This document discusses the concepts and conventions of accounting. It provides background on the history and development of accounting, from its origins in 15th century Italy to its modern role as a tool for business management and decision making. The key functions of accounting are outlined as recording, classifying, and summarizing financial transactions to provide useful information to various stakeholders. Some of the fundamental accounting concepts discussed include separate entity, going concern, money measurement, dual aspect, accounting period, and realization.

1. Concepts and
Conventions
of Accounting
Presented by : Vikas

2. Accounting is a process of
recording , classifying ,
summarizing financial transitions
to provide information that is
useful in making business
decisions .
MEANING

3. Accounting is as old as human
civilization . The modern system
of accounting was developed by
luca pacioli , who lived in Italy in
15th century . In those early
days business organization and
transitions was not so complex
because at that time businesses
were run on a small scale but
industrial revolution
HISTORY &
DEVELOPMENT

4. resulted large scale production which make the process of accounting more
complex . Earlier , accounting was considered simply as a process of
recording business transitions and the role of accountant as that of record-
keeper but now accounting is considered as a tool of management
providing vital information concerning the organization’s future .

5. WHY DO WE
NEED
ACCOUNTING ?
• Systematic recording of transactions
• Determination of profit and loss
• Decision Making
• Providing information to interested
parties

6. Recording
Classifying
Summarizing
PROCESS OF
ACCOUNTING
1
2
3
4
5
Dealing with Financial
Transactions
Analysing and Interpreting

7. Separate Entity
1
2
Going Concern
Money Measurement
3
Dual Aspect
Accounting Period
Periodic matching of cost
and revenue
ACCOUNTING
CONCEPTS Realisation