This document provides an overview of basic accounting concepts. It defines accounting as recording, classifying, and summarizing financial transactions and information. It also describes bookkeeping as the art of recording business transactions systematically. Advantages of bookkeeping include having a reliable record for calculating profit and loss, dues, controlling borrowings, and ascertaining the financial position and growth of a business. The document outlines the key differences between single-entry and double-entry accounting systems and provides rules for classifying different types of accounts.
This document provides an overview of basic accounting concepts. It defines accounting as recording, classifying, and summarizing financial transactions and information. It also describes bookkeeping as the art of recording business transactions systematically. Advantages of bookkeeping include having a reliable record for calculating profit and loss, dues, controlling borrowings, and ascertaining the financial position and growth of a business. The document outlines the key differences between single-entry and double-entry accounting systems and provides rules for classifying different types of accounts.
This document provides an overview of basic accounting concepts. It defines accounting as recording, classifying, and summarizing financial transactions and information. It also describes bookkeeping as the art of recording business transactions systematically. Advantages of bookkeeping include having a reliable record for calculating profit and loss, dues, controlling borrowings, and ascertaining the financial position and growth of a business. The document outlines the key differences between single-entry and double-entry accounting systems and provides rules for classifying different types of accounts.
This document provides an overview of basic accounting concepts. It defines accounting as recording, classifying, and summarizing financial transactions and information. It also describes bookkeeping as the art of recording business transactions systematically. Advantages of bookkeeping include having a reliable record for calculating profit and loss, dues, controlling borrowings, and ascertaining the financial position and growth of a business. The document outlines the key differences between single-entry and double-entry accounting systems and provides rules for classifying different types of accounts.
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Chapter-1
Basic of Acconting Meaning of Accounting Recording Classifying Summarizing.
Book-keeping of Accounting Book keeping is the art of recording business transactions in a systematic manner. Advantages of book-keeping Reliable Record. Calculation of Profit (or) Loss Calculation of Dues Control over Borrowings Ascertainment of the growth of business Ascertainment of the financial position Identifying the Dos and Donts Fixing the Selling price Taxation.
Method of Accounting Single Entry System Double Entry System.
Meaning of Single Entry System
Single entry system is an incomplete system of recording
financial transaction.
Meaning of Double Entry System
Double entry system is a complete system of recording and recording financial transactions. Types of Accounting Accounting
Personal
Impersonal
Real
Nominal
Rules for the Classified Accounts
1) Personal Accounts: By (or) Debit - The Receiver To (or) Credit - The Giver 2) Impersonal, Real (or) Capital Accounts: By (or) Debit - What Come In? To (or) Credit - What Goes Out? 3) Nominal Account / Fictitious Account: By (or) Debit - All Expenses and Losses To (or) Credit - All Incomes and Gains
Personal Accounting It deals with the accounting recording to personal and takes the following forms Example: Kumar a/c, Indian Bank a/c, T.V.S. ltd. a/c. One aspect may be Receiver Another one may be Giver
"The Language of Business: How Accounting Tells Your Story" "A Comprehensive Guide to Understanding, Interpreting, and Leveraging Financial Statements for Personal and Professional Success"
