• Program Name- MBA

• Course Name- Managerial Accounting

• Unit No.- 01

• Unit Name- Basic Concepts

• Accounting Concepts-
• Separate Business Entity Concept
• Going Concern Concept
• Money Measurement Concept
• Accounting Period Concept
• Cost Concept
• Dual Aspect Concept
• Accrual Concept
• Matching Concept
• Realization Concept
• Accounting Conventions-
• Consistency

• Full Disclosure

• Convention of conservatism

• Materiality
• Classification of Accounts
• Personal Account

• Real Account

• Nominal Account
• Golden Rules of Accounting-
• Personal Account- Debit the receiver, credit
the giver
• Real Account- Debit what comes in, credit
what goes out
• Nominal Account- Debit all expenses and
losses,credit all incomes and gains
• Accounting Cycle
• Basic Documents or Papers
• Books of Original Entry
• Ledger
• Trial Balance
• Final Accounts
• Journal
• Book of Original Entry
• Book of Primary Entry
• Journal divided into Subsidiary Books
• Transaction is recorded for the first time in
Journal.
• Process of recording in Journal is Journalizing.
• Journal
• Date
• Particulars
• L.F
• Debit Rs.
• Credit Rs.
• Subsidiary Books/ Day Books
• Purchase Book
• Sales Book
• Purchase Returns Book
• Sales Returns Book
• Cash Book
• Petty Cash Book
• Ledger
• Principal Book which contains all accounts
• Final Book of Entry or Secondary Book Of
Entry
• Posting of Entries in Ledger
• Trial Balance
• All Debit and Credit Balances are recorded
• Total of Debit Columns and Credit Columns
should Tally
• Final Accounts of Sole Traders
• Trading Account

• Profit and Loss Account

• Balance Sheet
THANK YOU