C. A.

Akila Kalyanaraman
SOURCE : http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspx
 Balance Sheet : Financial position of an
accounting entity as of a specified
moment in time.

 Assets are economic resources of an
entity.

 The claims of various parties against
the asset are called equities
(liabilities).

 Owners Equity or Capital : the amount
invested by the owners of the accounting
entity.

 Current Liabilities : are expected to be
satisfied or extinguished during the normal
operating cycle or one year, whichever is
longer.
 Accounts Payable
 Taxes Payable

 Non Current Liabilities :
 Secured and/or Unsecured Loans



 Current Assets : Assets expected to be
realised in cash or sold or consumed during
normal operating cycle or a year, whichever
is longer.
 Cash and Bank balances
 Marketable Securities
 Accounts Receivable
 Inventories

 Non Current Assets :
 Land and Building
 Plant and Equipment
 Investment


 Money Measurement
 Entity
 Going Concern
 Cost
 Dual Aspect

 Money Measurement Concept : In Financial
Accounting , record is made only of
information that can be expressed in
monetary terms.


 Entity Concept : Accounts are maintained for
entities , and not for the persons associated
with these entities.
Type of Entity Owner
 Joint Stock Companies
 Sole Proprietorship
 Partnership Firm
 AOP / Societies
 Trust
 Hindu Undivided Family
( HUF)
 Shareholders
 Sole Trader/Proprietor
 Partners
 Members
 Trustees
 Karta and Coparceners

 Going Concern Concept : Unless there is
good evidence to the contrary, Accounting
assumes that an entity is a going concern.
Eg. Kirana store, Garment manufacturer

 Cost Concept : applied to value Assets.
Assets are economic resources of an entity.
 Monetary / Current assets
 Non Monetary/ Non Current assets

 In accounting, all assets are initially measured
at cost.

 Monetary / Current Assets : whose cash value
is fixed by contract . Hence, first at cost and
then at FAIR value.
Eg: Inventory, Trade Securities

 Non Monetary/ Non Current assets : whose
real worth may change with passage of time,
but cost concept continues to be basis of
value.
Eg: Land, Plant and Machinery, Building
 Dual Aspect Concept : All amounts owned by
entity are owed to someone or the other.
The claims of various parties against the
asset are called equities.
2 types of equity - claims by
Liabilities - persons other than owners
Owner’s Equity - claim of owners

Fundamental Accounting Equation
Asset = Equities
 Asset= Liability + Owner’s Equity +
Retained Earnings





SOURCE : http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/
 Anthony, Hawkins, & Merchant (AHM) Chapter – 2

 http://www.youtube.com/watch?v=j5KxRNbakH4

 http://www.hul.co.in/investorrelations/AnnualRepo
rts/AnnualReport2012-13/Downloadcentre.aspx

 http://ashishtater.wordpress.com/2012/01/11/sc
hedule-vi-revised-balance-sheet-format/



Thank You