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Introduction of Accounting, Concept, convention and Principles
Meaning & Definition of Accountancy
Accountancy includes Book keeping & classifying, summarizing and
interpreting of the business transactions.
According to Kohler :
“ Accountancy refers to the entire body of theory and process of
accounting.”
According to Robert N. Anthony:
“ Nearly every business enterprise has an accounting system. It is
a means of collecting, summarizing, analyzing and reportingin
monetary terms information about the business transactions,”
Branches of Accounting
FinancialAccounting CostAccounting ManagementAccounting
 Journal
 Ledger
 Trial balance
 Final accounts
 Cost Sheet
 Job & Contract
 Process Costing
 Operating Costing
 Ratio analysis
 Break even point
 Standard Costing
 Analysis of financial S
Basic accounting Terminologies
 Business Transaction
 Entry & Narration
 Goods
 Profit & Loss
 Assets, Liabilities & Net worth
 Capital & Drawing
 Expenditure and types of expenditure
 Discount
 Good will
 Bad debts
 Debtors and creditors
 Solvent & Insolvent
 Accounting Year
 Folio, Insurance, Freight Deposit
Business Transaction
Any dealing of business that involves buying and selling of goodsand
services in exchange of value be called as businesstransaction.
 Cash Transaction
 Credit Transactions
Entry, Narration & Goods
Entry : Recording of transaction in the proper form or method in the books
of accounts is called an entry. It is a first record of any business transaction
in the books of accounts
Narration :Abrief explanation of the business transaction for which an
entry is passed is called as a narration. It starts with a word ‘Being’(….)
Goods: The commodities or articles in which the trader deals are called as
goods for that business
Profit & Loss
Profit : Excess of income over the expenses during the accounting yearis
called a profit
Ex:…..
Loss : Excess of expenses over the income is called loss
Ex:…..
Assets, Liabilities & Net worth
Assets : Property of any kind owned by a businessman is called an asset,
Ex……
Liabilities : Total amount payable by the business to others is known as
liability
Ex…..
Net Worth or owned equity : The amount of fund provided bythe
proprietor in the business is called as net worth or capital also
Types of Assets
• Assets: Any item of economic value owned by an individual
or corporation, especially that which could be converted to cash.
Examples :
Cash, securities, accounts receivable, inventory, office equipment, real
estate, a car, and other property.
Type of assets:
1) Fixed assets
2) Current assets
Classifications of Account
Analysis of Transactions
Accounting concepts
1) Business entity
2) Money measurement
3) Cost concept
4) Consistency concept
5) Conservatism
6) Going concern
7) Realization
8) Accrual
9) Dual aspect
10) Disclosure
11) Materiality
12) Revenue recognition principle
13) Marching principle
14) Accounting standards
For more presentation contact….
Prof. sachin jadhav,
Assistant professor

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ACCOUNTING-TERMINOLOGY-FOR-ALL-FY-AND-SY.pptx

  • 1. Introduction of Accounting, Concept, convention and Principles
  • 2. Meaning & Definition of Accountancy Accountancy includes Book keeping & classifying, summarizing and interpreting of the business transactions. According to Kohler : “ Accountancy refers to the entire body of theory and process of accounting.” According to Robert N. Anthony: “ Nearly every business enterprise has an accounting system. It is a means of collecting, summarizing, analyzing and reportingin monetary terms information about the business transactions,”
  • 3. Branches of Accounting FinancialAccounting CostAccounting ManagementAccounting  Journal  Ledger  Trial balance  Final accounts  Cost Sheet  Job & Contract  Process Costing  Operating Costing  Ratio analysis  Break even point  Standard Costing  Analysis of financial S
  • 4. Basic accounting Terminologies  Business Transaction  Entry & Narration  Goods  Profit & Loss  Assets, Liabilities & Net worth  Capital & Drawing  Expenditure and types of expenditure  Discount  Good will  Bad debts  Debtors and creditors  Solvent & Insolvent  Accounting Year  Folio, Insurance, Freight Deposit
  • 5. Business Transaction Any dealing of business that involves buying and selling of goodsand services in exchange of value be called as businesstransaction.  Cash Transaction  Credit Transactions
  • 6. Entry, Narration & Goods Entry : Recording of transaction in the proper form or method in the books of accounts is called an entry. It is a first record of any business transaction in the books of accounts Narration :Abrief explanation of the business transaction for which an entry is passed is called as a narration. It starts with a word ‘Being’(….) Goods: The commodities or articles in which the trader deals are called as goods for that business
  • 7. Profit & Loss Profit : Excess of income over the expenses during the accounting yearis called a profit Ex:….. Loss : Excess of expenses over the income is called loss Ex:…..
  • 8. Assets, Liabilities & Net worth Assets : Property of any kind owned by a businessman is called an asset, Ex…… Liabilities : Total amount payable by the business to others is known as liability Ex….. Net Worth or owned equity : The amount of fund provided bythe proprietor in the business is called as net worth or capital also
  • 9. Types of Assets • Assets: Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples : Cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. Type of assets: 1) Fixed assets 2) Current assets
  • 11.
  • 12.
  • 14. Accounting concepts 1) Business entity 2) Money measurement 3) Cost concept 4) Consistency concept 5) Conservatism 6) Going concern 7) Realization 8) Accrual 9) Dual aspect 10) Disclosure 11) Materiality 12) Revenue recognition principle 13) Marching principle 14) Accounting standards
  • 15. For more presentation contact…. Prof. sachin jadhav, Assistant professor