Post on 25-Jun-2015
PCTE Group of Institutes
AccountingRecordingClassifyingSummarisingAnalysing and interpretationReportingOf financial Transactions
PCTE Group of Institutes
Objectives of AccountingPermanent recordAscertain combined effectEvaluate earning capacityProper utilisation of resources
PCTE Group of Institutes
Users of Accounting InformationInvestorsLendersSuppliersCustomerGovt. AgenciesPublic Employees
PCTE Group of Institutes
Book Keeping Vs AccountingStageScopeSkillOperationAdjustments and rectificationStep
PCTE Group of Institutes
Accounting Cycle
PCTE Group of Institutes
TerminologyProprietor/owner: The person who takes the
initiative to start the business.Capital: Amount invested by the proprietor in
the business.Drawings: Amount or benefit withdrawn by
the owner from the business.Business Transaction: Any exchange of goods
or services by the business with any other person in the business transaction.
PCTE Group of Institutes
Cont………Debtor: Person from whom amounts are due
for goods sold or services rendered.Creditor: Person to whom amount is owed by
the enterprise .Receivables: amount which outsiders owe to
the enterprise.Payables: Amount which business owe to the
outsidersGoods:
PCTE Group of Institutes
Cont…………….PurchaseSalesPurchases ReturnSales ReturnStockAssets
PCTE Group of Institutes
Assets
PCTE Group of Institutes
Fixed Assets
Current AssetsFictitious Assets
Tangible Fixed Assets Intangible Assets
Cont…….LiabilitiesExpenseExpenditureLossProfitRevenueIncome
PCTE Group of Institutes
Cont…………………..Account: Date wise summary of transactions
relating to persons, Property or expenses and incomes.
Account
PCTE Group of Institutes
Personal account Impersonal Account
Natural PANatural PA Natural PAReal account Nominal Account
P & L A/CExpenses & Losses A/C
Tangible A/C
Tangible A/C