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Transcript of 57518391 Financial Accounting 1
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Introduction to Financial Accounting
Prof. Rahul K Kavishwar
FacultyKLES IMSR, Hubli
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Scheme of my presentation
Introduction of Accounting. Accounting as a Information
Meaning of Accounting.
Classification of Accounting. Meaning of Financial Accounting.
Distinction between Bookkeeping and
Accounting
Accounting as a information system.
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Accounting is as old as money itself. Chankaya in hisArthshastra had emphasized the
existence and need of proper accounting and
auditing in the society. The role of accounting has been changing with
the economic and social developments.
Historical description of financial accounting.Modern description of financial accounting - GAAP
SAP, Tally, Profit and in-house accounting
software's.
Introduction to Accounting
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Accounting as an Information System
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Operating activities create revenues,
expenses, gains, and losses.
Investing activities increase
and decrease long-term assets.
Financing activities obtain cash
from investors and creditors.
Business Activities
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Activities associated with obtaining adequatefunds to begin and continue operations
Issuing stock
Paying dividends to stockholdersObtaining loans from creditors
Repaying amounts to creditors, plus interest
Payments of dividends and interest are
associated with financing activities, even though
they involve cash outflows, because they are
necessary to obtain funding.
Financing Activities
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Activities associated with spending funds tobegin and continue operations
Buying resources such as land, buildings,
and equipment needed in the operationof the business.
Selling these resources when no longer needed
Selling land, buildings, and equipment isassociated with investing activities, even though
it results in a cash inflow, because it involves
resources used to begin and continue operations
Investing Activities
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Involve activities associated with thecourse ofrunning a business
Selling goods and services
Employing managers and workersBuying goods and services
Paying taxes
Operating Activities
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Accounting is the art of recording, classifyingand summarizing in a significant manner and interms of money, transactions and event which arein part at least of a financial character and
interpreting the results thereof.According to American Institute of Certified
Public Accountants (AICPA)
Transactions which are measurable in monetaryterms.Rupees.
Financial characterRs. 10,000.
Interpretation of financial dataRatio Analysis
Meaning Accounting
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The word Accounting can be classified into 3main categories.
Classification Accounting
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Government Accounting:Specifically addresses issues of measurement and
valuation in the context of Government enterprises.
For Example:
Electricity. Water supply
P & T and etc.
Enterprise Accounting
Specifically addresses issues of measurement andvaluation in the context of business enterprises.
Has evolved into three disciplines.
Classification Accounting .
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Social Accounting:Relates to social activities of the society.
How much money spend on the social activities or
society.For Example:
Construction of Hospital in village
Social cost benefit analysis.
Classification Accounting .
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Cost Costing
Cost Accounting
Cost Accountancy
Cost Accounting
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Cost is the amount of expenditure incurred. It is price paid for something.
Cost is an expenditure incurred on production of
goods and services.For Example:
Rs. 135 is cost of Khan & Jain Book.
Rs. 45,000 is a cost of Hero Honda
Cost
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Costing refers to cost ascertainmentCost finding
Cost calculation of a product or services
It does not includes accounting part.
It is a technique and process of ascertaining costs
of a product.
For Example:Rs. 45,000 is a cost of Hero Honda. How?????
Costing
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Cost accounting is the process of accounting forcost from point at which expenditure is incurred
or committed to the establishment of its ultimate
relationship with cost centers and cost units.It is accounting for the cost.
And beings with the recording of all income and
expenditure, and ends with the presentation ofstatistical data.
Cost Accounting
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Application of costing and cost accountingprinciples, methods and techniques.
It also includes cost control and ascertainment of
profitability.
Costing Cost Accounting
Cost Accountancy
Cost Accountancy
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Book Keeping
Book keeping is a part of accounting. It concerned with record-keeping or maintenance of
books of accounting which is often routine and clerical
in nature.
It covers
Identifying the transactions and events
Measuring the identified transactions and events
Recording the identified and measured transactions and eventsin proper books of accounts
Classifying the recorded business transactions and post them
in to ledger.
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Accounting
Accounting referees to the actual process ofpreparing and presenting the accounts of an
enterprises.
Summarizing
Analyzing and interpreting and summarized results.
Communicating the results to interested parties.
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Accountancy
It is a systematic knowledge of accounting. It explains the method of preparing the books of
accounts, and summarizing and communicating
accounting information. GAAP
Bookkeeping Accounting
Accountancy
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Distinction Between Book Keeping & Accounting
Basis of
Distinction
Book Keeping Accounting
Scope Bookkeeping involves the
following functions:
Identifying the
transactions Measuring the identified
transactions
Recording the measured
transactions Classifying the recorded
transactions
Accounting, in addition to
bookkeeping, involves the
following functions:
Summarizing the
classified transactions
Analyzing the
summarized results
Interpreting the analyzed
results Communicating the
interpreted information to
the interested parties.
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Stage Bookkeeping is a
primary stage.
Accounting is the secondary stage.
It starts where bookkeeping ends.
Basic The basic objective
of bookkeeping is to
maintain systematic
records of financial
transactions.
The basic objectives of accounting
are as follows:
To ascertain the net results of
operations and financial position
To communicate information to
the interested parties.
Whoperfor
ms
Junior staffperforms
bookkeeping
work.
Senior staff performsaccounting work.
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Knowledge
level
A bookkeeper is not
required to have a higher
level of knowledge than that
of an accountant.
An accountant is
required to have a
higher level of
knowledge than that ofa bookkeeper.
Analytical
skills
A bookkeeper may or may
not possess analytical skills.
An accountant should
possess analytical
skills.Nature of job The job of a bookkeeper is
often routine and clerical in
nature.
The job of an
accountant is
analytical in nature.
Designing of
accounting
system
Bookkeeping does not cover
designing of accounts
system.
Accounting covers
designing of
accounting system.
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Supervision and
checking
A bookkeeper does
not supervise and
check the work of an
accountant.
An accountant
supervises and checks
the work of a
bookkeeper.
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It is defined as the science and art of recordingand classifying business transaction andpreparing summaries of the same fordetermining year end profit or loss and the
financial position of the concern.Profitability
Provide information about the financial positionof the concern.
Principal statement of financial accounting
Income and expenditure statement
Balance sheet.
Meaning Financial Accounting
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Who Needs Accounting Information?
Internal Users External Users
Management Accounting
Information about past
performance and what canbe expected in the future
Financial Accounting
Financial statements
report on profitability andliquidity to evaluate the
success of a business
Employees
Managers
Stockholders
Creditors
Government regulators
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Who Uses Accounting Information?
Those With
Direct Financial
Interests
Management Those WithIndirect Financial
Interests Finance
Investment
Operations &
Production
Marketing
Human
Relations
Accounting
Tax Authorities
Regulators Labor Unions
Customers
Economic
Planners
Investors
Creditors
Banks
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Users with Direct Financial Interests
Investors
Require financial information
to analyze the past success
and potential earnings of a
business
Creditors
Require financial datato assess whether acompany will have the
cash to repay debtbefore making a loan.
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Users with Indirect Financial Interests
Labor Unions, Consumer Groups, Customers,and Other Groupsthe financial performanceand prospects of businesses affect the economy,
environment, and public policy.
Regulatory Agenciespublicly traded companies mustreport periodically to the SEC
Tax Authoritiesrequire special tax returnsand recordkeeping
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Components of Accounting
AccountingRecord Transactions:Bookkeeping
System
Design
Analyze & InterpretInformation
CommunicateInformation
Processing can be
done:
Manually, By computer, or
Using a
management
information system
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It refers to the rules of action or conduct to beapplied in accounting.
Those rules of conduct or procedure which
are adopted by the accountants universally,while recording the accounting transactions.
Accounting principles can be classified into
two categories1. Accounting concepts
2. Accounting conventions.
Accounting Principles
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Accounting Concepts
Entity concept
Dual Aspect concept
Accounting period
concept Going concern concept
Cost concept
Money measurementconcept
Matching concept
Accounting Conventions Convention of disclosure
Convention of
conservatism
Convention of
consistency
Convention of
materiality.
Accounting Principles
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Accounting concepts meansNecessary assumptions
Ideas
postulates Which are used to accounting practice and
preparation of financial statements
Accounting Concepts
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The entity is separate and distinct from the owners andthe entity is liable to the owner.
Hence, in a limited liability company, the enterprise is
liable to the owner (shareholder) based on the
proportion of the capital investment (share capital) madeby the latter.
A business is considered distinct from its creditors and
customers as well as its owners. For Example:
Entity Concepts
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Concept of Separate Entity in the business
A business is considered distinct from itscreditors and customers as well as its owners.
Business
reports &
accounts
Personalreports &
accounts
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Forms of Business
Sole Proprietorship Partnership CorporationOne owner
Owner takes all
profits and losses
Owner is liable for
all business
obligations
Two or more
owners
Partners share in
profits and losses
One partner can
obligate the
business to another
party
Must be dissolved
if ownership
changes
Business unit
chartered by the
state with articles
of incorporation;
legally separate
from owners
(stockholders)
Stockholders enjoy
limited liability Life of corporation
is unlimited
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According to this concept, every businesstransaction involves two aspects, namely for
every receiving of benefit and there is a
corresponding giving of benefits. Every debit there is an equal and corresponding
credit.
Capital + Liabilities = Assetsor
Assets = Equities (Capital)
Dual Aspect concept
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Accounting Equation
Assets are the economic resources
of a business that are expected to
produce a benefit in the future.Liabilitiesare outsider claims,
or economic obligations
payable to outsiders.Owners equity represents the
insider claims of a business.
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Building the Accounting Equation
Economic Resources = Creditors Equities
+ Stockholders Equity
In accounting
terms
Assets = Liabilities + Stockholders Equity
The two sides of the equation must always be in balance.
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Accounting Equation.
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Assets
Economicresources expected
to benefit the
companys future
operations
Patents, trademarks, copyrights (nonphysical)
Inventory, land,equipment,
buildings (physical
items)
Cash, accounts receivable (monetary items)
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Liabilities
Obligations to pay cash, transfer assets, or
provide services to other entities in the future
May take the form of
accounts payable,
taxes payable, loans,
or wages owed to
employees
Liabilities are claims
recognized by law
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Stockholders Equity
Claims of the owners of a corporation to
the assets of the business
Stockholders Equity
Contributed Capital Retained Earnings (RE)
Amount that
stockholders invest in
the business
Generated by business
operations and kept for use
in the business
Par value
Addl paid-in capital
Revenuesincrease RE
Expenses anddividendsdecrease
RE
Share Capital
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In all Accounting Equation.
Assets
OwnersEquity
Liabilities
Assets = Liabilities + OwnersEquity
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Expansion of the Accounting Equation.
Assets
Owners
Equity
Liabilities
+Equity shares
+
Retained Earnings
Dividends
+Revenues
Expenses
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Assigns revenue and expenses to a specific time
period.
Time periods are of equal length.
Financial statements may be prepared for anytime period.
The 12-month accounting period is called a fiscal
year (does not have to correspond with the
calendar year).
Monthly or quarterly periods are called interim
periods.
Accounting Period Concept
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Suitable accounting period In India accounting period starts on
1st April 2005 to 31st march 2006
In USA accounting period start on1st Jan 2005 to 31st December 2005
All the statements are prepared at the end of the
accounting period.
Accounting Period Concept
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Continue of Activity concept. Business concern will continue for a long period
to exist.
Entities have a life of infinite duration, unlessfacts are known that indicate otherwise.
The basis of valuation of resources is influenced
more by their future utility to the business entitythan by their current market valuation.
Organisation accountant feel that.
Going concern Concept
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Unless there is evidence to the contrary, theaccountant assumes that the business will
continue to operate indefinitely.
Going concern Concept
Balance Sheet
The cost of
certain assets
may be held
until a future
year
Income
Statement
when it will
become an
expense.
Rs.
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It implies that assets acquired are recorded in theaccounting books at the cost or price paid to
acquire it.
For Example:
Plant & Machinery @ Rs. 2 crores
So Accountant has to enter Rs. 2 crores in the books
of accounts.
Cost Concept
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Accounting transactions are measured, expressed andrecorded in terms of money.
Only money terms are used.
Concept excludes those transactions or events which
cannot be expressed in terms of money
For Example:
Skill of the supervisor, product policies, employer-
employee relationship.
Money measurement Concept
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Business concern is to ascertain the profit periodically.
Expenses must be assigned to the accounting period inwhich they are used to produce revenue.
To measure the profit for a particular period it is
essential to match accurately the cost associated with therevenue.
Matching Concept
Recognize expenses and related
revenues in same period.
Allocate costs in a systematic way to
accounting periods that benefit from the
costs.
If cause and effect
relationship exists
If no cause and effect
relationship exists
A ti d th M t hi R l
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Assumptions and the Matching Rule
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Are the traditions, usage and customs which arein the use in preparation of accounting.
Methods
Methods of depreciation
Valuation of inventories
Treatment of retirement benefits
Conversion of foreign currency items
PracticesGuidelines for preparation of accounting statements
GAAP
Accounting Conventions
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All the accounting statements should be honestlyprepared and all the facts and figures must be
disclosed.
For Example: Global Trust Bank
Now Merged with Oriental Bank of Commerce
Disclosure of all the information is one of the
important accounting conventions.
Convention of Disclosure
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Policy of playing safe or cautious approach. Company can make provision for possible loss, it
should be taken into account.
For Example:Reserves and surplus or Retained earnings
For distribution of dividends or interest payment
Bad debts provisions
Inventory valuationcost price or market price
whichever is lower.
Convention of Conservatism
C i f C i
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Accounting policies and methods should remainunchanged for preparation of financial statements
from one period to another period.
For Example:
Straight line method of depreciation to Reducing
Balance of Depreciation.
Meaningful comparison in the performance of
different periods.
Current year profit and last year profit
Current year growth and last year growth
Convention of Consistency
C i f M i li
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Only those events should be recorded which havea significant bearing and insignificant thingsshould be ignored while preparing the profit andloss account and balance sheet.
For Example:Leakage of oil in the oil factory
Loss of raw material due to bad handling
Wastage of raw material due to bad handling Usually accountant will take the decision in this
regards. He/she should follow some steps in thisregard.for example
Convention of Materiality
M i B i T ti
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Measuring Business Transactions
Economic Event
Affects the financial position of an entity
When to
record?
Recognition Valuation
What value
to record?
Classification
How to
categorize?
S t f A ti
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There are two systems of accounting
1) Single entry system
All transactions relating to a personal aspect are
recorded in the books of account.
It is incomplete and inaccurate system of
accounting.
2) Double entry system
Every transactions has two aspects and accordingto this system, both the aspects are recorded in the
books of account.
System of Accounting
D bl E t A ti
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Double-Entry Accounting
Double-entry bookkeeping means to record
the dual effects of each business transaction.
S stem of Acco nting for recording
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1) Cash system of accounting
2) Mercantile or Accrual system of
Accounting
3) Mixed system of Accounting
System of Accounting for recording
Cash system of accounting
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Only actual cash receipts and cash payments are
recorded.
No credit transactions is made
Receipts and Payment account is prepared
For Example:
Government Organizations
Pan shops
Kirana shops and etc
Cash system of accounting
Mercantile system of accounting
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All the business transactions are recorded in the
books of accounts for a particular period
inclusive of cash receipts and cash payments or
any amount having become due for payment or
receipt. Cash and credit transaction are recorded.
For Example:
Big Business organisation or corporates.
Pan shops
Kirana shops and etc
Mercantile system of accounting
Mixed system of accounting
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It is a combination of Cash system and
Mercantile system.
All the cash payments and receipts are recorded
All the credit and cash transaction are recorded
in the books.
For Example:
Whole sale shops
Big Business organisation or corporates.
Retail shops and etc
Mixed system of accounting
M i l t f ti
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Main element of accounting
Income Expenses
Assets Liabilities
1) Personal account
2) Real account
3) Nominal account
T f A t
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Types of Accounts
Types Accounts
Personal Account Impersonal Account
Natural persons A/c Artificial Persons A/c RepresentativePersonal A/c
Nominal AccountsReal Account
Tangible Real Account Intangible Real Account
T f A t
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Personal accountThis account relates to a person or a group of personsor a firm in which the business concern either
receives something from the individual or institutions
or pay something to the individual or institutions.Personal accounts involve future relationship.
Personal accounts appears in the Balance sheet of the
concern.Rule for recording Personal Account are
Types of Accounts.
P l A t
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Debit the receiver
&
Credit the giver
Personal Accounts
P l A t
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The personal account further divided into 3types.
Natural Persons Account:
Recording transactions of business deals with
individual person.
For Example:
Ram Account, Krishna Account, Sita account and
Radha Account
Personal Accounts.
P l A t
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Artificial Persons or legal bodies:
An artificial person or legal bodies created by law.
Transaction related to business entity
For Example:
Reliance Industries Ltd Account
ABC company ltd account
Societys account
Personal Accounts.
P l A t
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Representative Personal Account:
An account, indirectly representing a person or
persons.
Records all the transaction related to outstanding
expense, prepaid expenses and accrued expenses.
For Example:
Salaries outstanding
Wages outstandingRent outstanding
Prepaid Insurance and etc
Personal Accounts.
Real Accounts
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Transactions which are connected with Assets is
known as Real Accounts.
The real account may be tangible or intangible
Tangible: Assets which can be touched, felt and
measured.
For Example:
Land and Building
Goods
Furniture
Plant and Machinery
Real Accounts
Real Accounts
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Intangible: Asset which cannot be touched and
measured physically.
For Example:
Trade mark
Goodwill
Patent,
Copy Rights and etc
Rule for recording Real Account are
Real Accounts
Real Accounts
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Real Accounts
Debit what comes in
&
Credit what goes out
Nominal Accounts
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Transaction related to business connected with
expenses, incomes, profit or losses.
Payment made/Income received do not acquire
any Asset or create any Future Relationship.
For Example:
Rent
Salaries
Interest
Taxi fair & Stationary and etc
Rule for recording Nominal Account are
Nominal Accounts
Nominal Accounts
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Nominal Accounts
Debit all expenses and losses
&
Credit all incomes and gains
Journal
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Book of original entry or prime entry or First
entry.
All the business transactions are recorded in
chronological order.
In simple meaning Journal is a daily record.
The transactions are not written directly in the
accounts. They are, first of all recorded in the
journal.
Then they are transferred to ledger.
Journal
Format of Journal
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Format of Journal
Date Particulars L.F Debit Credit
Accounts and
Explanation or
( narration )
Journal of Mr. Khan & Jain as on 31st Jan 2006
R di T ti i th J l
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Recording Transactions in the Journal
Identify the transaction and
specify each account affected.
Use the rules of debits and credits.
Enter the transaction in the journal,
including a brief explanation for the entry.
Ledger
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Book of a final entry. Second state in the accounting cycle.
Summary statement of all transactions relating to
a person, asset, expenses or income which havetaken place during a given period of time and
showing their net effect.
All the recorded transactions which are classifiedand grouped into different heads of accounts.
Ledger
Format of Ledger
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Date Particulars JF Amount Date Particulars JF Amount
To By
Format of Ledger
Capital AccountDr. Cr.
The T-Account
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The T-Account
Account Title
Debit
LEFT SIDE RIGHT SIDE
Credit
The T-Account
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Title of Account
Debit(left) side
Credit(right) side
Three parts
2. A left side, called the debit side
3. A right side, called thecredit side
1. A title that describes the account
The T Account.
Increases and Decreases in the Accounts
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Increases and Decreases in the Accounts
Assets Liabilities
Rules of
Debit and
Credit: Debit
+
Debit
Debit
+
Credit
Credit
+
Credit
-
Expenses
Posting from Journal to Ledger
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Posting from Journal to Ledger
The ledgeris a grouping of all the
accounts; it shows their balances.
Data must be copied to the ledger
a process calledposting.
Thejournal is a chronological record
of all transactions listed by date.
Posting from Journal to Ledger
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Ledger
Allaccountscombinedmake up
the ledger.
Share capital accounts
Capital
Cash asset accounts
AccountsPayable
liability accounts
Posting from Journal to Ledger
Trial Balance
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Trial Balance
A trial balance lists all accounts with
their balancesassets first, followed by
liabilities, and then share capital.
DEBITS CREDITS
Trial Balance
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Trail Balance is the list of all debit and creditbalances of accounts taken out from the ledger at
any given date.
Helps in preparation of final accounts
Trading Account
Profit & Loss account
Balance sheet
Trial Balance
Format of Trial Balance
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Sl. No Name of accounts Debit Credit
Format of Trial Balance
Trial Balance of Khan & Jain as on 31st Jan 2006
Trial Balance
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For every amount debited, an equal amount must
be credited
Result: The total of debits and credits for all the T
accounts must be equal
Trial balance is prepared to test this
Usually prepared at the end of a month or an
accounting period
Can be prepared anytime
Trial Balance
Subsidiary Books
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For practical convenience the journal is
maintained by using a number of books called
the subsidiary books.
Also called as Special Journals
Suitable for big organisation
Totally 7 subsidiary books, namely
Subsidiary Books
Subsidiary Books.
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Subsidiary Books.
Subsidiary
Books
Sales Book
Purchase Book
Sales return Book
Purchase Return Book
BP Book BR Book
Cash Book
Simple cash
BookCash with
D/S book
Petty cash
bookCash with Bank
& D/s Column
Final Accounts
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Final Accounts
Final accounts include
Trading account
Profit & Loss account
Balance sheet.
Adjustment entries
Financial soundness of a concern as a whole
during the particular period.
Trading Account
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g
It shows the results of the purchasing and selling
of goods.
It determines Gross profit or Gross Loss.
It records all Direct Expenses. Helps in calculation of Cost of Goods Sold
COGS = Opening stock + PurchasesPurchases
return + direct expensesClosing stock.
Trading Account.
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g
Particulars Amount Particulars Amount
To Opening stock By Gross Sales
Less: Returns
Net SalesTo Purchases By Closing stock
To Direct
Expenses
By Gross Loss C/d
( Transfer to P & L
Account)
To Gross Profit
C/d ( transfer to P
& Account )
Dr. Cr.
Trading Account.
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Important Elements of Trading Accounts
Opening stock
Purchases & Purchases Return
Direct Expenses
Gross Profit is the excess value of sales over the cost
of sales.
Sales & Sales return
Closing stock
Gross Loss is the excess of cost of sales over the sales
revenue.
g
Profit & Loss Account
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Was it a good year or bad year? What was the volume of operations?
What was the margin available on sales realization?
The answer
Profit & Loss Account
Profit & Loss Account
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It records all indirect Expenses.
Helps in determining Net Profit or Net Loss of
the firm.
A profit & Loss Account shows a company's
earnings and expenses over a given period of
time.
It exclusively summarizes revenue and expenses
of the period and shows the net difference i.e.,
profit or loss of the period.
Profit & Loss Account
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Particulars Amount Particulars AmountTo Gross Loss
B/d
By Gross
Profit B/d
To All IndirectExpenses
By Non-operating
Incomes
To Net Profit c/d By Net Loss
C/d
Dr. Cr.
Balance sheet
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Balance sheet
Balance sheet is a statement of assets andliabilities prepared with a view to ascertain the
financial position of a business on a certain fixed
date.
It is a statement not an account.
Helps in knowing the financial position of the
firm.
Reports value of assets, liabilities and owners
equity at a particular point in time.
Balance sheet.
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Liabilities Amount Assets Amount
Capital / Fixed
Liabilities
Fixed Assets
Non- current
liabilities
Current Assets
Current
liabilities
Factious Assets
Liabilities
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It is an economic obligations of an enterprise.
Business enterprise has to pay in case of
discontinuation of business.
Repayment of capital invested by the owner or
investor.
For Example:
Capital / Equity shares
Preference shares
Non-current Liabilities
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Payable after a certain number of years.
Liabilities which are become due for payment
beyond period of one year.
For Example:
Long term debt
Debenture
Long term loan from Bank
Long term loan from Financial Institutions
Long term loan raised by Issue of Public deposits
Long term debt raised by issue of securities.
Current Liabilities
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Are obligations due within one year or
Any amount owing by the business which are currently
due for payment.
For Example:
Bills payable
Sundry Creditors
Short term loans
Dividend payable
Provision for Taxes payable
Short term bank Overdraft
Outstanding expenses
Assets
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have a useful life of more than one year.
are acquired for use in the business.
are not intended for resale to customers.
Assets which are acquired for permanent use inthe business.
Information about long-term acquisitions can be
found under investing activities in the statementof cash flows.
For Example:
Assets.
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Current Assets
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It is also called as floating Assets.
Assets which can be easily realised or converted in to
cash.
Shorter period say, less than one year
For Example: Cash or cash at Bank
Inventories
Debtors
Bill Receivable
Short term investment
Prepaid Expanses
Fictitious Assets
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They are useful because of the special rights that
they carry.
Do not have a physical form.
For Example:
Patents
Copyrights
Trademarks
Preliminary Expenses
Share issue expenses
Adjustment entries
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1) Closing stock
2) Outstanding expenses3) Prepaid Expenses
4) Accrued Income
5) Income received in Advance
6) Depreciation
7) Interest on Capital
8) Interest on Drawings
9) Bad Debts10) Provision for Doubtful debts
11) Provisions for Discount on debtors
12) Provision for Discount on creditors.
Accounting Cycle
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Accounting Cycle
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Describe the
accounting cycle, andexplain the purposes
of closing entries.
C i f i i
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Class is open for the discussion
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Thank u