This document introduces a group presentation by Group 02 on accounting cycle concepts. It lists the group members and their IDs. The topics to be covered are the concept of accounting cycle, its steps, concept of account, types of accounts, and the double entry system. It then proceeds to define these accounting concepts and principles in detail over multiple pages.

1. WELCOME
TO
OUR GROUP
PRESENTATION

2. CANON
Group
GROUP No: 02
WE ARE

3. NILOY KUMAR SHAWON
ID: 16MKT020
LET’S INTRODUCE THE group MEMBER

4. LET’S INTRODUCE THE group MEMBER
BANNA PODDAR
ID: 16MKT033

5. SHUVO SIKDER
(Group Leader)
ID: 16MKT040
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6. MD. MAINUL ISLAM MIA
ID: 16MKT054
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7. MD. ASHIKUR RAHMAN
ID: 16MKT057
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8. MD. MIZANUR RAHMAN
ID: 16MKT059
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9. MD. AHIDUZ-ZAMAN
ID: 16MKT086
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10. ASRAFUL ISLAM SISIR
ID: 16MKT089
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11. TANJIM MOSTOFA
ID: 16MKT090
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12. Topics Name
1. Concept of Accounting Cycle
2. Steps of Accounting Cycle
3. Concept of Account
4. Types of Account
5. Double Entry System

13. ACCOUNTING CYCLE CONCEPT
The accounting cycle is the name given to the
collective process of recording and processing the
accounting events of a company. The series of
steps begin when a transaction occurs and end
with its inclusion in the financial statements.

14. ACCOUNTING CYCLE
STEPS
There are nine steps in accounting cycle, which is
always rolling step by step. The nine steps of
accounting cycle is as follows:
1. Collecting and analyzing data from transactions and
events.
2. Putting transactions into the general journal.
3. Posting entries to the general ledger.
4. Preparing an unadjusted trial balance.
5. Adjusting entries appropriately.

15. 6. Preparing an adjusted trial balance.
7. Organizing the accounts into the financial
statements.
8. Closing the books.
9. Preparing a post-closing trial balance to
check the accounts.
ACCOUNTING CYCLE
STEPS

16. CONCEPT OF
ACCOUNT
Financial records of an organization that register
all financial transactions, and must be kept at its
principal office or place of business. The purpose
of these records is to enable anyone to appraise
the organization's current financial position with
reasonable accuracy.
There are two types of account.
These are: 1. Traditional Theory
2. Modern Theory

17. 1. Traditional Account
2. Real account
3. Nominal Account
Personal Account Real Account
Nominal Account
Types of Account

18. TYPES OF ACCOUNT
2. Modern Theory
Asset
Account
Liability
Account
Owner’s Equity
Account
Capital
Account
Income
Account
Expense
Account
Drawing
Account

19. DOUBLE ENTRY
SYSTEM
• The double entry system of accounting or
bookkeeping means that every business transaction
will involve two accounts or more.
• Double entry also allows for the accounting
equation (assets = liabilities + owner's equity) to
always be in balance. In our example involving
• A Dual aspect of double entry is that the amounts
entered into the general ledger account as debits
must be equal to the amounts entered as credits.

20. FEATURES AND PRINCIPLES
OF DOUBLE ENTRY SYSTEM
1. Dual Entry
2. Debtors and Creditors
3. The same Amount of Money
4. Dual aspect
5. Scientific
6. Result
7. Mathematical Correctness
8. Reliable Account System

21. ADVANTAGES OF DOUBLE
ENTRY SYSTEM
 Companies are able to maintain a complete record of every transaction
classified as assets, liabilities, expenses, revenue, capital and recorded
accordingly.
 Allows companies to prepare financial statements easily as it is a scientific
system of recording business financial transactions in a set of accounting
records.
 The trial balance helps to maintain the accuracy of all books of accounts.
 The financial position of a company can be ascertained at the end of each
accounting period, through the preparation of the balance sheet.
 The matching principle allows companies to accurately assess the profit
earned or loss suffered during a period together with details by the
preparation of Profit and Loss Account.
 It provides checks and balances, which prevents frauds and
misappropriations as complete information about assets and liabilities
are recorded.
 Solicits comparative study of results of one year to another to ascertain
reasons of change or for decision making purposes.
 Affords complete information for purposes of control permitting accounts
to be maintained in as much detail as necessary.

22. DISADVANTAGES OF
DOUBLE ENTRY SYSTEM
• Double-entry bookkeeping system is complex and harder
to understand.
• The overall cost of maintaining the double-entry system
can be high, especially if companies have books of
accounts maintained at different places and need to hire
additional employees to keep track of books for each
department. Costs will further go up as books of accounts
become complex in nature.
• Significant amount of time is required to be spent on
recording and maintaining double-entry books of
accounts, as every entry needs to be entered twice and
cross-checked.
• In case an entire financial transaction is not recorded in
the books of accounts, the error of omission cannot be
detected and the trail balance will still tally despite the
mistakes.

23. THANKS FOR YOUR
KIND ATTENTION

24. ANY
QUESTION?