Aceetting ==0) hte. Sv ea SS Accouieg Accsunting “reburs to Collechix Summariging Casalying. aud repprtivg ug Hae inker mation, +5 louciness in mane ely terms. Features ox Chawachervichce & Accounh'vg :— 1 Recording “4 & Financial Transachong aud Eveuts — Accrunting wehcords & at Hose transachons aud eveuts lich ant H financial nature a i cHity brig a Change in Hit esousees Hy fim. Fox ample’ purehode Hf Gosds by assets by cewviees. 2 Measuremad & Transactions 2- t Aceruntivg vecovds +Hht transactions ouly in terms mouty. In India , vuper Wg used ac a mibasuying uit Fev Cxowple, if 10 Quindols A vice ii purchased @ 3,000 peux quintal £30,000 will be vetovded in tHe books O occouuds. Be Classi fig = % | Actsunting is an ant of Classify 4: Summoaisiug _ ity tue users Of accrunting statemente» Tuts Lig v" business +tyansachpns ~ Clascibication ic ttt les le uping Hhe +yancachons Hout watuve at our i place ino cepavate account knowin as lidgur Tt_involveg presentug +e Classified ‘data in @ manney Which is understandable aud uceful mctss leads to ti pupies athon © ts fe statements O Triad Balance, © Trodinp aud Profit ould Loss al Lossclassmate Account “4 = Chaudye Prakash Account oy Statement Pragkit sb Loss (in Case OF Companite) aud (i) Balance Sheets: 5+ Analysing Qud_Intuy preting i= Tn Gccournting financial results ant aualybid aud inteyprtted So -Hrat tlt Users 5, Finan efal inkermation Can make & meautug— ful _judgimut bout True profitabibity Oud finan positon Oy tut business: 6 Communicating Acesuuhng inyplyes Comm uri cahug “Hit _kinancial dada to Hut interested pawhes Hone Linan cial statements aud reports + “The accounting. Inkex matin must be provided on -Hust bo tit us co! tat decisions Could be taken at fu _appropride| time > Objechves of Accounting :— 1p keap Systematic ud Complete Recorols df ALL Einancial © Transco chon $'— Due +o accounbing system | businessmen nud wot burden teir_m ies! wememberiv4. everyting Haat takes place in Hie busiusss 2p Becentain Propit ov Lose: “To yokit ayn or Locsee cubbertd in business duyivg a Parhicular puriod, Propit & lose Acemuat ty Trou Statement _| ig prepared:; classmate Chaudvo Prakash S:To ascertain +e Ginanciol Position Of Hud. Burr at 3S = Foy His purpose Balance Shut is preportd: The Balance Sheet shows Capital Oud Liabilities on tie out hand aud Assete on Aho othpy- A To provide Inteymation to Varisus (Coroups aud Users (rvoupe aud ucors who ant dlivectly ey indivectly related +o abb aire ok He IntcS Cin“ter prise. Ddnur & business vinvesters creditors government taxation authorihes suppliers cassployse trade undyn ete use Occounhug infer make’. §: To Facilitate Decision-making — Agcouhus intermation 1S User dikbevent person ovganicdHione aud institutions The management hae Ho take decisions bam Hint to Hust oon dikbered matters Accoun- ing facilitates In _dlecisien= making process: Tn Hy! sence i cial state ts ets it il) be clip ies ty tales decd Signe: 6 To meat Legal Requirements = Accouutiing Qims +o mut various [egal requirements + The accourhng records provide tl best Pests fof ilingp netufis Of okt dixect ag wu as indirect tamed. Accounting Cyeles ey Accounting Procese:~ |_ Meaning: The accounting cele means Fit sequence oe aoeneen Uclassmate. Accounting ame | Chandva Prakash Steps in accounting for a inantial tYansachen Entered intr by aun organisation: An Accounting ele is Complete o cequencd O stps bepinut wnt, Ft recording & Hit binencial tran Sactioks aud tnd wath Hie Pre parrostion Oe _Jinantial accounts , 1-6 Linancial ¢tatemeuts for ov financial purind -Accounbing cycle is also known ag He accounting. popetss: | Skeps (ev stage) in Aceouuhivg Cyclet= O 7he complete Aceoun= Hag Cycle Can be olivided into five shages ey gteps: Financial Transactions L Balance Shut Recording Posihen Statemtut. in Journal tv atu ~\P Cash Book. Pe Purchases Beok Tncome Statement: J Leger( FBP codes Gack Trading aud Prab it Posch w / > Purchases & Loge Account Boloincing) Retin Book | LN TP calee Rebien | Trial <= Book Balonce Pills Payable : spate Accounth'ug Cycle [> Journal aa Step [= Journobising _ Civet oy al) balances dk _acepuuds aud day-to- oh inant transactions Wu rtcorded in Har Journal:classmate. Accouncking. eee —=C, Chandran Prakash Step 2+ Ledgya Transachens recorded in tit Journal are Hvansbivyed bo veepective accounts opentd jin ttt Ledger Pochiug in Hus ledaun ig alco Called a olassipication® @ drancachéns » Thun at Hat tual ad citic period Accounts one balanced: Balane, betnieen ttt total O debs} Side amount Column Qud tit total a cvedit Siolt amount Column fo Leda account is. Called ‘Balancivg”. Step 3: Trig! Godanes :~ In this ctoge a Lit shouting Hit balances Oe tach duad ever’ account ic prep. Thig_Lict te known as Trial Baldnee- The total & duit eis balances 9 Trio! Balance must be equal tp tat gum Q Fis credit gidt balances- Step 4; Income Stotembat Then iat dard Paofit Alo lAccount oy Lneomt Statembut j —Pxtpabtd +o find cut prfit oy | accoul tm a orton step ¢: Financial Posititn/ Balance Shut i~ Tuc chows At financiad positsbe | fy tos busier at thy tnd § Has purtod: au) next Accountuy year: The balance from Optusieg Galance Shut are coded in toa _ferm in the Jrur nal hus,_in Lalit Be Quadiog period Tit Can account Prvctss is secre seperated and co it has bun | alled Accounting es —___—__