This document provides an introduction to key accounting concepts and terms. It defines accounting as the process of identifying, recording, classifying, summarizing, and communicating financial information. The key concepts covered include the accounting equation, double-entry bookkeeping system, accounting cycle, journals, ledgers, debits and credits, and types of accounts. Business transactions that affect the financial position of the firm are recorded using double-entry bookkeeping. The accounting cycle involves recording transactions, classifying accounts, posting to ledgers, and preparing financial statements to summarize the financial results.
This document contains lecture slides on accounting concepts and principles from Taj Mohammad Tamkeen. The slides cover topics such as the accounting cycle, basic accounting terminology, the accounting equation, books of accounts including journals and ledgers, and financial statements including the balance sheet and income statement. The slides also provide examples of accounting transactions and exercises for students.
This document provides definitions and explanations of 100 basic finance concepts. It covers topics such as accounting definitions and principles, bookkeeping systems, financial statements, accounting cycle, journals, ledgers, financial and management accounting, capital budgeting techniques, working capital management, sources of business finance, and treasury management. The document is intended to serve as a study guide for basic finance questions.
This document discusses accounting concepts related to types of accounts, transactions, and journal entries. It covers the four main types of accounts - assets, liabilities, income, and expenses. It also discusses the differences between capital and revenue expenditures, and how to classify transactions as affecting personal, real, or nominal accounts. The document provides examples of journal entries and explains the rules for debiting and crediting different types of accounts.
Basic Accounting Terms used during business transactions have been explained.
I tried to cover all basic terms that are commonly used in a business.
Thank You So Much.
1. This document discusses key accounting concepts and principles such as business entity, historical cost, consistency, and accruals/matching.
2. Some core concepts discussed include treating the business and its owners as separate entities, recording transactions in monetary terms, and preparing financial statements on the assumption the business will continue operating.
3. Important principles that modify accounting practices are also outlined, such as recognizing revenues and expenses according to when they are earned/incurred rather than when cash is paid/received, using prudence to avoid overstating profits, and providing relevant and objective information.
This document defines various accounting terms related to assets, liabilities, equity, revenue, expenses, and financial statements. It explains key concepts like accounts payable, accounts receivable, accrual basis accounting, accrued assets and expenses, accumulated depreciation, adjusting entries, the difference between debit and credit, and types of financial statements. More accounting terms can be found at the provided URL.
This document provides an overview of basic accounting concepts and terms:
1) Accounting is defined as the process of recording, reporting, and interpreting financial information pertaining to an organization. It involves recording transactions, classifying them, and summarizing results to provide financial information to various users.
2) Bookkeeping is the process of recording accounting data and is a key part of accounting. Accounting also involves interpreting and communicating summarized financial information.
3) Key accounting terms are defined, including transactions, assets, liabilities, capital, revenue, expenses, and the accounting equation. The accounting equation expresses that assets equal liabilities plus owner's equity.
This document contains lecture slides on accounting concepts and principles from Taj Mohammad Tamkeen. The slides cover topics such as the accounting cycle, basic accounting terminology, the accounting equation, books of accounts including journals and ledgers, and financial statements including the balance sheet and income statement. The slides also provide examples of accounting transactions and exercises for students.
This document provides definitions and explanations of 100 basic finance concepts. It covers topics such as accounting definitions and principles, bookkeeping systems, financial statements, accounting cycle, journals, ledgers, financial and management accounting, capital budgeting techniques, working capital management, sources of business finance, and treasury management. The document is intended to serve as a study guide for basic finance questions.
This document discusses accounting concepts related to types of accounts, transactions, and journal entries. It covers the four main types of accounts - assets, liabilities, income, and expenses. It also discusses the differences between capital and revenue expenditures, and how to classify transactions as affecting personal, real, or nominal accounts. The document provides examples of journal entries and explains the rules for debiting and crediting different types of accounts.
Basic Accounting Terms used during business transactions have been explained.
I tried to cover all basic terms that are commonly used in a business.
Thank You So Much.
1. This document discusses key accounting concepts and principles such as business entity, historical cost, consistency, and accruals/matching.
2. Some core concepts discussed include treating the business and its owners as separate entities, recording transactions in monetary terms, and preparing financial statements on the assumption the business will continue operating.
3. Important principles that modify accounting practices are also outlined, such as recognizing revenues and expenses according to when they are earned/incurred rather than when cash is paid/received, using prudence to avoid overstating profits, and providing relevant and objective information.
This document defines various accounting terms related to assets, liabilities, equity, revenue, expenses, and financial statements. It explains key concepts like accounts payable, accounts receivable, accrual basis accounting, accrued assets and expenses, accumulated depreciation, adjusting entries, the difference between debit and credit, and types of financial statements. More accounting terms can be found at the provided URL.
This document provides an overview of basic accounting concepts and terms:
1) Accounting is defined as the process of recording, reporting, and interpreting financial information pertaining to an organization. It involves recording transactions, classifying them, and summarizing results to provide financial information to various users.
2) Bookkeeping is the process of recording accounting data and is a key part of accounting. Accounting also involves interpreting and communicating summarized financial information.
3) Key accounting terms are defined, including transactions, assets, liabilities, capital, revenue, expenses, and the accounting equation. The accounting equation expresses that assets equal liabilities plus owner's equity.
The document discusses key accounting concepts and conventions. It defines concepts as essential ideas that allow for identification and classification. It also discusses the accounting equation of Assets = Liabilities + Capital. Finally, it explains key accounting concepts like business entity, money measurement, matching, and revenue recognition, as well as accounting conventions like conservatism and consistency.
This document defines various accounting terms and types of accounting. It describes transactions, assets, liabilities, equity, revenues, expenses, and other basic accounting concepts. It then explains the main types of accounting as financial accounting, management accounting, governmental accounting, tax accounting, forensic accounting, project accounting, and social accounting. For each type, it provides a brief description of what it entails and how it differs from other accounting types.
This document discusses key accounting concepts and conventions. It explains the separate entity, money measurement, going concern, accounting period, accounting cost, matching, dual aspect, realization, conservatism, full disclosure, consistency, and materiality concepts/conventions. These concepts and conventions provide the basic assumptions and guidelines for preparing financial statements according to accounting principles.
This document provides an introduction to basic accounting principles. It defines key accounting terms like assets, equity, capital, liability, revenue, and expenses. It also explains the accounting cycle which involves recording transactions in a journal, posting to ledgers, preparing a trial balance, and ultimately financial statements like the income statement and balance sheet. Additionally, it discusses the different accounting methods, classifications of accounts, rules of debit and credit, and how transactions are recorded in a journal. The overall purpose is to establish the foundational concepts and process of accounting.
The document discusses several key accounting concepts:
- The entity concept treats a business and its owners as separate entities for accounting purposes. Personal transactions are separate from business transactions.
- The periodicity concept requires that financial statements like the balance sheet and income statement be prepared at regular intervals, such as monthly or annually, to determine profit and assess financial position.
- The money measurement concept states that all business transactions must be recorded in terms of a country's currency, such as Malaysian ringgit. Non-monetary items are not accounted for.
The document provides explanations of several other fundamental accounting concepts like going concern, matching, realization, accrual, consistency, historical cost, prudence, and materiality
The document provides information about various accounting concepts and terms. It begins with definitions of common debit and credit terms used in accounting. It then provides explanations and examples of various accounting concepts such as the basic accounting equation, purchase returns, types of accounts, premises, and VAT adjustment. The document also answers common accounting interview questions regarding the differences between various types of accounts, accounting principles, financial statements, inventory systems, accounting branches, cost terms, and accounting procedures.
Principles of accountancy or business accountingDr V GURUMOORTHI
This document provides an overview of accounting principles and concepts. It begins with a brief history of accounting and an introduction to key terms like bookkeeping and the accounting equation. It then covers topics like the different types of accounts, accounting concepts and conventions, the accounting cycle process involving journals, ledgers and trial balances, and how to prepare final accounts documents like trading accounts and profit and loss statements. The document aims to give the reader foundational knowledge on the fundamentals and processes of accounting.
1. Akun (account) merujuk pada aset, hutang, pendapatan, beban, dan modal yang diwakili oleh masing-masing halaman buku besar, dimana perubahan nilainya dicatat secara kronologis dengan entry debit dan kredit.
2. Aset merujuk pada sumber daya atau hal-hal bernilai yang dimiliki perusahaan. Beberapa jenis aset antara lain: kas, piutang usaha, persediaan, perlengkapan, investasi, tanah, bangunan, peral
This document discusses key accounting concepts and principles:
- The business entity concept treats the business and its owners as separate entities.
- The historical cost principle records assets at their original cost rather than current value.
- The matching principle recognizes revenues when earned and expenses when incurred to match revenues with related expenses over the same period.
- The materiality concept means that only significant items are disclosed separately in financial statements.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions, and that the journal and ledger are used to record transactions with debits and credits. It also defines accounting concepts like assets, liabilities, revenues, and expenses. Finally, it outlines the cash, accrual, and mixed bases of accounting.
The document provides an overview of key accounting concepts including:
1) Business entity concept which treats the business and its owners as separate entities.
2) Money measurement concept which requires transactions be recorded in monetary terms.
3) Going concern concept which assumes a business will continue operating indefinitely.
4) Accounting period concept which requires identifying a specified time period to determine profit.
5) Cost concept which states assets are recorded at historical cost rather than current value.
6) Dual aspect concept which provides that every transaction has two equal and offsetting effects.
2. concepts and conventions of accounting mba 1st tri semesterKaran Kukreja
The document discusses key accounting principles and concepts. It defines Generally Accepted Accounting Principles (GAAP) as the broad guidelines, conventions, rules, and procedures for accepted accounting practice. It outlines 10 fundamental accounting concepts: (1) business entity, (2) going concern, (3) money measurement, (4) double entry, (5) accounting period, (6) cost, (7) revenue recognition, (8) matching, (9) accrual, and (10) reliability. It also describes 4 important accounting conventions: (1) full disclosure, (2) conservatism, (3) consistency, and (4) materiality. The document provides details on the definition and application of
This document provides an introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting involves recording transactions, classifying data into appropriate categories, and summarizing data to be useful for internal and external users. It discusses the different types of accounting activities and various accounting terms such as assets, liabilities, revenues, expenses, and financial statements.
The document discusses key accounting concepts:
1) The accounting period concept covers the time period financial statements measure income and the relationship between balance sheets and income statements.
2) The accrual concept supports measuring income when efforts occur rather than when cash is received or paid.
3) The realization concept determines when revenue and expenses can be measured based on an exchange taking place and amounts being reasonably assured of collection.
This document discusses accounting concepts, conventions, standards, and methods. It provides definitions and explanations of key terms:
- Generally Accepted Accounting Principles (GAAP) are the rules and concepts accepted by the accounting community for sound accounting practice.
- Accounting concepts are basic assumptions that form the foundation of the accounting structure, such as the business entity, money measurement, going concern, and accrual concepts.
- Accounting conventions are common practices followed in recording and presenting accounting information, like consistency, full disclosure, and conservatism.
- Accounting standards are written policies issued by expert accounting bodies to ensure uniformity in accounting practices and financial reporting.
- The double entry system
Accounting basics and interview questions answersVijay D Narigara
This document provides definitions and explanations of various accounting concepts, principles, and terminology. It covers topics such as the definition of accounting, bookkeeping, accounting concepts, accounting conventions, accounting systems, accounting principles related to different types of accounts, meaning of journal, ledger, posting, trial balance, credit and debit notes, contra entries, petty cash book, promissory notes, cheques, bank reconciliation statements, capital and revenue expenditures and incomes, provisions, reserves, secret reserves, financial management objectives and functions, time value of money, capital structure, cost of capital calculations, capital budgeting techniques, and sources and applications of funds.
Contributo di Regens International pubblicato sulla newsletter ufficiale dell'ICE (Istituto per il Commercio Estero) dedicata ad "Agroalimentare e vini"
Credentech Solutions is an IT services company founded in 2010 that provides management consulting, technology outsourcing, quality assurance, and staff augmentation services globally. It has headquarters in New York and development centers in Chennai, Brussels, and Bangalore. Services include application outsourcing, testing, migration, and strategic offerings in data warehousing, business intelligence and analytics. The company has technical expertise in various technologies and experience delivering projects across domains like e-commerce, mobility, travel, and mainframes.
This document discusses barriers to employment for people with disabilities and ways to overcome them. It notes that only 20% of people with disabilities are employed compared to 70% of the general population. Barriers include a lack of accommodations, compliance with disability laws, and social skills for individuals. The document recommends education and research for employers, making workplaces accessible, clear job descriptions, and developing acceptance. For job seekers, it suggests connecting with agencies, focusing on strengths, and practicing social skills to find success in the workplace.
Cole is a 17-23 year old male college student at the University of Florida majoring in accounting. He works an unpaid internship and plays soccer in his spare time. Cole's goals are to pass his classes while staying on a budget, but he finds cooking meals and spending too much money on food to be challenges. Chipotle helps by providing fresh, customizable meals quickly at an affordable price to save Cole time and money.
The document discusses key accounting concepts and conventions. It defines concepts as essential ideas that allow for identification and classification. It also discusses the accounting equation of Assets = Liabilities + Capital. Finally, it explains key accounting concepts like business entity, money measurement, matching, and revenue recognition, as well as accounting conventions like conservatism and consistency.
This document defines various accounting terms and types of accounting. It describes transactions, assets, liabilities, equity, revenues, expenses, and other basic accounting concepts. It then explains the main types of accounting as financial accounting, management accounting, governmental accounting, tax accounting, forensic accounting, project accounting, and social accounting. For each type, it provides a brief description of what it entails and how it differs from other accounting types.
This document discusses key accounting concepts and conventions. It explains the separate entity, money measurement, going concern, accounting period, accounting cost, matching, dual aspect, realization, conservatism, full disclosure, consistency, and materiality concepts/conventions. These concepts and conventions provide the basic assumptions and guidelines for preparing financial statements according to accounting principles.
This document provides an introduction to basic accounting principles. It defines key accounting terms like assets, equity, capital, liability, revenue, and expenses. It also explains the accounting cycle which involves recording transactions in a journal, posting to ledgers, preparing a trial balance, and ultimately financial statements like the income statement and balance sheet. Additionally, it discusses the different accounting methods, classifications of accounts, rules of debit and credit, and how transactions are recorded in a journal. The overall purpose is to establish the foundational concepts and process of accounting.
The document discusses several key accounting concepts:
- The entity concept treats a business and its owners as separate entities for accounting purposes. Personal transactions are separate from business transactions.
- The periodicity concept requires that financial statements like the balance sheet and income statement be prepared at regular intervals, such as monthly or annually, to determine profit and assess financial position.
- The money measurement concept states that all business transactions must be recorded in terms of a country's currency, such as Malaysian ringgit. Non-monetary items are not accounted for.
The document provides explanations of several other fundamental accounting concepts like going concern, matching, realization, accrual, consistency, historical cost, prudence, and materiality
The document provides information about various accounting concepts and terms. It begins with definitions of common debit and credit terms used in accounting. It then provides explanations and examples of various accounting concepts such as the basic accounting equation, purchase returns, types of accounts, premises, and VAT adjustment. The document also answers common accounting interview questions regarding the differences between various types of accounts, accounting principles, financial statements, inventory systems, accounting branches, cost terms, and accounting procedures.
Principles of accountancy or business accountingDr V GURUMOORTHI
This document provides an overview of accounting principles and concepts. It begins with a brief history of accounting and an introduction to key terms like bookkeeping and the accounting equation. It then covers topics like the different types of accounts, accounting concepts and conventions, the accounting cycle process involving journals, ledgers and trial balances, and how to prepare final accounts documents like trading accounts and profit and loss statements. The document aims to give the reader foundational knowledge on the fundamentals and processes of accounting.
1. Akun (account) merujuk pada aset, hutang, pendapatan, beban, dan modal yang diwakili oleh masing-masing halaman buku besar, dimana perubahan nilainya dicatat secara kronologis dengan entry debit dan kredit.
2. Aset merujuk pada sumber daya atau hal-hal bernilai yang dimiliki perusahaan. Beberapa jenis aset antara lain: kas, piutang usaha, persediaan, perlengkapan, investasi, tanah, bangunan, peral
This document discusses key accounting concepts and principles:
- The business entity concept treats the business and its owners as separate entities.
- The historical cost principle records assets at their original cost rather than current value.
- The matching principle recognizes revenues when earned and expenses when incurred to match revenues with related expenses over the same period.
- The materiality concept means that only significant items are disclosed separately in financial statements.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions, and that the journal and ledger are used to record transactions with debits and credits. It also defines accounting concepts like assets, liabilities, revenues, and expenses. Finally, it outlines the cash, accrual, and mixed bases of accounting.
The document provides an overview of key accounting concepts including:
1) Business entity concept which treats the business and its owners as separate entities.
2) Money measurement concept which requires transactions be recorded in monetary terms.
3) Going concern concept which assumes a business will continue operating indefinitely.
4) Accounting period concept which requires identifying a specified time period to determine profit.
5) Cost concept which states assets are recorded at historical cost rather than current value.
6) Dual aspect concept which provides that every transaction has two equal and offsetting effects.
2. concepts and conventions of accounting mba 1st tri semesterKaran Kukreja
The document discusses key accounting principles and concepts. It defines Generally Accepted Accounting Principles (GAAP) as the broad guidelines, conventions, rules, and procedures for accepted accounting practice. It outlines 10 fundamental accounting concepts: (1) business entity, (2) going concern, (3) money measurement, (4) double entry, (5) accounting period, (6) cost, (7) revenue recognition, (8) matching, (9) accrual, and (10) reliability. It also describes 4 important accounting conventions: (1) full disclosure, (2) conservatism, (3) consistency, and (4) materiality. The document provides details on the definition and application of
This document provides an introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting involves recording transactions, classifying data into appropriate categories, and summarizing data to be useful for internal and external users. It discusses the different types of accounting activities and various accounting terms such as assets, liabilities, revenues, expenses, and financial statements.
The document discusses key accounting concepts:
1) The accounting period concept covers the time period financial statements measure income and the relationship between balance sheets and income statements.
2) The accrual concept supports measuring income when efforts occur rather than when cash is received or paid.
3) The realization concept determines when revenue and expenses can be measured based on an exchange taking place and amounts being reasonably assured of collection.
This document discusses accounting concepts, conventions, standards, and methods. It provides definitions and explanations of key terms:
- Generally Accepted Accounting Principles (GAAP) are the rules and concepts accepted by the accounting community for sound accounting practice.
- Accounting concepts are basic assumptions that form the foundation of the accounting structure, such as the business entity, money measurement, going concern, and accrual concepts.
- Accounting conventions are common practices followed in recording and presenting accounting information, like consistency, full disclosure, and conservatism.
- Accounting standards are written policies issued by expert accounting bodies to ensure uniformity in accounting practices and financial reporting.
- The double entry system
Accounting basics and interview questions answersVijay D Narigara
This document provides definitions and explanations of various accounting concepts, principles, and terminology. It covers topics such as the definition of accounting, bookkeeping, accounting concepts, accounting conventions, accounting systems, accounting principles related to different types of accounts, meaning of journal, ledger, posting, trial balance, credit and debit notes, contra entries, petty cash book, promissory notes, cheques, bank reconciliation statements, capital and revenue expenditures and incomes, provisions, reserves, secret reserves, financial management objectives and functions, time value of money, capital structure, cost of capital calculations, capital budgeting techniques, and sources and applications of funds.
Contributo di Regens International pubblicato sulla newsletter ufficiale dell'ICE (Istituto per il Commercio Estero) dedicata ad "Agroalimentare e vini"
Credentech Solutions is an IT services company founded in 2010 that provides management consulting, technology outsourcing, quality assurance, and staff augmentation services globally. It has headquarters in New York and development centers in Chennai, Brussels, and Bangalore. Services include application outsourcing, testing, migration, and strategic offerings in data warehousing, business intelligence and analytics. The company has technical expertise in various technologies and experience delivering projects across domains like e-commerce, mobility, travel, and mainframes.
This document discusses barriers to employment for people with disabilities and ways to overcome them. It notes that only 20% of people with disabilities are employed compared to 70% of the general population. Barriers include a lack of accommodations, compliance with disability laws, and social skills for individuals. The document recommends education and research for employers, making workplaces accessible, clear job descriptions, and developing acceptance. For job seekers, it suggests connecting with agencies, focusing on strengths, and practicing social skills to find success in the workplace.
Cole is a 17-23 year old male college student at the University of Florida majoring in accounting. He works an unpaid internship and plays soccer in his spare time. Cole's goals are to pass his classes while staying on a budget, but he finds cooking meals and spending too much money on food to be challenges. Chipotle helps by providing fresh, customizable meals quickly at an affordable price to save Cole time and money.
This short document promotes the creation of Haiku Deck presentations on SlideShare by providing an example Haiku Deck presentation and encouraging the reader to "GET STARTED" making their own. It uses a single photo captioned "Inspired?" to pique interest and a short call to action at the end.
Hetastarch solution (Hextend) was evaluated for initial fluid resuscitation in trauma patients at a Level 1 trauma center. In the first 6 months of use:
- Mortality was lower in patients receiving Hetastarch compared to standard of care (5.2% vs 8.9%), especially in those with severe injuries.
- Patients receiving Hetastarch required more ICU admissions, blood transfusions, and plasma transfusions but showed no significant differences in coagulation markers or fluid requirements.
- While initial results suggested potential benefits, multivariate analysis found the apparent treatment effects of Hetastarch were no longer statistically significant once possible selection bias was controlled for. A randomized controlled trial is still
Dr. Jacob Habgood is the Head of Serious Games at Sumo Digital Limited. He has a PhD in Learning Sciences and experience in both the game industry and academia. He will be releasing a WiiWare game called "Outnumbered" in summer 2009 that intrinsically integrates math learning into gameplay mechanics like throwing "goo" that represents addition, subtraction, multiplication and division, as well as growing monsters. The game is designed to teach math concepts like operations and relationships between numbers through gameplay without an explicit focus on learning.
This document contains a list of common time-related words and phrases including days of the week, times of day, and periods of time in the past. The words are grouped into days, times, and phrases referring to periods in the recent past ranging from yesterday to a year ago.
Jacob Habgood conducted research on intrinsic integration, which embeds learning content into the core mechanics of a game. He created two versions of the game Zombie Division - an intrinsic version where players divide zombie numbers using weapons, and an extrinsic version with separate math questions. Three studies found that the intrinsic version was more motivating and led to better learning outcomes, as it created a deeper connection to the content. However, extrinsic games also had strong motivation, and intrinsic games may not create more time on task. Overall, intrinsic integration appeared better for motivation and learning.
The document introduces Whitefield Bengali Association (WBA) as their platinum partner. It mentions that WBA aims to bring out the creativity in its community members through their magazine "Badhonchara". The magazine will help the younger generation learn about Bengali culture and traditions. It highlights some past issues of the magazine that featured articles on Mesolithic age, flora and fauna, and evolution of humans. The summary encourages members to contribute creative content to the magazine to enrich the growing WBA family.
This document provides definitions and explanations of key accounting concepts and terms. It discusses accounting as a system to record and communicate financial information. Key topics covered include the accounting equation, double-entry bookkeeping system, types of accounts, accounting cycle, journals, ledgers, debits and credits, balancing accounts, and more.
This document provides an overview of accounting concepts, principles, and processes. It defines accounting as recording financial transactions and defines key terms like assets, liabilities, equity, revenues and expenses. It describes the accounting equation, accounting standards and various books of accounts used like journal, ledger, trial balance. It also summarizes accounting concepts like business entity, money measurement, going concern, dual aspect and key accounting conventions like consistency, full disclosure and conservatism.
This document outlines the topics covered in a course on fundamentals of accounting. It includes 5 units that cover topics such as basic bookkeeping concepts, preparation of financial statements, depreciation methods, and accounting for non-trading concerns. Key areas covered are journal entries, ledger, trial balance, bank reconciliation, single and double entry bookkeeping systems, accounting standards and concepts in India. The goal is to introduce foundational accounting principles and skills.
Accounting involves identifying, measuring, and communicating the economic information of a business entity to its users. It records transactions and events to determine the entity's financial position. Accounting identifies assets, liabilities, and equity through a system of debits and credits according to the dual aspect concept. The accounting process provides information to owners, managers, creditors, government, and others for decision making.
Basic Accounting Principles session 1 by Dino LeonandriDINOLEONANDRI
The document provides an overview of accounting concepts including the accounting equation, elements of accounting, and the double-entry accounting system. It discusses that accounting tracks financial information for decision making through financial reports. The accounting equation shows that assets must equal liabilities plus owner's equity/capital. Transactions affect at least two accounts to maintain the balance between debits and credits as required by double-entry accounting.
This document provides an introduction to basic accounting principles. It defines key accounting terms like assets, equity, revenue, expenses, and drawings. It explains the accounting cycle which involves recording transactions in a journal, posting to ledgers, preparing a trial balance, and ultimately financial statements like the income statement and balance sheet. It also outlines the different accounting methods and classifications of accounts. The goal is to introduce the reader to the fundamentals of accounting and bookkeeping.
This document provides an introduction to basic accounting principles. It defines key accounting terms like assets, equity, capital, liability, revenue, and expenses. It also explains the accounting cycle which involves recording transactions in a journal, posting to ledgers, preparing a trial balance, and ultimately financial statements like the income statement and balance sheet. Additionally, it discusses the different accounting methods, classifications of accounts, rules of debit and credit, and how transactions are recorded in a journal. The overall purpose is to establish the foundational concepts and process of accounting.
This document provides an introduction to basic accounting principles. It discusses how accounting involves systematically recording all business transactions and defines bookkeeping as the process of recording these transactions. Accounting is then defined as the analysis and interpretation of the bookkeeping records to prepare financial statements.
Several key accounting terms are defined, including assets, equity, capital, liability, revenue, and expenses. The accounting cycle is described as the process of initially recording transactions in a journal, transferring them to ledger accounts, preparing a trial balance, and ultimately final accounts and a balance sheet. Finally, the document discusses accounting assumptions like going concern and accrual basis, and different systems for recording transactions like single and double entry.
This document provides an overview of key concepts in accounting theory and principles, including:
1) It defines common accounting terms like assets, liabilities, capital, revenues, and expenses. It also distinguishes between current and non-current assets/liabilities.
2) It outlines important accounting principles like business entity, dual aspect, accounting period, going concern, cost, and matching.
3) It discusses the objectives of accounting, accounting records like vouchers, and concepts like materiality, full disclosure, consistency and objectivity in financial reporting.
This document provides an introduction to accounting concepts. It defines accounting as the process of identifying, measuring, recording, classifying, summarizing, analyzing and communicating financial information about an entity. The key objectives and functions of accounting are also outlined, including maintaining records, calculating profits/losses, and communicating financial information to both internal and external users of the data. The accounting cycle and basic accounting terms like assets, liabilities, capital, revenue and expenses are then explained. Finally, the document discusses the different branches of accounting such as financial, cost, and management accounting.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
The document defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. It outlines key accounting concepts like the separate entity, going concern, cost, and accrual concepts. It also discusses accounting principles, conventions, systems, terms, depreciation methods, and types of business entities like partnerships and joint ventures.
This document provides an overview of basic accounting concepts including:
- Accounting is the art of recording, classifying, summarizing and interpreting financial transactions.
- A transaction is any dealing between two persons involving money or a valuable thing.
- There are three main types of business organizations - sole proprietorship, partnership, and joint stock company.
Accounting is the process of recording and reporting financial transactions and events, while bookkeeping is the process of recording transactions in the accounting system. The key differences are that bookkeeping is the initial recording of data, while accounting includes additional steps of analyzing, summarizing, and communicating financial information. Accounting requires specialized skills to interpret results, whereas bookkeeping is more routine data entry that can be performed by less experienced staff. Some basic accounting terms include assets, liabilities, expenses, revenues, profits, losses, and capital, which are used to track the financial position and performance of a business.
A financial feasibility study assesses the financial viability of a business idea or project. It examines startup capital requirements and sources, operating expenses and revenues, and potential returns for investors. The study uses financial statements like the balance sheet, income statement, and statement of cash flows to evaluate the company's profitability, liquidity, solvency, and stability. Key financial metrics like ratios and cash flow methods are also analyzed to determine if the business or project is financially sound and worthwhile for investment.
A financial feasibility study assesses the financial viability of a business idea or project. It examines startup capital requirements and sources, operating expenses and revenues, and potential returns for investors. The study uses financial statements like the balance sheet, income statement, and statement of cash flows to evaluate the company's profitability, liquidity, solvency, and stability. Key financial metrics like ratios and cash flow methods are also analyzed to determine if the business or project is financially sound and worthwhile for investment.
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.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
The document provides an overview of accounting concepts and principles for an MBA course. It defines bookkeeping and accounting, explains the double-entry system of bookkeeping, and covers key accounting concepts like the accounting equation, revenue and expense recognition, and accounting conventions like materiality and consistency. It also provides examples of journal entries and how to record transactions in ledger accounts.
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
3. 2. It is an information system whose purpose is to identify ,
collect, measure and communicate information about
economic units to those with an interest in the units
financial affairs. To permit judgment and decisions by
users of the information.
4. Systematic record of business transactions.
Protecting the property of the business.
Communicating results to the interested parties.
Compliance with legal requirements.
5. Evidence in court.
Settlement of taxation liability.
Comparative study.
Sale of business.
Assistance to various parties.
6. Records only monetary transactions.
Effect of price level changes not considered.
Historical in nature.
Personal bias of Accountant affects the
accounting statements.
7. Generally Accepted Accounting Principles
In order to make the accounting work uniform and
comparable, a set of Guidelines called as the “GAAP” have
been developed by professional bodies.
ICWAI:- Institute of cost & work Accountants of
India.
ICAI:- Institute of Charted Accountants of India.
AICPA:- American Institute of Certified Public
Accountants.
8. Capital:-
It means the amount (in terms of money or
assets having money value) which the proprietor has
invested in the firm or can claim from the firm.
For the firm Capital is a liability towards the
owner. It is so because the owner is treated to be
separate from the business.
9. Liabilities:-
If an amount is due to be paid to any other person
or institution other than the owner it is called as a liability.
Liabilities can be classified into following:
i) Long-term liabilities: These are those liabilities which are
payable after a long term, (generally more than one year).
Example; Long-term loans, debentures etc.
ii) Current liabilities: These are those liabilities which are
payable in near future ,(generally within one year).
Example; creditors, bank overdrafts, bills payable, short-
term loans, etc.
10. Assets:-
Any physical thing or right owned that has a money
value is an asset. In other words, an asset is that
expenditure which results in acquiring of some property
or benefit of a lasting nature.
Assets can be classified as:
i) Fixed Assets: Fixed assets are those assets which are
purchased for the purpose of operating the business and
not for resale. E.g. land, building, machinery, furniture,
etc.
ii) Current Asset: Current assets are those assets of the
business which are kept for short term for converting into
cash. E.g. debtors, bills receivables, bank balance, etc.
11. Debtors:-
A person who owes money to the firm, generally on
account of credit sale of goods is called a debtor.
For e.g. When goods are sold to a person on credit
that person pays the price in future. He is called a debtor
because he owes the amount to the firm.
12. Receivables:-
The term receivables is used for the amount that
is receivable by the firm, other than the amount due from the
debtors.
Creditors:-
A person to whom the firm owes money is called
a creditor. For e.g. Mr. M is creditor of the firm when goods
are purchased on credit from him.
13. Payables:-
The term payables is used for the amount payable by
the firm, other than the amount due to creditors.
Drawings:-
It is the amount of money or the value of goods
which the proprietor takes for his domestic or personal use.
Revenue:-
It means the amount which, as a result of
operations, is added to the capital. “Revenue is an inflow of
assets which results in an increase in owner’s equity. E.g.
sale of goods, rent income.
14. Expense:-
It is the amount spent in order to produce and sell the
goods and services which produce the revenue. “Expenses is
the cost of the use of things or services for the purpose of
generating revenue”. E.g. payment of salary, wages, rent,
etc.
Income:-
It is the profit earned during a period of time. In
other words, the difference between revenue and expense is
called income.
15. Gross Profit:-
Gross profit is the difference between sales
revenue or the proceeds of goods sold and services rendered
over its direct cost.
Net Profit:-
Net Profit is the profit made after allowing for all
expenses. In case, expenses are more than revenue, it is Net
Loss.
Cost of goods sold:-
It is the direct cost of the goods or
services sold.
16. Expenditure:-
Expenditure is the amount spent or liability
incurred for the value received. Expenditure may be
classified into:
i) Revenue Expenditure: It is the amount that is incurred in
current activities to purchase goods and services which are
consumed during the period.
ii) Capital Expenditure: It is the amount that is incurred in
purchasing assets which will give benefit extending over a
number of accounting periods.
17. Discount:-
When customers are allowed any type of reduction
in the prices of goods by the businessman, that is called
discount.
Gain:-
It is a term used to describe profit of an irregular nature,
e.g. capital gains.
18. Cash Transaction:-
Transactions involving immediate
receipt or payment of cash.
Credit Transaction:-
Transactions in which the
receipt/payment of cash is postponed to a future date is
called as a credit transaction.
19. Net worth:-
It means assets minus outside liabilities.
Profits of a business increase net worth where as
losses reduce the net worth of a business.
Turn over:-
It means total trading income from cash sales and
credit sales.
Voucher:-
Any written document in support of a business
transaction is called a voucher. It is an objective evidence in
support of a transaction.
21. Cash Basis:-
Under this basis, actual cash receipts &
actual cash payments are recorded. Credit transactions
are not recorded until the cash is actually received or
paid.
Limitation: Does not show actual profits nor does it show
the financial position of a firm.
22. Mercantile or Accrual Basis:-
In the accrual basis of accounting, the income, whether
received or not, but has been earned or accrued during the
period forms part of the total income of that period.
Similarly, if the firm has taken benefit of a particular
service, but has not paid within that period, the expenses will
relate to the period in which the service has been utilised.
24. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
The affairs of the
business are distinct from
the personal affairs of
its owner. The business is
an independent ENTITY.
25. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Records are kept in
monetary terms, and only
matters capable of being
expressed in monetary
terms are reflected in the
books.
26. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
The business is assumed to
have a continuing and
indefinite life. The
business IS NOT on the
verge of extinction.
27. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Accountants compute the
value of an asset by
reference to its
acquisition cost, AND NOT
by reference to its
expected future benefits.
28. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. réalisation
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Any change in the value of
an asset may only be
recognized at the moment
the firm REALIZES it, or
disposes of that asset.
29. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
The recognition of an
expense (or revenue) and
the related liability
(or asset) results from
an accounting EVENT, and
is not necessarily
signaled by a cash
transaction.
SFAC #1: Accrual
accounting attempts to
record the financial
effects on an enterprise
of transactions and other
events and circumstances
that have cash
consequences for the
enterprise in the periods
in which these
transactions, etc… occur
rather than only in the
periods when cash is
received or paid.
30. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Expenses should be
recognized in the same
accounting period during
which the firm has
recognized the associated
revenues.
Revenues and expenses
resulting from the same
transactions (or events,
circumstances, etc…)
should be recognized
simultaneously.
31. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Accounting reports must be
prepared for fixed, and
relatively short, periods
of time.
32. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. conservatism
Like transactions should
be treated the same way in
consecutive periods.
33. • Accounting concepts
1. Entity
2. money measurement
6. Accruals
4. Cost
3. Going-concern
5. realization
7. Matching
8. Periodicity
9. Consistency
10. Conservatisme
(1) The accountant should
not anticipate profit, and
should provide for all
possible losses;
(2) Faced with several
methods of valuing an
asset, the accountant
should choose that which
leads to the lesser value.
34. Business Transactions:-
Any event which involves exchange
of money or money’s worth between the firm and any other
person is known as a Business Transaction.
In other words any event which affects the
business and involves money is a Business Transaction.
35. ILLUSTRATIONS:-
a) Capital introduced into the business by the proprietor [BT]
b) Sending of price list [NBT]
c) Purchase of goods for cash [BT]
d) Receiving of a price list [NBT]
e) Purchase of goods on credit [BT]
f) Placing of an order [NBT]
g) Sale of goods on credit [BT]
h) Receipt of an order [NBT]
36. Accounting Equation
The equation is based on the principle that accounting deals
with property & rights to property & the sum of the
properties owned is equal to the sum of the rights to the
properties. The properties owned by a business are called
assets & the rights to properties are known as liabilities or
equities of the business.
Assets = Liabilities + Capital
37. The Double-Entry System
The double-entry book-keeping system is based on the
principle that for every business transaction that takes place
two entries must be made in the accounts: a debit entry,
showing goods or value coming into the business, & a
corresponding credit entry, showing goods or value going
out of the business.
38. Rules of the Double Entry System
1) Personal Account:-
These accounts record a business dealings with
persons or firm.
The person receiving something is given debit
and the person giving something is given credit.
39. 2) Real Account:-
These are the accounts of assets. Assets entering
the business is given debit and assets leaving the business is
given credit.
40. 3) Nominal Account:-
These accounts deal with expenses, incomes,
profits and losses. Accounts of expenses and losses are
debited and accounts of incomes and gains are credited.
41. Debit Receiver
Personal Account
Credit Giver
Debit What comes in
Real Account
Credit What goes out
Debit Expenses & Losses
Nominal Account
Credit Incomes & Gains
42. Advantages of Double Entry System
a) Complete record of the financial transactions is maintained.
b) It gives accurate information of amount due to & due by the
business unit at any time.
c) It is helpful in preventing frauds & errors.
d) Arithmetical accuracy of the account books can be tested.
e) It is helpful in preparing profit & loss account and Balance
sheet of a firm.
43. Accounting Cycle
a) Recording:-
First, all transactions should be recorded in the
Journal or Books of original entry known as subsidiary
books.
b) Classifying:-
All entries in the Journal should be posted to
the appropriate ledger accounts to find out at a glance the
total effect of all such transactions in a particular account.
44. c) Summarising:-
Last stage is to prepare the trial balance
and final accounts with a view to ascertaining the profit or
loss made during a trading period and the financial position
of the business on a particular date.
45. Journal
Journal means a daily record of business transactions.
Journal is a book of original entry because transaction is first
written in the Journal from which it is posted to the ledger.
46. Date Particular LF Debit
Rs
[Dr]
Credit
Rs [Cr]
Year
Month
Date
Name of account to be
debited.
To, Name of account to
be credited.
[Narration]
The ruling of the journal is as follows:-
Journal
47. L.F:-
It stands for Ledger Folio which means page of the
ledger. This column is used to record the page numbers on
which the various accounts appear in the ledger.
48. Trade Discount:-
It is a deduction allowed by the
manufacturer to the wholesaler or retailer on the gross value
or list price of goods to enable the buyer to sell the goods
further (at list price) and yet make a profit for himself.
Trade discount is not recorded in any
account as it is deducted in the invoice itself from the gross
value of goods.
49. Cash Discount:-
It is allowed by the creditor to the debtor as
an incentive to the latter to make an early payment.
Cash discount is calculated on net value of
goods, after deducting trade discount.
Cash discount being a nominal account, it is
debited with the loss on discount allowed and credited with
the gain on discount received.
50. Example – 1
Sale of food & drink as meals in a restaurant
amounted to Rs. 1,500 cash.
In this case the sales account would be credited
with the value of the food & drink leaving the restaurant as
meals, and the cash account would be debited with Rs. 1,500
cash coming into the business from the sale.
51. Example – 2
A hotelier sent a cheque for Rs. 20,000 as
payment of her electricity bill.
In this case the bank account would be credited
with Rs. 20,000 going out of the business and electricity
account would be debited with Rs. 20,000 being the cost of
the electricity used in the business.
52. Debit
1.Increase in asset accounts
2.Increase in expense accounts
3.Decrease in liability accounts
4.Decrease in equity accounts
5.Decrease in revenue accounts
Credit
1.Decrease in asset accounts
2.Decrease in expense accounts
3.Increase in liability accounts
4.Increase in equity accounts
5.Increase in revenue accounts
53. LEDGER
A ledger account may be defined as a summary statement of
all the transactions relating to a person, asset, expense or
income which have taken place during a given period of
time and shows their net effect.
54. Date Particular F Amou
nt
Date Particular F Amoun
t
To, Name of
credit A/c
Rs By, Name of
debit A/c
Rs
Ledger Format
55. Each account in the ledger is divided into two
equal parts by a vertical line. The left hand side of the
account is known as debit side and the right hand side is
called credit side.
‘F’ stands for folio (page number) of the
journal or subsidiary book.
56. Ledger Posting of Journal
Every transaction is first recorded in the
journal in the form of a journal entry.
From the journal it is transferred to the
concerned accounts in the ledger. This process of
transferring the transaction from the journal to the ledger is
known as Posting.
57. Balancing of Accounts
Various accounts in the ledger are balanced with
a view to preparing the final accounts.
1) Take the totals of the two sides of the account concerned.
2) Ascertain the difference between the totals of two sides.
58. 3) Enter the difference in the amount column of the side
showing less total writing against the difference in the
particular column “To, balance c / d” [ c/d means carried
down] on the debit side of the account and “By, Balance
c/d” on the credit side of the account. In this way, the totals
of two sides will agree.
59. 4) The balance is brought forward at the beginning of the next
period. If “To, Balance C/d” is written on the debit side
before balancing, it is brought forward on the credit side and
“By, Balance b/d” [b/d means brought down] is written
against the balance in the particulars column and vice versa.
60. An account is said to have a debit balance if the
total of its debit side is more than the total of its credit side.
On the other hand, an account is considered to
have a credit balance if the total of its credit side is more
than the total of its debit side.
61. 1] Journalise the following transactions & post them to ledger.
2008 Jan 1. Started business with cash Rs. 1,00,000
2. Cash paid into bank Rs. 40,000
3. Purchased goods Rs. 6,000
7. Cash sales Rs. 10,000
9. Goods sold to Mr. Raj Rs. 15,000
12. Purchased goods from Mr. Nanda Rs. 20,000
19. Returned goods to Mr. Nanda Rs. 2,500
25. Received from Mr. Raj Rs. 15,000
27. Paid Mr. Nanda Rs. 17,500 by cheque.
62. Trial Balance
Trial Balance is a list of balances extracted
from the ledger accounts at the end of an accounting period.
Since the balances in ledger accounts are effects of double
entries, the total of debit balances should be equal to total of
credit balances.
63. Uses of Trial Balances
1) It is the basis of preparation of Final Accounts.
2) It helps in verifying the arithmetical accuracy of ledger
accounts.
The two sides of the trial balance will not tally if a mistakes
has taken place in the following.
a) Posting
b) Totaling
c) Balancing.
64. Nature of Balances:
In the normal circumstances,
i) All assets accounts & also dues from persons will show
debit balances.
ii) All liabilities accounts will show credit balances.
iii) All expenses account will show debit balances.
iv) All income accounts will show credit balances.
66. Errors Revealed by the Trial Balance:-
1) Incorrect balances of the cash book.
2) Incorrect totals in purchases, purchase returns, allowances
or sales day books.
3) Entries posted to the wrong side of an account.
4) Omission of a debit or a credit in posting from the journals
to the ledger.
5) Incorrect figures posted from a journal to the ledger
account.
6) Discounts transferred incorrectly.
67. Procedures for locating Errors in the Trial Balance
a) Check the cash balance in the cash book against the actual
cash in hand.
b) Check and reconcile the bank balance in the cash book
against the balance in the bank statement.
c) Prove the purchases and purchases returns figures against
the purchases control account.
68. Errors not revealed by the Trial Balance:-
1) Errors of omission:
This type of errors occurs when an
accounting document, e.g. an invoice or a credit note, is lost
or mislaid, the result being that there is no debit or credit
entry in either the book of first entry or the ledger account.
69. 2) Errors of original entry:
This type of error occurs when an
amount on an invoice, e.g. Rs. 600, is entered wrongly in the
book of first entry, e.g. Rs. 666, and then is posted wrongly
to the ledger account, as Rs. 666.
As there has been a debit entry and a
credit entry for the same amount, the totals of the trial
balance will still be in agreement.
70. 3) Errors of principle:
This type of error occurs when a
transaction has a debit entry and a credit entry but the item is
posted in principle to the wrong classification of account.
E.g. Motor expenses of Rs. 300 has been debited to motor
vehicles account.
71. 4) Errors of commission:
When a wrong amount is entered
either in the subsidiary books or in the ledger accounts or
when amount is posted on the wrong side, it is a case of
errors of commission.
For example, if fuel costs are incorrectly debited to the
postage account (both expense accounts). This will not
affect the totals.
72. 5) Compensating errors:
An example of this type of errors is
where the wages account has been over-added by Rs. 5,000
& by coincidence the sales account has been over added by
Rs. 5,000. So an error on debit side is compensated by an
error on the credit side.
73. 6) Errors of duplication:
An example of this type of error is
when the same invoice is entered into the purchases day
book twice and posted from there to the ledger account
twice.
74. The Suspense Account:-
When trial balance does not tally , the
difference is put into a newly opened account named
suspense account and the trial balance is thus made to tally.
In case , the debit side exceeds the credit
side the difference is put on the credit side of suspense
account . Likewise , if the credit side of the trial balance
exceeds the debit side , the difference is put on the debit side
of suspense account.