Basics of Accounting

Mohammad Nazmul Huda

Rupali Bank Limited
 Defination Of Accounting

The art of recording, classifying, and summarizing in a significant

manner and in terms of money, transactions, and events which are,
in part at least, of financial character, and interpreting the results
thereof.

The process of maintaining financial records and estimates and using

the information to take critical financial decisions
 Objectives Of Accounting
The following are the main objectives of
accounting:
To maintain full and systematic records of
business transactions
To ascertain profit or loss of the business.

To depict financial position of the business

To provide accounting information to the

interested parties:
Accounting Equation
Accounting Equation
Related Statement of Final Accounts
 Balance Sheet Items
Assets

Current Asset Fixed Asset

I. Inventories I. Property, Plant &
II. Account Receivable Equipment
III. Advance, Deposit & II. Good will
Prepayment III. Intangible asset
IV. Short-term IV. Long-term
Investment Investment
V. Cash & Cash
Eqivalent
 Balance Sheet Items
Liabilities

Current Liabilities Long Term Liabilities

I. Long-term loan
I. Short-term loan/
II. Provision for
woeking capital
employee gratuity
II. Account Payable
III. Deferred Tax
III. Current portion of
liabilities
Long-term Loan
IV. Liabilities for Expenses
 Balance Sheet Items

I. Paid-up Capital
II. Share money deposit
Equities III. Retain earnings
IV. Revaluation reserve
Off Balance Sheet Items

I. Acceptance & Endorsment

II. Letter of Guarantee
III. Letter of Credit
IV. Bill for Collection
V. Undrawn Commitment
 Income Statement Items
Revenue - COGS Gross profit Operating
= -
Expense

Operating Interest EBT

- = - Current Tax
profit Expense

Net Income
Cash Flow Sheet Items
Cash flow from
Operating Activities
+
Cash flow from
Investing Activities Ending
+ Balance
Cash flow from
Financing Activities
+
Opening Balance