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Accounting and Financial Management Day 1.pptx
- 1. Accounting and Financial Management By:Prof. Sushmita Choudhury Sen
- 2. Accounting and itsfunction Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof ”.
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- 4. The Role ofAccounting • Forensic Accounting • Carbon Accounting • Stewardship Accounting • Financial Accounting • Cost Accounting • Management Accounting • Social Responsibility Accounting • Human Resource Accounting • Inflation Accounting
- 5. Accounting as anInformation System It is a structured system where all the information of an organization (business entity or non-profit organization) is collected, stored, and managed in the form of data which is thereafter processed to prepare financial records of importance.
- 8. Accounting Personnels • InternalAuditor • Controller / Chief Accountant • Treasurer • Financial Officer
- 10. Accounting Concept Various basicrules, assumptions, and conditions that define the parameters and constraints that are used to operate accounting are known as accounting concepts. These concepts form the fundamental basis for preparing financial statements. These principles or concepts are usually called 'Generally Accepted Accounting Principles' (GAAP). These concepts are accepted and used by accountants all over the world.
- 12. Accounting Standards Accounting Standardsare regulations concerning recognition, measurement, treatment, presentation, and disclosure of financial transactions. Enterprises are classified into Level I, Level II, and Level III based on specific criteria. GAAP : Generally Accepted Accounting Principal IFRS : International Financial Reporting Standard
- 14. Double Entry System DoubleEntry System is a method of arranging accounts in such a way that the dual aspect would be expressed by a debit amount and an equal and offsetting credit amount. Debit is Equals to Credit The total of the debit side equals the total of the credit side.
- 26. Explanation Account s involved Classification of accounts How effected Dr. Cr. Rs.15,000cash invested in the business by Ram Cash Capital Real Personal Comes in Giver 15,000 15,000 Purchased furniture for Rs.3,000 Furniture Cash Real Real Comes in Goes out 3,000 3,000 Paid Rs.1000 for salary Salary Cash Nominal Real Expenses Goes out 1000 1000 Received interest Rs.2500 Cash Interest Real Nominal Comes in Income/gain 2500 2500
- 27. Steps in Accounting 1.Journal Entries 2. Ledger 3. Trial Balance 4. Final Accounts a. Trading Account b. Profit and Loss A/C c. Balance Sheet
- 28. Journaling Process Date ParticularsL/F Dr. Amount Rs. Cr. Amount Rs. Journal Entries in the books of ------- for the year ending -------------