Description
Accountancy, or accounting, is the production of financial records about an organization. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management; selecting information that is relevant and representing it faithfully. The principles of accountancy are applied to accounting, bookkeeping, and auditing
Business Accounting & Costing
Basics of Accounts
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Meaning : Recording of transactions in a set of the book
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? ?
Two main systems of maintaining of books a)Indian system : Kird, Bahi Khata, Rojmal, Khatawani b) English system : Book keeping, Double entry system Double Entry System : Firstly published in 1544, by Italian Merchant Luca Pacioli in Venice at Italy.
History of Accounting System
Account : It is an art and science of recording the transactions in a set of subsidiary books. & ascertainment of profit and loss incurred during the specific period. ? Book keeping : It is a recording of business transactions in the books of accounts. Book keeping is a scientific method of recording day to day business transactions figures in the books of accounts, so as to show correct and clear the financial position of a business
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Introduction
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According American Institute of Certified Public Account:
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“The art of recording , classifying and summarizing in a significant manner and in the terms of money, transactions and events which are in part of the financial character and interpreting the result there of.”
According to American Accounting Association
?
?
: “The process of identifying, measuring and communicating economic information to permit informed judgment”
Definitions :
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The concept means the ideas, The Concept are based on Logical considerations and implies universal acceptance. a) Separate Legal Entity Concept b) Continuity (On going ) Concept c) Realization concept and Revenue recognition concept d) Accounting Period Concept e) Money Measurement Concept F) Accrual Concept
Concepts of an Accounting
of business records. ? Assistance in planning & decision making ? Assessment of Business Report ? Assessment of business financial position ? Prevention of misuse of business properties. ? Realization of debts ? Assistance in payment of taxes Importance of an Accounting ? Proof in court of law.
? Maintenance
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Financial Accounting : After a accounting period, actual happened or occurred tractions are summaries and finally Profit or loss of specific period is taken out. Cost Accounting : To ascertainment of a cost per unit and reduce a cost of production and earn more margin of profit per unit, and maximize the profit percentage, The exercise is done before of expenses occurred the cost accounting prepared. Management Accounting : By considering the previous data of financial accounts and Potential (anticipated ) expenditures (Anticipated cost of production with help of costing also) a correct decision making ability is assured for manufacturing & selling strategies to maximize the profit.
Branches of Accounting
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Internal User Owner Management for their decision making Employee for Pay, bonus, buss position etc.
External User: Invested Creditor Government Consumer
User of accounting information
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A) Personal Account : Natural Persons account Artificial person’s account (created by Law) Representative personal account
B) Impersonal Account a) Real or Property Account : Tangible real account Intangible real account b) Nominal Account : Expenses & Losses account Income & revenue account
Classification of Accounts
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Personal Account :
Debit the receiver Credit the giver
?
? ? ? ?
Real Account
:
Debit what comes in Credit what goes out
Nominal Account : Debit is expenses and Losses Credit is gains and Income
Universal Golden Rules of Accounts
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? ? ? ? ?
A) Journal : The term Journal is derived from the French word “JOUR”- means a day, Books of original entry. Record of a day’s whole business Recording of cash and credit transaction. Recording of a business record in chronological order. De-coding the business transactions in a form of journal entry with double entry concept, to get easy to post in to a concerned ledger.
Books of Accounts:
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B) Ledger : Personal Ledger only
- All Personal Accounts
Impersonal Ledger _ All Property & Asset accounts ? _ All Incomes accounts ? _All Expenses accounts
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Books of Accounts …….
? ? ? ? ? ? ? ? ?
? ?
C) Subsidiary Books
Bank)Columns CB Discount) CB
_ Purchase Book _ Sales Book _ Purchase Returns Book _ Sales Returns Book _ Bills Receivable book _ Bills Payable book _Cash Books Single (Cash)column CB Two (Cash &
Three(cash bank& Journal Proper.
Account books…..
?
Trading Account : All Trading concerned direct expenses, Sales and closing stocks are recorded --Only to know the Gross Profit of specific period.
Profit & Loss Account : All other expenses other then trading (Indirect exps) are recorded --Only to know the Net Profit Balance sheet Present position Business : Only to know the of
?
?
Preparation of Final Account :
doc_698463073.pptx
Accountancy, or accounting, is the production of financial records about an organization. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management; selecting information that is relevant and representing it faithfully. The principles of accountancy are applied to accounting, bookkeeping, and auditing
Business Accounting & Costing
Basics of Accounts
?
Meaning : Recording of transactions in a set of the book
? ?
? ?
Two main systems of maintaining of books a)Indian system : Kird, Bahi Khata, Rojmal, Khatawani b) English system : Book keeping, Double entry system Double Entry System : Firstly published in 1544, by Italian Merchant Luca Pacioli in Venice at Italy.
History of Accounting System
Account : It is an art and science of recording the transactions in a set of subsidiary books. & ascertainment of profit and loss incurred during the specific period. ? Book keeping : It is a recording of business transactions in the books of accounts. Book keeping is a scientific method of recording day to day business transactions figures in the books of accounts, so as to show correct and clear the financial position of a business
?
Introduction
?
According American Institute of Certified Public Account:
?
“The art of recording , classifying and summarizing in a significant manner and in the terms of money, transactions and events which are in part of the financial character and interpreting the result there of.”
According to American Accounting Association
?
?
: “The process of identifying, measuring and communicating economic information to permit informed judgment”
Definitions :
?
? ? ? ? ? ?
The concept means the ideas, The Concept are based on Logical considerations and implies universal acceptance. a) Separate Legal Entity Concept b) Continuity (On going ) Concept c) Realization concept and Revenue recognition concept d) Accounting Period Concept e) Money Measurement Concept F) Accrual Concept
Concepts of an Accounting
of business records. ? Assistance in planning & decision making ? Assessment of Business Report ? Assessment of business financial position ? Prevention of misuse of business properties. ? Realization of debts ? Assistance in payment of taxes Importance of an Accounting ? Proof in court of law.
? Maintenance
?
?
?
Financial Accounting : After a accounting period, actual happened or occurred tractions are summaries and finally Profit or loss of specific period is taken out. Cost Accounting : To ascertainment of a cost per unit and reduce a cost of production and earn more margin of profit per unit, and maximize the profit percentage, The exercise is done before of expenses occurred the cost accounting prepared. Management Accounting : By considering the previous data of financial accounts and Potential (anticipated ) expenditures (Anticipated cost of production with help of costing also) a correct decision making ability is assured for manufacturing & selling strategies to maximize the profit.
Branches of Accounting
? ? ? ?
? ? ? ? ?
Internal User Owner Management for their decision making Employee for Pay, bonus, buss position etc.
External User: Invested Creditor Government Consumer
User of accounting information
? ? ?
? ? ? ? ? ? ? ?
?
A) Personal Account : Natural Persons account Artificial person’s account (created by Law) Representative personal account
B) Impersonal Account a) Real or Property Account : Tangible real account Intangible real account b) Nominal Account : Expenses & Losses account Income & revenue account
Classification of Accounts
? ?
Personal Account :
Debit the receiver Credit the giver
?
? ? ? ?
Real Account
:
Debit what comes in Credit what goes out
Nominal Account : Debit is expenses and Losses Credit is gains and Income
Universal Golden Rules of Accounts
? ?
? ? ? ? ?
A) Journal : The term Journal is derived from the French word “JOUR”- means a day, Books of original entry. Record of a day’s whole business Recording of cash and credit transaction. Recording of a business record in chronological order. De-coding the business transactions in a form of journal entry with double entry concept, to get easy to post in to a concerned ledger.
Books of Accounts:
? ?
B) Ledger : Personal Ledger only
- All Personal Accounts
Impersonal Ledger _ All Property & Asset accounts ? _ All Incomes accounts ? _All Expenses accounts
? ?
Books of Accounts …….
? ? ? ? ? ? ? ? ?
? ?
C) Subsidiary Books
Bank)Columns CB Discount) CB
_ Purchase Book _ Sales Book _ Purchase Returns Book _ Sales Returns Book _ Bills Receivable book _ Bills Payable book _Cash Books Single (Cash)column CB Two (Cash &
Three(cash bank& Journal Proper.
Account books…..
?
Trading Account : All Trading concerned direct expenses, Sales and closing stocks are recorded --Only to know the Gross Profit of specific period.
Profit & Loss Account : All other expenses other then trading (Indirect exps) are recorded --Only to know the Net Profit Balance sheet Present position Business : Only to know the of
?
?
Preparation of Final Account :
doc_698463073.pptx