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Lecture 1-2

This document provides an overview of accounting and bookkeeping concepts. It defines bookkeeping as recording financial transactions, and accounting as identifying, measuring, communicating, and interpreting monetary transactions and financial information. Accounting starts where bookkeeping ends by classifying, analyzing, and summarizing financial data. The document outlines the functions of accounting as recording, classifying, summarizing, dealing with transactions, analyzing, interpreting, and communicating financial information. It also discusses who uses accounting information and some key accounting terms.

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23 views

Lecture 1-2

This document provides an overview of accounting and bookkeeping concepts. It defines bookkeeping as recording financial transactions, and accounting as identifying, measuring, communicating, and interpreting monetary transactions and financial information. Accounting starts where bookkeeping ends by classifying, analyzing, and summarizing financial data. The document outlines the functions of accounting as recording, classifying, summarizing, dealing with transactions, analyzing, interpreting, and communicating financial information. It also discusses who uses accounting information and some key accounting terms.

Uploaded by

technical analysis
Copyright
© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
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ABC Of Accounting

Dr. Ashwani Varshney


Unit I
Lecture 1-2
Book keeping is that branch of Knowledge
which tells us how to keep a record of
financial transactions.
Book keeping is an art of
identifying ,classifying and recording the
monetary transactions in the book of
accounts.
Accounting starts where Book keeping
ends.

B00k keeping
Definition
Learning Objectives
Describe the need for accounting
Perceive the development of accounting Vs Book
keeping
Explain the meaning of accounting
Name the persons interested in accounting
disclosures
Identify the objectives of accounting
Describe the role of accountant in the society

3
Accounting is the process of identifying,
measuring, and communicating economic
information to permit informed judgments
and decisions by users of the information.
Accounting is defined as the art of
identifying,recording,Classifying,analysing
,summarising and interpreting the
monetary transactions in the books of
accounts.

Accounting:
Definition
Recording (Journal)
Classifying (Ledger)
Summarizing (Trial Balance, Income
statement and Balance sheet)
Dealing with Financial Transactions.
Analyzing and interpreting. (Ratio, Cash
flow, fund flow and other analysis)
Communicating (Accounting Reports)

Accounting: Functions
Acconting Cycle
To keep systematic record.

To ascertain the profit or loss.

To ascertain the Financial position of the


Business.

To provide information to various parties.

To Facilitate Decision making.

Accounting: why to study


Proprietors
Managers
Creditors
ProspectiveInvestors
Government
Employees
Public
Regulatory Agencies
Researchers

End Users of Accounting


Information
Assets
Capital
Liabilities
Drawings
Expenses
Revenue
Loss
Purchase
Sales
Debtors

Terminology
Creditors
Accounting year
Stock
Proprietor
voucher

Terminology
Scanning The Annual Report

Try and Find out the following questions from


the annual report of Hindustan Unilever Ltd.
(www.hul.co.in)

Q1 : What is HUL’s business ? Who are the major suppliers and


customers ?
Q2 : Read the “Contents” page . Mark the items that relate to
Financial Statement as “FS” and the rest as “NFS”
Q3 : List HUL’s Assets ,liability and equity shares

Activity 1
Financial Accounting
Cost Accounting
Management Accounting
Human Resource Accounting
Inflation Accounting
Social Responsibility Accounting

Branches of Accounting
1. A person who owes money to the firm is called:
 (a) Creditor (b) Debtor (c) None of these
2. A person to whom money is owed by the firm is called:
 (a) Creditor (b) Debtor (c) None of these
3. Land and building is:
 (a) Fixed asset (b) Current asset (c) None of these
4. Goodwill is:
 (a) Tangible asset (b) Fictitious asset (c) None of these
5. Purchase of building is:
 (a) Capital expenditure (b) Revenue expenditure (c) None of these
6. Salaries paid is:
 (a) Expense (b) Expenditure (c) None of these
7. Debentures are:
 (a) Long term liability (b) Short term liability (c) None of these
8. Stock is:
 (a) Long term liability (b) Current liability (c) None of these
9. Bank loan is:
 (a) Fixed asset (b) Contingent liability (c) None of these
10.The total of debtors and bills receivable is:
 (a) Receivables (b) Payables (c) None of these

Self Test questions


1)Paresh shah-Financial Accounting for
Management-Oxford , 2016

2) Maheshwari S.N & Maheshwari S K –


An Introduction to Accountancy
(Vikas,2017 )

References

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