PRESENTED BY TITTY BENJAMIN SHERRY RITHA ANTONY

ACCOUNTING
MEANING OF ACCOUNTING
DEFINITION OF ACCOUNTING ACCORDING TO

AICPA

OBJECTIVES
MAINTENANCE OF RECORDS OF BUSINESS
CALCULATION OF PROFIT OR LOSS DEPICTION OF FINANCIAL POSITION

MAKING INFORMATION AVAILABLE TO VARIOUS

GROUPS

SOME BASIC TERMS

ASSETS a) FIXED ASSETS b) CURRENT ASSETS
1)
2) LIABILITIES a) SHORT TERM b) LONG TERM

3) CAPITAL
4) REVENUES 5) EXPENSES a) CAPITAL EXPENDITURE b) REVENUE EXPENDITURE

6) PURCHASES
7) SALES 8) STOCK

9) DEBTORS
10) CREDITORS 11) DRAWINGS 12) BUSINESS TRANSACTIONS

THEORY BASE OF ACCOUNTING

GAAP
1) ACCOUNTING CONCEPTS 2) ACCOUNTING PRINCIPLES 3)MODIFYING PRINCIPLES

ACCOUNTING CONCEPTS
ACCOUNTING ENTITY
GOING CONCERN MONEY MEASUREMENT

VERIFIABLE OBJECTIVE
ACCOUNTING PERIOD

ACCOUNTING PRINCIPLES
REVENUE REALISATION
EXPENSE OR COST MATCHING PRINCIPLE

FULL DISCLOSURE
DUAL ASPECT

MODIFYING PRINCIPLES
PRINCIPLES OF MATERIALITY
PRINCIPLE OF CONSISTENCY CONVENTION OF CONSERVATISM

TIMELINESS
PRACTICE IN INDUSTRY COST BENEFIT PRINCIPLE PRUDENCE

ORIGIN AND RECORDING OF TRNSACTION

ACCOUNTING EQUATION

ASSETS=LIABILITIES

ACCOUNTS
AN ACCOUNT IS DEFINED AS A FORMAL RECORD OF ALL TRANSACTIONS RELATING TO CHANGES IN A PARTICULAR ITEM
UNDER THE ENGLISH APPROACH, ACCOUNTS ARE: a)PERSONAL ACCOUNT b)REAL ACCOUNT c)NOMINAL ACCOUNT

PERSONAL ACCOUNTS
DEBIT THE RECIEVER CREDIT THE GIVER EXAMPLE #RAM PAID RAJU RS 10000

#DEVIKA RECEIVED RS 5000 FROM MALAVIKA

REAL ACCOUNTS
DEBIT WHAT COMES IN CREDIT WHAT GOES OUT EXAMPLE #FURNITURE WORTH RS 25000 BOUGHT FOR CASH #MACHINERY WORTH RS 40000 SOLD FOR CASH

NOMINAL ACCOUNTS
DEBIT ALL EXPENSES AND LOSES CREDIT ALL INCOMES AND GAINS EXAMPLE #SALARY RS 5000 PAID #RENT RS 2500 RECIEVED