The document provides an introduction to accounting, including definitions, key concepts, and terminology. It discusses the three main branches of accounting: financial accounting, cost accounting, and management accounting. Financial accounting is designed to provide information to external users to help with decision making. Cost accounting helps management control costs, while management accounting provides information to help management make decisions and control activities. The document also outlines accounting concepts like the business entity concept, money measurement concept, and matching concept. It defines key terms like assets, liabilities, revenues, and expenses.
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
The document defines accounting as recording, classifying, and summarizing financial transactions and events to prepare financial statements. It discusses the basic accounting concepts like the accounting equation, assets, liabilities, equity, revenues and expenses. It also explains the key steps in accounting cycle which includes recording transactions, posting to ledger accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance and financial statements, and closing temporary accounts. The accounting cycle aims to generate useful financial information for decision making in the form of income statement, balance sheet, and other financial reports.
This document provides an overview of accounting basics and principles. It defines accounting as the process of identifying, recording, and communicating financial information. The objectives of accounting are to provide useful information to decision makers through relevance, reliability, and other qualitative characteristics. The document outlines key accounting principles like the business entity, accrual basis, and matching principles. It also describes the main financial statements - the balance sheet, income statement, statement of cash flows, and statement of owners' equity - and their purpose in communicating financial information to both internal and external users of accounting data.
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.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
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.
Accounting is defined as the art of Recording, Classifying and Summarizing transactions in monetary terms (in Money terms) for preparation of Financial Statements
Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping.
Accounting, is an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making.
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.
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
The document defines accounting as recording, classifying, and summarizing financial transactions and events to prepare financial statements. It discusses the basic accounting concepts like the accounting equation, assets, liabilities, equity, revenues and expenses. It also explains the key steps in accounting cycle which includes recording transactions, posting to ledger accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance and financial statements, and closing temporary accounts. The accounting cycle aims to generate useful financial information for decision making in the form of income statement, balance sheet, and other financial reports.
This document provides an overview of accounting basics and principles. It defines accounting as the process of identifying, recording, and communicating financial information. The objectives of accounting are to provide useful information to decision makers through relevance, reliability, and other qualitative characteristics. The document outlines key accounting principles like the business entity, accrual basis, and matching principles. It also describes the main financial statements - the balance sheet, income statement, statement of cash flows, and statement of owners' equity - and their purpose in communicating financial information to both internal and external users of accounting data.
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.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
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.
Accounting is defined as the art of Recording, Classifying and Summarizing transactions in monetary terms (in Money terms) for preparation of Financial Statements
Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping.
Accounting, is an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making.
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.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
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 provides an introduction to financial accounting. It discusses the development of accounting from ancient texts through modern times. Accounting involves recording, classifying, summarizing, analyzing and communicating financial transactions. The main users of accounting information are proprietors, managers, creditors, bankers, investors and governments. Accountants work either in public practice providing auditing and other services, or employed within businesses. The objectives of financial accounting are to keep records, protect assets, determine profits/losses, ascertain financial position and facilitate decision making.
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
- The document outlines an accounting course for managers, covering topics like financial accounting, depreciation, ratio analysis, fund flow, cost accounting, and more.
- It defines key accounting concepts like identifying, measuring, classifying, recording, and communicating financial information. It also distinguishes transactions from events.
- Basic accounting terms are introduced, like assets, liabilities, equity, capital, and accounting principles and concepts are discussed, like the business entity, money measurement, and revenue recognition concepts.
This document discusses key accounting concepts and conventions. It defines concepts as necessary assumptions and conditions that accounting is based on, such as treating similar transactions in the same way. Key concepts discussed include the business entity, going concern, money measurement, accounting period, cost, dual aspect, and realization. Conventions ensure common practices are followed, such as materiality, full disclosure, conservatism, and consistency. Concepts and conventions provide the theoretical framework for accounting.
The document discusses key accounting principles including the four main financial statements, the basic accounting equation, and different types of accounts. It also covers topics like accrual versus cash accounting, depreciation, financial analysis methods, and financial ratios used to evaluate business performance and health. The document is intended to provide an overview of basic accounting concepts.
This document discusses key accounting concepts and conventions. It defines 8 accounting concepts: business entity, money measurement, accounting period, accounting cost, going concern, dual aspect, realization, and matching. It also discusses 4 accounting conventions: consistency, materiality, conservatism, and full disclosure. The concepts and conventions establish standard principles and practices for preparing accurate financial statements and reports.
The document provides an overview of basic bookkeeping terms and how to build a chart of accounts. It defines key terms like assets, liabilities, equity, revenue and expenses. It explains the differences between accrual and cash accounting and how the accounting equation forms the basis of the chart of accounts. The document also outlines the key components needed to build a chart of accounts based on the type of business entity and accounting method. The goal is to educate the reader on basic bookkeeping concepts and how to construct and utilize a chart of accounts.
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.
Here are the journal entries for the transactions:
Jan 1: Capital 80,000
To Cash 80,000
(Commenced business with cash)
Jan 2: Bank 40,000
To Cash 40,000
(Deposited cash in bank)
Jan 3: Purchases 5,000
To Cash 5,000
(Purchased goods by paying cash)
Jan 4: Purchases 10,000
To Lipton & Co. 10,000
(Purchased goods from Lipton & Co. on credit)
Jan 5: Cash 11,000
To Sales 11,000
(Sold goods to Joy and received cash)
Introduction to Basic Accounting ConceptKamrul Hasan
The document provides an overview of accounting history and concepts. It discusses how accounting originated with early civilizations keeping records of agricultural products. It then focuses on Luca Pacioli, called the "Father of Accounting", who in 1494 published the first description of the double-entry accounting system still used today. The document also defines key accounting terms like assets, liabilities, owner's equity, and the accounting equation. It explains how business transactions impact the accounting equation and provides an example transaction analysis.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
The document discusses three key accounting concepts - the going concern concept, money measurement concept, and accounting period concept. The going concern concept assumes that a company will continue to operate indefinitely. The money measurement concept provides that financial statements are more meaningful when assets and liabilities are quantified in monetary terms rather than just listing items. The accounting period concept recognizes that financial statements are prepared for a specific period of time.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
This course discusses basic concepts of accounting.
Course Objectives: (i) Help the participants to become intelligent users of accounting information (a) Understand the basic accounting and financial terminology. (b) Understand how events affect firm value (c) Understand how financial transactions are recorded. (d) Make the participants’ comfortable looking through financial statements (ii) Develop the ability in participants’ to use financial statements to assess a company’s performance.
Course Fee: Free of Cost
What you'll learn
• Understand need and importance of Accounting
• Understand Book Keeping, Objectives and Advantages
• Understand Accounting Process, Accounting Cycle,
• Understand Users of Accounting Information
• Understand Branches of Accounting
• Understand Basic Accounting Terms
• Understand Accounting Assumptions, Concepts and Principles
• Understand Rules of Accounting
• Understand Journal, Ledger, Trial Balance and Final Accounts Preparation
In detail view of Everyday session topic covers:
This is a comprehensive course, covering each and every topic in detail. In this course, you will learn Fundamentals of Accounting, step by step covering the following:
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
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 provides an introduction to financial accounting. It discusses the development of accounting from ancient texts through modern times. Accounting involves recording, classifying, summarizing, analyzing and communicating financial transactions. The main users of accounting information are proprietors, managers, creditors, bankers, investors and governments. Accountants work either in public practice providing auditing and other services, or employed within businesses. The objectives of financial accounting are to keep records, protect assets, determine profits/losses, ascertain financial position and facilitate decision making.
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
- The document outlines an accounting course for managers, covering topics like financial accounting, depreciation, ratio analysis, fund flow, cost accounting, and more.
- It defines key accounting concepts like identifying, measuring, classifying, recording, and communicating financial information. It also distinguishes transactions from events.
- Basic accounting terms are introduced, like assets, liabilities, equity, capital, and accounting principles and concepts are discussed, like the business entity, money measurement, and revenue recognition concepts.
This document discusses key accounting concepts and conventions. It defines concepts as necessary assumptions and conditions that accounting is based on, such as treating similar transactions in the same way. Key concepts discussed include the business entity, going concern, money measurement, accounting period, cost, dual aspect, and realization. Conventions ensure common practices are followed, such as materiality, full disclosure, conservatism, and consistency. Concepts and conventions provide the theoretical framework for accounting.
The document discusses key accounting principles including the four main financial statements, the basic accounting equation, and different types of accounts. It also covers topics like accrual versus cash accounting, depreciation, financial analysis methods, and financial ratios used to evaluate business performance and health. The document is intended to provide an overview of basic accounting concepts.
This document discusses key accounting concepts and conventions. It defines 8 accounting concepts: business entity, money measurement, accounting period, accounting cost, going concern, dual aspect, realization, and matching. It also discusses 4 accounting conventions: consistency, materiality, conservatism, and full disclosure. The concepts and conventions establish standard principles and practices for preparing accurate financial statements and reports.
The document provides an overview of basic bookkeeping terms and how to build a chart of accounts. It defines key terms like assets, liabilities, equity, revenue and expenses. It explains the differences between accrual and cash accounting and how the accounting equation forms the basis of the chart of accounts. The document also outlines the key components needed to build a chart of accounts based on the type of business entity and accounting method. The goal is to educate the reader on basic bookkeeping concepts and how to construct and utilize a chart of accounts.
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.
Here are the journal entries for the transactions:
Jan 1: Capital 80,000
To Cash 80,000
(Commenced business with cash)
Jan 2: Bank 40,000
To Cash 40,000
(Deposited cash in bank)
Jan 3: Purchases 5,000
To Cash 5,000
(Purchased goods by paying cash)
Jan 4: Purchases 10,000
To Lipton & Co. 10,000
(Purchased goods from Lipton & Co. on credit)
Jan 5: Cash 11,000
To Sales 11,000
(Sold goods to Joy and received cash)
Introduction to Basic Accounting ConceptKamrul Hasan
The document provides an overview of accounting history and concepts. It discusses how accounting originated with early civilizations keeping records of agricultural products. It then focuses on Luca Pacioli, called the "Father of Accounting", who in 1494 published the first description of the double-entry accounting system still used today. The document also defines key accounting terms like assets, liabilities, owner's equity, and the accounting equation. It explains how business transactions impact the accounting equation and provides an example transaction analysis.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
The document discusses three key accounting concepts - the going concern concept, money measurement concept, and accounting period concept. The going concern concept assumes that a company will continue to operate indefinitely. The money measurement concept provides that financial statements are more meaningful when assets and liabilities are quantified in monetary terms rather than just listing items. The accounting period concept recognizes that financial statements are prepared for a specific period of time.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
This course discusses basic concepts of accounting.
Course Objectives: (i) Help the participants to become intelligent users of accounting information (a) Understand the basic accounting and financial terminology. (b) Understand how events affect firm value (c) Understand how financial transactions are recorded. (d) Make the participants’ comfortable looking through financial statements (ii) Develop the ability in participants’ to use financial statements to assess a company’s performance.
Course Fee: Free of Cost
What you'll learn
• Understand need and importance of Accounting
• Understand Book Keeping, Objectives and Advantages
• Understand Accounting Process, Accounting Cycle,
• Understand Users of Accounting Information
• Understand Branches of Accounting
• Understand Basic Accounting Terms
• Understand Accounting Assumptions, Concepts and Principles
• Understand Rules of Accounting
• Understand Journal, Ledger, Trial Balance and Final Accounts Preparation
In detail view of Everyday session topic covers:
This is a comprehensive course, covering each and every topic in detail. In this course, you will learn Fundamentals of Accounting, step by step covering the following:
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
The document provides an overview of the history and evolution of accounting practices. It discusses how accounting originated in ancient civilizations like Babylon in 2600 BC and evolved into the double-entry system in 15th century Italy. It then covers the introduction of modern accounting in India in 1850 and defines key accounting concepts like bookkeeping, accounting, financial accounting, and cost accounting. Finally, it outlines the major users and principles of accounting.
Bookkeeping is the recording of financial transactions and the preparation of financial statements. It involves recording transactions in books of accounts, classifying them, and summarizing the results. The key aspects of bookkeeping are maintaining systematic records, preparing periodic financial statements like the income statement and balance sheet, and ensuring accuracy through the double-entry system where every transaction has a corresponding debit and credit entry.
This document provides an overview of accounting principles from Chapter 1 of the textbook. It defines accounting as a process of recording and reporting financial information to help decision makers. It discusses the internal and external users of accounting information and how their needs differ. It also introduces the accounting equation that balances assets, liabilities, and owner's equity, and gives examples of how business transactions affect this equation.
The document provides an overview of key accounting concepts for budding managers. It defines accounting and discusses its functions and branches. It also covers accounting terminology, the accounting cycle, classification of accounts, types of accounts, and accounting concepts such as business entity, money measurement, and matching. Finally, it discusses accounting conventions like consistency, materiality and conservatism, as well as funds flow statements.
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 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.
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
The document provides an overview of the accounting process. It defines accounting and discusses its key principles and concepts. It describes the different branches and types of accounting. It then explains the accounting process which involves identifying transactions, preparing documents, recording transactions in a journal, posting to ledgers, preparing trial balances and final accounts such as profit and loss statements and balance sheets. It also discusses the different books of accounts used such as journals, ledgers and trial balances. Finally, it covers accounting systems and basics such as debits and credits, types of accounts and how to prepare and balance accounts.
- Accounting originated around 4000 BC in Babylonia and Egypt where transactions were recorded on clay tablets.
- Various ancient civilizations including Egyptians, Greeks, Romans, and Chinese used some form of accounting to record financial transactions and manage government revenues.
- The first book on accounting was published in 1494 by Luca Pacioli in Italy.
- Accounting involves recording and classifying financial transactions and events to provide useful information to stakeholders through financial reports.
- The main types of accounting are financial, cost, and management accounting.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
This document provides an overview of fundamental accounting concepts and terminologies. It defines key terms like accounting, book-keeping, proprietor, capital, assets, liabilities, revenue, and expenses. It also describes the three major types of businesses and explains transactions. Additionally, it covers the accounting equation, debits and credits, accounts, and the rules for debiting and crediting assets, liabilities, expenses, and income/capital.
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 overview of accounting concepts and financial statements. It begins with definitions of accounting and its purpose. Key terms like assets, liabilities, income, and expenses are explained along with basic accounting equations and methods. Accounting steps from journalizing transactions to preparing trial balances and financial statements are outlined. Financial statements like the income statement, balance sheet, and cash flow statement and their components are defined. Examples of accounting entries, trial balances, and financial statements are provided. The document is an introductory training material on basic accounting concepts, terminology, and financial reporting.
This document provides an overview of key accounting concepts including:
- The separate business entity concept which treats a business independently from its owners.
- Single and double entry bookkeeping systems, with double entry recording both sides of transactions.
- The accounting equation in which total assets must equal the total of capital (owner's equity) and liabilities.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
just made your self ...................................................................................................................................................................................................................................s...........................................................................................................................................................................................s.........................................
This document provides definitions and explanations of key concepts in bookkeeping and accounting. It defines bookkeeping as recording business transactions in an organized manner. The double-entry system is described as recording each transaction with two entries, one as a debit and one as a credit. Advantages of the double-entry system include ensuring accuracy, enabling calculation of profits, and preventing fraud. Disadvantages include the cost and complexity of maintaining multiple accounting records.
The accounting cycle is the process by which accountants prepare financial statements for an entity over a period of time. It involves analyzing transactions, journalizing them, posting to ledger accounts, adjusting entries, preparing a trial balance and financial statements, and closing entries. Key steps include journalizing, posting, preparing a trial balance, adjusting entries, and financial statements.
Accounting involves recording financial transactions and preparing financial statements. It uses concepts like duality, accrual, matching and consistency. Transactions are recorded in journals like purchase, sales and cash books. The trial balance shows debit and credit balances of all accounts. The trading account calculates gross profit/loss and the profit and loss account calculates net profit/loss. The balance sheet presents the assets, liabilities and capital of a business at a point in time, with assets and liabilities ordered by liquidity or permanence. Adjustments to the trial balance ensure items are fully reflected in the final accounts.
Hadj Ounis's most notable work is his sculpture titled "Metamorphosis." This piece showcases Ounis's mastery of form and texture, as he seamlessly combines metal and wood to create a dynamic and visually striking composition. The juxtaposition of the two materials creates a sense of tension and harmony, inviting viewers to contemplate the relationship between nature and industry.
This tutorial offers a step-by-step guide on how to effectively use Pinterest. It covers the basics such as account creation and navigation, as well as advanced techniques including creating eye-catching pins and optimizing your profile. The tutorial also explores collaboration and networking on the platform. With visual illustrations and clear instructions, this tutorial will equip you with the skills to navigate Pinterest confidently and achieve your goals.
The cherry: beauty, softness, its heart-shaped plastic has inspired artists since Antiquity. Cherries and strawberries were considered the fruits of paradise and thus represented the souls of men.
Boudoir photography, a genre that captures intimate and sensual images of individuals, has experienced significant transformation over the years, particularly in New York City (NYC). Known for its diversity and vibrant arts scene, NYC has been a hub for the evolution of various art forms, including boudoir photography. This article delves into the historical background, cultural significance, technological advancements, and the contemporary landscape of boudoir photography in NYC.
2. GROUP
Group Members
Naeem Riaz (1143)
M.Najam ul Ghani (1104)
Hassan Raza (1124)
Syed Abdullah (1108)
3. DEFINATION
According to AICP
(American Institute of
Certified Public
Accountant)
“ The art of recording,
classifying and summarizing
in a specific manner and in
term of money transactions
and then interpreting the
results. ”
4. Recording: recording all the transactions for future use
refers to as “Journal”.
classifying: all records are classified for the preparation of
the main accounting book known as “Ledger”.
5. Summarizing: All records are summarize for
“trail balance”.
Interpreting: After all the steps then we
interoperates the results for final accounts
and “Financial Statement”(1.income
statement, retained earning 2. balance sheet
3.cashflow statement.) so that the interested
parties can determine the future earning e.g.
pay interest, dividend policy.
6. BRANCHES:
THERE ARE THREE TYPES OF ACCOUNTING:
FINANCIAL ACOUNTING
COST ACCOUNTING
MANAGEMENT ACCOUNTING
7. FINANCIAL ACCOUNTING
• Designed to help people outside
and inside of the business make
decisions (creditors, investors,
suppliers, customers,
governments, labor unions,
management, owners etc)
• Multi purpose reports (one set of
financial statements meets the
need of all users outside inside of
the business)
8. Cost Accounting
Function of cost
accounting is to
ascertain the cost
of a product and to
help the
management in
the control of cost.
9. Management Accounting
Accounting that provides
necessary information
to the management for
discharging its
functions, help
management in
taking a decisions
and to control
activities.
10. Scope and Nature of Accounting
scope:
It has very wide scope and area of
applications.
Accounting use all over the world as in
business, institution, trading and non-trading
area’s like schools, banks, colleges, hospitals,
Co-operative society etc…
It is spread in all the sphere of the society and in
all the professions.
11. Scope and Nature of Accounting
Nature:
systematic record of financial statements.
1. Accounting is a process:
step by step process to performing any specific
task.
2. Accounting is an art:
art of recording, classifying, summarizing, and
finalizing the financial data.
3. Accounting is an information system:
characterized as a storehouse of information.
12. Terms using in Accounting
Business:
Any activity undertaken for the purpose
of earning profit e.g. banking business, goods
trading etc.
Proprietor:
Owner of the business. He invest for the
business and bear loss and profit.
13. Voucher and Account
Voucher:
“Any written evidence in support of a
business Transaction is called a Voucher.”
Account:
“A summarized record of transactions
relating to a persons and things is called
Account.”
14. 14
Debits and Credits
• Two of the most familiar accounting terms are
“debits and credits.” In the double-entry system, if
there anything is debit then on other side thing
should be credit as well according to Dual aspect of
accounting.
• Debit (from the Latin word debere) means “left.” It
is often abbreviated as “dr.”
• Credit (from the Latin word credere)
• means “right.” It is often abbreviated
• as “cr.”
15. DEBITS AND CREDITS
• Recording $s on the left side of an account is
debiting the account
• Recording $s on the right side is crediting the
account
• For individual accounts:
• If the total of debit amounts is bigger than credits, the
account has a debit balance
• If the total of credit amounts is bigger than debits, the
account has a credit balance
16. Capital and Equity
The amount that is invested for the beginning
of the business by the owner called it’s
“CAPITAL”.
A claim which can be enforced against the
company or product known as “EQUITY” .
It can be as:
* Owner equity * Customer equity
17. NORMAL BALANCE — OWNER’S
CAPITAL
Owner’s Capital
Decrease Increase
Debit Credit
Normal
Balance
18. Definition of an
• An asset is anything of value that is owned
• An asset may be something which is paid for
in advance, like prepaid insurance or prepaid
rent.
• Money you will receive later – Accounts
Receivable
19. Asset
– Accounts Receivable
I will receive th
e money later
•When a person owes YOU money, this
is also an asset.
•The asset is called “Accounts Receivable
”.
20. Asset
Check in the pictures below to see the value of the asset
Moving on…
21. Money you owe another person
• Great job! Money $ you owe another person
would not be of value to you because you
will eventually have to pay the person off.
• Money you owe is a LIABILITY
Moving onto Liabilities …
22. Examples of Liability Accounts
• Accounts Payable
• Notes Payable
• Federal Income Tax Payable
• Social Security Tax Payable
23. NORMAL BALANCES — ASSETS
AND LIABILITIES
Assets
Increase Decrease
Debit Credit
Decrease Increase
Debit Credit
Liabilities
•Normal
Balance
Normal
Balance
24. Good’s and stock
Good(merchandise):
Things that are purchased for business
purpose of the selling.
Stock(inventory):
Goods on hand, that goods remaining
unsold is called stock.
25. Debtor and Creditor
Debtor:
“A person (A) who owes money to another
person (B) in this case (A) is a debtor”.
also termed as Account Receivable(R/A).
Creditor:
A person to whom money is owing is a creditor.
It is also termed as
Account Payable (A/p).
26. Expense and Expenditures
Expenditures:
when assets or services is acquired for long
period.
Expense:
An expenditures whose
benefit is finished or enjoyed
Immediately such as salaries, rent etc.
27. Sales and Sales returns
Sales:
“Selling of goods are called sales. If goods are
sold on credit called credit sale else if sold on
cash called as cash sales.”
Sales Returns:
“If sold goods find
defective or unsatisfactory
that are returns to the
company back.”
28. Purchases and Purchase
Returns
Purchases:
“purchasing of goods are called purchases. If
goods are purchased on credit called credit purchase
else if
purchased on cash called
as cash purchase.”
Purchases Returns:
“If purchased goods
find defective or unsatisfactory
that are returns to the person or company from whom
you purchase goods.”
29. Trade Discount and Cash
Discount
Trade Discount:
“It is allowance from the scheduled
price granted by the seller to the buyers.”
Cash Discount:
“It is a discount allowed by a creditor
to a debtor if he
pay’s before due date known
Cash Discount.”
30. Transaction and Commission
Transaction:
“Any dealing between two parties called
Transaction.”
*Cash Transaction *Credit Transaction
Commission:
“Involvement of third party provide
services to both parties , In this case the third
party charges called commission.”
31. Drawing and Dividend:
Drawing:
“Cash or Goods taken away from the
business by the owner for his personal use.”
Dividend:
“A sum of money paid regularly by
the company to it’s shareholders out of it’s
profit according to their invested amount.”
33. Interested parties
Parties interested in Accounting Information:
Owner:
“provide capital for organization so they
need to know accounting information for
profitability and financial position.”
Management:
it is an art of getting things done
through others. So check the managerial
position of the company Accounting.”
34. Interested parties…
Creditor:
“person who supply goods to the
company on credit e.g. banks. They need
accounting information to know about financial
position.”
Employees:
payment of bonus depends upon
size of the profit earned.
35. Interested parties:
Investors:
“persons want to invest their money want to know
the financial position before investing.”
Government:
“Interested for the purpose of
taxation.”
Consumer:
For establishing good accounting control so
that cost of production may be reduced with resultant re
duction of price of good they buy.”
36. GAAP (Generally Accepted
Accounting Principles)
Refers to standard framework of guidelines for
financial accounting used in any given jurisdiction;
generally known as accounting standards or standard
accounting practices.
Consist Of Two Parts
* Accounting CONCEPTS
* Accounting CONVENTIONS
37. ACCOUNTING CONCEPTS:
DEFINATION:
The term ‘concept’ include those basic assumptions or conditions up
on which accounting is based
1.Business Entity Concept:
In accounting, “Business” and “Owner
” are taken as two separate entities. All the transactions of the bus
iness are recorded in the books of the business from point of vie
w of the business as an entity and even the proprietor is treated a
s a creditor to the extent of his capital.
e.g. In the Joint Stock Company, the business
has a separate legal entity than the
shareholders.
38. CONCEPTS…
Money Measurement:
– All transactions of the business are recorded in terms of
money
– It provides a common unit Of measurement
e.g. If business has got a team of dedicated and trusted
employees, it is definitely an asset to the business, but since
their monetary measurement is not possible, they are not
Shown in the books of the business.
39. Matching concept:
• Matching principle defines that we must charge
the expenses for any particular period against the r
evenues of that particular period.
purpose of every business to earn profit.
Expenses 2011 Revenues 2011
40. CONCEPTS…
Dual Aspect Concept:
This is the basic concept of accounting. Modern a
ccounting system is based on dual aspect concept. Dual concept may be
stated as “For every debit there is a credit”
For example. If A starts a business with capital of 10,000RS.There are two
aspects of the transaction .On the one hand the business has assets of 10,
000RS while the other hand the business has to pay the proprietor a sum
of 10,000RS which is taken as proprietor capital.
Accounting Period:
According to this concept the life of the business is
divided into appropriate segments for studying the results shown by the
business after each segment. Its necessary that after each segment or
time interval the businessman must stop and see, how things are going
on. In accounting such segment or time intervals is called accounting
period. It is usually of a year.
41. Historical Cost Concept:
It means that fixed assets must be reporte
d in financial statements on the cost on
which they were purchased.
Fixed assets should not be recorded on th
eir market value.
Book Value + Depreciation = Cost
42. Realization concept:
According to this principle revenues are
recognized if realized or realizable or if goods
transferred or services rendered, no matter cash
is received or not.
43. Accounting conventions:
Definition:
“Term convention those customs or tradition
which guide the accounting while preparing the
accounting statements.”
Convention of disclosure:
Accounts should be prepared in such a way that
all material information is clearly disclosed to the
reader. Anybody who wants to study the financial
statement should not be mislead.
44. Convention…
Convention of materiality:
according to this only those events or
items should be recorded which have a significant
bearing and insignificant things should be ignored.
There is no formula in making a distinction b/w
material or immaterial events. It is matter of judgment
and is left to the accountant for taking decisions.
Convention of consistency:
“Accounting practices should remain
unchanged from one period to another.”
46. System Of Accounting:
Two types of system accounting:
CASH BASIS SYSTEM
Recognizing the revenue
when cash is received.
Expenses are recognized
when cash is paid, is called
Cash basis system of
accounting.
47. System Of Accounting:
ACCRUAL BASIS SYSTEM
The policy of recognizing
revenue in the accounting
record when it is earned
and recognizing expenses
when the related goods are
used is called accrual basis
system of accounting.