A fantastic PPT on the nature and concept of business. This PPT will enable the learners to understand the concepts and fundamentals of business. The PPT includes types of human activities - economic & non-economic activities, types of economic activities - business, profession, employment, features of business, multiple objectives of business, types of business activities, types of industry, classification of commerce, meaning and types of business risk.
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.
A fantastic PPT on the nature and concept of business. This PPT will enable the learners to understand the concepts and fundamentals of business. The PPT includes types of human activities - economic & non-economic activities, types of economic activities - business, profession, employment, features of business, multiple objectives of business, types of business activities, types of industry, classification of commerce, meaning and types of business risk.
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.
Ledger in financial accounting (11th commerce)Yamini Kahaliya
This presentation is on ledger which is the topic of financial accounting. it contents details about following points. There are:-
1. Meaning of ledger
2. Need & Importance of ledger
3. Advantage of Ledger
4. Difference b/w Journal & ledger
5. Format of ledger
6. Rules of posting
7. Illustrations
8. Exercise
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.
Meaning and definition of Accounting, Book-Keeping, Accounting, Accountancy, difference between Accounting and Book-keeping, Systems of accounting, Characteristics of accounting, objectives of accounting, functions of accounting, process of accounting, types of accounts, golden rules of accounting. concepts and conventions of accounting.
Ledger in financial accounting (11th commerce)Yamini Kahaliya
This presentation is on ledger which is the topic of financial accounting. it contents details about following points. There are:-
1. Meaning of ledger
2. Need & Importance of ledger
3. Advantage of Ledger
4. Difference b/w Journal & ledger
5. Format of ledger
6. Rules of posting
7. Illustrations
8. Exercise
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.
Meaning and definition of Accounting, Book-Keeping, Accounting, Accountancy, difference between Accounting and Book-keeping, Systems of accounting, Characteristics of accounting, objectives of accounting, functions of accounting, process of accounting, types of accounts, golden rules of accounting. concepts and conventions of accounting.
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:
THIS IS ALL ABOUT ACCOUNTING STANDARD - 6 I.E., DEPRECIATION ACCOUNTING.
THE RULES AND REGULATIONS TO BE FOLLOWED WHILE CALCULATING DEPRECIATION OF A DEPRECIABLE FIXED ASSET.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
2. 2
Learning Objectives
This Chapter would enable you to understand:
Definitions ofAccounting
Meaning ofAccounting
Attributes ofAccounting
Accounting Process
Branches ofAccounting
Book Keeping,Accounting andAccountancy
Difference between Book Keeping andAccounting
3. 3
Learning Objectives
Objectives ofAccounting
Functions ofAccounting
Advantages ofAccounting
Limitations ofAccounting
Accounting Information and its' Types
Users of Accounting Information
Systems ofAccounting
4. 4
DEFINITION OF ACCOUNTING
"Accounting is the art of recording, classifying and
summarising in a significant manner and in terms of
money; transactions and events which are, in part at
least, of a financial character, and interpreting the
results thereof."
-American Institute of Certified PublicAccountants
5. 5
DEFINITION OF ACCOUNTING
"Accounting is the science of recording and
classifying business transactions and events,
primarily of a financial character, and the art of
making significant summaries, analysis and
interpretations of those transactions and events and
communicating the results to persons who must
make decisions or form judgment."
-Smith andAshburne
6. 6
DEFINITION OF ACCOUNTING
"Accounting is the process of identifying, measuring
and communicating economic information to permit
informed judgments and decisions by users of the
information."
-AmericanAccountingAssociation
7. 7
Meaning of Accounting
Thus, accounting is a process of
collecting,
recording,
summarising and
communicating financial information to the users
for decision-making.
8. 8
ATTRIBUTES (CHARACTERISTICS) OF ACCOUNTING
The definitions of accounting bring to light the
following attributes ofAccounting:
1. Identification of Financial Transactions and
Events
2. Measuring the Identified Transactions
3. Recording
4. Classifying
5. Summarising
6. Analysis and Interpretation
7. Communicating
9. 9
Financial Transactions or
Events
Recording
Journal
1. Cash Book
2. Purchase Book
3. Sales Book
4. Purchases Return Book
5. Sales Return Book
6. Bills Payable Book
7. Bills Receivable Book
8. Journal Proper
Classifying (Posting into
Ledger)
Summarizing
Trial Balance
Trading and Profit and Loss Account
Balance Sheet.
Analysis and Interpretation
Communicating to the Users
ACCOUNTING PROCESS
11. 11
Financial Accounting
Financial Accounting is that branch of accounting,
which records financial transactions and events,
summarises and interprets them and communicates
the results to the users.
The end-product of Financial Accounting is the Profit
and Loss Account for the period ended and the
Balance Sheet as on the last day of the accounting
period.
12. 12
Cost Accounting
The limitation of Financial Accounting in respect of
information relating to the cost of products or
services led to the development of a specialised
branch, i.e., CostAccounting.
It ascertains the cost of products manufactured or
services rendered and helps the management in
decision-making (say price fixation) and exercising
controls.
13. 13
Management Accounting
Management Accounting is the most recently
developed branch of accounting.
It is concerned with generating accounting
information relating to funds, costs, profits, etc., as it
enables the management in decision-making.
We may say that Management Accounting
addresses the needs of a single user group, i.e., the
management.
14. 14
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
Meaning of Book Keeping
Book Keeping is part of Accounting and it is
concerned with:
Identifying financial transactions and events,
Measuring them in terms of money,
Recordingthe financialtransactions and eventsso
Classifying recorded transactions and events, i.e.,
posting them into Ledger accounts.
15. 15
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
Definitions of Book Keeping
"Book Keeping is an art of recording in the books of accounts
the monetary aspect of commercial and financial
transactions."
-Northcott
"Book Keeping is an art of recording business dealings in a
set of books."
-J.R. Batliboi
"Book Keeping is the science and art of recording correctly in
the books of accounts all those business transactions that
result in the transfer of money or money's worth."
-R.N. Carter
"Bool: Keeping is the art of recording business transactions
in a systematic manner."
-A.N. Rosen Kampff
16. 16
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
Accounting
Accounting is an art of
recording,
classifying and
summarising the financial data and interpreting the
results thereof.
Accounting is a wider concept than Book Keeping.
It starts where Book Keeping ends. In other words,
Book Keeping is a part of accounting.
17. 17
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING
Basis Book Keeping Accounting
1. Scope Book Keeping is concerned with
identifying financial transactions;
measuring them in money terms;
recording them in the books of
accounts and classifying them.
Accounting is concerned with
summarising the recorded
transactions, interpreting them
and communicating the results.
2. Stage It is a primary stage. It is a secondary stage. It begins
where Book Keeping ends.
3. Objective The objective of Book Keepingis
to maintain systematic records of
financial transactions.
The objective of accounting is to
ascertain net results of operations
and financial position and to
communicate information to the
interested parties.
18. 18
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING
4. Nature of Job This job is routine in
nature.
This job is analytical and
dynamic in nature.
5. Performance Junior staff performs this
function.
Senior staff performs this
function.
6. Relation Book Keeping is the basis
for accounting.
Accounting begins where
Book Keeping ends.
7. Special Skills Book Keeping is
mechanical in nature and
thus, does not require
special skills.
Accounting requires special
skills and ability to analyse
and interpret.
19. 19
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
Accountancy
Accountancy refers to a systematic knowledge of
accounting.
It explains how to deal with various aspects of
accounting.
It educates us why and how to maintain the books of
accounts and how to summarise the accounting
information and communicate it to the users.
In the words of Kohler, accountancy refers to the
entire body of the theory and practice of accounting
20. 20
BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
Accounting and Accountancy
Accountancy is an area of knowledge whereas
accounting is the action or process used in this
area.
Accounting depends on the rules and principles
framed by the Accountancy but Accountancy does
not depend onAccounting.
It may be said that Accountancy is the whole thing
while Accounting is the application part of
accountancy.
21. 21
OBJECTIVES OF ACCOUNTING
The objectives or functions of accounting are:
Maintaining Systematic Records of Financial
Transactions an Events
Ascertaining Profit or Loss
Ascertaining Financial Position
Assisting the Management
CommunicatingAccounting Information to Users
22. 22
FUNCTIONS OF ACCOUNTING
The functions of accounting are:
Maintaining Systematic Records
Communicating the Financial Results
Meeting Legal Requirements
Protecting BusinessAssets
Assistance to Management
Stewardship
23. 23
ADVANTAGES OF ACCOUNTING
Followings are the advantages of Accounting
Financial Information about Business
Assistance to Management
Replaces Memory
Facilitates Comparative Study
Facilitates Settlement of Tax Liabilities
Facilitates Loans
Evidence in Court
Facilitates Sale of Business
Assistance in the Event of Insolvency
Helpful in PartnershipAccounts
24. 24
LIMITATIONS OF ACCOUNTING
Followings are the limitations of accounting
Accounting is not Fully Exact
Accounting does not Indicate the Realisable Value
Accounting Ignores the Qualitative Elements
Accounting Ignores the Effect of Price Level
Changes
Accounting may Lead to Window Dressing
25. 25
ACCOUNTING INFORMATION
"Accounting is a service activity. Its function is to
provide qualitative information, primarily financial in
nature, about economic entities that is intended to be
useful in making economic decisions."
-Accounting Principles Board
26. 26
Types of Accounting Information
The Accounting Information can be categorised
into the following:
Information Relating to Profit or Surplus;
Information Relating to Financial Position; and
Information about Cash Flow.
27. 27
USERS OF ACCOUNTING INFORMATION
Internal Users
• Owners
• Management
• Employees and Workers
29. 29
SYSTEMS OF ACCOUNTING
The systems of recording transactions in the
books of accounts are two namely:
1. Double Entry System and
2. Single Entry System.
30. 30
Double Entry System
The Double Entry System of accounting was
developed in the 15th Century in Italy by Lucas
Pacioli.
Under the system,
aspects-Debit and
every transaction
Credit and at the
has two
time of
recording a transaction, it is recorded once on the
debit side and again on the credit side.
The Double Entry System has proved to be a
scientific and complete system of accounting
followed by every enterprise and organisation.
31. 31
Double Entry System
For example, at the time of cash purchases, goods
are acquired and in return cash is paid.
In the transaction, above two aspects are involved,
i.e., receiving goods and paying cash
Under the Double Entry System, both these aspects
are recorded.
One part, i.e., the receipt of goods is debited and the
second part, i.e., payment of cash is credited.
The method of Debit and Credit will be discussed in
“Accounting Procedure – Rule of Debit and
Credit”
32. 32
Features of the Double Entry System
It maintains a complete record of each transaction.
It recognises the two-fold aspect of every transaction,
viz., the aspect of receiving (value in) and the aspect
of giving (value out).
In this system, one aspect is debited and other aspect
is credited following the rules of debit and credit.
Since, one aspect of a transaction is debited and the
other is credited, the total of all debits is always equal
to total of all credits. It helps in establishing
arithmetical accuracy by preparing the Trial Balance.
33. 33
Stages of Double Entry System
The following are the three different stages of a
complete system of a double entry book keeping:
Recording the transactions in the Journal.
Classifying the transactions in the Journal by posting
them to the appropriate ledger accounts and then
preparing the Trial Balance.
Closing the books and preparing the final accounts.
All these stages shall be discussed one by one in
succeeding chapters.
34. 34
Advantages of the Double Entry System
The main advantages of Double Entry System are
Scientific System
Complete Record of Transactions
A Check on theAccuracy ofAccounts
Ascertainment of Profit or Loss
Knowledge of Financial Position
Full Details for Purposes of Control
Comparative Study is Possible
Helps Management in Decision-Making
No Scope of Fraud
35. 35
Single Entry System
Single Entry System of recording transactions in the
books of accounts, may be defined to be an
incomplete Double Entry System.
In this system, all transactions are not recorded on
the double entry basis.
As regards some transactions, both aspects of the
transactions are recorded, as regards others, either
one aspect is recorded or not recorded at all.
Instead of maintaining all the accounts, only
Personal Accounts and Cash Book are maintained
under this system.
36. 36
Single Entry System
The accounts maintained under this system are
incomplete and unsystematic and therefore, not
reliable.
The Single Entry System is also known as Accounts
from Incomplete Records.
Since all transactions are not recorded under double
entry principle, it is not possible to prepare a Trial
Balance.
As a result, the Profit and Loss Account and the
Balance Sheet cannot be prepared.