ONLINE POWER POINT PRESENTATION

1. EMMANUEL COLLEGE
OF B.ED TRAINING
VAZHICHAL
NAME: VINOD.S
SUBJECT :COMMERCE
CANDIDATE CODE:19014361008

2. MAJOR ACCOUNTING
CONCEPTS
Subject: Accountancy
Class: XI

3. BUSINESS ENTITY CONCEPT
This concepts assumes that business has a
distinct and separate entity from its owners.
it means that for accounting purpose business
and owners are treated as two separate
entities.

4. ASSUMPTIONS
 Business has it’s own existence.
The amount invested by the owner(Capital) is
considered as the liability of the business entity.
The amount withdrawn by the owner for his
personal purpose is known as drawings.
Personal transactions of the owner not recorded
in the books of business.

5. MONEY MEASUREMENT CONCEPT
This concept states that only those
transactions and happenings in an
organization which can be expressed in terms
of money
Eg:- Payment of wages, sales expenses,
receipt of income etc.

6. ASSUMPTIONS
Money is an important factor in the business.
Money can be measured to identify the profit
and losses in the business.
All the business transactions has to be
expressed in terms of monetary terms.
Due to the changes in prices, the value of
money does not remain same over a period of
time.

7. GOING CONCERN CONCEPT
This concept assumes that a business firm
would continue to carry out its operations
indefinitely, that is for a long period of time
and would not be liquidated in the
foreseeable future.

8. ASSUMPTIONS
 Commonly a business started for a long
period of time.
 Long period of existence is useful for
treating the valuation of assets, prepaid
expenses, income etc.
Due to losses company will be liquidated
with other company.

9. GOING CONCERN CONCEPT
The concept of going concern assumes
that a business firm would continue to
carry out its operations indefinitely, that
is for a fairly long period of time and
would not be liquidated in the
foreseeable future.

10. ASSUMPTIONS
Each business has own long life.
It should be run a long period of time
to achieve maximum profit.
The value of revenue/income is
calculated under the estimation of the
life span of that business

11. Long period of existence useful for treating
the valuation of assets, prepaid expenses
and prepaid income etc..
Depreciation of fixed asset is valued of the
basis of running period of business.
Due to losses on income, sales,
productions, non availability of raw
materials, business may goes to liquidation.

12. MEANING OF LIQUIDATION
Liquidation is the process by which a
company or a part of company is brought
to an end, and the asset and property of
the company are redistributed.
Liquidation is also sometime referred to as
winding-up or dissolution. Liquidation
either compulsory or voluntary as the case
may be.

13. DEPRECIATION
The decrease in the value of fixed
asset is known as depreciation.
Depreciation usually charged to fixed
assets such as land and building,
machineries, buildings, office
equipment's etc.. Depreciation may
arise due to period of usage, wear and
tear etc..

14. COST CONCEPT
The cost concept requires that all
assets are recorded in the book of
accounts at their purchase price,
which includes cost of
acquisition(purchase),
transportation, wages, installation
and making the asset ready to use.

15. ASSUMPTIONS OF COST
The amount of value given to an
attributable given thing is known
as cost.
Cost the value of money that has
been used up to produce
something.
Cost may varied in scales of
business operations