ACCOUNTING

‡ Process- identifying, measuring, communicating infjudgment & decision- users of a/c ‡ OBJECTIVES OF ACCOUNTING  To keep systematic records of financial transactions and events  To ascertain the P&L  To ascertain the financial position of the business  To provide information to the users for taking decisions  To keep the solvency position  To protect the business properties
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FUNCTIONS OF ACCOUNTING
‡ ‡ ‡ ‡ ‡ ‡ Recording Classifying Summarizing Analyzing and interpretating Communicating Meeting legal requirements

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ADVANTAGES OF ACCOUNTING
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Complete record of transactions Ascertainment of operational profit & loss Ascertainment of the financial position of the business Providing information to the users for taking decision To know the solvency position Efficiency of the business can be measured Legal evidence Facilitates raising of loans Helps in distributing dividend to the SH Proper utilization of funds
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DISADVANTAGES OF ACCOUNTING
‡ ‡ ‡ ‡ Recording only monetary transactions Provides only historical data Possibility of manipulation of a/c Accounting is done for the business as a whole ( product or process wise)

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ACCOUNTING CONCEPTS 
Business Entry Concepts 
bs unit & person separate a/c prepared ± point of business & owner Only bs transaction ± recorded Personal transaction ± not recorded Contribution ± capital, goods pur for bs- recorded  accept ± only ± sole proprietorship , partnership

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ACCOUNTING CONCEPTS 
Money Measurement concepts 
transaction- money 

Going Concern concept 
continue- forever FA recorded original cost- dep deducted no realizable value recorded Assets & Liabilities are classified

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