C:\fakepath\introduction

$: C:\fakepath\introduction$
PCTE Group of Institutes

AccountingRecordingClassifyingSummarisingAnalysing and interpretationReportingOf financial Transactions


Objectives of AccountingPermanent recordAscertain combined effectEvaluate earning capacityProper utilisation of resources


Users of Accounting InformationInvestorsLendersSuppliersCustomerGovt. AgenciesPublic Employees


Book Keeping Vs AccountingStageScopeSkillOperationAdjustments and rectificationStep


Accounting Cycle


TerminologyProprietor/owner: The person who takes the

initiative to start the business.Capital: Amount invested by the proprietor in

the business.Drawings: Amount or benefit withdrawn by

the owner from the business.Business Transaction: Any exchange of goods

or services by the business with any other person in the business transaction.


Cont………Debtor: Person from whom amounts are due

for goods sold or services rendered.Creditor: Person to whom amount is owed by

the enterprise .Receivables: amount which outsiders owe to

the enterprise.Payables: Amount which business owe to the

outsidersGoods:


Cont…………….PurchaseSalesPurchases ReturnSales ReturnStockAssets


Assets


Fixed Assets

Current AssetsFictitious Assets

Tangible Fixed Assets Intangible Assets

Cont…….LiabilitiesExpenseExpenditureLossProfitRevenueIncome


Cont…………………..Account: Date wise summary of transactions

relating to persons, Property or expenses and incomes.

Account


Personal account Impersonal Account

Natural PANatural PA Natural PAReal account Nominal Account

P & L A/CExpenses & Losses A/C

Tangible A/C

Tangible A/C

C:\fakepath\introduction

Documents

Transcript of C:\fakepath\introduction