 Concept & meaning, objectives, scope, function, advantages & importance,
limitation, accounting process, branches and activities of accounting
 Difference between book-keeping and accounting
 Ethical issues/values/norms of accounting

Meaning of Book-keeping n]vf clen]vg/n]vfkfngsf] cy{
Bookkeeping is an act of keeping written record of all day to day financial transaction of a
business. An owner or an accountant cannot keep in memory all the financial transaction that
take place in the business for the whole year. Therefore, all such transactions have to be
recorded in some books. Bookkeeping keeps record of all financial transaction systematically
and permanently in chronological (date-wise) order for future use.
b'O{ kIf aLrsf] cfk;L n]gb]gnfO{ Joj;fosf] efiffdf sf/f]jf/ -Tansaction_elgG5 . Jofj;flos
sf/f]af/sf] lgoldt / ljlwjt ?kdf clen]v /fVg] sfo{nfO{ n]vf clen]vg jf k":tskfng jf jxL
vftf elgG5 . Pp6f Jofj;fodf c;Îo sf/f]af/x¿ x'g] ub{5 . o;/L Joj;fo ;~rfng ubf{ pTkGg
x'g] c;Îo sf/f]af/x¿af6 Joj;fosf] ;DkQL, k"FhL tyf bfloTj, cfDbfgL tyf vr{ cflbdf kg]{
k|efj kQf nufpgsf nflu k|To]s cfly{s sf/f]af/x¿sf] qmda4 / Jojl:yt tyf j}1flgs 9Ën]
clen]v /fVg'kg]{ x'G5 . clen]v /fVg] p4]Zo k'/f ug{ cfly{s sf/f]af/x¿sf] lgoldt / Jojl:yt
tl/sfn] alxvftf jf k':tsdf clen]v /fVg] snfnfO{ n]vf clen]vg elgG5 .

According to R.N Carter, “Book keeping is a science and art of correctly recording in the
books of accounts, all those business transactions that result in the transfer of money and
money’s worth”. d'b|f jf df]lb|s d"Nosf] x:tfGt/0f;+u ;DalGwt ;Dk"0f{ Jofj;flos
sf/f]af/x¿sf] vftfx¿df z'4 tl/sfn] clen]v /fVg] lj1fg / snfnfO{ n]vf clen]vg dlgG5 .
Book keeping is the art of recording business / financial transaction in a systematic and
scientific manner. df}l›s d'Nodf JoQm ug{ ;lsg] ;Dk'0f{ Jofkfl/s sf/f]afx¿nfO{ lgoldt,
Jojl:yt tyf j}1flgs tl/sfn] clen]v /fVg] snfnfO{ n]vf clen]vg elgG5 . laQLo
sf/f]af/x?sf] klxrfg Pj+ juL{s/0f ug{', z'4 / Jojl:yt tl/sfn]clen]v /fvL cj;fosf]
clGtd vftf tof/ ug{df d2t ug'{ n]vf clen]vgsf] d'Vo p2]Zo xf] .

Objectives or functions of book keeping n]vf clen]vgsf] p2]Zo jf sfo{
1.To identify the financial transaction ljQLo sf/f]jf/x¿sf] klxrfg ug'{:
Bookkeeping identifies only the financial transaction from large no of business
transactions. It ignores non-financial transaction. n]vfljlw cGtu{t df}l›s d"No ePsf
tyf df}l›s dNodf ¿kfGt/ ug{ ;lsg] sf/f]jf/x¿sf] dfq clen]v /flvG5 . t;y{, n]vf
clen]vgsf d"Vo p2]Zo ;Dk"0f{ Jofj;flos sf/f]jf/x¿dWo] df}l›s d"No ePsf sf/f]jf/x¿sf]
klxrfg ug{' xf] .
2. To keeps permanent and systematic records Jojl:yt / :yfoL clen]v /fVg'
Bookkeeping keeps the permanent records of financial transactions in a systematic
manner in various books such as journal and subsidiary book.n]vf clen]vgsf] d'Vo p2]Zo
sf/f]jf/x¿sf] lgoldt / Jojl:yt tl/sfn] clen]v /fVg xf] . of] p2]Zo k"/f ug{ n]vf
clen]vg cGtu{t uf]Zjf/f ef}r/ -Journal_/ ljleGg k|sf/sf ;xfos k'l:tsfx¿df
lgod;+ut / qmda4 tl/sfn] clen]v /fVg] sfo{ ul/G5 .

3. To classify the financial transactions sf/f]jf/x¿sf] juL{s/0f ug{'
Book keeping classifies all the financial transaction in to three types personal, real and
nominal. After classifying transactions it keeps their records accordingly.;dfg k|s[ltsf
sf/f]jf/x¿nfO{ Pp6} ;d"xdf /fVg] sfo{nfO{ juL{s/0f -Classification_ elgG5 . Jofj;flos
sf/f]jf/x¿nfO{ ;dfgtfsf] cfwf/df ljleGg ;d"xdf ljefhg ug{' n]vf clen]vgsf] p2]Zo xf]
. o;sf] nflu n]vf clen]vg cGtu{t ljleGg vftfx¿ -Ledgers_ tof/ kfl/G5g .
4. To find out operational result Joj;fosf] ;~rfng glthf kQf nufpg'
It helps to find out operational result of a business in term of profit and loss and financial
position by preparing final account. s'g} lglZrt ;dofjlwsf cfDbfgL, vr{, k"FhL, bfloTj,
;DklQ cflbsf] af/]df hfgsf/L k|bfg ug{' n]vf clen]vgsf] p2]Zo xf]. o; cGtu{t tof/
kfl/g] ;Gt'ng kl/If0fn] ;Dk"0f{ sf/f]jf/x¿sf] ;+o'Qm glthf k|:t't ub{5 . o;af6 clGtd
vftf tof/ kf/L gfkmf gf]S;fgsf] l:ylt / ljQLo cj:yfsf] hfgsf/L k|fKt ug{ ;lsG5 .

Importance or advantages of book keeping n]vf clen]vgsf] dxTj jf kmfObfx¿
1. Provides financial Information ljQLo ;"rgf pknAwtf
Bookkeeping records all financial transactions therefore with the help of book keeping
future plans and policies of a business concern can be prepared easily. n]vf clen]vg
cGtu{t ljQLo sf/f]jf/x¿sf] lgoldt / Jojl:yt tl/sfn] clen]v /flvgfn] Joj;fosf]
cfDbfgL, vr{, k"FhL, ;DklQ, bfloTj cflb ;DaGwL hfgsf/Lx¿ k|fKt x'G5g . t;y{, n]vf
clen]vgn] Joj;fosf] of]hgf th{'df ug{ / cGo gLlt lgdf{0f ug{sf] nflu cfjZos kg]{
ljQLo ;"rgfx¿ pknAw u/fpFb5 .
2. Helpful in ascertaining profit or loss gfkmf gf]S;fg kQf nufpgdf ;xof]uL
Book-keeping keeps complete records of business transactions. Thus, profit and loss of
business can be easily ascertained. n]vf clen]vgcGtu{t Joj;fosf cfDbfgL, nfe, vr{,
xfgL gf]S;fgL cflbsf] clen]v /flvg] ePsf]n] tL clen]vx¿sf] dfWodaf6 s'g} lglZrt
;dofjlwsf] gfkmf gf]S;fgsf] l:ylt ;lhn};Fu kQf nufpg ;lsG5 .

3. Knowledge of financial Position ljQLo cj:yfsf] 1fg
With the help of bookkeeping true and correct financial position of a business concern can
be obtained at any time. Joj;fosf] k"FhL, Joj;fosf] dftxtdf /x]sf ;DklQx¿ / afXo
kIfnfO{ e'QmfgL ug{'kg]{ bfloTjsf] cj:yfnfO{ ljQLo cj:yf elgG5 . n]vf clen]vgcGtu{t
ljleGg k|sf/sf ;DklQx¿, ;fx'x¿, cf;fdLx¿ cflbsf] clen]v /flvg] ePsf]n] s'g} lglZrt
;dofjlw;Dd Joj;fosf] ljQLo cj:yf;DaGwL hfgsf/Lx¿ ;lhn};Fu k|fKt ug{ ;lsG5 .
4. Helpful in determining tax s/sf] ef/ lgwf{/0f ug{df ;xof]uL
A business concern is required to pay tax ( Income tax, VAT) to the government. Such tax
can be easily determined with the help of book-keeping. cfo cfh{g ug]{ JolQm Pj
Jofj;flos ;ªu7gn] cfDbfgL tyf gfkmfsf] lglZrt c+z s/sf] ?kdf ;/sf/nfO{ a'emfpg'kg]{
x'G5 . n]vf clen]vgn] s/ e'QmfgL ug'{eGbf klxn] g} cfDbfgL / vr{sf] cfwf/df l;h{gf x'g
;Sg] s/sf] ef/ cfd ?kdf cg'dfg ug{df d2t ub{5 .

5. Helpful in detection and prevention of errors and frauds
uNtL / 5nsk6x¿ klxrfg ug{ / /f]syfd ug{df ;xof]uL
Book-keeping records all business transaction scientifically and systematically,
therefore it enables to detect errors and fraud that have already taken places. It also
help to take steps to prevent them.
n]vf clen]vgcGtu{t ljQLo sf/f]jf/x¿sf] lgoldt, Jojl:yt / bf]xf]/f] n]vfk|0ffnLsf]
l;4fGtcg';f/ clen]v /flvg] ePsf]n] tL clen]vx¿sf] ul0ftLo z4tfsf] hfFr ug{
;lsG5 . t;y{, n]vf /fVg] qmddf s'g} uNtL jf 5nsk6 ePdf tL uNtL tyf
5nsk6x¿ ;dodf g} kQf nufpg / /f]syfd ug{df n]vf clen]vgn] ;xof]u ub{5 .

Evolution of book keeping n]vf clen]vgsf] ljsf;qmd
• The exact date of the origin of book-keeping is not yet known. It is said that the practice of
book-keeping began with the invention of money in Lydia, Greece during 700 B.C. Clearly,
book-keeping in its true sense, first, arose in classical Greece.
• However, the practice of the well-known system of double-entry book-keeping evolved in
Italy during the 13th and 14th centuries. It became well-known to the world only after Luca
Pacioli, a Franciscan friar and a lecturer on mathematics, got his book 'Summa de
Arithmetica, Geometric, Proportion et Proportionalite (Everything about Arithmetic,
Geometry and Proportion) first published in 1494 in Venice, Italy. The book contained a
chapter headed Particularis de Computis et Scripturis (A Section on Accounts and
Records) which dealt with the principles of double-entry book-keeping.
• The first English translation of De Computis was published by Hugh Old Castle in 1543,
which popularized double-entry book-keeping all over the world.

• After a decade, Jemes Pule published his view and concept about keeping the complete
records of debtors and creditors.
• Many improvements were made thereafter from time to time to the original form of double-entry
system as described by Luca. Later on the works about book-keeping continued to be published.
• In this regard subject matter published by Edward Jones in 1795 AD about the book-keeping is
considered to be very significant. In this book he advocate for two column in journal.
• Industrial Revolution in the 18th century, business houses grew large and complex with a large
number of transaction, which led to further improvement in book-keeping especially England and
other European countries.
• Today, the double entry system has been established as the most systematic and scientific
system of book-keeping and is universally applied as computer accounting software and online
accounting in all forms of entities . Therefore, Luca Pacioli is regarded as the 'father of modern
book-keeping.

• Book-keeping w]/} k'/fgf] ljifo xf] lsgeg] o;sf] pTklQsf] ;do 7ofSs} eGg ;lsb}g t/klg
k|f/DeLs r/0fdf b"O{ kIfljr g] cfly{s sf/f]jf/x? l;ldt ePsf]n] s'g} 7fpFdf w;f{ sf]/L jf
s'g} ;+s]tsf] dfWodaf6 ;Demg ;lsGYof] / k5L n]gb]g ;DalGw cfly{s sf/f]jf/x?tyf
dfgljo cfjZoQmfx? a9b} uPsfn] Ps}rf]6L] ;Dk"0f{ sf/f]jf/x? ;Demg g;lsg] ePsfn] lt
c;+Vo sf/f]jf/x?nfO{ clen]v /fVg'kg]{ dxz'; eof] .
• ;g 1494 df k|mfG;df hGdg'ePsf O6nLsf] e]lg; ;x/df a:g] Ps ul0ftlj1 Luce D. Pacioli
-h;nfO{ Father of modern book-keeping klg elgG5._ n k|sfzg u/]sf] summa De
Arithmetica, Geometric, proportion et proportionate gfds k':tsdf v08 1 b]vL 9 ;Dd
vftf / clen]v ;DaGwdf j0f{g u/] .
• o;nfO{ cwf/ dflg 1543 df Huge old castle n] c+u|]hLdf cg'afb u/]/ k|sflzt u/L bf]xf]/f]
n]vf k|0ffnLnfO{ ;+;f/e/ k|Voft u/] .

• o;sf] Ps bzsk5L James pule C0fL / ;fx'x?sf] clen]v /fVg] t/Lsf0af/] cfkmg} cWoog
k|sfzgdf NofP / k5L Adward Jones n] ;g 1795 b]vL cfkmg} Jofks zf]wsfo{sf afah'b b'O{
dxnsf] uf]Zjf/f ef}r/ k|rngdf NofP .
• ctM dfgj ;Eotf k|f/Dedf Joj;fo cfsf/ ;fgf] ePsfn] sf/]jf/x? ;Lldt lyof] t/ lj:tf/}
!* cf}+ ztfAbLdf ePsf] cf}wf]lus qmflGt;+u} Joj;fox¿n] n]vfnfO{{ kf/bzL{ :ki6 / lgoldt
agfpg'kg]{ clgjfo{tf a9of] . kmn:j?k ;g 1494 df pTklt ePsf] n]vf k|0ffnL b|'tultdf
ePsf] lj1fg tyf k|ljlw / Aofj;flos ;+u7gsf] ljsf;n] ubf{ cfhsf] lbg;Dd cfOk'Ubf n]vf
clen]vg jf n]vfkfng ;DalGw sDKo"6/ ;km6j]/sf]] ;d]t ljsf; eO;s]sf] 5 .

Meaning of accounting n]vfljlwsf] cy{
The meaning of accounting is broader than of book keeping. When book-keeping ends than
accounting begins, which include not only recording and classifying but also other various
activities. So, accounting hold book keeping in its fold. Accounting is the process of identifying,
measuring, recording, classifying, summarizing, analyzing, interpreting the financial transaction
and lastly communicating to obtained result (ascertaining profit or loss and financial position of a
business for the year) to its users. Accounting first takes the financial information recorded by
bookkeeper and present them to various users in the form of financial statement and report.
Joj;fosf] s'g} lglZrt cjlwsf] cGtdf gfkmf jf gf]S;fg tyf ljlQo cj:yfsf] af/]df hfgsf/L
k|bfg ug]{ p2]Zon] ljlQo sf/f]af/x?sf] clen]v /fVg], juL{s/0f ug]{, ;+If]kLs/0f, ljZn]if0f tyf JofVof
ug]{ df ;fy} ;'rgfx?sf] ;Dk|]if0fug]{ ljlwnfO{ n]vfljlw elgG5 . ;fwf/0f cy{df, n]vfljlw eg]sf]
ljlQo sf/f]af/x?sf] clen]vg, juL{s/0f, ;+If]kLs/0f, JofVof tyf ;Dk|]if0fsf] Ps k|lqmof xf] h;af6
k|fKt ljlQo ;'rgfsf] cfwf/df lg0f{o ug{ ;lsG5 .

According to prof. R.N Anthony “Accounting system is a means of collecting, summarizing,
analyzing and reporting in monetary terms, the information about the business.”n]vfljlw
Joj;fosf] af/]df ljlQo ;'rgf ;+sng, ;+If]kLs/0f, ljZn]if0f | tyf k|ltj]bg k|:t't ug]{ ;fwg xf].
Actually Accounting is the process of identifying, measuring, recording, classifying,
summarizing, interpreting the financial transactions and communication of economic activities
which supplies information to permit judgement and decision to users. It is also known as
language of business and means of communication to stakeholders.
;+If]kdf, Joj;fo ;~rfngsf] l;nl;nfdf l;h{gf x'g] ljQLo sf/f]jf/x?sf] lgoldt, ljlwjt, :ki6
/ Jojl:yt tl/sfn] clen]vx? /fVg], clen]vx?sf] ;f/f+zsf] ?kdf ljQLo ljj/0f jf clGtd
vftf tof/ ug]{, ljQLo ljj/0fsf] ljZn]if0f ug]{ / ;DalGwt kIfx?nfO{ Joj;fo ;+rfngsf
glthfsf] hfgsf/L k|bfg ug]{ lj1fg tyf snfnfO{ g} n]vfljlw elgG5 .

Features of Accounting
1. Financial Character -ljQLo rl/q_M Accounting deals only with those transactions which have
financial character. It does not include non-financial transaction.
2. Continuous Process -lg/Gt/ k|lqmof_M Accounting is a continuous process, It involves
recording, classifying and summarizing of financial transaction.
3. Historical in Nature -P]ltxfl;s k|s[lt_M Accounting involves recording of past transactions
only. Therefore, it is historical in nature.
4. Analysis and interpretation -ljZn]if0f / JofVof_M Accounting also involves analysis and
interpretation of the results of the business
5. Based on Principle -l;4fGtdf cfwfl/t_M Accounting is based on certain principles that guide
how transaction should be recorded and reported.

Objectives and functions of accounting n]vfljlwsf] p2]Zo tyf sfo{x?
1. To keep complete and systematic record k"0f{ / Jojl:yt tl/sfn] clen]v /fVg'
The first aim /objectives or function of accounting is to keep systematic and complete record of all financial
transactions for future reference and also to avoid the possibility of errors and frauds. First of all, it records
all financial transactions in journal and then after they are posted into ledger as per specified rules and
principles. n]vfljlwsf] d'Vo p2]Zo Pj+ sfo{ ljQLo k|s[ltsf ;Dk"0f{ Jofj;flos sf/f]jf/x¿sf] lgoldt /
Jojl:yt tl/sfn] clen]v /fVg' xf] . df}l›s d"Nodf JoQm ug{ ;lsg] k|To]s Jofj;flos sf/f]jf/x¿sf] ljlwjt /
j}1flgs tl/sfn] lnlvt ?kdf clen]v tof/ kfg{ n]vfljlwsf] d'Vo p2]Zo xf] .
2. To ascertain profit or loss gfkmf gf]S;fg kQf nufpg
The second objective or function of accounting is to ascertain operating result i.e., profit or loss of a business
for a period. Operating result i.e., profit or loss is determined by preparing trading and profit and loss
account for a particular period of time. n]vfljlwsf] p2]Zo s'g} klg Jofj;flos ;bu7gn] lglZrt ;dofjlwsf]
clGtddf cfh{g u/]sf] gfkmf jf gf]S;fgsf] l:ylt kQf nufpg' xf] . cfDbfgLeGbf vr{ sd ePdf gfkmf x'G5 eg],
cfDbfgLeGbf vr{ a9L ePdf gf]S;fgL x'G5 . n]vfljlw cGtu{t k|To]s n]vf jif{sf] clGtddf gfkmf gf]S;fg kQf
nufpg] p2]Zon] Jofkf/ vftf / gfkmf gf]S;fg vftf tof/ kfl/G5 .

3. To analyse and interpret the financial information ljQLo ;"rgfsf] ljZn]if0f / JofVof ug{'
Accounting analyses and interprets the results of the business to draw conclusions. With the help of
such conclusions, the parties concerned in the business can have full information about its
profitability and financial position. n]vfljlwcGtu{t tof/ kfl/Psf clen]vx¿af6 of]hgf th{'df ug{ /
ljQLo l:yltsf] d"NofÍg ug{ tL clen]vx¿sf] ljZn]if0f / JofVof ug{kg]{ x'G5 . o;/L ljQLo ljj/0fx¿sf]
ljZn]if0f / JofVof ug]{ d'Vo sfo{ n]vfljlwsf] xf] .
4. To depict the financial position ljQLo cj:yf lrq0f ug{'
A concern, whether trading or non-trading should know its true financial position. For this purpose, it
prepares a balance sheet at the end of every year, which informs about its position of assets,
liabilities and capital and reflects economic strengths and weaknesses of business. n]vfljlwsf] p2]Zo
sg} klg ;xu7gsf] lglZrt ;dofjlwsf] ljQLo l:yltsf] oyfy{ cj:yfsf] lrq0f ug{ xf] . Joj;fosf]
ljtLo cj:yf eGgfn] ;DklQ k+hL / bfloTjsf] l:yltnfO{ hgfpF5 . s'g} lglZrt ;dofjlwsf] clGtddf
Joj;fosf] cl:tTjdf /x]sf ;DklQ tyf axg ug{kg]{ bfloTjsf] cj:yf kQf nufpg jf;nft -Balance
sheet_ tof/ kfl/G5 .

5. To make information available to various users ljleGg k|of]ustf{x?nfO{ hfgsf/L pknAw u/fpg
Generally, owners and managers are interested in the activities of the firm. But there are many other
persons who are also interested in the activities of a business directly or indirectly. Investors are interested
to know about profitability. However creditors and bank have interest on liquidity and solvency of the
business. Accounting provides necessary information for all stakeholders as their need. Joj;fosf] ljut /
jt{dfgsf] ljQLo l:ylt kQf nufpg / efjL of]hgf tof/ kfg{sf] nflu Joj;fosf cfGtl/s k|of]ustf{x¿ -
dflnsx?, Joj:yfksx¿, n]vfzf:qL_ / afXo k|of]ustf{x¿ - nufgLstf{x¿, ;fx', cf;fdL, ;/sf/, sd{rf/L, a}+s,
ljQLo ;+:yfx¿_ cflb ljleGg k|of]ustf{x¿nfO{ Joj;fo ;~rfngsf] glthf / cGo cfjZos hfgsf/Lx¿ k|bfg
ug{' n]vfljlwsf] p2]Zo / sfo{ xf].
6. To help in determination of tax liability s/sf] /sd lgwf{/0f ug{ d2t ug{'
Business has to pay different types of tax to the government. Accounting provides financial information to the
tax authorities to determine tax liability. Joj;fon] cfh{g u/]sf] gfkmfsf] lglZrt c+z s/sf ?kdf ;/sf/ jf
:yfgLo lgsfonfO{ ltg'{kg]{ x'G5 . lgoldt / ljlwjt tl/sfn] /flvPsf clenvx¿jf6 Psflt/ s/sf] /sd
lgwf{/0f ug{ ;DalGwt lgsfonfO{ d2t k'Ub5 eg], csf{lt/ s/;DaGwL s'g] sfg"gL ljjfb pTkGg ePdf ljlwjt
tl/sfn] /flvPsf clen]vx¿nfO{ k|df0fsf] ?kdf k]z ug{{ ;lsG5 .

Scope of accounting n]vfljlwsf] If]q
1. Accounting for Business/Trading organization
Accounting is widely applicable in the business sector. Today, in the modern world, most of the people
are engaged in business sector and all businessmen follow Generally Accepted Accounting Principle
(GAAP) to find out profit, loss and financial position of business firm. gfkmf cfh{g ug]{ p2]Zon] :yfkgf
ul/Psf ;Dk'0f{ Jofkfl/s ;‹ ;Ë7gx¿ h:t}M Psnf}6L Joj;fo, ;fem]bf/L Joj;fo, ;o'Qm k"FhL sDkgL
cflbnfO{ Joj;flos ;Ë7gx¿ n]vfljlwsf k|d'v If]q x'g . Joj;flos ;Ë7gx¿sf] gfkmf gf]S;fgsf] l:ylt /
cfly{s cj:yf kQf nufpg k|of]u ul/g] n]vfljlwnfO{ jfl0fHo n]vf jf clGtd vftf elgG5 .
2. Accounting for government organizations
Though, Government organizations do not follow Generally Accepted Accounting Principle (GAAP), its keep
systematic records of all transactions in order to find the position of public fund. ;/sf/n] hgtfnfO{
ljleGg k|sf/sf ;]jfx¿ k|bfg ug]{ p2]Zon] ljleGg If]qx¿df vr{x¿ / vr{x¿sf nflu cfjZos kg]{
/fh:jsf] ;Íng ug{ / cfjZos k|ltj]bgx¿ tof/ kfg{ /flvg] clen]vnfO{ ;/sf/L n]vfljlw elgG5 .
;/sf/L If]q klg n]vfljlwsf] k|d'v If]q xf] .

3. Accounting for Non-Government organizations
Non-government and service organizations such as NGOS, INGOs, Red Cross Society, SOS etc which
plays a vital role in the development of nation also uses accounting. The accounting system used in
these organizations are called fund accounting. gfkmf cfh{g gug]{ p2]Zon] :yfkgf ul/Psf ;‹
;Ë7gx¿nfO{ u}/Jofkfl/s jf u}/gfkmf ;Ë7g elgG5 . ljleGg k|sf/sf Snax¿, ;fdflhs ;‹ ;+:yfx¿,
;fd'bflos ljBfno, dlGb/, u'7L, rr{, dl:hb, wd{zfnf cflb u}/Jofkfl/s ;Ë7gx¿ n]vfljlwsf] csf]{
k|d'v If]q xf] . o:tf] ;‹ ;Ë7gx¿n] klg cfoJoosf] ljj/0f tof/ ug{ n]vfljlw k|of]u ub{5 .
4. Accounting for Individuals and professional
Individuals also perform economic activities to earn their livelihood. They also perform some form of
accounting to draw financial information for making personal economic decision.
8fS6/, jlsn, Ol~hlgo/, n]vfk/LIfsh:tf k]z]j/ JolQmx¿ / To:tf JolQmx¿jf6 ;~rflnt ljleGg
kmd{x¿ h:t}= lSnlgs, n kmd{, sG;n6]G;L, cl86 kmd{ cflbsf] cfDbfgL / vr{sf] clen]v /fVg] sfo{df
klg n]vfljlwsf] k|of]u ul/G5 . ljleGg JolQm tyf k]z]j/ ;Ë7gx¿n] cfo Joosf] clen]v /fVg cfDbfgL
/ vr{ vftf tyf ljQLo l:ylt kQf nufpg jf;nft tof/ kfb{5g .

Advantages and importance of accounting n]vfljlwsf] kmfObf tyf dxTjx?
1. Complete record k'0f{ clen]v
Accounting facilitates the replacement of human memory by maintaining complete record of
financial transactions. Human memory is limited by its very nature. Accounting helps to
overcome this limitation. n]vfljlwcGtu{t k|To]s ljQLo sf/f]jf/x¿sf] clen]v /fVg] sfo{ ul/G5
. o;n] ;Dk"0f{ sf/f]jf/x¿nfO{ :d/0f ul//xg' kg]{ ;d:ofnfO{ lg/fs/0f ub{5 . rfx]sf] ;dodf s'g}
klg clen]vx¿ t'?Gt k|fKt ug{ ;lsG5 .
2. Knowledge of profitability gfkmfof]Uotfsf] hfgsf/L
Accounting facilitates to ascertain net results about the profit or loss of operation by
preparing Profit and Loss Account or Income Statement. lgoldt / Jojl:yt tl/sfn] tof/
kfl/Psf clen]vx¿af6 Jofj;flos ;Ë7gsf] ljut tyf jt{dfgsf] gfkmf cfh{g ug]{ Ifdtfsf]
klxrfg ug{ ;lsG5 .

3. Knowledge of financial position ljQLo cj:yfsf] hfgsf/L
Accounting facilitates to show financial position of the organization by preparing Balance Sheet or
Position Statement. n]vfljlwsf] dfWodaf6 Psflt/ s'g} klg Jofj;flos ;Ë7gx¿sf ;DklQ, bfloTj,
k"FhL cflbsf] oyfy{ l:yltsf] hfgsf/L k|fKt x'G5 eg], csf]{lt/ n]vfljlwcGtu{t tof/ kfl/g] ljQLo
ljj/0fx¿sf] t'ngfTds ljZn]if0faf6 Joj;fosf ;an kIfx¿ -Strength_, b'j{n kIfx¿ -Weakness_,
cj;/x¿ -Opportunities_ / r'gf}ltx¿ -Threats_ sf] klxrfg ug{ d2t k'Ub5 .
4. Reduction in errors uNtLx¿df s6f}tL
Accounting facilitates to records all business transactions scientifically and systematically, which
enable to detect errors and frauds that have already taken place and also take steps to prevent
their recurrence. n]vfsf] sfo{df bIf JolQmx¿ ;+nUg x'g] ePsf]n] ljleGg k|sf/sf uNtLx¿ /
clgoldttfx¿ pTkGg x'g kfpFb}gg, h;n] ubf{ clen]vx¿ /fVg] qmddf pTkGg x'g] uNtLx¿ sd eP/
hfG5g . csf{lt/, clen]vx¿sf] ul0ftLo z'4tfsf] hfFr ug{ ;lsg] ePsf]n] uNtLx¿ ;dodf g} kQf
nufO{ uNtLsf] c;/ sd ug{ ;lsG5 .

5. Helpful in decision-making lg0f{o ug{df ;xof]uL
Accounting facilitates the users to take decisions by communicating accounting information to
them. Similarly, accounting helps the management in planning and controlling business
activities and in taking decisions for future. n]vfljlwsf] d'Vo p2]Zo ljleGg ;dofjlwsf] ljQLo
l:yltsf hfgsf/L k|bfg ug{' xf] . ljutsf] sfo{ ;Dkfbgsf] cfwf/df eljiodf s'g s'g sfo{ ug]{ /
s'g s'g sfo gug]{ eGg] ;Gbe{df n]vfljlwn] Joj:yfksx¿nfO{ ljleGg lg0f{ox¿ tyf efjL
of]hgfx¿ th{'df ug{df ;xof]u k'/ofpFb5 .
6. Availability of information hfgsf/Lsf] pknAwtf
Accounting communicates information to internal and external users by providing the form’s
reports and financial statements as the source of information. Joj;fosf] ljQLo l:yltsf] af/]df
Joj;fo;+u ;DalGwt ljleGg kIfx¿ h:t}M s/;DaGwL lgsfo C0fbftf jf nufgLstf{x¿,
cfk"lt{stf{, ljQLo ljZn]ifs, /fhuf/L vf]Hg] JolQmx¿ cflbnfO{ ljleGg hfgsf/Lx¿ k|bfgdf
n]vfljlwn] cxd e"ldsf v]n]sf x'G5 .

limitation of accounting n]vfljlwsf] ;Ldfx? Jff sdhf]/Lx?
1. Measurability dfkgof]Uotf
One of the biggest limitations of accounting is that it cannot measure things/events that do not
have a monetary value. If a certain factor, no matter how important, cannot be expressed in
money it finds no place in accounting. Some very important qualities like management, loyalty,
reputation, etc find no place on the balance sheet or the income statement.
36gfx¿sf] df}l›s d"Nodf dfkg ug{ g;Sg' n]vfljlwsf] ;a}eGbf 7"nf] ;Ldf xf] . To:t} s]lx dxTjk"0f{
u'0fx¿, Joj:yfkgsf] jkmfbf/L, k|lti7f, cflb h'g;Fu df}l›s d"No x'Fb}g / n]vfljlwn] dfkg ub}{g .
2. No Future Assessment eljio d"Nofs+g ub}{g
The financial statements show the financial position of the firm on the date of preparation. The
users of the statement are more interested in the future of the company in the short term and
long term. However, accounting does not make any such estimates. jQLo ljj/0fx¿n] tof/Lsf]
ldltdf kmd{sf] ljQLo l:ylt b]vfpFb5 . t/ k|of]ustf{x¿ 5f]6f] cjlw / nfdf] cjlwdf sDkgLsf]
eljiodf a9L ?lr /fV5g . oBlk n]vfn] To:tf] s'g} cg'dfg ub}{g .

3. Historical Costs P]ltxfl;s nfut
Accounting often uses historical costs to measure the values. This fails to take into
consideration factors such as inflation, price changes, etc. This skews the relevance of such
accounting records and information. This is one of the major limitations of accounting.
n]vfljlwn] dfgx¿ dfkg ug{ P]ltxfl;s nfutx¿ k|of]u ub{5 . o;n] d'›f:kmLlt, d"No kl/jt{g,
cflb h:tf sf/sx¿nfO{ ljrf/ ug{ ;Sb}g .
4. Estimates cg'dfg
Sometimes in accounting estimation may be required as it is not possible to establish exact
amounts. But these estimates will depend on the personal judgment / guess of the accountant.
slxn]sfFxL cg'dfgLt n]vfsf] cfjZos kb{5 t/ oL cg'dfgx¿ n]vfsf/sf] JolQmut lg0f{odf lge{/
ub{5 / h‘g cg'dfg eljiodf km/s kg{ ;Sb5 .

5. Verifiability k|dfl0fs/0f
An audit of the financial statements does not guarantee the correctness of such statements.
The auditor can only assure that the statements are free from error to the best of
his judgment. Pp6f n]vfk/LIf0f ljQLosf] aofg o:tf] aofg xf] h:sf]] ljz'4tf Uof/]G6L 5}g . n]vf
k/LIfsn] s]jn of] cfZjf;g lbg ;Sb5 ls n]vfdf s'g} 5nsk6 5}g .
6. Errors and Frauds q'l6x¿ / wf]vf
Accounting is done by humans, so there will always be the scope of human errors. There is also
the fear of possible manipulation of accounts to cover up a fraud. Since fraud is deliberate, it is
that much harder to spot. This is one of the most dreaded limitations of accounting. n]vf
dfgjåf/f ul/G5, dflg;n] uNtL ub}{g eGg] Uof/]G6L 5}g . uNtLsf] 9fs5f]ksf] nflu vftfx¿sf]
;Defljt x]/km]/ x'g ;Sb5 . hfgfhfgL ug]{ wf]sf jf uNtLx? kQf nufpg w]/} ufx|f] x'G5 . of]
n]vfljlwsf] ;a} eGbf 8/nfUbf] ;Ldf xf] .

Accounting Process or Cycle n]vfljlw k|lqmof jf rqm
The accounting cycle is the holistic process of recording and processing all financial
transactions of a company, from when the transaction occurs, to its representation on
the financial statements, to closing the accounts. One of the main duties of
a bookkeeper is to keep track of the full accounting cycle from start to finish. The cycle
repeats itself every fiscal year as long as a company remains in business. The accounting
cycle incorporates all the accounts, journal entries, T accounts, debits, and credits,
adjusting entries over a full cycle.
n]vf klqmof jf rqm o:tf] k|lqmof xf], h'g cfly{s sf/f]af/sf] clen]vgaf6 ;'? x'G5 / To;sf]
cfwf/df cfly{s ljj/0fkqx¿ tof/ ul/G5 . o;nfO{ cy{k'0f{ agfpg ljZn]if0f tyf JofVof
ul/G5 / ljZn]if0f tyf JofVofsf] cfwf/df cfly{s ;'rgfx¿ k|jfx ul/G5 . of] k|To]s jif{
bf]xf]l//xg] k|lqmof ePsfn] o;nfO{ n]vfrqm eg]/ klg eGg] ul/G5 .

1. Identification of financial transaction cfly{s sf/f]jf/x?sf] klxrfg
It should be defined whether it is financial transaction or not. If it is not of financial nature, it is not
recorded. of] n]vf k|lqmofsf] klxnf] r/0f xf]. s'g} klg Joj;fosf] sf/f]af/x¿sf] clen]v /fVg'eGbf
klxn] pQm sf/f]af/ cfly{s jf u}/cfly{s xf] eGg] klxrfg ug{'kb{5 . olb cfly{s sf/f]af/ xf] eg]
To;sf] n]vf /flvG5, t/ u}/cfly{s sf/f]af/sf] s'g} klg n]vf /flv+b}g .
2. Recording of financial transaction (Journal) cfly{s sf/f]jf/x?sf] clen]v
All financial transactions are recorded by using journal, cash book and other subsidiary books.
of] n]vf k|lqmofsf] bf];|f] r/0f xf]. cfly{s sf/f]af/x¿sf] klxrfg eO;s]kl5 To:tf cfly{s
sf/f]af/x¿nfO{ Jojl:yt / j}1flgs 9Ëaf6 ef}r/ tyf ;xfos k'l:tsf dfkm{t clen]v /flvG5 .
3. Classification (Ledger) clen]v /flvPsf] sf/f]jf/x?sf] jlu{s/0f
All recorded financial transactions are classified as per their heading. of] n]vf k|lqmofsf] t];|f] r/0f
xf] . clen]v /flvPsf] cfly{s sf/f]af/x¿sf] k|s[ltcg';f/ ljleGg ju{x¿df juL{s/0f ul/G5 . o;sf]
nflu ljleGg k|sf/sf vftfx? tof/ ul/G5 .

4. Summarizing (Trial Balance) ;+If]kLs/0f
After classifying the data on their nature, they need to be summarized. This involves preparation of
Trial balance and Final account. n]vf k|lqmofsf] o; rf}yf] r/0f xf]. cfly{s sf/f]af/x¿nfO{ juL{s/0f
ul/;s]kl5 ;If]kLs/0f ul/G5 . h;sf nflu ;Gt'ng k/LIf0f tof/ u/L z'4tf hfFlrG5 eg] clGtd vftf
tof/ u/L nfebfostf / cfly{s cj:yf kQf nufOG5 .
5. Analaysing & interpreting ljZn]if0f / JofVof
In order to provide meaningful information, the summarized data are to be analyzed and interpreted.
n]vf k|lqmofsf] o; r/0fdf clGtd vftf tof/ ul/;s]kl5 ljleGg pks/0fx¿ h:t} M cg'kft ljZn]if0f
cflb k|of]u u/L ljj/0fx¿sf] JofVof / ljZn]if0f ul/G5 .
6. Communicating the result cfly{s ;"rgfsf] k|jfx
Unless and until the recorded, classified, summarized and interpreted financial data are
communicated to those who have to make use of them, the data will have no value. of] n]vf k|lqmofsf]
clGtd r/0f xf] . cfly{s sf/f]af/x¿sf] ljZn]if0f / JofVof ul/;s]kl5 cfPsf cfly{s ;"rgfx¿nfO{
;DalGwt JolQm jf ;+:yfx¿;dIf cfbfg k|bfg u/fpg' kb{5 .

Communication ;"rgf ;Dk|]if0f

Branches/Types of Accounting n]vfljlwsf zfvfx? Jff k|sf/x?

Mainly accounting has three branches. The one branch is co-related to other branch, No one branch can
work independently without other branch of accounting. The performance of one branch is dependent on other.
The three branches of accounting are:
A. Financial Accounting ljQLo n]vfljlw
This branch of accounting is concerned only with the financial affair and financial result of the
company. It records financial transaction and prepare journal, ledger, trial balance and final account
and report the result. ljQLo sf/f]jf/x¿sf] lgoldt / Jojl:yt tl/sfn] clen]v /fVg] / ljQLo
k|ltj]bgx¿ tof/ kfg]{, ljZn]if0f ug]{ / k|of]ustf{x¿nfO{ ;Dk|]if0f ug]{ sfo{nfO{ ljQLo n]vf elgG5 .
B. Cost Accounting nfut n]vfljlw
This branch is basically deals with the cost concept of the accounting, the objective of this branch is to
analyze the expenditure involved in manufacturing/producing of various products and to fix their
prices. Cost sheet, material cost, labour cost and other expenses cost and report the results are cost
accounting. j:t' pTkfbg ubf{ cyjf ;]jf pknAw ubf{ nfUg] nfut kQf nufpg], nfut ljZn]if0f ug]{ /
nfut lgoGq0f ug]{ sfo{;Fu ;DalGwt n]vf ljlwnfO{ nfut n]vfljlw elgG5 .

C. Management Accounting Joj:yfksLo n]vfljlw
This branch of accounting was developed with the emphasis on using detailed information as
a direct aid to the management in decision-making process. The main purpose of
management accounting is to provide necessary information about funds, cost, profits etc.
as well as with the preparation and presentation of accounting information in a way which
enables the management to discharge its function properly. Trend analysis, BEP analysis,
funds flow & cash flow analysis, Budgeting, MIS report and interpretation are management
accounting.
ljQLo / nfut n]vfsf hfgsf/Lx¿ k|of]u u/L of]hgf th{'df ug]{ / Joj:yfksLo lg0f{o ug]{
sfo{;Fu ;DalGwt n]vfljlwnfO{ Joj:yfksLo n]vfljlw elgG5 .

Activities of Accounting (Basic Role of an accountant) n]vfljlwsf lqmofsnfkx?

1. Identification of financial transaction
In business, there are four main types of financial transactions, and they include sales,
purchases, receipts, and payments. It should be defined whether it is financial transaction or
not. If it is not of financial nature, it is not recorded. All financial transactions that occur have
an effect on at least two accounts, depending on the type of transaction, which measures in
monetary value.
2. Recording the transaction
All financial transactions are recorded by using journal, cash book and other subsidiary books.
and recorded financial transactions are classified by ledger as per their heading
3. Communicating the result to the user
Unless and until the recorded, classified, summarized and interpreted financial data are
communicated to those who have to make use of them.

Difference between book-keeping and Accounting n]vf clen]vg / n]vfljlwsf lar leGgtf

Ethical issues/values/norms of Accounting n]vfljlwsf dfGotfx?
Ethics refers to a system of moral principles-a sense of right and wrong and goodness and
badness of actions and their motives and consequences. For accounting and finance
professionals it is extremely important to be ethical in their practices due to the very
nature of their profession.
The nature of accountants‘ work puts them in a special position of trust in relation to their
clients, employers and general public, who rely on their professional judgment and guidance
in making decisions. These decisions in turn affect the resource allocation process of an
economy. The accountants are relied upon because of their professional statues and ethical
standards. Thus, the professional and ethical conduct is a key to maintaining confidence of
clients and the public is professional and ethical conduct.
They must consider how to best apply accounting standards even when faced with issues
that could cause a company to face a significant loss or even be discontinued.

g}ltstfn] ;xL / untsf] efjgf / c;n / v/fa sfo{x¿ tyf ltgLx¿sf] clek|fo /
kl/0ffdx¿ h:tf g}lts l;4fGtx¿sf] k|0ffnLnfO{ hgfpFb5 . n]vfzf:qL / ljQzf:qLdf
klg k]zfsf] k|s[ltsf] sf/0f cfkmgf] k]zfk|lt pgLx¿sf] Jojxf/df g}ltstf x'g' cToGt
dxTjk"0f{ 5 .
Kff/bzL{ n]vfljlwsf] nflu n]vfkfnnfO{ pgLx¿sf] u|fxsx¿, /f]huf/bftfx¿ /
;j{;fwf/0f hgtfsf] ;DaGwdf e/f];f / ljZjf;sf] ljz]if :yfgdf /flvG5 h'g
ljZjf;n] ljleGg lg0f{o lng / dfu{bz{gdf e/f];f /fV5g . oL lg0f{ox¿n] ;|f]tsf]
ljlgof]hg k|lqmofdf c;/ ub{5 . Joj;fo;Fu ;DalGwt kIfx?sf] ljZjf;sf] ;fydf
Jofj;flos ;fv hf]ufO{/fVg' n]vfljlwsf] g}lts dfkb08sf] dfGotfdf lge{/ ub{5 .
To;}n] n]vfljlwsf dfkb08 jf dfGotfnfO{ pQd ¿kdf s;/L nfu" ug]{ eg]/ ljrf/
ug{'kb{5 . n]vfljlwsf] k|d'v dfGotfx? o;k|sf/ 5gM

1. Do not show underreporting Income sd cDbfgL gb]vfpg' :
Under-reporting income in order to avoid taxes is an illegal practice. When people under report
their incomes, the government loses tax revenue that could go towards social security, Medicare
and other projects. Corporations are especially watched by auditors because of the large tax bills
at stake each tax year. If caught under reporting, individuals and companies will be subject to
penalties and, in extreme cases, criminal charges and flow of bad news. The ethical issue for these
accountants becomes maintaining true reporting of company assets, liabilities and profits without
giving in to the pressure placed on them by management or corporate officers.
s/ sd ltg{ k/f]; eg]/ sd cDbfgL b]vfpg' u}/ sfg"gL sfd xf] . ha sd cDbfgL l/kf]6{ x'G5 ;/sf/n]
s/ /fh:j u'dfpF5, h'g ;fdflhs ;'/Iff, :jf:Yo / cGo kl/of]hgfx¿df hfg ;S5 . csf]{tkm{ sd
cfosf] l/kf]l6{+u cGtu{t ;dfltPdf, JolQmx¿ / sDkgLx¿nfO{ hl/jfgf x'G5 / e|i6rf/ d'2f ;d]t nfUg
;S5 . kmn:j?k kmf}hbf/L cf/f]kx¿ / v/fa ;Gb]z k|jfx x'G5 . To;}n] n]vfkfnn] s'g} bjfjdf gk/L
cfkmgf] g}ltsQfnfO ne'nL sDkgLsf] ;DklQ, bfloTj / gfkmfsf] ;xL l/kf]l6{ª ug'{k{g]{ dfGotf 5 .

2. Do not Falsify the Document em'6f] tyf unt sfuhft gagfpg' ga'emfpg' :
Falsification of Documents is to change details on the original document and try to pass them
off as real. Falsifying Document is a type of white collar crime. It involves altering, changing, or
modifying a document for the purpose of deceiving another person. It can also involve the
passing along of copies of documents that are known to be false. In many states, falsifying a
document is a crime punishable as a felony.
d"n sfuhftdf ljj/0fx¿ kl/jt{g ug{', ltgLx¿nfO{ jf:tljs ¿kdf kf; ug]{ k|of; ug{' h:tf
em"6f sfuhft agfpg' Ps k|sf/sf] ;]tf] ck/fw xf] . o;df sfuhft abNg], kl/jt{g ug]{ jf csf]{
JolQmnfO{ wf]sf lbg] p2]Zon] n]vfsf ljj/0fg} kl/dfh{g cflb unt sfo{ ;dfj]z x'G5 . o:tf
lqmofsnfk ul/g' x'Fb}g .
Many different types of acts can be considered as falsifying a document including:
• Altering or misrepresenting factual information such as prices or monetary amounts.

• Stating false information when requested to provide truthful statements.
• Forging a signature.
• Using official letterheads without authorization.
• Concealing assets or property (especially in bankruptcy proceedings)
• Knowingly using or distributing a fake document
3. Keep Creative accounting /rgfTds tyf l;h{g;Ln n]vf /fVg'kb{5
Accounting practices that follow required laws and regulations, but deviate from what those
standards intend to accomplish. Creative accounting capitalizes on loopholes in the accounting
standards to falsely portray a better image of the company. Although creative accounting practices
are legal, the loopholes they exploit are often reformed to prevent such behaviors.
n]vfljlwdf lgod sfg"gx¿sf] kfngf ubf{ dfgs tyf dfkb08g} km/s k/]sf] jf n]vf dfkb08df q'6L
b]lvP n]vfljlwsf /rgfTds ;'emfa ;lxt n]vf /fVfL sDkgL sf] Ps /fd|f] 5lj lrq0f ug{' n]vfljlwsf]
csf]{ dfGotf xf] .

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#class11 accounting book-keeping & accounting ppt # Bookkeeping and accounting in Nepali

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#class11 accounting book-keeping & accounting ppt # Bookkeeping and accounting in Nepali