Date

Page

JANIT

Boak_ (uping

Book kupIng a combosite

OhIng 0k kaopIng
mMad bosqaol Coplh

R Oud bank ulu to e o booou

Oud kuping uuluy a naintouonu
bosk accont kopingU
mann h u b0sk
in
On_ aa u yutem
i AcDuOling hinaneial_andehona

o
a OuAinek_Oy au individuo, in TAm

Mauingoaccnunting [h Tinaccouating u wduu

ucouding
reauning I t i CDncOnto with
andJummanising thdaiy
pwine
claMiying
Tuansichenandntpuatingu-i 30Julthualten,
dpupaH nantlal
h acLOunuut_job fho antaxiDMA
oremonts iaditalirg Ju'dt 'o
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haMacto4sticA o Accounding
Kecoueling inancialhranaactiuna onluy
RetoudirKg in doumA mm
3
clasciyynhg
ummaHR1Ng_
ntoupuetathn o HeAulk
Comontnicoting
frcouning an_ dxtah well0A AcieuL

Dileuence bu Gook Keeping and Acoufing!

eonk-ceoping ACLontng
)Meaning Pook keeping_is thy aut is ontmdwt
recording the eLoHding , classilan
inanclalhansacipad SummauI sry h
a busines0 an daiy bune dond
individual, in tema Qud intepueting the
money Heults theure
(i)Checdtves wain objective 6 Th mun
chjectiw
barok-eeping to Cctounting fo dutepu
maintain comp ({e
nd niult u
aud hylteati naucio Soyth
ecorde e ancia uiree
Tausactou
age pcw roopig ia tAy
ermanyAcouuting is
Stierdlauyplag
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Paga

LIKeerds ook keeping puouide t ACCOUdiag_uoUIde

p t mauyocórds Aetonaloy gord.

(v Natu h bou keeping fuu OctoUting

outin and eleaica nalytial
natu natu,

(vi)ouel6 Ronk ceepiNg au be_pouorm hccnunting ic_houm

nousledlgee. Mon hawing limted by peusoA haiing
enbwledlge hahayu g
ewledgp n
ooek-eeje
by junie stal CLOdnq untu2u

Chieciuo oHcenunti
keep Autema lcouda ouine ranaachicnA
how how h 'nonciaposttion busnU)
nwmunicoll h dnHmatim O

t) dutecd onalpuevei OwOA gnd auds

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Advontageo hccounting
Helul in making manogeuial deisi
2fugUd) complete ucord.
Puouiel inoatim abouf
Psiouic 1brmation reganding ihancia politn
nalale omparatw chud
UAtloy plannt
facilitate conlusl
lelptul i detectim_oenos and -nues
fuidtic th a) 1ga_matiers
1o Helbeul in assessmKt aax-liably

DisadlantogeA counting
a d on_poysonaJudgomut.
2 Baed ua Accounting Cocakand Lmas0htn
(3)Absense o QualitatiK inoMatim.
)DaAec histoica cout
Nat uita ble e AQecaAing
uealisticnonatim
Su om uindlau dreictnq.
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Uaetis o Accountingntormatian

con beecivelywed o
AcCounding nkormat1on aboud a
Cbmmurlcati_the ançia
buSiness which JA uded by dileni uups o
dnd edeupice
ousid
beohle, both inaido KeyholdS, AcLouding
AcuQunting
AcinHding to Slauwin and
puouMindoymatiou u
disdplin)_hatJntounalUer
th Iomati
which exteuna dnd "tho
may maked dciSiong tha elult tn
alo.catioM eLonomlC JeloHces inSocieiy Sb,
oups
be dividdinto Twp
h uueye CCY

ntewn Ues
hexteyna UJos
ntey nod Useus
inteuna UACM (Ue th peusOh
whn manago t busineM ie QwnOHS_manageMOKt
Ou mhloyeel.

xuna UAeus:
Extoyna we auy peuronA dfhu
tho inteHna youS ke-inertoe CoyumeHs,
Hedfors govt 0gulatoy agenciel bank
Lscietie o 1 , _
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auic_Acconfino 1eyrmA
Evet
frythingthat bings albout kthang
n th inaycialpositimssa husiness A
collrd eveht. n othe LudHds, u eucnl
th Meult o a .
transgctian
ansachm
1 akind o uen evolving 3oym
valu blu uro ou
Cpaling blwuo M0u_posQA9 Includei
moiy peucenA envoli9
ekthauda qoods ou couu1Lu0Mq
aiuy busint traactio Condua
itueulk_ia chang
i h
ake_platl
Dt dssets Jahi tite waluy n Aon
cabital
beliteys
IkpeusOnA o uuhom 900au 30ld
8uiLe e HandNed (Uedit_au
khaona dibteys
Cyeditoys
hpOLOMA
been puychoued Om uhom g0ady_ha
Jeyuicu u Curditaual
Baymtlhth hal heeu Mad o
CHeditaH hua s
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)

PuMChase
Thtm puehases u wed dly oM
tpchaue ogods nwhichth buside
deale. may be caAhpuwchase Cedit
puHchase puhose_biuthases o 900ds
Yesalb d

t_eaun piot by ik yesale.

ale
&ale means duanAH 0wniuehip
And seuuice euutomOA
a puiee, k um dales wed drl
t gondnwhjek_dlDuuchaaed
puypose o mjal. Rale may be
th
Cash sae 0y CHditsaler

Assets
Assek ay mateuials tingk . ou
speutiey q a busine_entelnISe_including

Amounts du lo it om athuus.
y othoy wOd anything wkich_ill ehable
buinise enteupuire to get eaik ou a
utu

liahiitte
4t_olnote th amoun wkicu
buAhes du to_autsiduy othuy thau
uopiteouonh 0u dill. accouaf_Lucla as
CueditouS bills payable_bauk ouutduakt-
quttandiaqxpans, etc._
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Sto ck/Tnvevtasiy
Stock muam L
aM LULald 0u unusedot heud
AcAOuutlng yta 1 cso nclude gtoc
Maw mateuials Aemi tinishtd gooot
iaished

KewenuLe
AlL incomesa a kuul gpeualinu o
busines ACOlled
Jir euuy ing M So puDpeyefeys
capitQud 0a aul ao1 yeated Cvenw.
ga0c aud iCeJ eauuings o
inttut V,_dividuut uwnt CommissNsnetc
eXamplo Wuul
EXpensey
xpeaesMOA which Cadaaot he
mayake CuHlityOy Lwices iu othat
aMdut
uewuR dJ pLOduung aug
Aeling AOdAOu Aeuvicu.
uoit:
f means The_puoftt which us
ea
fh buAInes Concen.
thus LotÄL AQulaH_y HeCLIULh
i natuu' [hsut th erceu /lota
lueu Qu otal exRLuALs a leusineu Lon
qCtounting Felod.
 ate
aga

Logs
Th
1h tum LogsJA usec uo nuse.
4n th dnu, i_oppoiteto yuuli
i e eyes Hotal
uAVeu i calllud oss duuea n
th Coupita h 6una
n h Attok A Jos uUSto uch
gciviHe which do wet yield a y homit
teLosg du o Cicideutetc.
Ldeut

nom
Mam Oaudpuit UUcomblimintauu
o Lah huy. fntom oli uom
Huenu nount ucieM Aal_
gaadAi teumd uut. Sim luuly
Vcot 90col dold i_called inLe exphnLe
Suplu ULuy oLL Cxpénaes
i coLld "incom
rcin 9
t utesA to cash uwhduawn
t Th valu o90rel taken by h Owntr
peuADhal"ule uem Th bLAIneA. aluo
uncludej uy pLLivalzbaymen s d ueln as
hLDm fay L dIULHDnr_ pupmtum, ef_

*Capita
Capital means th1 _amount dnestedby th
n busine O4ganisation, may be ih
QuOnh calluod
tho tourm ocaAh g00d, a aho
0y OwnHSL net
woh Oy het ascerS
guit
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Accountg-Painaiples
Meaning Auouting_uinciple
A_puincipler meana
th"quicling Jule Th Auhject o Clccountin
ha ciutain_concthk, CoAVentio, auumptiens
Atanclaud language and uminolby to
enable th instuted haute to unduua tand
1hAamdenue a h accounfant. wanu
to communicate HLhue Comhinid Iogethu
a uAually_eallo Cqengually Mpted heountin
Paincipler" AAP).
uid nguulu
quidng Acounting_fuinciple au th,
e OctHon oy th dcOuntats
shileAILOuling huSineu ransactions
pLuincipile Cou be claurilted in
uo Cate goue A undu
Concopts Lonventions
Cor ept ehauate entity Convention o_conseuuatien
Conapt o going_ConcLun 2) Cbnenfion el_ All dis closue-
3 Coneupt qdual pect 3 Conuen fien ecns is tuntyV
Concupt eney meawieneni4Couenfien_ matouialtyo
5ConepieCout 5 COnventien o ohjtinry
GCocento CLsunjing puid. COhvenhon e weun
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DConcept al yealisaticn Conentim o Qccuue

&Concpt o matchirg th Convention eauibilt
Hevenues and couf.
Concepi o beifiakility. 3 Conuenfim s_pce stality.

ConLpt oehauat ontity

h oncqptAtates Hhat
uom acountingpoint Aiew buineuualuays
uatid CA Aekaualy enility. fuom its _auon
LueditouS Qind athus This conupt iu ahblicable
um 0LuganisafimlSale Tuaduship
pautuuuship andcDmbany.
Concopt o90ing Lontuun'
AcuOclin9 to this_Aonept
i t i aNSumedhat th buApne will be laieo
en eng peuied n acLountani lU_
HiLOLa nai&Auan4cctien in a LueLa/_
Mameyi 'A rmay haue tttunttuntutn that
h butineis wi be Liguidated eo,

Concapt ol_dual spect

Th toneept ugget that al
th busineuu hranjactiens mut beuLondid
Auch a_mannoyhal1 eoChtuanuactioms aects
oCCLOUnts simutaneotal
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*COncLpf omony_measuuernont
Acuauding fo thia
Conttpt Ony these buSinesttht raniLutim
QU
QLU LLOHdeduwhieh cau be meauuued in
m o monuy. ho hon- moneauy euent,
impoutant fo thu businese, tul_not he
HeLoyded

oupt o (aut
Accoucling to uu Concept, u
Csker K AucoLded n_ th book t tout
he at th_puite_paido eacguiu) fQucl
cout cat badi's koy ulacLounting
yeays.
COuCLpt _0cChllhing peuod
T cOntLpÍ_JUqgest a
instead_o
instead
notobng kinal puokt o
Apss
Chly at h nanttal hositidn thi hushen
aut mohmenI_al_ h
hueAhould he kuaton ah_husiness
dom
Aigulay Antewa_Cuown
a CcOuuting
peiod,The cencept thuuou_G9LL
splitth whol de th busine
Andotoy
h peod Coeeuf'_aciounting peuD
LaHyea JA qenLally
Heguded a best And Conunient
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ConcLpi ealisation
Ac tohiu toncoi, ueuenud
Mealised when_He Aal u made legally,
the_im
al i Auposed to homale at go0o hansle
Lwhen 0LwnLUShp_0u_pUQpeUts w
omAelley n h buyey._Jhi concapt of
he
Healisatien Atate that evenuuAhould
HeLogntsed at th Timt e_dlely. ie
whlu_thu Ownuship thi good i_znJeuned
te thu_buyey. Zh puoclucientini ama
ayhent 1en Ahould _not be tonsldeuec

Concupt mathing th Venues_and cot

hiA ConcLpt Afatet thaf JMcomi a a
hautieulay _houipd Ahould be asceHtdinnd
by matrhirg 00mbaung- fhN dalu
Helunue wh h1 Tota out o thaf peuLDd
Both Csh And_Cyedit Aales muut_be
Lonsideueo o WA puhae

Cocubt o yeuikiahiliky o_evidoaney

ThL Concupt 4tadei that all
ACCOLuntng transactiomsAhould_Auhoutedy
necetsady Clocumentt_twith_th hlp uhich
anaactien c he
fhi uhfulne
Veuiied hue
el fho
Auppoutng_locumeri_Luk

VouchèrS invoite efc)_pudvide thebau oy

LeitiLatien y thu CLLcLLteuS
 Date
Fage

ConyMnhos
ConuentioK CoLeHyaBm
Jt mees Tndanuy
maintain a Atali o akaius without
aAUldun ahange. Th convenlion o
Lonueuwatism An dctountirg indiraler hat
hove has bee opLachie oHh aCcountant
t ollouw Xh policy o playing_Aae
nothuwveli, Phuyllo th ul
antisipail no uokt but "huovide ou allpomhle
Loskes"

lonvention dudosuue
Thiu conention
Augget that thi acounianls Ahotula puupcue
Cand puuent th MupoMTA diudoAing ul
inomatiien HLgaudinginancial Heelk And
inancicu oartien
ontornion oALSTency
thi Aam_unciples_and Cnsistency_meansmainlani
andpacidea. t AuQgent
that a hauticulay_buactice onu adoptecd
odome MCLounhng aapetAhould be
aintaned 10m yeayto yeay nd 4houlsd
not be changed "tuithout any Aolid ueaiC
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xConvention ol mateuiality
Mateuialuty_means
impoufante, kcouding to faiu conuentton, CLU
expetted to di doae all
ALOuntant is
Lmhoutant ack and he can ignoye the
immateual 0 unimhoutant detal.

*onwntion a Chiectivity
Thu toniention Embhasise
that acLOunting inoumatieu should be oojecive
ie, i Ahould he erpuessed and meaAUNed
by
by thAtandauduwhich aULe COmmenly
akcebtable
Conention easibity
Thu COnMenffen enblhasiseg
hat tk Cet o ahlying a pauticLulay puunciple.
buactie ay_pLLoceu n PCCCOLunting Ahould
not he moue than thi bentit_diliedfuom

Conventio_Helevanc
Yhi conzentienAluggut that_
aCLOuntin9 ahould make_available_anlAuh
inkounaa Hon whiclh may be sulevant aud
ud

Luaeue achieuing iabject.

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Convention 0 cCHue
Thu CAC tounting Lonsntien
Hecomise non Cash eLuOnTs_0 thebuines
And whtn thLy_ClLLy Accuuel m
th expectationd a cash
99
4ecieve and
paymenlb an_Aiuu
Th acLouding to this Comention
atLounting Lwe LUcOAd all _expanseA nd
MLOmes Heladtid Ap a bauticulau p
LLOLNting puod whuthou acfual Cash
haA beeu paid n o t and whrthiu_caah
OA been Hiiened_0y_h0t
onuention apuice_Atabiliky
ha beern
1 haAbeen
uadithen fhat h auounts aMUml hat
Th_hu4chasing_bouMy monctauy Lnut,-
ay uupee_kemaint Xame.
Kay