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
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
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
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
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
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
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
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.
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
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