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.
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Trial balance and rectification of errorsItisha Sharma
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification – Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit – Rectification of errors appearing after the preparation of Final Accounts
5.01 Meaning of an Account
5.02 Meaning of Debit and Credit
5.03 Classification of Accounts
5.04 Significance of Debit and credit in Accounts
5.05 Journal
5.05.01 Steps and Rules of Journalising
5.05.02 Totaling and Carry Forward.
5.05.03 Simple and Compound Journal Entries
5.06 Opening Entry
5.07 Sub-division of Journal
5.08 Ledger
5.08.01 Meaning
5.08.02 Form of a Ledger
5.08.03 Mechanics of Posting
5.08.04 Balancing of Ledger Accounts
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
Trial balance and rectification of errorsItisha Sharma
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification – Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit – Rectification of errors appearing after the preparation of Final Accounts
5.01 Meaning of an Account
5.02 Meaning of Debit and Credit
5.03 Classification of Accounts
5.04 Significance of Debit and credit in Accounts
5.05 Journal
5.05.01 Steps and Rules of Journalising
5.05.02 Totaling and Carry Forward.
5.05.03 Simple and Compound Journal Entries
5.06 Opening Entry
5.07 Sub-division of Journal
5.08 Ledger
5.08.01 Meaning
5.08.02 Form of a Ledger
5.08.03 Mechanics of Posting
5.08.04 Balancing of Ledger Accounts
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
Even if you did want to branch out into finance and economics, a background in accountancy lays the valuable groundwork for developing broader monetary theories. Accountants can hone their craft through the application of known methodologies.
An accountancy certification is always valuable. You’ll learn how to focus on money management, financial recording and reporting, and the best processes to save cash for a business or sole traders. These skills are desired in every industry. For most accountants, it’s never hard to find work.
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.
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
Introduction
Needs and Role of Accounting
System of Accounting
Branches of Accounting
Objectives of Accounting
Generally Accepted Accounting principles : (Accounting Concepts and Conventions)
Documents in Accounting
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
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This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
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2. Introduction Accounting Transaction
• A transaction is a business event that has a monetary impact on an
entity’s financial statements, and is recorded as an entry in its accounting
records
• Examples of transactions are: Paying a supplier for services rendered or
goods delivered
3. Accounting Terminology
• There are various terminology used in the Accounting which are described
as below:
1) Assets: An asset may be defined as anything of use in the future
operations of the enterprise & belonging to the enterprise. E.g. land,
building, machinery, cash etc.
2) Equity: In broader sense, the term equity refers to total. Owner Claim –
Capital. Outsider’s Claim – Liability
3) Capital: The excess of assets over liabilities of the enterprise. It is the
difference between the total assets & the total liabilities of the
enterprise. e.g.,: if on a particular date the assets of the business amount
to INR 1 lakhs & liabilities to INR 30,000/- then the capital on that date
would be INR 70,000/-
4. Accounting Terminology cont.
4) Liability: Amount owed by the enterprise to the outsiders i.e. to all others
except the owner. e.g. trade creditor, bank overdraft, loan etc.
5) Revenue: It is a monetary value of the products or services sold to the
customers during the period. It results from sales, services & sources like
interest, dividend & commission.
6) Expense/Cost: Expenditure incurred by the enterprise to earn revenue is
termed as expense or cost. The difference between expense & asset is
that the benefit of the former is consumed by the business in the present
whereas in the latter case benefit will be available for future activities of
the business. e.g., Raw material, consumables & salaries etc.
7) Drawings: Money or value of goods belonging to business used by the
proprietor for his personal use.
5. Accounting Terminology cont.
8) Sundry Debtors: A person Sundry Debtors: A person from whom amounts
are due for goods sold or services rendered or in respect of a contractual
obligation. It is also known as debtor, trade debtor, accounts receivable.
9) Sundry Creditors: It is an amount owed by the enterprise on account of
goods purchased or services rendered or in respect of contractual . e.g.,
trade creditor, accounts payable.
10) Owner: The person who invests his money or money’s worth & bears
the risk of the business.
6. Accounting Equations
• The equation is based on the principle that accounting deals with property
& rights to property and the sum of properties owned is equal to the sum
of rights to the properties. The properties owned by a business called
assets and the rights and the rights to properties are known as liabilities or
equities of the business.
Assets = Liabilities + Capital
7. Classification of Accounts
• Personal Accounts: Accounts recording transactions relating to individuals
or firms or company are known as personal accounts
• Personal accounts may further be classified as:
i. Natural Person’s personal accounts: The accounts recording transactions
relating to individual human beings
ii. Artificial Person’s Personal accounts: The accounts recording
transactions relating to limited companies, bank, firm, institution, club,
etc.
iii. Representative Personal Accounts: The accounts recording transactions
relating to the expenses and incomes are classified as nominal accounts.
But in certain cases (due to the matching concept of accounting) the
amount, on a particular date, is payable to the individuals
or recoverable from individuals.
8. Classification of Accounts cont.
• Real Accounts: The accounts recording transactions relating
to tangible things (which can be touched, purchased and sold)
such as goods, cash, building, machinery etc., are classified
as tangible real accounts. Whereas the accounts recording transactions
relating to intangible things (which do not have physical shape)
• Nominal Accounts: The accounts recording transactions relating to the
losses, gains, expenses and incomes e.g. Rent, salaries, wages,
commission, interest, bad debts etc., are classified as nominal accounts.
9. Rules of Debit and Credit
• Personal accounts : Debit the receiver Credit the giver (supplier)
• Real accounts : Debit what comes in Credit what goes out
• Nominal accounts : Debit expenses and losses Credit incomes and
gains
10. Systems of Recording
• There are three methods of recording of entries which are explained as
under:
Single Entry System
Double Entry System
Indian (Deshi Nama) system
11. Single Entry System
• This system ignores the two fold aspect of each transaction as considered
in double entry system.
• It does not provide any check over the recording of cash transactions , it is
called as “imperfect accounting”.
12. Indian (Deshi Nama) System
• This is the Indian system. It differs from region to region; community to
community and from business to business.
• Under this system books are written in regional languages such as Muriya,
Sarafi etc. Books are called “Bahis”.
• It is older than double entry system and is complete in itself.
13. Double Entry System
• The double entry system was first evolved by Luca Pacioli, who was a
Franciscan Monk of Italy. With the passage of time, the system has gone
through lot of developmental stages. It is the only method fulfilling all the
objectives of systematic accounting. It recognizes the two fold aspect of
every business transaction.
14. Successive Processes of the Double Entry
System:
• Following are the successive processes of the double entry system:
Journal
Ledger
Trial balance
Final accounts
15. Journal
• Journal is a book which lists accounting transactions of a business other
than cash, before posting them to ledgers.
• The journal is currently only used to a limited extent to cover item outside
the scope of other accounting books.
16. Ledger
• Business may have an ‘accounts receivable ledger’ an ‘accounts payable
ledger’ and a ‘general ledger’ each containing the group of accounts
suggested by the title. The ledger is not necessarily a bound book, it may
consist of a set of loose leaf pages, a set of punched cards, or if
computerised a set of impulses on a magnetic tape. No matter what its
form may be, the essential character of the account and the rules for
making entries to it remain exactly the same.
17. Ledger cont.
(i) Ledger Posting:
• Transferring the entries from the journal or a subsidiary book to the ledger
is known as posting. Posting the ledger from journal is easy as the
transactions in the journal are already classified into debit and credit.
However, the following points must be noted while posting the ledger.
• For the same person or expense only one account should be opened.
• Cash and credit sales should be posted to Sales Account and cash and credit
purchases to Purchase Account.
• The word Debit as Dr. and Credit as Cr. should not be omitted.
• Date and folio columns should not be left blank.
(ii) Balancing of Ledger Accounts :
• At periodic intervals, the debit and credit sides of individual ledger accounts
are totalled and balance of each account indicated. If the total of the debit
side of any account is more than the credit side, there will be a debit
balance and, if the credit side is more than the debit side there will be
credit balance.
18. FINAL ACCOUNTS
The final accounts of a business consists of :
i. Manufacturing Account
ii. Trading Account
iii. Profit and Loss Account
iv. Balance Sheet
• Before we look into the process of preparing final accounts we must
understand the meaning and importance of Trial Balance.
19. Trial Balance
• The trial balance is simply a list of names of the accounts, and the
balances in each account as at a given moment of time with debit
balances in one column and credit balances in another column. The
preparation of trial balance serves two principal purposes
• It shows whether the equality of debits and credits has been maintained
• It provides a convenient transcript of the ledger record as a basis for
making adjustments and closing entries for preparation of final accounts.
• When the total debits equal total credits, it does not mean that there has
been no error in recording the transactions.
• Entries may have been omitted entirely; they may have been posted to the
wrong accounts; off-setting errors may have been made; or the
transactions may have been analysed incorrectly.
20. Trial Balance cont.
• A trial balance may be prepared at any time. A pre-adjustment trial
balance is one prepared after the original entries for the period have been
posted, but prior to the adjusting and closing process. A post closing trial
balance is prepared after the closing process
21. Example of General Ledger , Journal & Trial
Balance
• G. Bell, a fitness enthusiast, buys an existing exercise center, Body Firm.
The following chart of accounts now applies:
Assets Revenue Expenses Liabilities Owner's Equity
111 Cash 411 Income from
Services
511 Wages Expenses 221 Accounts
Payable
311 G. Bell,
Capital
124 Land 512 Utilities Expense 223 Mortgage
Payable
312 G. Bell,
Drawing
126 Building 513 Advertising
Expense
128
Equipment
514 Repair Expense
519 Miscellaneous
Expense
22. • Apr. 16: Bell deposited $100,000 in a bank account for the purpose of buying Body
Firm.
• Apr. 17 : Bought the assets of Body Firm for a total price of $188,000. The assets
include equipment, $28,000; building, $96,000; and land, $64,000. Made a down
payment of $89,000 and signed a mortgage note for the remainder.
• Apr 17 : Bought additional equipment from Fitness Supply Co. on account for
$3,550, paying $710 down, with balance due in thirty days.
• Apr. 29 : Celebrated the grand opening of Body Firm. Advertising expenses were
paid in cash for the following: Advertising in newspaper $314 Announcements
mailed to local residents 85 Postage 125 Balloons, ribbons, flowers 126 Food and
refreshments 58
• Apr 30: Received fees for daily use of the facilities, $1,152.
• Apr 30: Paid wages for the period April 17 through April 30, $833.
• Apr 30: Received and paid electric bill, $129.
• Apr 30: Received and paid repair bill, $96.
• Apr 30:Bell withdrew $600 for personal use.
23.
24.
25.
26.
27. Manufacturing Account
• When a concern is engaged in both production and selling activities it will
have to open a manufacturing account in the general ledger.
28. Trading Account
• When a concern is engaged in trading activities only, there will be no
Manufacturing Account. The Trading Account on its debit side will show
certain entries regarding opening stock (of saleable goods), purchase less
returns and expenses relating to purchase viz. freight, duty, carriage
inward etc.
• The credit balance of sales account (less the debit balance of sales return
accounts) will then be transferred to Trading Account by debiting the
former account and crediting the latter account.
• The excess of credit total of trading account over the debit total is called
the gross profit.
29. Profit and Loss Account
• At this stage Profit and Loss Account stands credited with gross profit. The
Profit and Loss Account also stands adjusted with some of the adjustment
entries like bad debts, depreciation, insurance, rent etc. All the debit and
credit balances lying in different nominal accounts are then transferred to
Profit and Loss Account.
30. The Balance Sheet
• A balance sheet shows the financial position of an organisation as on a
specified moment of time; in fact it is sometimes called a statement of
financial position. It is therefore a status report, rather than a flow report.
• After Trial Balance is prepared; adjustments entries passed and revenue
accounts drawn up, all the nominal accounts will stand closed.
• The accounts still remaining open in the general ledger will represent
either personal accounts or real accounts. The balance remaining after the
preparations of Trading and Profit and Loss Account in the Trial Balance
represents either assets or liabilities existing on the date of the closing of
the accounts. When they are arranged in a proper manner, the resultant
statement is called ‘Balance Sheet’.
31. The Balance Sheet cont.
• The balance sheet is a statement of position and strictly speaking not a
part of double entry system of book keeping. No transfer of ledger
accounts balances is therefore necessary.
• Only the relevant particulars are extracted from the general ledger. The
balance sheet is prepared on a certain date and not for a period.
Therefore, it is true only on the date of its preparation and not on any
other day. Secondly, the total of liabilities including capital must be equal
to total of assets, otherwise it means that the double entry system of book
keeping has not been followed properly in respect of all the transactions.
33. Summary of Accounting Process
• The first and the most important part of the accounting process is the
analysis of transactions, i.e. the process of deciding which account or
accounts should be debited, which should be credited, and in what
amounts, in order to reflect events in the accounting records. This requires
judgement.
• Next comes the purely mechanical step of journalising original entries,
that is, recording the result of the analysis.
• Next to journalising is ledger posting. Posting is the process of recording
transactions in the ledger accounts, exactly as specified by the journal
entries. This is another purely mechanical step.
• At the end of the accounting period Judgement is involved in deciding on
the adjusting entries, and these are journalised and posted in the same
way as original entries. The closing entries are journalised and posted. This
is also a purely mechanical step.
• Finally, the financial statements are required to be prepared. This requires
judgement and knowledge.