Accountancy1

NEWS

CHESS

COLD

JOKE

AIM

DATE

EAT

PEN

SMILE

BYE

NEWS - NORTH EAST WEST SOUTH

CHESS - CHARIOT HORSE ELEPHANT SOLDIERS

COLD - CHRONIC OBSTRUCTIVE LUNG DISEASE

JOKE - JOY OF KIDS ENTERTAINMENT

AIM - AMBITION IN MIND

DATE - DAY & TIME EVOLUTION

EAT - ENERGY & TASTE

PEN - POWER ENRICHED IN NIB

SMILE - SWEET MEMORIES IN LIPS EXPRESSION

BYE - BE WITH YOU EVERY TIME.

BOOK KEEPING & ACCTG LIMITATIONS OF ACCOUNTING TYPES OF ACCOUNTING ACCOUNTING TERMS & DEFINITIONS ACCOUNTING CONCEPTS ACCOUNTING CONVENTIONS ACCOUNTING EQUATION BANK RECONCILIATION STATEMENT TRIAL BALANCE RULES OF ACCOUNTING RULES OF DEBIT AND CREDIT FIN STATEMENTS

4

DOUBLE ENTRY SYS

FINANCIAL STATEMENTS

PROFIT & LOSS ACCOUNT

BALANCE SHEET

5

BOOK KEEPING

OBJECTIVES OF FIN ACCTG

DEFINITIONS

SINGLE & DOUBLE ENTRY SYSTEM

RULES OF DOUBLE ENTRY SYS

FUNDS & GRANTS

6

Recording of business transactions in a systematic manner in the books of account is called book-keeping.

Book- Keeping is concerned with recording of Financial data.

“The art of keeping a permanent record of business transactions is book keeping”.

7

Accounting is identified with a system of recording of business transactions that creates economic information about business enterprises to facilitate decision making.

The function of accounting is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions.

8

“It is the process of identifying, measuring, recording and communicating the required information relating to the economic events of an organisation to the interested users of such information”.

9

TO ASCERTAION ACCURATELY

PERFORMANCE DURING PERIOD

FINANCIAL POSN

MAINT CONT OVER ASSETS

CASH FLOW MGT & PLG

PROVIDING INFO TO GOVT AGENCIES & OTHER STAKE HOLDERS

10

BASIS BOOK KEEPING ACCTG

NATURE Concerned with iden financial transactions; measuringthem in monetary terms; recording and classifying them.

concerned with summarizing the recorded transactions, interpreting them and communicating the results.

OBJ To maintain systematic recordsof financial transactions.

To ascertain business income and financial position by maint records of business transactions.

Function To record business transactions.So its scope is limited.

It is the recording, classifying,summarizing, interpreting business transactions and communicating the results. Thus its scope is quite wide.

Basis Vrs and other sp docus are necessary as evidence to record the business transactions

Book-keeping works as the basis for acctg info

11

LEVEL OF KNOWLDGE

It is enough to have elementary Knowledge of accounting to do bookkeeping.

For accounting, advanced and in depthknowledge and understandingrequired.

RELATIONS

Book-keeping is the first step to accounting.

Accounting begins where bookkeepingends.

12

FINANCIAL ACCOUNTING

COST ACCOUNTING

MANAGEMENT ACCOUNTING

17

The word Accounting and Financial accounting are used interchangeably.

Concerned with recording the transactions of financial character, summarising and interpreting them and communicating the results to the users.

Ascertains profit earned or loss incurred during a period (usually one year as accounting year) and the financial position as on the date.

It can provide financial info required by the mgt and other parties.

18

It analyses the expdr so as to ascertain the cost of various products manufactured by the firm and fix their selling prices.

It also helps in controlling the costs and providing necessary costing info to management for decision making.

Direct Costs.

In Direct Costs: Vacations, Holidays, Sick Lve, Health Ins, Taxes, Pension Costs, Eqpt Depreciation, etc 

19

It is concerned with info relating to funds, cost and profits, acqns of funds and Investment decisions, etc.

Basically, it is meant to assist the management in taking rational policy decisions and to evaluate the impact of its decisions and actions and assess the performance of various departments..

Uses both Financial Acctg & Cost acctg info.

This enables the management in decision making, pertaining to M & A, Expansion, Raising of funds, Cash flow Mgt & Investment decisions.

20