Meaning of accounting Functions of accounting Systems of accounting Types of accounts Accounting rules

1. Chaithra J A
1st M com
Under The Guidance of
SUNDAR B. N
Asst. Prof. And course Co-ordinator
Post Graduation Studies in Commerce
G. F. G. C. W HN Pura
1

2. 1. Meaning
2. Functions of accounting
3. Systems of accounting
4. Accounting Rules
5. Types of Accounts
2

3. • Modern Accounting Father of Latin Luca Pacioli .
In 1494 .
• The recognized as the father of accounting and book keeping
Was the first person.
3

4. Accounting is the process
of identifying,
Measuring , Recording,
classifying, Summarising,
Analysing and
Interpreting
,communicating business
transaction.
4

5. 5
Identifying
from
vouchers
Recording
in journal
Classifyin
g in ledger
Summarisin
g in Trial
balance
Interpreting by
preparing
financial
statements and
communicating

6. • Identifying ; Identifying the business transactions form various
sources is the first step of accounting .
• Recording ; Only those transactions are recorded in books of
accounts which can be measured in terms of money .
• Classifying ;After recording the transactions they are classified .
• Summarising ; It is the process of putting the balances of all
accounts at one place
• Communicating ;Accounting also includes the communication of
financial date like financial statements to the users who analyse
them as per individual requirements .
6

7. 7
1. single entry system .
A system in which only the personal aspects of the transactions
Are recorded in the books and the impersonal aspects are ignored .
2. Double entry system .
It is the most common system of keeping records whereby
the two aspects of every transaction the giving aspect are
The receiving aspects are recorded in the books of accounts.
Each aspect will be recorded in one account.

8. 8

9. 1. personal account
2. Real account
3. Nominal account
9

10. A personal account is
an account for use by
an individual for that
person's own needs. It
is a relative term to
differentiate them from
those accounts for
business or corporate
use.
10

11. •Physical or natural personal account ;
These are account which are being held by human being or individual
Ex: suresh account , ramesh account.
•Artifical or legal personal account ;
These are the accounts belonging to artificially created person by law such as firms ,
companies, clubs, associations, banks,shcool,colleges etc.
Ex: TATA, HAL, SBI etc.
•Representative personal account ;
These are the personal accont which belong to amount received or amount to be received in
advance or outstanding expenses.
Ex:capital, drawings etc.
11

12. Account relating to properties or assets are
called real accounts. You have to maintain a
separate account for each asset.
12

13. • Tangible real account:
The assets which can be touched
such as building, land, furniture etc.
• Intangible real account:
These are the assets which can’t be
touch but can be feel such goodwill,
copyright, patent and so on.
13

14.  Type of Account
Real account
Personal account
Nominal account
 Golden Rules
* Debit what comes into
The business
* Credit what goes out
from the business
* Debit the receiver
* Credit the giver
* Debit the expense or
loss of the business
*Credit the income or
gain of the business 14

15. 1. Which of the following is not a Real
account :
a) Plant and machinery
b) Bank account
c) Trademark account
d) Software account
2. ‘State Bank of India’ is an example of :
a) Nominal account
b) Real account
c) Personal account
d) Impersonal account
15

16. 3. Capital account is an example of :
a) Nominal account
b) Real account
c) Representative personal account
d) Personal account
4.Cash Withdrawn by owner for his personal use, the
result will be :
a) Assets increase and Capital Decreases
b) Assets Decreases and capital decreases
c) Assets Decreases and capital increases
d) Assets Increases and Capital increases
16

17. 5. Which of the following is not an Artificial
Personal account.
a. Joint stock company
b. ISC board account
c. Government account
d. Kapil ‘s account
6. The Father of Dauble – entry system is
a. Kautilya
b. Luca pacioli
c. William pickles
d. J. R. Baltiboi 17

18.  Topic : ACCOUNTING RULES
 RETRIVED FROM
 https://www.merriam-webster.com.
 https://www.deskera.com>blog>golden-of-
account .
18

19. 19