The document defines key accounting terms and concepts:
1. It describes a business entity as a specific identifiable enterprise, and explains the concepts of separate business and owner identities.
2. It defines a transaction as an event involving an exchange of value between two or more entities, such as purchases, receipts, or payments.
3. It explains key accounting equations like assets = liabilities + capital/equity, and the dual aspect principle where every transaction has two equal and opposite accounting aspects.
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Basic Accounting Terms used during business transactions have been explained.
I tried to cover all basic terms that are commonly used in a business.
Thank You So Much.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
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"ACT Academy provides training in web designing , Graphic Designing, CAD Designing, .NET, JAVA, PHP. We also have advance diploma courses in Web Designing, CAD Designing, Financial Accounting & Graphic Designing with 100% job assurance."
Act Academy provides Industrial training in PHP, .Net, graphic designing, web designing and many more. Also provides diploma courses in CAD designing, Financial accounting with 100% job assurances.
Basic Accounting Terms used during business transactions have been explained.
I tried to cover all basic terms that are commonly used in a business.
Thank You So Much.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
http://www.actanimation.com
"ACT Academy provides training in web designing , Graphic Designing, CAD Designing, .NET, JAVA, PHP. We also have advance diploma courses in Web Designing, CAD Designing, Financial Accounting & Graphic Designing with 100% job assurance."
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, op
Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. It identifies transactions and events of a specific entity. A transaction is an exchange in which each participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity means an economic unit that performs economic activities.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
2. Business entity means a specific identifiable business
enterprise like Big bazaar, Super Bazaar, Grocer ’s
shop, Transport limited, etc.
For accounting, it is assumed that Business has a
separate identity and owner(s) have a separate identity.
Every transaction is analysed from the point of view of a
business enterprise and not that of the person(s) who
are associated with it.
A Corporate entity under company act 1956 and can do
business in its name.
A Business entity can be sued in court of law for
breach of contract.
2
3. It is an event which involves exchange of some
value between two or more entities.
It can be purchase of stationery, receipt of
money, payment to a supplier, incurring
expenses, etc.
It can be a cash transaction or a credit
transaction.
4
4. TRANSACTION
A TRANSACTION MAY BE
DEFINED AS THE ACTIONS
AND REACTIONS HAVING
MONETARY IMPLICATIONS
A TRANSACTION INVOLVES
TRANSFER OF MONEY OR
MONEY’S WORTH (GOODS OR
SERVICES)
Item has
arrived in
the unit loc?
Can there be
entries with zero
value ? Do they
have to be entered?
5. Sundry Debtor is a person who bought goods or
received service from us (Customer)
Is an entity from whom amounts are due for goods
sold or services rendered or in respect of
contractual obligations.
Amount that has to be recd from other Person
It is also termed as Debtor, trade debtor and
accounts receivable.
Sy Dr is an Asset. e.g. Mess Bills , Car loan, House
loan for an indl.
7
6. Sundry Creditor is a person from whom
we received the goods or services
refers to companies or individuals to which
money is owed by us (customer). Amount
has to be paid to someone
Creditors are persons who have to be paid
by an enterprise an amount for providing
goods and services on credit.
Reflected as liability. e.g. Mess Deposits,
Memento fund etc,.
8
7. REVENUES ARE AMOUNTS THE BUSINESS
EARNS BY SELLING ITS PRODUCTS OR
PROVIDING SERVICES TO CUSTOMERS.
SALE OF GOODS & SERVICES.
INTEREST RECD, SALE PROCEEDS OF SCRAP
MTRL ETC,
9
8. Costs incurred by a business in the process of
earning revenue are called Expenses.
Expenses are measured by the cost of assets
consumed or services used during the
accounting period.
The common items of Expenses are, Depre,
Rent, Wages, Salaries, Interest, Cost of
Heating, Light and water and Telephone,
charges etc.
10
9. The difference between revenue and expense is
called income. For example, goods costing
Rs.25000 are sold for Rs.35000,
The cost of goods sold, i.e.Rs.25000 is expense
& the sale of goods, i.e. Rs.35000 is revenue
The difference. i.e. Rs.10000 is income.
We can state that
Income = Revenue - Expense.
11
10. It is the amount invested in an enterprise by its
owners e.g. paid up share capital in a corporate
enterprise.
It also refers to the interest of owners in the assets
of an enterprise.
It is the claim against the assets of the business.
Any amount contributed by the owner towards the
business unit is a liability for the business enterprise.
This liability is also termed as capital which may be
brought in the form of cash or assets by the owner.
12
11. Capital Expdr refers to the expdr incurred for
acquiring fixed assets or assets which increase the
earning capacity of the business.
The benefits of capital expdr to the firm extend
over a number of years.
Examples - expdr incurred for acquiring a fixed
asset such as building, plant and machinery & land
for future reqmt, etc.
13
12. Revenue expdr, on the other hand, is an expdr
incurred in the course of normal business
transactions of a concern and its benefits are
availed of during the same accounting year.
Maint of Existing assets, created out of Capital
Expdr.
Salaries, carriage & tn charges , interest payment
etc. are examples of revenue expenditure.
All Funds & grants allotted to EME Bn
16
13. Revenues earned by the Firm in normal course
of Business.
Eg, Sale of Goods & Services, Interest Payments
recd, Sy DRs, Account receivables, Dividends
recd, Bonus shares, IT refunds etc,.
19
14. Revenues earned by the Firm Not in normal
course of Business.
Eg, Receipts on account of sale of Scrap, Sale of
old Plant & Machy, sale of Land bought for
Investment purpose and sale of dead Inv.
20
15. Economic resources of a business that can be
expressed in monetary terms
These are properties of every discp belonging to
a firm e.g., Goods, Cash, furniture, and include all
sums of money owned by the account.
They raise the profit earning capacity
of the business enterprise.
21
16. Those assets which are acquired for long term use
in the business.
Such assets raise the profit earning capacity of the
business enterprise.
Expdr on such assets is non-recurring and of
capital nature.
Expenses incurred on acquiring these assets are
added to the value of the assets. e.g, Plant &
Machy, Bldg, land etc,
22
17. Current assets are those assets, which are held for
a short period, Generally for < 01 year time frame.
The balance of such items goes on fluctuating i.e. it
keeps on changing throughout the year.
e.g. FDs, CDs, Cash in Bank ,Bank deposits and
Govt securities etc,
Reqd for Smooth fn of a firm on daily basis.
Mgt of Cash flow.
23
18. Tangible items are those which can be
touched and their physical presence can
be noted/ felt.
e.g., furniture, land , bldg , plant &
machinery etc.
24
19. Intangible assets are those rights
which one possesses but cannot
be quantified in terms of money.
e.g. Patent rights, Copyrights,
trade marks, goodwill, Human
capital etc.
25
20. ASSETS WHICH DECR WITH USAGE
RAW MTRL, INV, etc,.
26
21. OBLIGATIONS OR DEBTS THAT THE ENTERPRISE MUST
PAY IN MONEY OR SERVICES AT SOMETIME IN FUTURE.
A/C PAYABLE (SY CR).
LOANS/ DEBENTURES/BOUNDS/DEPOSITS.
ACCRUALS (SALARIES, WAGES, INTREST DUE BUT NOT
YET PAID).
TAXES.
DIVIDENDS NOT YET PAID.
RAISED CAPITAL.
RESERVES AND SURPLUS.
ADVANDCES PAID BY CUSTOMERS.
28
22. BUSINESS ENTITY CONCEPT
MONEY MEASUREMENT CONCEPT
GOING BUSINESS CONCEPT
CONSERVATIVE PRINCIPLE
DUAL ASPECT PRINCIPLE
23. Dual aspect is the foundation or basic principle of
accounting.
It provides the very basis of recording business
transactions in the books of accounts.
This concept assumes that every transaction has
a dual effect, i.e. it affects two accounts in their
respective opposite sides.
Therefore, the transaction should be recorded at
two places.
It means, both the aspects of the transaction must
be recorded in the books of accounts.
38
24. For example, goods purchased for cash has two
aspects which are,
Payment of cash
Receiving of goods(Assets).
• These two aspects are to be recorded.
Thus, the duality concept is commonly expressed in
terms of fundamental acctg equation :-
Assets = Liabilities + Capital
39
25. This equation expresses the equality of assets
on the one side and other side equity i.e., the
claims of outsider [liabilities] and owners or
proprietors fund on the other side.
In mathematical form,
Assets = Equity
Equity = Liabilities + Capital
As an asset is introduced in the business, a
corresponding liability also emerges.
40
26. For example, pers X started business with cash
Rs.2,00,000 as Capital.
In this transaction, asset in the form of cash
is created for the business.
Hence, Cash (Asset) Capital (Equity)
Rs.2,00,000 = Rs.2,00,000
X purchased Machinery for Rs.40,000 and Furniture
for Rs.20,000.
Thus, the position of the assets and capital is as:
Cash + Machinery + Furniture = Capital
1,40,000 + 40,000 + 20,000 = 2,00,000 41
27. The above transaction shows that
Assets = Capital
Or
Capital = Assets
Increase or decrease in capital will result in the
corresponding increase or decrease in assets.
47
28. The above accounting equation states that the
assets of a business are always equal to the
claims of owner/ owners and the outsiders.
This claim is also termed as capital or owners
equity and that of outsiders, as liabilities or
creditors’ equity.
48
29. Is based on the duality principle and was devised
to account for all aspects of a transaction. Under
the system, aspects of transactions are classified
under two main types:
Debit and
Credit
49
30. Debit is the portion of transaction that accounts for
the increase in assets and expenses, and the
decrease in liabilities, equity and income.
Credit is the portion of transaction that accounts
for the increase in income, liabilities and equity,
and the decrease in assets and expenses.
The classification of debit and credit effects is
structured in such a way that for each debit there is
a corresponding credit and vice versa. Hence, every
transaction will have 'dual' effects (i.e. debit effects
and credit effects).
50
31. 1. Capital brought in by the owner of the Business,
The two aspects in this transaction are
Receipt of Cash
Increase in Capital (Owners Equity)
2. Purchase of machinery by cheque
The two aspects in the transaction are
Reduction in Bank Balance
Owning of Machinery
51
32. 3. Goods sold for cash
The two aspects are
Receipt of cash
Delivery of goods to the customer
4. Rent paid in cash to the landlord
The two aspects are
Payment of cash
Rent (Expenses incurred).
52
33. Bank Reconciliation Statement is a statement
prepared to reconcile the difference between the
balances as per the bank column of the cash book
and pass book on any given date.
Thus, it is prepared to reconcile the bank balances
shown by the cash book and by the bank
statement.
It helps in detecting, if there is any error in
recording the transactions and ascertaining the
correct bank balance on a particular date.
68
34. 1. Cheques issued by the firm but not yet
presented for payment
2. Cheques deposited into bank but not yet
credited
3. Amount directly deposited in the bank account
4. Bank Charges
5. Interest and dividend received by the bank
71
35. 6. Direct payments made by the bank on behalf of
the customers
7. Dishonour of Cheques.
8. Errors committed in recording transactions by
the firm
9. Errors committed in recording transactions by
the Bank
72
36. Trial Balance may be defined as a statement which
contains balances of all ledger accounts on a
particular date.
Trial Balance consists of a debit column with all
debit balances of accounts and credit column with
all credit balances of accounts.
The totals of these columns if tally, it is presumed
that ledger has been maintained correctly.
However, Trial Balance proves only the arithmetical
accuracy of posting in the ledger.
73
37. 1. To check arithmetical accuracy
2. First step to help in preparing Financial
Statements
3, Helps in locating errors
4. Helps in comparison
5. Helps in making adjustments
74