Introduction to

Accounting
and
Bookkeeping
Prof. Pallavi Ingale
9850861405
pallavingale7207@gmail.com
Ms. Rima Mr. Rahul
Keeping record of pocket money
• RIMA • RAHUL
- Write all expenses as - Don’t like to maintain
well as all pocket record of pocket
money left with her money.
Rima’s June month Pocket money record
Expenses Rs. Amount in Hand Rs.
Canteen expenses 200 June Pocket Money 2000
Geometry Box 185 May Month saved 150
Petrol expenses 1000
Notebook (300pages) 100
Mobile recharge 500
Total expenses 1985
Balance of June 165
month
2150 2150
 Want
money?
Rima’s July month Pocket money record
Expenses Rs. Amount in Hand Rs.
July Pocket Money 2000
June Month saved 165
Need extra money 1835

2165 2165
WHO is good
in
maintaining
record of
money?
 Book-keeping
• Recording of the business
transactions in the books of
accounts in a systematic way. All
the monetary transactions are
recorded date wise for accurate
business results from such records
at the end of accounting year. (1
April to 31 March)
Features of Book-keeping:
1) It is the method of recording day to day
business transactions.
2) Only financial transactions are recorded.
3) All records are prepared for a specific
period which are useful for future references.
4) Records of transactions are based on rules
and regulations.
5) It is an art of recording business
transactions scientifically.
 Accounting
• Accounting is the systematic process
of identifying, measuring, recording,
classifying, summarising,
interpreting and communicating
financial information.
• Accounting gives information on:
(i) the resources available
(ii) how the available resources have
been employed and
(iii) the results achieved by their use.
 Objectives of Accounting
i) To keep a systematic record of financial
transactions and events
ii) To ascertain the profit or loss of the business
enterprise
iii) To ascertain the financial position or status of the
enterprise
iv) To provide information to various stakeholders for
their requirements
v) To protect the properties of an enterprise and
vi) To ascertain the solvency and liquidity position of
an enterprise
 Historical information for
decision making
Forecasting of future is possible
Work as heart for all business
decisions.
Why Accounting Accuracy of financial data
gives, correct future step
information is towards mission of business.
Important? Base for planning of any
business strategy.
 Basis (Methods) of
Accounting System
• There are mainly three basis
or methods of accounting in
common usage, namely
(i) Cash basis
(ii) Accrual or Mercantile basis
(iii) Mixed or Hybrid basis.