Beruflich Dokumente
Kultur Dokumente
Banerjee
Objectives
of Accounting Types of Transactions Terminologies in Accounting Accounting Principles Accounting Concepts Accounting Conventions Systems of Accounting Accounting Equations Classification of Accounts
Maintenance
of Business Records Ascertainment of Profit & Loss Ascertainment of Financial Position Facilitating Management Control Providing Accounting information to users
Based on Relationship
Internal
Based of Nature
Simple
Based on settlement
Cash
Based on Visibility
Physical NonPhysical
External
Compound
Credit
Complex
Paper
Goods
Profit Assets
/ Loss
Property owned by person or company - L & Bldg. Amounts due from a business to others Creditors
Liabilities
Net
Capital
= Assets Liabilities
Drawings
Capital Expenditure Purchase of Machinery Revenue Expenditure Purchase of materials Deferred Revenue Exp.Heavy Legal Expenses Cash Discount (recorded, LP-TD=DP-CD=AP) Trade Discount (not recorded, (LP-TD=AP) Solvent & Insolvent
Accounting
year 01/04/2010 to 31/03/2011 Assessment year 01/04/2011 to 31/03/2012 Trading Account Goodwill
Manufacturing
Account
Accounting
principles are set of rule of action or conduct which are adopted by accountants universally while recording accounting transactions
Accounting Principles
Business
Entity Concept
Money
Measurement Concept
Cost
Concept
Consistency
Matching
Concept
Going
Concern Concept
Concept
Business will continue for a long period Anticipate no profits but provide for all losses
Conservatism
Realisation
Accrual
Concept
Concept
Dual
Aspect Concept
Convention
of Full Disclosure
Convention
of Materiality
Cash System
Accounting
equations is a formula of accounting which shows the assets and liabilities of a firm as equal
Assets = Equities (Owners Capital) Assets = Liabilities + Capital Liabilities = Assets - Capital Capital = Assets - Liabilities
Accounts Personal Accounts Debtors Impersonal Accounts Real Accounts Nominal Accounts Expenses & Losses Incomes & Gains
Creditors
Credit Giver
What goes w.r.t. tangible & intangible out assets Incomes & w.r.t. income or loss Gains
STEPS FOR RECORDING ENTRIES Transactions Two Accounts involved Types of Accounts How each aspect is affected Rule applicable Account to be debited Account to be credited