Basic Accounting Terms used during business transactions have been explained.
I tried to cover all basic terms that are commonly used in a business.
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This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
hi all , i am uploading a ppt of Financial statment analysis ,which is very important for analysis of any company. kindly check it & suggest me if any thing required....
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
hi all , i am uploading a ppt of Financial statment analysis ,which is very important for analysis of any company. kindly check it & suggest me if any thing required....
MEANING OF COMPANY
Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.
MEANING OF COMPANY
Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.
Basic Accounting Terms Class 11
In accounting, an asset refers to any resource that a company or individual owns or controls, which is expected to provide future economic benefits. These resources can be both tangible and intangible.
Thus assets are those sources which provide benefits in future. For example,
Machine, Land, Building, Truck, Cash, etc. These are shown in the assets section of the balance sheet.
Types of Assets : There are two types of assets
1. Non current Assets -- Tangible Assets -- Intangible Asset
2. Current Assets -- Liquid Asset
Liabilities :
The money that the business enterprise owes to others is called a liability; Such as creditors, bills payable, loans and overdrafts, etc. Thus, "liabilities are liabilities, these are amounts that are payable to creditors in the future." In other words, liabilities are financial liabilities that do not involve owner's funds.
Capital :
That amount of money or goods is called capital which the owner of the business invests in the business. Business is started with this amount. Capital is the liability and claim of the owner on the assets of the business. Hence, it is shown in the liabilities side of the balance sheet.
Basic information about book keeping and accounting part 1 is provided. You will understanding about what is book keeping and accounting and how book keeping and accounting work. all basic accounting terminologies are provided. Plus accounting principles and concepts and conventions are detailly given. You will get information regards to Double entry book keeping system and preparation of journal, subsidiary books and ledger accounts.
National income and some related aggregates are being provided in a way easy to understand covering the following topics:
1. Transfer Income and Factor Income
2. Normal Residents and Non-residents
3. Domestic Territory
4. Domestic Income and National Income
5. Market Price and Factor Cost
6. Nominal GDP and Real GDP
7. GDP Deflator
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Accoutning concepts, principles and conventionsgherryta
Here are provided some details of following concepts, principles and conventions of accounting:
1. Entity Concept
2. Money Measurement Concept
3. Periodicity Concept
4. Accrual Concept
5. Matching Concept
6. Going on Concern Concept
7. Cost Concept
8. Principle of Prudence
9. Realization Concept
10. Dual aspect Concept
11. Consistency
12. Materiality
Hope, basic of these concepts is easy to understand.
Thanking you
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.
Some basic information about depreciation is given with its features, some methods of its calculation of depreciation with examples are provided.
I tried my best to explain this much to you.
Thank you so much.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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2. 1. BUSINESS TRANSACTION
It means a financial transaction entered into
the business by two parties and recorded in the
books of accounts. It is expressed in terms of
money.
Until and unless a transaction is not expressed
in monetary form, it is not a business
transaction.
3. SOME BUSINESS TRANSACTIONS
Example (business transactions):
Purchased 2 chairs for Rs.500 and one table
for Rs.1000, sold goods costing Rs.2000 for
Rs.2500, etc.
There are some transactions which may
affect any business or are very important
for business but are not business
transactions.
Example: quarrel between two managers,
strike by employees, appointment of new
4. 2.EVENT
Result or consequences of so many
transactions is called an event.
EXAMPLE
Transactions: 1. Investment of Rs.5,00,000.
2. Purchased goods for
Rs.4,00,000.
3. Cash Sales of Rs.3,80,000.
4. Payment of rent Rs.20,000.
Event: 1. Profit of Rs.60,000.
2. stock of Rs.1,00,000.
3. Cash balance of Rs.4,60,000.
4. Capital of Rs.5,60,000.
5. 3.GOODS
Goods are the physical items of trade. The
goods are purchased for resale purpose
always. Goods can be purchased or sold on
both cash or on credit.
Purchase: this term is used for purchase of
goods which are to be resold of for producing
finished products which are to be sold.
Sale: this term is used for the sale of goods
which are dealt by a firm with a purpose of
converting them into cash.
6. 4.STOCK
It is a tangible asset held by the firm for the
purpose of production or for sale.
Goods purchased-Goods sold = Stock
It is calculated twice in a year:
1.Opening Stock
2.Closing Stock
7. TYPES OF STOCK
Stock of raw-material.
Stock of semi-finished goods (work in
progress).
Stock of finished goods.
Note: Closing stock of one year = Opening
stock
of next year.
8. 5.PURCHASE RETURN AND SALES RETURN
PURCHASE RETURN: It is also know as
return outwards. The goods purchased may be
returned for any reason like defect in quality,
etc. So, when goods are returned to the
suppliers, it is called purchase return.
SALES RETURN: It is also called as return
inwards. The goods when are returned by the
customers, it’s called sales return.
9. 6. TRADE RECEIVABLES
DEBTORS: Debtor is person to whom the
firm has sold goods or services on credit in
an ordinary cause of business.
BILLS RECEIVABLES OR B/R: It means
the bills of exchange which are accepted by
the debtors, the amount of which will be
received on a specified date.
Trade receivables = Debtors + Bills
receivables
10. 7. TRADE PAYABLES
CREDITORS: Creditor is a person from
whom the business has purchased goods or
services on credit in an ordinary cause of
business.
BILLS PAYABLES: It is a bill of exchange
accepted by the firm to pay a fixed amount
on a specific date to a creditor.
Trade payables: Creditors + Bills payables
11. 8.EXPENDITURE
The amount which is spent for running a
business i.e. for purchasing goods or services
or for purchasing anything for the benefit of the
business.
EXPENDITUR
E
Revenue
Expenditure
Capital
Expenditure
Deferred
Revenue
Expenditure
12. EXPENDITURE
8(a) REVENUE EXPENDITURE: It is the
expenditure incurred, the benefit of which will
be consumed within the current accounting
year.
Examples: Rent paid, Salary paid, purchase of
goods, loss by fire, loss by theft, etc.
8(b)CAPITAL EXPENDITURE: It is the
expenditure incurred the benefit of which will
be consumed in future. Such expenditure is
incurred to acquire assets or to increase the
efficiency of the assets.
13. 8(C) DEFERRED REVENUE EXPENDITURE
These are those expenditures which are not
revenue in nature but the benefit of which is
likely to be derived over a period of years.
EXAMPLE: I commenced a business of selling bags.
Now, I wanted to increase the sale of bags so I went
for an advertisement. I hired a model for this advt.
and he charged Rs.2,00,00,000 for this. My business
is not very big yet and this amount is enough to take
my business to loss. So, I will show this expense as
assets and slowly by slowly I will reduce it to expense
every year. This expenditure is deferred revenue
expenditure.
14. 9. ASSETS
Anything which is the property of the business
and enables business enterprise to get benefit
in future is called asset.
ASSETS
Non-current
Assets
Current
Assets
Fictitious
Assets
15. 9(A) NON-CURRENT ASSETS
These are those assets which are held by the firm
From along term point of view (for more than one
year from the end of the accounting year).
Fixed assets are further classified into:
1.Tangible Assets
2. Intangible Assets
Tangible Assets: These are those assets which
can be seen or touched, they have their physical
existence. Eg: Furniture, Building, etc.
Intangible Assets: These are those assets which
can neither be seen or touched, they do not have
their physical existence. Eg: Goodwill, Trademark,
16. 9(B) CURRENT ASSETS
These are those assets which are held by the
firm for converting them into cash or for using
them within a short period of time (within one
year from the end of the accounting or financial
year).
Example: Stock, Bills Receivable, Debtors,
etc.
17. 9(C) FICTITIOUS ASSETS
These are those assets which can not be realized
into cash and no further benefit can be derived
from them. They are also known as nominal
assets.
Example: I commenced a business of selling
bags. Now, I wanted to increase the sale of bags
so I went for an advertisement. I hired a model for
this advt. and he charged Rs.2,00,00,000 for this.
My business is not very big yet and this amount is
enough to take my business to loss. So, I will
show this expense as assets and slowly by slowly
I will reduce it to expense every year. The assets
here I have shown is a fictitious asset.
18. 10. CAPITAL
Capital is the amount invested by the owner
into the business. This amount may be in the
form of cash, goods or assets. It is the amount
with the help of which goods and assets are
purchased in the business. Capital is also
known as Owner’s Equity or Net Worth or Net
Assets.
CAPITAL = ASSETS - LIABILITIES
19. 11.LIABILITY
The amount invested into the business by a
person other than the owner is called liability.
Liability is always payable on due date.
LIABILIT
Y
Current
Liabilities
Non-
Current
Liabilities
20. TYPES OF NON-CURRENT LIABILITIES:
1.Non-Current Liabilities: These are those
liabilities which are payable after a long period
of time (more than one year from the end of
accounting year). Example: Loan, etc.
2.Current Liabilities: These are those
liabilities which are payable after a short period
of time (within one year from the end of the
accounting year). Example: Creditors, Bank
overdraft, etc.
21. SOME OTHER TYPES OF LIABILITIES
1.Internal Liabilities: The liabilities of a
business which are the business has to pay to
its owner are called internal liabilities.
2.External Liabilities: The liabilities of a
business which the business has to pay to the
outsiders.
Example: Creditors, Loans, etc.
23. TYPES OF RECEIPT:
1.Revenue Receipt: Amount received or
receivable from the sale of goods and services in
the normal course of business is called revenue
receipt.
Example: Sale of goods, Sale of scrap, etc.
2. Capital Receipt: Amount received or
receivable from the sources which are not
revenue ion nature is called capital receipt.
Example: Sale of furniture, etc.
# Profit = Revenue – Expense
# Expense > Revenue = Loss
25. TYPES OF DISCOUNT:
1.Trade Discount: It is the concession allowed
by the seller to the customer on the basis of
either quantity or prices of the goods or
services. Trade discount is allowed to increase
the sale.
# We never record trade discount in the books
of accounts.
2. Cash Discount: It is the concession allowed
by the sellers to the customer for making timely
or early payment.
26. SOME OTHER IMPORTANT TERMS:
1. DRAWINGS: The amount withdrawn by the
owner from the business for his personal use is
called drawings.
2. BAD-DEBTS: The amount which become
irrecoverable from the debtors.
3. INSOLVENCY: It is condition of a person
who becomes unable to pay its debts and than
person is called insolvent.
27. SOME OTHER IMPORTANT TERMS:
4. OWNER: The person who commences the
business and bears all the risks associated
with business is called owner of the business.
5. ENTITY: It means an economic unit which
performs an economic activity.
# A business and a businessman are two
different things.
6. DEPRECIATION: It is fall ion value of a fixed
assets with either usage or affix of time.
# Depreciation = Cost of fixed asset / Estimated
28. SOME IMPORTANT NOTES:
NOTE 1: The value of benefit which business had
taken during the year is called an expense. It does
not matter whether the payment has been made or
not.
NOTE 2: The value of benefit which the business will
enjoy in future for more than one year from the end of
current accounting year is called an assets.
NOTE 3: Goods – Goods are sold
Services – Services are rendered
NOTE 4: Advance income : It means that revenue
has been received but the service has not been
rendered or the goods have not been sold. This kind
of advance will be treated as a liability for the firm.