The document discusses key accounting concepts and conventions. It defines concepts as essential ideas that allow for identification and classification. It also discusses the accounting equation of Assets = Liabilities + Capital. Finally, it explains key accounting concepts like business entity, money measurement, matching, and revenue recognition, as well as accounting conventions like conservatism and consistency.
The document provides an overview of basic accounting concepts, including:
- Accounting is the process of recording, classifying, and summarizing financial transactions to prepare financial statements.
- Key accounting concepts include business entity, money measurement, dual aspect, cost, accounting period, conservatism, realization, and matching.
- Accounting conventions include going concern, consistency, and accrual.
- The document also discusses classifying accounting events as capital, revenue, or deferred revenue expenditures.
This document provides information about single entry bookkeeping systems. It defines single entry as an informal system without defined rules that is used by small sole proprietor businesses. Transactions are not systematically recorded. The document discusses two methods for single entry - the net worth method which uses statements of affairs to calculate profit or loss, and the conversion method which converts single entry records into a double entry format. It provides examples of accounting questions involving single entry systems, showing how to prepare statements of profit and loss and statements of financial position from incomplete single entry records.
This document discusses key accounting concepts and principles, including:
- Business entity, which treats a business and its owners as separate entities
- Money measurement, which records all transactions in monetary terms
- Going concern, which assumes a business will continue operating indefinitely
It also outlines principles such as historical cost, conservatism, consistency, and disclosure, and how they guide financial reporting. Challenges in revenue and expense recognition are addressed, along with users of financial statements and limitations of conventional reports.
Humans can make unintentional errors, but in Accounting, there is an option to make a Rectification entry for the errors.
Some errors affect the Trial Balance, some not
Rectification of errors depends on the timing of its detection:
1.Errors detected before preparation of Trial Balance are corrected by
"Writing a Narration" for Single Sided Errors &
" Rectified entry for Double Sided Error"
2. Errors detected after Trial Balance : by
" Opening Suspense A/C for Single Sided Errors"
" Rectification Entry"
3. Errors detected in Next accounting period :
Through P&L Adjustment Accounts
This document contains a PowerPoint presentation by Aditya Anil Zagade, a student in the TYBcom class at section B with roll number 198. The presentation covers accounting standards AS-3 on cash flow statements, AS-12 on accounting for government grants, and AS-19 on leases. It defines accounting standards and explains their purpose to bring transparency and consistency to financial reporting. It provides details on the key aspects covered by each standard, such as the classification of cash flows, treatment of government grants, and the distinction between financial and operating leases.
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
1) The document discusses key accounting concepts and conventions. It defines 11 accounting concepts including business entity, money measurement, going concern, and historical cost.
2) It also explains 3 common accounting conventions: full disclosure, consistency, and conservatism. Conventions represent generally accepted practices adopted through agreement, while concepts provide a theoretical foundation.
3) The main difference between concepts and conventions is that concepts cannot involve personal bias and are not uniformly adopted, while conventions are uniformly adopted based on customs or legal guidelines.
A trial balance is a financial statement that lists the debit and credit balances of all accounts in the general ledger. It is prepared to check the arithmetic accuracy of the ledger accounts and help detect errors. The trial balance is not a conclusive proof of accuracy as certain errors may remain undetected even if the debit and credit totals match. Common errors include omissions, incorrect postings, or wrong account balances. If errors cannot be found, a suspense account is used to temporarily balance the trial balance.
The document provides an overview of basic accounting concepts, including:
- Accounting is the process of recording, classifying, and summarizing financial transactions to prepare financial statements.
- Key accounting concepts include business entity, money measurement, dual aspect, cost, accounting period, conservatism, realization, and matching.
- Accounting conventions include going concern, consistency, and accrual.
- The document also discusses classifying accounting events as capital, revenue, or deferred revenue expenditures.
This document provides information about single entry bookkeeping systems. It defines single entry as an informal system without defined rules that is used by small sole proprietor businesses. Transactions are not systematically recorded. The document discusses two methods for single entry - the net worth method which uses statements of affairs to calculate profit or loss, and the conversion method which converts single entry records into a double entry format. It provides examples of accounting questions involving single entry systems, showing how to prepare statements of profit and loss and statements of financial position from incomplete single entry records.
This document discusses key accounting concepts and principles, including:
- Business entity, which treats a business and its owners as separate entities
- Money measurement, which records all transactions in monetary terms
- Going concern, which assumes a business will continue operating indefinitely
It also outlines principles such as historical cost, conservatism, consistency, and disclosure, and how they guide financial reporting. Challenges in revenue and expense recognition are addressed, along with users of financial statements and limitations of conventional reports.
Humans can make unintentional errors, but in Accounting, there is an option to make a Rectification entry for the errors.
Some errors affect the Trial Balance, some not
Rectification of errors depends on the timing of its detection:
1.Errors detected before preparation of Trial Balance are corrected by
"Writing a Narration" for Single Sided Errors &
" Rectified entry for Double Sided Error"
2. Errors detected after Trial Balance : by
" Opening Suspense A/C for Single Sided Errors"
" Rectification Entry"
3. Errors detected in Next accounting period :
Through P&L Adjustment Accounts
This document contains a PowerPoint presentation by Aditya Anil Zagade, a student in the TYBcom class at section B with roll number 198. The presentation covers accounting standards AS-3 on cash flow statements, AS-12 on accounting for government grants, and AS-19 on leases. It defines accounting standards and explains their purpose to bring transparency and consistency to financial reporting. It provides details on the key aspects covered by each standard, such as the classification of cash flows, treatment of government grants, and the distinction between financial and operating leases.
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
1) The document discusses key accounting concepts and conventions. It defines 11 accounting concepts including business entity, money measurement, going concern, and historical cost.
2) It also explains 3 common accounting conventions: full disclosure, consistency, and conservatism. Conventions represent generally accepted practices adopted through agreement, while concepts provide a theoretical foundation.
3) The main difference between concepts and conventions is that concepts cannot involve personal bias and are not uniformly adopted, while conventions are uniformly adopted based on customs or legal guidelines.
A trial balance is a financial statement that lists the debit and credit balances of all accounts in the general ledger. It is prepared to check the arithmetic accuracy of the ledger accounts and help detect errors. The trial balance is not a conclusive proof of accuracy as certain errors may remain undetected even if the debit and credit totals match. Common errors include omissions, incorrect postings, or wrong account balances. If errors cannot be found, a suspense account is used to temporarily balance the trial balance.
This document discusses key accounting concepts and conventions. It describes 12 major concepts: business entity, going concern, money measurement, accounting period, cost, dual aspect, realization, matching, materiality, full disclosure, conservatism, and consistency. It provides examples and explanations of how each concept is applied in accounting practices and financial reporting.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
The document describes journal entries, ledger accounts, and a trial balance for a business called Campus Laundromat. It provides details of transactions during the first month of operations in September 2017, including an owner investment of $20,000 cash, $1,000 paid for rent, $1,200 paid for insurance, and $700 withdrawn for personal use. Journal entries are made for each transaction and ledger accounts are opened and balanced. A trial balance at September 30, 2017 lists the balances of each account.
This document discusses key accounting concepts and conventions. It defines concepts as necessary assumptions and conditions that accounting is based on, such as treating similar transactions in the same way. Key concepts discussed include the business entity, going concern, money measurement, accounting period, cost, dual aspect, and realization. Conventions ensure common practices are followed, such as materiality, full disclosure, conservatism, and consistency. Concepts and conventions provide the theoretical framework for accounting.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
This document discusses key accounting concepts and conventions that provide the basic framework for preparing and maintaining consistent accounting records. It outlines concepts like the business entity, money measurement, going concern, accounting period, cost, dual aspect, realization, and matching. It also discusses conventions like consistency, full disclosure, and materiality that guide financial reporting. The concepts and conventions establish uniform rules for recording transactions and preparing financial statements.
Single entry system of accounting is on of the easiest methods of preparing financial statements. This presentation discuss the various aspects of Single Entry System of Accounting
Here are some basics of accounting like its definition, steps involved in it, book-keeping, objectives of accounting, functions and limitations of accounting for the beginners.
It is been tried to explain all these things in a quite easy manner.
Hope that it matches what you were looking for.
The document provides an overview of the accounting process. It defines accounting and discusses its key principles and concepts. It describes the different branches and types of accounting. It then explains the accounting process which involves identifying transactions, preparing documents, recording transactions in a journal, posting to ledgers, preparing trial balances and final accounts such as profit and loss statements and balance sheets. It also discusses the different books of accounts used such as journals, ledgers and trial balances. Finally, it covers accounting systems and basics such as debits and credits, types of accounts and how to prepare and balance accounts.
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
The document discusses GAAP (Generally Accepted Accounting Principles). [1] GAAP are the common set of accounting standards, procedures and rules that govern financial accounting practices. [2] They provide guidelines for proper revenue recognition, balance sheet classifications, and share measurements to provide a fair representation of a company's financial status. [3] GAAP principles are divided into accounting concepts like the money measurement concept and dual aspect concept, and accounting conventions like full disclosure and materiality.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
This document defines and compares tax evasion and tax avoidance. Tax evasion is illegal and involves intentionally avoiding taxes by not reporting all income or hiding funds. Tax avoidance uses legal tax deductions and loopholes to reduce tax liability. Causes of tax evasion include weak enforcement, corruption, complex laws, and high tax rates. Common evasion practices are under-reporting income, bribery, and lobbying governments. Tax avoidance uses legal deductions and planning to postpone or lower taxes owed. India loses $314 billion annually to tax evasion, which deprives the country of funds for infrastructure and reduces economic growth.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, the accounting cycle and basis. It describes the different types of accounts, rules of double entry system and branches of accounting. It also explains the accounting process including journal, ledger, trial balance and errors. The accounting concepts, conventions and terminology are introduced along with the different books of accounts used.
This document discusses various types of accounting errors and how to rectify them. It outlines two main types of errors: two-sided errors, which do not affect the trial balance, and one-sided errors, which do affect the trial balance. Two-sided errors include errors of omission, commission, original entry, principle, and compensating errors. One-sided errors require using a suspense account to rectify. The document provides examples for each type of error and explains how to make the correcting journal entries to rectify the errors.
The document discusses key concepts in the accounting cycle, including:
- The ledger contains accounts that record increases and decreases for assets, liabilities, and equity.
- Transactions are initially recorded in journal entries using debits and credits according to rules.
- Journal entries are then posted to update the appropriate ledger accounts.
- Net income represents an increase in owners' equity resulting from profits, and is tracked in the retained earnings account.
This document provides an introduction to financial accounts and accounting concepts. It defines accounting and bookkeeping, outlines the objectives and users of accounting information. It describes the roles of accountants and common accounting personnel. It also explains key accounting concepts like the accounting cycle, and types of accounts including personal, real, and nominal accounts.
This document discusses key accounting concepts and conventions. It describes 12 major concepts: business entity, going concern, money measurement, accounting period, cost, dual aspect, realization, matching, materiality, full disclosure, conservatism, and consistency. It provides examples and explanations of how each concept is applied in accounting practices and financial reporting.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
The document describes journal entries, ledger accounts, and a trial balance for a business called Campus Laundromat. It provides details of transactions during the first month of operations in September 2017, including an owner investment of $20,000 cash, $1,000 paid for rent, $1,200 paid for insurance, and $700 withdrawn for personal use. Journal entries are made for each transaction and ledger accounts are opened and balanced. A trial balance at September 30, 2017 lists the balances of each account.
This document discusses key accounting concepts and conventions. It defines concepts as necessary assumptions and conditions that accounting is based on, such as treating similar transactions in the same way. Key concepts discussed include the business entity, going concern, money measurement, accounting period, cost, dual aspect, and realization. Conventions ensure common practices are followed, such as materiality, full disclosure, conservatism, and consistency. Concepts and conventions provide the theoretical framework for accounting.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
This document discusses key accounting concepts and conventions that provide the basic framework for preparing and maintaining consistent accounting records. It outlines concepts like the business entity, money measurement, going concern, accounting period, cost, dual aspect, realization, and matching. It also discusses conventions like consistency, full disclosure, and materiality that guide financial reporting. The concepts and conventions establish uniform rules for recording transactions and preparing financial statements.
Single entry system of accounting is on of the easiest methods of preparing financial statements. This presentation discuss the various aspects of Single Entry System of Accounting
Here are some basics of accounting like its definition, steps involved in it, book-keeping, objectives of accounting, functions and limitations of accounting for the beginners.
It is been tried to explain all these things in a quite easy manner.
Hope that it matches what you were looking for.
The document provides an overview of the accounting process. It defines accounting and discusses its key principles and concepts. It describes the different branches and types of accounting. It then explains the accounting process which involves identifying transactions, preparing documents, recording transactions in a journal, posting to ledgers, preparing trial balances and final accounts such as profit and loss statements and balance sheets. It also discusses the different books of accounts used such as journals, ledgers and trial balances. Finally, it covers accounting systems and basics such as debits and credits, types of accounts and how to prepare and balance accounts.
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
The document discusses GAAP (Generally Accepted Accounting Principles). [1] GAAP are the common set of accounting standards, procedures and rules that govern financial accounting practices. [2] They provide guidelines for proper revenue recognition, balance sheet classifications, and share measurements to provide a fair representation of a company's financial status. [3] GAAP principles are divided into accounting concepts like the money measurement concept and dual aspect concept, and accounting conventions like full disclosure and materiality.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
This document defines and compares tax evasion and tax avoidance. Tax evasion is illegal and involves intentionally avoiding taxes by not reporting all income or hiding funds. Tax avoidance uses legal tax deductions and loopholes to reduce tax liability. Causes of tax evasion include weak enforcement, corruption, complex laws, and high tax rates. Common evasion practices are under-reporting income, bribery, and lobbying governments. Tax avoidance uses legal deductions and planning to postpone or lower taxes owed. India loses $314 billion annually to tax evasion, which deprives the country of funds for infrastructure and reduces economic growth.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, the accounting cycle and basis. It describes the different types of accounts, rules of double entry system and branches of accounting. It also explains the accounting process including journal, ledger, trial balance and errors. The accounting concepts, conventions and terminology are introduced along with the different books of accounts used.
This document discusses various types of accounting errors and how to rectify them. It outlines two main types of errors: two-sided errors, which do not affect the trial balance, and one-sided errors, which do affect the trial balance. Two-sided errors include errors of omission, commission, original entry, principle, and compensating errors. One-sided errors require using a suspense account to rectify. The document provides examples for each type of error and explains how to make the correcting journal entries to rectify the errors.
The document discusses key concepts in the accounting cycle, including:
- The ledger contains accounts that record increases and decreases for assets, liabilities, and equity.
- Transactions are initially recorded in journal entries using debits and credits according to rules.
- Journal entries are then posted to update the appropriate ledger accounts.
- Net income represents an increase in owners' equity resulting from profits, and is tracked in the retained earnings account.
This document provides an introduction to financial accounts and accounting concepts. It defines accounting and bookkeeping, outlines the objectives and users of accounting information. It describes the roles of accountants and common accounting personnel. It also explains key accounting concepts like the accounting cycle, and types of accounts including personal, real, and nominal accounts.
The document discusses the format of the cash flow statement. It states that the cash flow statement is prepared at the end of each period and lists cash flows from operating, investing, and financing activities. It provides an example cash flow statement that shows receipts and payments categorized into these sections with net cash flows calculated for each. It also explains that cash inflows are positive and outflows are negative amounts in brackets, and the final section reconciles the net change in cash with the opening and closing cash balances.
2. concepts and conventions of accounting mba 1st tri semesterKaran Kukreja
The document discusses key accounting principles and concepts. It defines Generally Accepted Accounting Principles (GAAP) as the broad guidelines, conventions, rules, and procedures for accepted accounting practice. It outlines 10 fundamental accounting concepts: (1) business entity, (2) going concern, (3) money measurement, (4) double entry, (5) accounting period, (6) cost, (7) revenue recognition, (8) matching, (9) accrual, and (10) reliability. It also describes 4 important accounting conventions: (1) full disclosure, (2) conservatism, (3) consistency, and (4) materiality. The document provides details on the definition and application of
This document discusses key accounting concepts and conventions. It explains that accounting is based on certain assumptions to ensure consistency and comparability. Some key concepts discussed include business entity, money measurement, going concern, periodicity, matching, and realization. Accounting conventions like consistency, conservatism, full disclosure, and materiality are also summarized. Maintaining consistency from one period to the next allows for better comparison and analysis of financial performance over time.
The document discusses Activity Based Costing (ABC), an approach for assigning overhead costs to products and services. It notes that traditional costing methods can misallocate overhead, affecting management decisions. ABC addresses this by tracing overhead costs to the activities that cause those costs, and then assigning the costs of each activity to products based on their use of that activity. This provides a more accurate picture of product costs. The document outlines the basic concepts and steps of implementing ABC, including identifying activities, assigning resource costs to activities, defining activity cost drivers, and calculating activity costs to allocate to cost objects like products.
Wemakedesign is a branding and design consultancy established in 2004 focusing on identity and brand creation for small and medium businesses. They have since expanded to work with both large corporations and emerging enterprises. The document provides an overview of Wemakedesign's services and approach, as well as profiles of the creative partners and examples of work. Their process involves discovery, definition, creation, and implementation phases to develop brand strategies and visual identities that meet client objectives.
WiMAX is a wireless technology that can provide broadband access over long distances. It uses wireless transmission in the 2-11 GHz range to connect users to a base station up to 50 km away. From the base station, users can access the internet and other public networks at speeds up to 70 Mbps shared among users. WiMAX allows both line-of-sight and non-line-of-sight connections using adaptive burst profiles. It has the potential to provide high-speed wireless internet access to areas not reached by cables and DSL.
Mars Travelport provides corporate travel services including employee transportation, luxury cars for rent, and planning meetings, incentives, conferences, and events. It aims to provide top quality and comfortable transportation solutions to businesses. Mars Travelport has a fleet of premium cars and coaches driven by uniformed chauffeurs. It works with many large corporations in sectors like banking, FMCG, hotels, and IT to transport employees. Mars Travelport believes providing ground transportation solutions can help clients enhance performance and be more productive while focusing on their core business. It also offers tours, travel, air charters, and wedding planning services.
The document discusses the EU ETS carbon market and emissions trading scheme. It is related to a Master's 1 program in energy and the contact person is provided as F.BENHMAD at the University of Montpellier with an email address.
The Ultimate Data-Driven Marketing Survival GuideDaniel Robinson
Venturing into the thick forests of marketing and advertising can sometimes be daunting, the forest grows ever more complex, the skills needed to navigate your way more rigorous.
The lifeline that leads your way, which shines like the lighthouse beam on a stormy sea; DATA…
Data is critical to your survival and your ability to thrive in this harsh environment.
Your data strategy is the shelter and warmth that will provide protection and cover during your quest.
Data relating to content is your nourishment, the food and water that feeds your journey.
Your analytics data is your compass and your navigation mechanism, allowing you to know you are on track and enabling you to alter your course if you are being led astray.
You need tools and equipment for your journey and the technology you take with you can make all the difference – without a good knife where would we be…
And of course your magic key of data activation, it unlocks the value in your kit and lets you develop insight that will lead you to your destination.
So to help you weary travellers along your quest, to arm you with the best advantage and invigorate you with knowledge, ADMA are happy to share with you the DATA SURVIVAL GUIDE; everything you need to succeed. Produced in conjunction with the valiant speakers coming to you at ADMA Data Day in Sydney on the 27th April and Melbourne on the 29th April where more secrets will be revealed…
Many persons in the present point in time are in front of the trouble of financial debts and are not able to pay, Payday loans. If you want to dispose of this trouble fast and want gladness in your living yet again then you must have to get up a speedy payday loan debt consolidation service. We at paydayloanconsolidation.biz make obtainable you payday loan debt consolidation services that may gain this amount and interest rates downsize.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
Here are the journal entries for the transactions:
A. Debbie ordered shelving worth $750.
Debit: Shelving $750
Credit: Accounts Payable $750
B. Debbie's selling price on a gallon of milk is increased to $3.25.
No journal entry needed.
C. A customer buys a gallon of milk paying cash.
Debit: Cash $3.25
Credit: Sales $3.25
D. The shelving is delivered with an invoice for $750.
Debit: Accounts Payable $750
Credit: Cash $750
The accounting events that will be recorded are transactions A, C, and D since they involve
This document provides an overview of accounting concepts and principles. It defines accounting as the language of business that measures and communicates financial information. Accounting fulfills the need for managers and investors to understand a business's performance and financial position through financial statements. The document outlines key accounting concepts like the business entity, money measurement, and cost concepts. It also describes accounting conventions like consistency, disclosure, and conservation. Finally, it discusses the accounting cycle and classification of accounts into personal, real, and nominal categories with rules for debit and credit entries.
This document defines accounting and outlines its primary functions and users. It discusses how accounting involves recording business transactions, summarizing results into reports, and providing assurance. Accounting aids decision making by showing how money is spent and the implications of different plans. Financial statements like the income statement and balance sheet are key outputs. The accounting cycle and double-entry bookkeeping are also summarized.
This document discusses key accounting concepts including:
- The business entity concept treats a business and its owners separately for accounting purposes.
- Under the going concern concept, businesses are viewed as continuing indefinitely. This affects recording of long-term assets at cost and depreciation.
- The accrual concept requires revenues to be recorded when earned and expenses when incurred, regardless of cash flow.
It also outlines other fundamental concepts like historical cost, matching, revenue recognition, accounting periods, money measurement, dual aspect, cost-benefit, and timely reporting principles. Key types of accounting concepts are defined such as business entity, going concern, accrual, historical cost, revenue recognition, and accounting periods.
The document provides an overview of key accounting concepts for budding managers. It defines accounting and discusses its functions and branches. It also covers accounting terminology, the accounting cycle, classification of accounts, types of accounts, and accounting concepts such as business entity, money measurement, and matching. Finally, it discusses accounting conventions like consistency, materiality and conservatism, as well as funds flow statements.
The document provides an overview of key concepts in financial accounting including:
- The meaning and objectives of financial accounting
- The advantages and limitations of financial accounting
- Accounting principles like the accounting equation, concepts, and conventions
- International accounting standards set by the IASB
- Users of accounting information both internal and external to a business
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
This document outlines the topics covered in a course on fundamentals of accounting. It includes 5 units that cover topics such as basic bookkeeping concepts, preparation of financial statements, depreciation methods, and accounting for non-trading concerns. Key areas covered are journal entries, ledger, trial balance, bank reconciliation, single and double entry bookkeeping systems, accounting standards and concepts in India. The goal is to introduce foundational accounting principles and skills.
The document provides an overview of basic financial accounting concepts including the definition of accounts, accounting principles and processes, types of accounts and ledgers, the accounting cycle, and key accounting terminology. It also discusses the different bases, systems, and branches of accounting as well as the advantages, limitations, and users of accounting information.
This document provides an overview of basic accounting concepts and processes. It defines key terms like assets, liabilities, equity, revenue, and expenses. It explains accounting transactions and how debits and credits work for different types of accounts. The accounting cycle is summarized as analyzing transactions, journalizing entries, posting to ledger accounts, taking a trial balance, making adjustments, and preparing final financial statements like the income statement and balance sheet. The goal of the accounting system is to ensure the equality of debits and credits is maintained throughout the recording of business events.
accountings and financial anulysis.pptxKrishan Saini
The document provides an overview of accounting concepts, principles, and equations. It defines accounting as the process of recording financial transactions and communicating financial information. Some key points covered include:
- The basic accounting equation is Assets = Liabilities + Owner's Equity, indicating that assets are equal to liabilities plus the owner's investment.
- Accounting principles include accrual basis, matching, full disclosure, consistency, and conservatism.
- Accounting concepts include business entity, money measurement, cost, going concern, and dual aspect.
- Accounting has expanded in scope to include businesses, non-profits, governments, and individuals.
6 fixed assets, current assets, depreciation methodsDr.R. SELVAM
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, assets, liabilities, equity, revenue, and expenses. It describes the double-entry system of accounting and the accounting cycle of recording transactions in journals, posting to ledgers, preparing a trial balance, and developing financial statements. It also outlines accounting concepts, conventions, the different bases of accounting, and the types and roles of various accounts.
The document provides an introduction to accounting concepts and principles. It discusses how accounting records and measures financial transactions and provides information to various stakeholders. It defines accounting and outlines its objectives and users. It also describes key accounting terms, concepts and conventions like double-entry system, accounting equation, debits and credits rules. Finally, it discusses various books of accounts like journal, ledger, trial balance and accounting cycle.
Here are the journal entries for the transactions:
April 1:
Machinery A/c Dr. 12,000
Building A/c Dr. 15,000
Capital A/c (Ashok) Cr. 27,000
April 3:
Bank A/c Dr. 5,000
Cash A/c Cr. 5,000
April 5:
Purchase A/c Dr. 5,000
Creditors (Vishal) A/c Cr. 5,000
April 7:
Debtors A/c Dr. 3,000
Sales A/c Cr. 3,000
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
This document provides an overview of key concepts in accounting theory and principles, including:
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2) It outlines important accounting principles like business entity, dual aspect, accounting period, going concern, cost, and matching.
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Accounting involves recording, classifying, and summarizing financial transactions and events. It has the objectives of keeping systematic records, protecting business assets, and facilitating decision making. The key concepts in accounting include separate entity, going concern, money measurement, cost, dual aspect, accounting period, and matching. Financial statements like the balance sheet, income statement, and statement of cash flows are prepared using accounts from the general ledger in accordance with accounting principles.
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Here are the steps to calculate direct labor variances for Hanson Inc:
1. Standard hours to produce 1,000 Zippies = 1,000 x 1.5 = 1,500 hours
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= 1,500 hours x $10/hour = $15,000
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17. Stage-Gate Model
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19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
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https://www.oeconsulting.com.sg/training-presentations
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2. Introduction
Concepts are essential ideas that permit
the identification and classification of
phenomena or other ideas
A concept must state all that the given
class includes and all that it excludes
Formed primarily by observation and
established through agreement
3. • The American Institute of Certified Public
Accountants have defined the accounting
principle as, “a general law or rule adopted or
professed as a guide to action; a settled
ground or basis of conduct or practice”.
• It may be noted that the definition describes
the accounting principle as a general law or
rule that is to be used as a guide to action.
4. • “Rules governing the foundation of accounting
actions and the principles derived from them have
arisen from common experiences, historical
precedent, statements by individuals and
professional
bodies
and
regulation
of
governmental agencies”.
• Accounting principles, rules of conduct and action are
described by various terms such as concepts,
conventions, doctrines, tenets, assumptions, axioms,
postulates, etc
5. • The term “concept” is used to connote
accounting
postulates
i.e.
necessary
assumptions or conditions upon which
accounting is based.
• The term convention is used to signify customs
or traditions as a guide to the preparation of
accounting statements.
6. ACCOUNTING CONCEPTS
Business Entity
the entity is separate and distinct from the owners and the entity
is liable to the owner
Hence, in a limited liability company, the enterprise is liable to
the owner (shareholder) based on the proportion of the capital
investment (share capital) made by the latter
Going Concern
entities have a life of infinite duration, unless facts are known
that indicate otherwise
the basis of valuation of resources is influenced more by their
future utility to the business entity than by their current market
valuation
7. • Money Measurement Concept
– Accounting records only those transactions
which can be expressed in monetary terms.
– The importance of this concept is that money
provides a common denomination by means
of which heterogeneous facts about a business
enterprise can be expressed and measured in a
much better way.
8. Matching
– Determining the profits after charging the
expenses of a period with the revenues
earned in the same period
Realization
– Determines the point of time when revenue
and hence returns (or profits) can be
recognized objectively, unbiased, and with
certainty.
9. • Cost Concept
– All transactions are expressed in terms of
money, i.e. money is considered the
common unit of measurement. The
common economic value of assets and
liabilities is expressed in monetary terms
rather than in terms of any other physical
dimension.
10. • Dual Aspect
– This is the basic concept of accounting.
According to this concept every business
transaction has a dual effect. For example, if A
starts a business with a capital of Rs 1 lakh,
there are two aspects of the transactions.
• On the one hand, the business has an asset of Rs
1 lakh.
• On the Other hand, business has to pay Rs 1 lakh
to the owner.
11. • The properties owned by a business enterprise are referred to as
assets and the rights or claims to the various parties against the
assets are referred to as equities.
• The relationship between the two may be expressed in the form of
an equation as follows:Liabilities = Assets
Liabilities may be subdivided into two principal types: the rights of
creditors and the rights of owners. The rights of creditors
represent debts of the business and are called liabilities. The
rights of the owners are called capital. Expansion of the equation to
give recognition to the two types of equities results in the following
which is known as the accounting equation:
Liabilities + Capital = Assets
12. • It is customary to place `liabilities’ before `capital’
because creditors have priority in the repayment of their
claims as compared to that of owners.
• Sometimes greater emphasis is given to the residual
claim of the owners by transferring liabilities to the other
side of the equation as:
Capital = Assets – Liabilities
All business transactions, however simple or
complex they are, result in a change in the three
basic elements of the equation.
13. • This is well explained with the help of the
following series of examples
(i) Mr. A commenced business with a capital of Rs.3,000:
The result of this transaction is that the business, being
a separate entity, gets cash-asset of Rs.30,000 and
has to pay to Mr. Rs.30,000 his capital. This
transaction can be expressed in the form of the
equation as follows:
Capital =
Assets
(A )
(Cash)
30,000
30,000
14. (ii) Purchased furniture for Rs.5,000:
• The effect of this transaction is that cash is reduced by
Rs.5,000 and a new asset viz. furniture worth Rs.5,000
comes in thereby rendering no change in the total assets
of the business.
• The equation after this transaction will be:
Capital =
Assets
A
Cash + Furniture
30,000
25,000+ 5,000
15. (iii)
Borrowed Rs.20,000 from Mr. G
• As a result of this transaction both the sides of the
equation increase by Rs.20,000; cash balance is
increased and a liability to Mr.G is created.
• The equation will appear as follows:
Liabilities + Capital
=
Assets
Creditors (G) + A
Cash + Furniture
20,000 +30,000
45,000 + 5,000
16. (iv) Purchased goods for cash Rs.30,000.
This transaction does not affect the liabilities side
total nor the asset side total. Only the composition of
the total assets changes i.e. cash is reduced by
Rs.30,000 and a new asset viz. stock worth Rs.30,000
comes in.
The equation after this transaction will be as
follows:Liabilities + Capital
=
Asset
Creditors(G) + A
Cash + Stock + Furniture
20,000+ 30,000
15,000 +30,000+ 5,000
17. • Accounting Period Concept
– According to this concept, the life of business
is divided into appropriate segments for
studying the results shown by the business
after each segment.
– This is because the life of business is
considered indefinite and it is necessary to
know the business situation after a
appropriates interval.
19. Basis of Preparing Accounting
• Cash Basis of Accounting
• Accrual Basis of Accounting
20. Steps in The Accounting Cycle
Analyze
source
documents.
Journalize
transactions in
the general
journal.
Post entries to
the accounts in
the general
ledger.
Prepare a trial
balance.
Prepare financial
statements.
21. THE ACCOUNTING PROCESS
• During the accounting period the accountant
records transactions as and when they occur.
• At the end of each accounting period the
accountant
summarises
the
information
recorded and prepares the Trial Balance to
ensure that the double entry system has been
maintained.
22. Thus the accounting process consists of
three major parts:
(i) the recording of business transactions
during that period;
(ii) the summarizing of information at the
end of the period, and
(iii) the reporting and interpreting of the
summary information
23. • The transactions that takes place in a business
enterprise during a specific period may effect
increases and decreases in assets, liabilities,
capital, revenue and expense items.
• To make upto-date information available when
needed and to be able to prepare timely periodic
financial statements, it is necessary to maintain
a separate record for each item.
24. • An account is a statement wherein information
relating to an item or a group of similar items are
accumulated. The simplest form of an account
has three parts:
– a title which gives the name of the item recorded in
the account
– a space for recording increases in the amount of the
item, and
– a space for recording decreases in the amount of the
item. This form of an account is known as a `T’
account because of its similarity to letter T.
25. DEBIT CREDIT
• The left-hand side of any account is called the
debit side and the right-hand side is called the
credit side.
• Amounts entered on the left hand side of an
account, regardless of the title of the account are
called debits and the amounts entered on the
right hand side of an account are called credits.
• To debit (Dr) an account means to make an
entry on the left-hand side of an account and to
credit (Cr) an account means to make an entry
on the right-hand side.
26. • The words debit and credit have no other
meaning in accounting, though in common
parlance, debit has a negative connotation,
while credit has a positive connotation.
• Double entry system of recording business
transactions is universally followed. In this
system for each transaction the debit amount
must equal the credit amount.
28. The T-Account
Increases to the
T-account are
recorded on one
side of the Taccount, and
decreases are
recorded on the
other side.
Account Name
Debit
Credit
29. The T-Account
The side which
increases and
the side which
decreases is
determined by
the type of
account.
Account Name
Debit
Credit
30. What Are Debits and Credits?
• Tools used for recording transactions
– Debit (DR)
– Credit (CR)
• Debit refers to the LEFT and Credit to the
RIGHT side of the T-Account
Account Name
LEFT
DEBIT
SIDE
RIGHT
CREDIT
SIDE
31. Rules of Debit and Credit
• Transactions in accounts are recorded on the
basis of rules of debit and credit. For this purpose
business transactions can be classified into three
categories:– Transactions relating to persons
– Transactions relating to properties and assets
– Transactions relating to income and expenses
On this basis, it becomes necessary for business to keep
account of:
Each person with whom it deals – PERSONAL ACCOUNTS
Each property or asset which the business owns- REAL
ACCOUNTS
Each item of income or expense- NOMINAL ACCOUNTS
32. PERSONAL ACCOUNTS
• Natural Personal Accounts
• Artificial Personal Accounts
• Representative Personal Accounts
Rule:
DEBIT THE RECIVER
CREDIT THE GIVER
33. Example
• Cash paid to Ramesh
– Since rule of Personal Account is DEBIT THE
RECEIVER. In this example, Ramesh is Receiver, so
his account will be debited.
• Cash Received from Mr. G
– Since rule of personal account is CREDIT THE
GIVER, Mr. G account will be credited.
34. REAL ACCOUNTS
• Accounts that belongs to assets, property
ad equipments are called Real accounts.
– Tangible Real Account
– Intangible Real Account
• Rule
DEBIT WHAT COMES IN
CREDIT WHAT GOES OUT
35. Example
• Machine purchased for cash
– In this transaction, there are two accounts
Machine and Cash both are assets .
– By applying rule of Real account “ Debit What
comes in”, Credit What goes out”
– In this transaction Machine is coming in the
Business, so Machine account will be debited and
Cash is going out of business, thus Cash Account
will be credit with the rule that Credit What Goes
Out.
36. Nominal Accounts
• Nominal account include accounts of all
expenses, losses, income and gains.
• Rent, lighting, insurance, dividend, salary are
example of nominal Account.
Rule
– DEBIT ALL EXPENSES AND LOSSES
– CREDIT ALL INCOME AND GAINS
• Important point to note here is that both Real and
Nominal Accounts come in the category of Impersonal
Account accounts. When any prefix or suffix is added to
a Nominal Account, it becomes a Personal Account
38. Class Exercise
•
•
•
•
•
•
•
•
•
•
From the following transactions identify the nature of account and
also state which account should be debited and which should be
credited:Rent paid
Interest Received
Paid to Suresh
Lighting
Dividend received
Telephone charges paid
Machinery sold
Furniture purchased
Goods purchased
Goods Sold
40. Balance Sheet Model
Debits and credits affect the Balance Sheet
Model as follows:
A = L + C
ASSETS
Debit for
Increase
Credit for
Decrease
LIABILITIES
Debit
for Credit for
Decrease
Increase
Capital
Debit
for Credit for
Decrease
Increase
41. “A L O R E” Acronym
Particular
Debit
Credit
A (ssets)
+
-
L (iabilities)
-
+
O (wners' equity)
-
+
R (evenues)
-
+
E (xpenses)
+
-
42. 2-42
Recording Transactions
Initially, all transactions are recorded in
the General Journal.
Each transaction always affects at least
two different accounts.
One
account has a debit effect.
The second account has a credit effect.
This methodology was named “double
entry” accounting by whom?
F.L. Pacioli
44. 2-44
Journal Entries
Example 1
On January 1, 2013, ABC Company
started business with a cash of Rs
INR1,00,000.
Prepare the appropriate general journal
entry for the above transaction.
45. 2-45
Journal Entries
Solution 1
Two accounts are affected:
Cash
is increased by Rs 1,00,000.
ABC owe Rs 1,00,00 to owner and this
become capital.
46. 2-46
Journal Entries
Solution 1
Two accounts are affected:
Cash
is increased by Rs 1,00,000.
Capital is created by Rs 1,00,000.
Description
PR
Debit
47. 2-47
Journal Entries
Example 2
On January 15, 2013, ABC Company
purchases a motor vehicle for Rs19,500
cash.
Prepare the appropriate journal entry
for the above transaction.
49. 2-49
Journal Entries
Solution 2
Two accounts are affected:
Trucks
is increased by Rs19,500.
Cash is decreased by Rs19,500.
GENERAL JOURNAL
1
Page:
Date
Description
15-Jan Motor Car
Cash
(Being purchase of truck)
PR
Debit
150
100
Credit
19,500
19,500