This document discusses the key accounting concepts including: 1. Entity concept - which separates a business and its transactions from its owners personal activities. 2. Money measurement concept - which uses a common currency (rupees) to measure and record business transactions. 3. Periodicity concept - which divides time into financial periods like annual financial years to organize financial reporting. 4. Matching concept - which matches expenses to the revenues they help generate in the same accounting period. The document concludes that adopting these accounting concepts provides an accurate financial position of a business.

2. CONCEPT OF
ACCOUNTING
Prof. Mohan Dubey
Department of MBA
Bansal Institute of Science & Technology

3. 1. About Accounting concepts
2. Conclusion
What we will learn
02

4. About Accounting Concepts
1. ENTITY CONCEPT
2. MONEY MEASUREMENT CONCEPT
3. COST CONCEPT
4. PERIODICITY CONCEPT
5. ACCURAL CONCEPT
6. MATCHING CONCEPT
7. GOING CONCERN CONCEPTS
8. REALISATION CONCEPT
9. CONSERVATIVE/PRUDENT
10.DUAL ASPECT
11.CONSISTENCY
12.FULL DISCLOSURE
13.MATERIALITY.
03

5. 04
1ENTITY CONCEPT
GOPAL SWEETS
Gopal Capital
Sohan’s loan

6. 05
2 Money Measurement Concept
Currency = Rupees
Capital
Company A- 100000
Company B-100000

7. 06
Historical Cost
2010
Building A/c ….Dr 1000000
To Cash
1000000
3 Cost Concept

8. 07
In India financial year
1 April to 31 March
4 Periodicity Concept

9. 08
2018 2019
Income 100000
Exp/Rent 50000 50000
5 Matching Concept

10. 09
Assumption
Going Concern –follow-Cost concept is
followed
Going Concern –Not followed-Realisation
Concept
7 Realisation Concept
6 Going Concern Concept

11. 10
Accountant – Darpok
Provide for all losses
But Donot Provide for future Gains
8 Prudent Concept

12. 11
Cash –Asset increase Liability Decrease
Building Asset increase Asset Decrease
9 Dual Aspect Concept

13. 12
10 Consistency Concept

14. 13
No Ommission
11 Full Disclosure Concept

15. 14
You can leave Non-Material
things
12 Materiality Concept

16. Conclusion
15
By Adopting accounting concepts we will get actual
financial position of the business.

17. Thank you so much!
Video Lecture by : Prof Mohan Dubey
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