i have made this ppt for my college ,,i will share this for those gyes who want a specimen of bfa subject and this slide making crdt goes to my sir.. thank you sir

1. ACCOUNTING
basic
SUBMITTED TO- Dr. A.K MISHRA
SUBMITTED BY-
SANCHAYAN KHAN(1ST YEAR)

2. DEFINITION OF ACCOUNTING
“The art of recording ,classifying and summarising in a
significant manner and in terms of money or financial
transaction”
OR
The process or work of keeping financial accounts

3. SUBJECT AREAS OF ACCOUNTING
1. Financial accounting
2. Cost accounting
3. Management accounting
4. Human resource accounting
5. Social responsibility accounting

4. ACCOUNTING CONCEPT
1. Going Concern Concept
2. Business Entity Concept
3. Money Measurement Concept
4. Cost Concept
5. Dual Aspect Concept
6. Accounting Period Concept
7. Matching Concept
8. Consistency Convention
9. Disclosure
10. Conservatism
11. Materiality

5. GENERALUSES OF ACCOUNTINGINFORMATION
Internal users
• MANAGEMENT
• EMPLOYEE
• OWNERS
External users
• Creditors
• Tax Authorities
• Investors
• Customers
• Regulatory
Authorities

6. ADVANTAGE & DISADVANTAGE OF ACCOUNTING
ADVANTAGE DISADVANTAGE
1. Helps planning and control in operation all
business activities
1. Records only monetary transaction ,
accounting does not record events which are
not of a financial nature
2. Helps decision making to various parties
such as owners,lenders,creditors
2. Does not provide timely information for
decision making to different users
3. Keep systematic records of business occur
in the books and therefore of a organisation
3. Effect of price-level changes not
considered and the financial statement do not
show a true picture of the enterprise
4. Prepare financial statements contained in
the accounting records like profit, loss ,
balance sheet easily
4. Permits alternative treatments .like
application of different methods of charging
depreciation gives rise to different profits
5. Provide control over assets and use them in
best possible way
5.Historical in nature, the accounting records
do not reflect the current value of the assets
like land ,building

7. TYPES OF ACCOUNT
ACCOUNT
PERSONAL ACCOUNT
NATURAL PERSONES
PERSONAL ACCOUNT
ARTIFISIL PERSONES
PERSONAL ACCOUNT
REPRESENTATIVE
PERSONES PERSONAL
ACCOUNT
IMPERSONAL
ACCOUNT
REAL ACCOUNT
NOMINAL ACCOUNT
REAL ACCOUNT
TANGABLE
INTANGABLE

8. THE GOLDEN RULES OF ACCOUNTING

9. RECORDING OF TRANSACTION
JOURNAL
The word journal has been derived from the French word “jour” which means a day .
So journal is a daily record of business transactions
• Rahul start business with cash 45000/-(2015,june 1st) june 2 sold goods
for cash 5000,paid telephone rent for one year 500. Pass the journal entry.
DATE PARTICULARS L. F. Dr.
Amount
Cr.
Amount
2010
June 1
Cash A/C Dr
To Capital A/C
45,000 45,000
June 1 Bank A/C Dr
To cash A/C
(Being cash paid into bank)
25,000 25,000
June 2 Cash A/C Dr
To Sales A/C
(Being goods sold for cash)
5,000 5,000
June 30 Telephone Rent A/C Dr 500 500

10. RECORDING OF TRANSACTION
LEDGER
Ledger is classified summery of all the transactions relating to a
person ,asset,expenses,or income made in the journal it tells
about the nature of a particular account.
Cash account
date particulars f. amount date particulars f. amount
To capital a/c 45000 By bank a/c 25000
To sales a/c 5000 By telephone
rent a/c
500
By bal c/d 24,500
50000 50000
To bal b/d 24,500

11. Sales account
Date particulars F. Amount Date particulars F. Amount
To bal c/d
Rs.
5000
june1
By cash A/C
To bal b/d
Rs.
5000
5000
Capital account
date particular
s
F. Amount date particulars F. Amount
To bal c/d 45000 By cash account 45000
45000 45000
To bal b/d 45000

12. Bank account
date particulars F. Amount date particulars F. Amount
To cash a/c 25,000 By bal b/d 25000
25000 25000
To bal c/d 25000
Telephone rent
date particulars F. Amount F. Amount
To cash a/c 500
By bal c/d 500
500 500
To bal b/d 500

13. TRIAL BALANCE
A Trial balance is “a statement of
balance of all the account, prepared
on a specific date to ascertain the
arithmetical accuracy of the book of
account”
Trial balance

14. Serial No Name of account Dr.
Balance
Rs.
Cr.
Balance
Rs.
Cash account 24500
Capital account 45000
Sales account 5000
Bank account 25000
Telephone rent 500
Total 50,000 50,000
Trial balance

15. SUBSIDIARY BOOKS
Subsidiary Books are those books of original
entry in which transactions of similar nature are
recorded at one place and in chronological
order. In a big concern, recording of all
transactions in one Journal and posting them
into various ledger accounts will be very difficult
and involve a lot of clerical work.
RECORDING OF TRANSACTION

16. RECORDING OF TRANSACTION
TYPES OF SUBSIDIARY BOOKS
1. CASH BOOK
2. PURCHASE BOOK
3. SALES BOOK
4. PURCHASE RETURN BOOK
5. SALES RETURN BOOK
6. BILS PAYBLE BOOK
7. BILS RECIVABLE BOOK
8. JOURNAL PROPER

17. Cash book
Journal in which all cash receipts and
payments (including bank deposits and
withdrawals) are recorded first, in
chronological order, for posting to
general ledger. Cash book is regularly
reconciled with the bank statements as
an internal auditing measure.
RECORDING OF TRANSACTION

18. CASH BOOK
It is used to recode cash transactions only.
TYPES OF CASH BOOK
1.Single column cash book
2.Double column cash book
3.Triple column cash book
4.Bank cash book
5.Petty cash book
RECORDING OF TRANSACTION

19. RECORDING OF TRANSACTION
Simple cash book
It has only one cash column on both
side to record receipt of cash and
payment of cash.
RECORDING OF TRANSACTION

20. • DOUBLE COLUMN CASH BOOK
• In Double column cash book, there are two
columns of amount on each side of the cash
book. Now-a-days bank transactions are very
large in number. In many organisations, as far
as possible, all receipts and payments are
affected through bank. A businessman
generally opens a current account with a
bank.
RECORDING OF TRANSACTION

21. • A three-column cash book is one that
has three columns on both the debit and
credit side of the journal. The
first column corresponds to cash transactions,
the second to bank transactions and the third
to discounts issued and received.
RECORDING OF TRANSACTION

22. FINAL ACCOUNT
The account and statement which are prepaid
by a business at the end of the financial year
to know the final result and final position of a
business is known as final account . This final
account include of
1.Trading and profit and loss account
2.Balance sheet
RECORDING OF TRANSACTION

23. Trading account
A trading account is similar to a traditional
bank account, holding cash and securities, and is
administered by an investment dealer.
PROFIT AND LOSS ACCOUNT
an account in the books of an organization to which
incomes and gains are credited and expenses and
losses debited, so as to show the net profit or loss over
a given period
RECORDING OF TRANSACTION

24. Rs. Rs.
To carriage outward
To salaries
To rent
To fire insurance premium
To bad debts
To discount
To printing and stationery
To rate and taxes
To travelling expenses
To sundry trade expenses
To net profit transfer to
capital a/c
2,500
5,500
4,100
900
2,100
500
250
350
200
300
86,800
1,03,500
By gross profit b/d
By apprentice premium
By rent receive on sub-
letting
1,01,000
1,500
1,000
1,03,500
RECORDING OF TRANSACTION

25. Balance sheet
a statement of the assets, liabilities, and capital
of a business or other organization at a
particular point in time, detailing the balance of
income and expenditure over the preceding
period.
RECORDING OF TRANSACTION

26. LIABILITIES AMOUNT ASSETS AMOU
NT
CAPITAL 20X
Add: Interest on capital 2x
Less : drawings 3x
Less: interest on drawings x
Add :net profit 12x
Sundry creditor
Bills payable
Bank lone /overdraft
All reserve/ provision/ funds
30x
5x
3x
2x
5x
45x
Cash in hand
Cash at bank
Sundry debtors
Bills receivable
Plants & machinery
Building
Other assets
Closing stock
5x
4x
6x
2x
8x
15x
2x
3x
45x
RECORDING OF TRANSACTION

27. BANK RECONCILIATION STATEMENT
The statement which is prepared to reconcile the
balances between cash book & pass book is known
as bank reconciliation statement
The Errors
1.Cheqe issued by the trader but not presented for payment.
2.Cheqe deposited into bank but not collected by the banker.
3.Direct payment into bank by a costumer of the business man.
4.Pass book debited for bank commission and charges.
5.Pass book credited for interest.
6.Cheque dishonoured .
7.Amout collected by the bank on behalf of the trader.
RECORDING OF TRANSACTION

28. RECORDING OF TRANSACTION
• From the following particulars prepare a bank
reconciliation statement as on 31st December 2014 of
Ram pipes Ltd. Who had cash at bank as per cash book
Rs.14,200.
(a)Cheque paid into bank Rs. 2,850 but not yet cleared.
(b)Cheque issued Rs.3,650 is not presented for payment
till 31.12.2014
(c)Dividend and interest collected directly by bank Rs.750.
(d)Bank charges and insurance premium debited by bank
Rs.12,500

29. Particulars Details
RS.
Amount
Rs.
Balance as per cash book
Add : cheque issued but not presented for
payment
dividend and interest collected by bank
Less : cheque paid into bank but not yet
collected
Bank charges and insurance premium
debited by bank
balance as per bank pass book
3,650
750
2,850
1,250
14,200
4,400
18,600
4,100
14,500
RECORDING OF TRANSACTION

30. COST ACCOUNTING
Cost- an amount that has to be paid or spent to
buy or obtain something
Cost accounting- Cost accounting is the
classifying ,recording and appropriate allocation
of expenditure for determination of the costs of
product or services ,and for the presentation of
suitably arranged data for purpose of control
and guidance of management.

31. ELEMENT OF COST
Elements
of cost
material
Direct Indirect
labour
Direct indirect
other
expenceses
Direct indirect

32. OVERHEADS
1. production or works
overheads
2. Administration overheads
3. Selling overheads
4. Distribution overheads
RECORDING OF TRANSACTION

33. COST SHEET
Cost sheet is a statement designed to show the
output of a particular accounting period along
with break-up of cost sheets.
A cost sheet is a report on which is accumulated
all of the costs associated with a product or
production job. A cost sheet is used to compile
the margin earned on a product or job

34. Specimen cost sheet
PARTICULARS DETAILS
Rs.
AMOUNT
Rs.
Opening stock of raw material
Add: raw material purchase
Less: closing stock of raw material
Raw material consumed
Add: direct labour
Add: direct expenses
prime cost
Add : factory/work/manufacturing overhead
Factor cost incurred
Add: opening stock of work in progress
Less: closing stock of work in progress
work cost
Add: administration overhead
cost of product
Add: opening stock of finished good
Less: closing stock of finished good
Cost of goods cold
add :seller and distribution overhead

35. RATIO ANALYSIS
Ratio Analysis is a form of Financial
Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key
areas
TYPES OF RATIO
1.Liquidity ratio-ratio between the liquid assets and the liabilities
2.Solvency ratio- measure the ability of a company to meet its long term debts
3.Turn over ratio-percentage of a investment that have been replaced in a given
year
4.Profitability ratio-measure the business ability to generate earnings
compared to its expenses