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Amity Business School

Amity Business SchoolMBA Class of 2012, Semester IACCOUNTING FOR MANAGEMENT

Module I

BHAVNA RANJAN

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BOOK KEEPING

ACCOUNTANCY

ACCOUNTING

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BOOK KEEPING

Book Keeping is a part of accounting and canbe defined as the art of recording business

transactions in a systematic manner.It is concerned with record keeping or maintenance of books of accounting .

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Accounting is the art of recording,

classifying and summarising in significant manner and in terms of money, transactionsand events which are, in part, at least of a financial character and interpreting theresults thereof.

American Institute of Certified Public Accountants

ACCOUNTING

ACC OUNTING

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Accounting is the process of identifying,measuring and communicating the economicinformation of an organization to permit informed judgements and decisions by usersof the information.

American Accounting Association

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Recording is concerned with ensuring that all the businesstransactions of financial character are recorded in anorderly manner. Recording is done in the book Journal

Recording is concerned with ensuring that all the businesstransactions of financial character are recorded in anorderly manner. Recording is done in the book Journal

RECORDING

Classification is concerned with the systematic analysis of the recorded data, with a view to group transactions orentries of one nature at one place. The work of classification is done in the book named Ledger .

Classification is concerned with the systematic analysis of the recorded data, with a view to group transactions orentries of one nature at one place. The work of classification is done in the book named Ledger .

CLASSIFYING

This involves presenting the classified data in a mannerwhich is understandable and useful to the end-users of accounting statements. This process leads to thepreparation of a) Trial Balance b) Trading and P & LAccount c) Balance Sheet.

This involves presenting the classified data in a mannerwhich is understandable and useful to the end-users of accounting statements. This process leads to thepreparation of a) Trial Balance b) Trading and P & LAccount c) Balance Sheet.

SUMMARISING

F UN C TIONS O F ACC OUNTING

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The recorded financial data is analysed and interpretedin a manner that end users can make a meaningful judgement about the financial condition of the businessoperations

ANALYSING

This involves explaining the meaning and significanceof the relationship so establishedINTERPRETING

The accounting information after being meaningfullyanalysed must be communicated in a proper form.This is done through preparation and distribution of annual reports.

COMMUNICATING

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ACC OUNT AN CY

Accountancy refers to a systematic knowledgeof accounting. It is a field of knowledgeconcerned with the principles and techniqueswhich are applied in accounting in order tomeet the specific need of a particular concern.

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ACC OUNTING CYCLE

Accounting cycle is a complete sequencebeginning with the recording of the

transactions and ending with preparation of the final accounts. The sequential steps in theaccounting cycle are:

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Steps in Accou nting

cycl e

Journalizing (Recording the Transaction in the journal)

Posting (Transfer the transactions in respecting a/copened in the ledger)

Balancing (Calculating diff. b/w both sides of a/c)

Trial Balance (Preparing list of all a/c)

e29f7presentation 1 - afm

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