Introduction to Accounting?

Introduction to accounting is the first chapter of the fundamentals of Accounting. This chapter deals with the following concepts.1.01 Meaning and Definition of Accounting1.02 Attributes (Characteristics) of Accounting1.03 Functions of Accounting1.04 Accounting Process1.05 Book Keeping1.06 Objectives of Accounting1.07 Advantages of Accounting1.08 Limitations of Accounting1.09 Users of Accounting Information1.10 Systems of Accounting 1.11 Basis of Accounting

Generally Accepted Accounting Principle (GAAP)?

The financial statements are produced following the § accepted accounting concepts or principles § for its uniform understanding. They are known as ‘Generally Accepted Accounting Principles’ (GAAP) and Accounting Standards. In this chapter contain following topics 2.01 Meaning and Nature of Generally Accepted Accounting Principles2.02 Accounting Concepts2.02.01 Going Concern Concept2.02.02 Accrual Concept2.02.03 Consistency Concept2.02.04 Money Measurement Concept2.02.05 Dual Aspect Concept2.02.06 Accounting Period or Periodicity Concept2.02.07 Matching Concept2.02.08 Realisation Concept2.02.09 Business Entity Concept2.02.10 Materiality Concept2.02.11 Conservatism or Prudence Concept2.02.12 Concept of Full Disclosure2.02.13 Historical Cost Concept2.02.14 Objective Evidence Concept2.03 Accounting Standards2.04 Accounting Standards Issued by the ICAI

Accounting Terms?

Following Accounting Terms will be discussed in this chapter 3.01.01 Debtor3.01.02 Creditor3.01.03 Assets3.01.04 Liabilities3.01.05 Goods3.01.06 Stock or Inventory3.01.07 Profit3.01.08 Loss3.01.09 Expense3.01.10 Expenditure3.01.11 Revenues3.01.12 Income3.01.13 Transaction3.01.14 Drawings3.01.15 Capital3.01.16 Cost3.01.17 Gain3.01.18 Freight3.01.19 Purchases3.01.20 Purchases Return3.01.21 Import3.01.22 Freight or Carriage Inwards3.01.23 Sales3.01.24 Sales Return3.01.25 Export3.01.26 Freight or Carriage Outwards3.01.27 Voucher3.01.28 Discount3.01.29 Trade Discount3.01.30 Cash Discount3.01.31 Account3.01.32 Books of Accounts3.01.33 Entry3.01.34 Debit3.01.35 Credit3.01.36 Proprietor3.01.37 Receivables3.01.38 Payables3.01.39 Bills of Exchange3.01.40 Bills Receivable3.01.41 Bills Payable3.01.42 Depreciation3.01.43 Cost of Goods Sold3.01.44 Bad Debts3.01.45 Insolvent3.01.46 Solvent3.01.47 Book Value3.01.48 Investments3.01.49 Entity3.01.50 Trial Balance3.01.51 Trading Account3.01.52 Profit and Loss Account3.01.53 Balance Sheet

Business Transactions – Voucher Preparation?

In this Chapter, we shall discuss Source Documents and the preparation of a Voucher. 4.01 Source Documents 4.02 Meaning of a Voucher 4.03 Types of Vouchers 4.04 Preparation of a Voucher

Journal And Ledger?

In this chapter of Journal and Ledger I will discuss the following topics 5.01 Meaning of an Account5.02 Meaning of Debit and Credit5.03 Classification of Accounts5.04 Significance of Debit and credit in Accounts5.05 Journal5.05.01 Steps and Rules of Journalising5.05.02 Totaling and Carry Forward.5.05.03 Simple and Compound Journal Entries5.06 Opening Entry5.07 Sub-division of Journal5.08 Ledger5.08.01 Meaning5.08.02 Form of a Ledger5.08.03 Mechanics of Posting5.08.04 Balancing of Ledger Accounts

Subsidiary Books?

SUBSIDIARY BOOKS book contain Cash Book, Purchases Day Book, Sales Day Book, Purchases Returns Book, Sales Returns Book, Bills Receivable Book, Bills Payable Book and Journal Proper. In this chapter I will discuss the following topics 6.01 Subsidiary Books6.02 Cash Book6.02.01 Meaning6.02.02 Single Column Cash Book6.02.03 Double Column Cash Book6.02.04 Triple Column Cash Book6.03 Petty Cash Book6.04 Purchases Book6.05 Sales Book6.06 Purchases Return Book6.07 Sales Return Book6.08 Bills Receivable Book6.09 Bills payable Book6.10 Journal Proper

Bank Reconciliation Statement?

A Bank Reconciliation Statement is prepared on a particular date to reconcile the bank balance in the Cash Book with the balance as per the Bank Pass Book (or Bank Statement) by showing reasons for differences between the two. In this chapter I will discuss the following topics7.01 Meaning of a Bank Reconciliation Statement7.02 Need and Importance of a Bank Reconciliation Statement7.03 Causes of Difference between Cash Book and Pass Book Balances7.04 Methods of Preparing a Bank Reconciliation Statement7.05 Preparation of a Bank Reconciliation Statement7.06 Preparation of a Bank Reconciliation Statement given as an extract of the Cash Book as well as the Pass Book relating to the same month7.07 Preparation of Bank Reconciliation Statement with Adjusted (corrected) Cash Book Balance

Trial Balance?

A Trial Balance is a statement of accounts which appears in the Ledger showing either the balances or the total amounts of debit and credit items. In this I will discuss the following topics8.01 Meaning of a Trial Balance 8.02 Objectives or Utility of a Trial Balance 8.03 Limitations of Trial Balance 8.04 Methods of Preparing a Trial Balance 8.05 Preparation of the Trial Balance from Ledger Account Balances 8.06 Redrafting of a Trial Balance

Rectification of Accounting?

In this chapter of rectification of error, I will discuss the different types of error and method of its rectification under the following heads. 9.01 Types of Errors • Errors Disclosed by the Trial Balance • Errors not Disclosed by the Trial Balance • Locating Errors 9.02 Rectification of Errors 9.03 Suspense Account

Capital and Revenue-Receipts and Payments?

A proper distinction between expenditure and expense, income and receipt, capital, and revenue as regard to expenditure, payments, receipts, profits, and losses, is one of the basic principles of correct accounting. In this chapter I will discuss the following topics10.01 Meaning and Difference between Expenditure and Expense 10.02 Meaning and Difference between Income and Receipts 10.03 Meaning and Difference between Capital Expenditure and Revenue Expenditure 10.04 Meaning and Difference between Capital Receipt and Revenue Receipt 10.05 Meaning and Difference between Capital Profit (Capital Income) and Revenue Profit (Revenue Income) 10.06 Meaning and Difference between Capital Loss and Revenue Loss 10.07 Meaning of Deferred Revenue Expenditure


Depreciation means a fall in the value of an asset because of usage or with efflux of time or due to obsolescence or accident. Every fixed asset looses its value, once it is put to use In this chapter I will discuss the following topics11.01 Meaning of Depreciation 11.02 Characteristics of Depreciation 11.03 Depreciation and Other Related Concepts 11.04 Causes of Depreciation 11.05 Accounting Concept of Accounting 11.06 Objectives or Need for Providing Depreciation 11.07 Factors or Basis of Providing Depreciation 11.08 Methods of Recording Depreciation 11.09 Methods of Charging Depreciation 11.10 Change of Method of Depreciation [Accounting Standard-6 (Revised)] 11.11 Practical Issues Relating to Depreciation

Provisions and Reserves?

In fact, provisions and reserves are such considerations which relate to the future needs for which a part of the current earning has to be set aside. In this Chapter, I will discuss the accounting treatment of provisions and reserves shown in the Balance Sheet of enterprises.

Final Account – Manufacturing Company?

Financial Statements comprise of the following financial statements: (i) Manufacturing Account for manufacturing enterprises, (ii) Trading and Profit and Loss Account and (iii) Balance Sheet. In this chapter I will discuss the final account of the manufacturing company under the following head.13.01 Manufacturing Account 13.02 Trading A/c 13.03 Profit and Loss A/c 13.04 Operating Profit and Net Profit 13.05 Balance Sheet

Final Account of Non-Manufacturing Comany?

In this chapter I will discuss the final account of non-manufacturing company under the following head.14.01 Why Adjustments are made in Final Accounts 14.02 Adjustments in the Final Accounts Closing Stock ::: Outstanding Expenses Prepaid or Unexpired Expenses ::: Accrued or Outstanding Income Unearned Income or Income Received in Advance ::: Depreciation Bad Debts ::: Provision for Doubtful Debts Provision for Discount on Debtors ::: Interest on Capital Interest on Drawings :::: Abnormal or Accidental Losses Goods Sent on Approval Basis ::: VAT Adjustment Pertaining to Goods: ::: C.S.T. * Goods-in-Transit ::: *P.F. * Drawings of Goods by the Proprietor ::: *Advances to Employees * Goods Distributed as Free Samples ::: *Imprest on Adjustments