Dr.

Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.

Chapter 1
Accounting Principles and Concepts
1.0 Introduction of Accounting

Accounting is the language of business. The main objectives of accounting are to

safeguard the interests of the business, its proprietors and others connected with
the business transactions. This is done by providing suitable information to the
owners, creditors, shareholders, Government, financial institutions and other
related agencies.

1.2 Meaning and Definition

1.2.1 Definition of Accounting:

The American Accounting Association defines accounting as "the process of
identifying, measuring and communicating economic information to permit
informed judgements and decisions by the users of the information."

According to AICPA, Accounting is "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 a financial character and interpreting the result
thereof."

1.2.2 Meaning of Accounting:

Accounting is the art or the process of identifying, classifying, analysing, recording,
measuring, summarizing the financial events transactions in terms of money and
reporting and communicating the results of business operations to the users of
Accounting information so that they can take informed decisions based on such
accounting information. Therefore, accounting is also called language of business.
This means that without proper knowledge of accounting understanding the
financial statements of an entity and the cause and effects of economic events and
transactions on business operations, performance and progress is very difficult.

1.3. Steps in Accounting:

The following are the important steps to be adopted in the accounting process:

1) Recording: Recording all the transactions in subsidiary books for purpose

of future record or reference. It is referred to as "Journal."
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
2) Classifying: All recorded transactions in subsidiary books are classified and
posted to the main book of accounts. It is known as "Ledger."
3) Summarizing: All recorded transactions in main books will be summarized
for the preparation Statement of Profit and Loss and Balance Sheet.
4) Interpreting: Interpreting refers to the explanation of the meaning and
significance of the result of final accounts and balance sheet so that parties
concerned with business can determine the future earnings, ability to pay
interest, liquidity and profitability and a sound dividend policy.

1.4 Functions of Accounting:

From the definition and analysis of the above the main functions of accounting
can be summarized as follows.

(1) Keeping systematic record of business transactions.

(2) Protecting properties of the business.
(3) Communicating the results to various parties interested in or connected
with the business concerned and
(4) Meeting legal requirements for under companies act or income tax act or
any other act required by government.

1.5 Objectives of Accounting:

The Main objectives or aims of accounting are enlisted as follows.

A. Providing suitable information with an aim of safeguarding the interest of

the business and its proprietors and others connected with it.
B. Ascertainment and exhibition of profits earned or losses incurred in the
business.
C. Ascertainment of the financial position of the business as a whole.
D. To ensure accounts are prepared according to some accepted accounting
concepts and conventions or generally accepted accounting principles, and
E. To comply with the requirements of the Companies Act, Income Tax Act, etc.

1.6 Limitations of Accounting:

The major limitations of accounting are pointed out as follows.

 Accounting is based on accounting concepts and conventions like on going

concern or conservatism and financial statements do not disclose true income
and financial position.
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
 Accounting provides only limited information because it reveals the
profitability of the concern as a whole not unit or branch level. It is also
incomplete and inexact in nature
 Accounting considers only those transactions which can be measured in
terms of money or quantitatively expressed. Qualitative information is not
taken into account.
 Accounting information are based on personal judgement of accountant or
the prepares. So, it is subject in nature that means influence by personal
judgement.
 Accounting is only historical in nature. It provides only a post mortem of
records of the business transactions.

1.7 Branches of Accounting:

The main function of accounting is to provide the required information for different
parties who are interested in the welfare of that enterprise concerned. In order to
serve the needs of management and outsiders various new branches of accounting
have been developed. The following are the main branches of accounting:

1. Financial Accounting
2. Cost Accounting
3. Management Accounting

Financial Accounting:
Financial Accounting helps to prepare financial statements for external reporting
purposes. Income statement determines the profitability and balance sheet
financial position of the business firm for a specific period of time.

Cost Accounting:
Cost Accounting is the formal accounting system setup for recording costs. It is a
systematic procedure for determining the unit cost of output produced or service
rendered.

Management Accounting:
Management Accounting is concerned with presentation of accounting information
to the management for effective decision making and control.

1.8 Accounting Principles:

Different accounting systems and techniques are designed to meet the needs of
information management. The information should be recorded and presented in
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
such a way that management is able to arrive at right conclusions. The ultimate
aim of the management is to increase profitability and minimize the losses of the
business. In order to achieve the objectives of the concern as a whole, it is essential
to prepare the accounting statements in accordance with the generally accepted
principles and procedures.

The term principle refers to the rule of action or conduct to be applied in

accounting. Accounting principles may be defined as "those rules of conduct or
procedure which are adopted by the accountants universally, while recording the
accounting transactions." The accounting principles can be classified into two
categories (I) Accounting Concepts and (II) Accounting Conventions.

I. Accounting Concepts:
Accounting concepts mean and include necessary assumptions or postulates or
ideas which are used to accounting practice and preparation of financial
statements. The following are the important accounting concepts:

1. Entity Concept:
Separate Entity concept implies that business unit or a company is a body
corporate and having a separate legal entity and status distinct from its
proprietors. The owners or members are not liable for the acts of the company. But
in the case of the partnership business or sole trading business, no separate legal
entity from its proprietors. Here proprietors or members are liable for the ac ts of
the firm. As per the separate entity concept of accounting it applies to all forms of
business to determine the scope of what is to be recorded or what is to be excluded
from the business books.

For example, if the proprietor of the business invests Rs.50,000 in his business, it
is deemed that the proprietor has given that much amount to the business as loan
which will be shown as a liability for the business. On withdrawal of any amount
it will be debited in cash account and credited in proprietor's capital account. In
conclusion, this separate entity concept applies much larger in body corporate
sectors than sole traders and partnership firms.

2. Dual Aspect Concept:

According to this concept, every business transaction involves two aspects,
namely, for every benefit received there is a corresponding given benefit. The dual
aspect concept is the basis of the double entry book keeping. Thus, for every debit
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
there is an equal and corresponding credit. The accounting equation of the dual
aspect concept is:

Capital + Liabilities = Assets (or)

Assets = Equities (Capital)
The term Capital refers to funds provide by the proprietor of the business concern.
On the other hand, the term liability denotes the funds provided by the creditors
and debenture holders against the assets of the business. The term assets
represent the resources owned by the business.

For example, Mr. Thomas starts business with cash of Rs.1,00,000 and building
of Rs.5,00,000, then this fact is recorded at two places; Assets Accounts and
Capital Account. In other words, the business acquires assets of Rs.6,00,000
which is equal to the proprietor's capital in the form of cash of Rs.1,00,000 and
building worth of Rs.5,00,000. No external liabilities arise on account of the above
transaction. Thus, liability is zero. The above relationship can be shown in the
form of accounting equation:

Capital + Liabilities = Assets

(₹1,00,000 + ₹ 5,00,000) + ₹ 0 = ₹ 6,00,000

3. Accounting Period Concept:

According to this concept, income or loss of a business can be analysed and
determined on the basis of suitable accounting period instead of wait for a long
period, until it is liquidated. Being a business in continuous affairs for an
indefinite period of time, the proprietors, the shareholders and outsiders want to
know the financial position of the concern, periodically. Thus, the accounting
period is normally adopted for one year. At the end of each accounting period an
income statement and balance sheet are prepared. This concept is simply intended
for a periodical ascertainment and reporting the true and fair financial position of
the concern as a whole.

4. Going Concern Concept:

It is otherwise known as Continue of Activity Concept. This concept assumes that
business concern will continue for a long period to exit. In other words, under this
assumption, the business enterprise is normally viewed as a going concern and it
is not likely to be liquidated in the near future. This assumption implies that while
valuing the assets of the business on the basis of productivity and not on the basis
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
of their realizable value or the present market value, at cost less depreciation till
date for the purpose of balance sheet. It is useful in valuation of assets and
liabilities, depreciation of fixed assets and treatment of prepaid expenses.

5. Cost Concept:
This concept is based on "Going Concern Concept." Cost Concept implies that
assets acquired are recorded in the accounting books at the cost or price paid to
acquire it. And this cost is the basis for subsequent accounting for the assets. For
accounting purposes, the market value of assets is not taken into account either
for valuation or charging depreciation of such assets. Cost concept has the
advantage of bringing objectivity in the preparation and presentation of financial
statements. In the absence of cost concept, figures shown in accounting records
would be subjective (based on personal judgment) and questionable. But due to
inflationary tendencies, the preparation of financial statements on the basis of cost
concept has become irrelevant for judging the true financial position of the
business.

6. Money Measurement Concept:

According to this concept, accounting transactions are measured, expressed and
recorded in terms of money. This concept excludes those transactions or events
which cannot be expressed in terms of money. For example, factors such as the
skill of the supervisor, product policies, planning, employer-employee relationship
cannot be recorded in accounts in spite of their paramount importance to the
business. This makes the financial statements incomplete.

7. Matching Concept:
Matching Concept is closely related to accounting period concept. The main aim of
the accounting is to ascertain the profit periodically. To measure the profit for a
particular period it is essential to match accurately the costs associated with the
revenue. Thus, matching of costs and revenues related to a particular period while
preparing Profit and Loss statement is called as Matching Concept.

8. Realization Concept:
Realization Concept is otherwise known as Revenue Recognition Concept.
According to this concept, revenue is the gross inflow of cash, receivables or other
considerations arising in the course of an enterprise from the sale of goods or
rendering of services from the holding of assets. If no sale takes place, no revenue
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
is considered. However, there are certain exceptions to this concept. Examples,
Hire Purchase or Sale, Contract Accounts etc.

9. Accrual Concept:
Accrual Concept is closely related to Matching Concept. According to this concept,
revenue recognition depends on its realization and not accrual receipt. Likewise ,
costs are recognized when they are incurred and not when paid. The accrual
concept ensures that the profit or loss shown is on the basis of full fact relating to
all expenses and incomes.

10. Rupee Value Concept:

This concept assumes that the value of rupee is constant. In fact, due to
inflationary pressures, the value of rupee will be declining. Under this situation
financial statements are prepared on the basis of historical costs not considering
the declining value of rupee. Similarly, depreciation is also charged on the basis of
cost price. Thus, this concept results in underestimation of depreciation and
overestimation of assets in the balance sheet and hence will not reflect the true
position of the business.

II. Accounting Conventions:

Accounting Convention implies that those customs, methods and practices to be
followed as a guideline for preparation of accounting statements. The accounting
conventions can be classified as follows:

1. Convention of Disclosure:
The disclosure of all material information is one of the important accounting
conventions. According to this convention all accounting statements should be
honestly prepared and all facts and figures must be disclosed therein. The
disclosure of financial information is required for different parties who are
interested in the welfare of that enterprise. The Companies Act lays down the forms
of Profit and Loss Account and Balance Sheet. Thus, convention of disclosure is
required to be kept as per the requirements of the Companies Act and Income Tax
Act.

2. Convention of Conservatism:
This convention is closely related to the policy of playing safe. This principle is"
often described as "anticipate no profit, and provide for all possible losses. "This
concept is also known as prudence concept. Thus, this convention emphasises
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.
that uncertainties and risks inherent in business transactions should be given
proper consideration. For example, under this convention inventory is valued at
cost price or market price whichever is lower. Similarly, bad and doubtful debts is
made in the books before ascertaining the profit.
3. Convention of Consistency:
The Convention of Consistency implies that accounting policies, procedures and
methods should remain unchanged for preparation of financial statements from
one period to another. Under this convention alternative improved accounting
policies are also equally acceptable. In order to measure the operational efficiency
of a concern, this convention allows a meaningful comparison in the performance
of different period.

4. Convention of Materiality:
Materiality may be defined as "the characteristic attaching to a statement of facts,
or item whereby its disclosure or method of giving it expression would be likely to
influence the judgment of a reasonable person." According to this convention
consideration is given to all material events, insignificant details are ignored while
preparing the profit and loss account and balance sheet. The evaluation and
decision of material or immaterial depends upon the circumstances and lies at the
discretion of the Accountant.
 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.

लेख ांकन सिद् ांत और अवध रण एँ

1 लेख ांकन क पररचय:

लेख ांकन व्यवि य की भ ष है। लेख ांकन क मुख्य उद्दे श्य व्यवि य उिके प्रोपर इटर और व्यवि य
के लेन-देन िे जुडे अन्य लोग के सहत िुरक्ष करन है। यह म सलकों, लेनद रों, शेयरध रकों, िरक र,
सवत्तीय िांस्थ नों और अन्य िांबांसधत एजेंसियों को उपयुक्त ज नक री प्रद न करके ककय ज त है।

लेख ांकन की पररभ ष :

अमेररकन अक उां टटांग एिोसिएशन लेख ांकन को "िूचन के उपयोगकत ाओं द्व र िूसचत सनणाय और सनणायों
की अनुमसत देने के सलए आर्थाक ज नक री की पहच न, म पने और िांच र करने की प्रकिय " के रूप
में पररभ सषत करत है। एआईिीपीए के अनुि र, लेख ांकन "एक महत्वपूणा तरीके िे और पैिे में, लेनदेन
के घटन ओं के िांदभा में ररकॉर्डिंग, वगीकरण और िांक्षेपण करने की कल है जो कम िे कम एक सवत्तीय
चररत्र के हैं और पररण म की व्य ख्य करत हैं।"

लेख ांकन क अथा:

लेख ांकन वह कल य प्रकिय है जो सवत्तीय घटन ओं य लेनदेन की पहच न, वगीकरण, सवश्लेषण,

ररकॉर्डिंग, म प, ि र ांश और लेख ज नक री के उपयोगकत ाओं को पररण मों की ररपोर्टिंग और िांच र
करने की सवसध है त कक वे लेख ांकन ज नक री के आध र पर िूसचत सनणाय ले िकें । इिसलए, लेख ांकन
को व्यवि य की भ ष भी कह ज त है। इिक मतलब यह है कक उसचत ज नक री के सबन ककिी
व्यवि य इक ई के सवत्तीय सववरण को, व्यवि य के िांच लन, प्रदशान और प्रगसत पर आर्थाक घटन ओं
और लेनदेन के क रण पडे प्रभ वों िमझन बहुत मुसश्कल है.

* अमेररकन इां स्टीट्यूट ऑफ िर्टा फ इड पसललक अक उां टेंट्ि (AICPA)

1.1. लेख ांकन के चरण:

लेख ांकन प्रकिय में अपन ए ज ने व ले महत्वपूणा कदम सनम्नसलसखत हैं:

1. ररकॉर्डिंग: भसवष्य के ररकॉडा के उद्देश्य िे िह यक पुस्तकों में िभी लेनदेन ररकॉडा करन ।
इिे "जनाल" कह ज त है।
2. वगीकृ त करन : िह यक पुस्तकों में िभी ररकॉडा ककए गए लेनदेन वगीकृ त और ख तों की मुख्य
पुस्तक में पोस्ट ककए ज ते हैं। इिे "लेजर" के रूप में ज न ज त है।
3. ि र ांश: मुख्य पुस्तकों में िभी ररकॉडा ककए गए लेन-देन क सववरण ल भ और ह सन और
बैलेंि शीट की तैय री के सलए िांक्षेसपत ककय ज त है।
4. व्य ख्य करन : व्य ख्य करन सवत्तीय ख तों और बैलेंि शीट के पररण म के अथा और महत्व
की व्य ख्य को िांदर्भात करत है त कक व्य प र िे िांबांसधत पक्ष भसवष्य की कम ई, लय ज क
भुगत न करने की क्षमत , तरलत और एक बेहतर ल भप्रदत की नीसत क सनध ारण कर िकें ।

लेख ांकन के क या:

उपरोक्त पररभ ष और सवश्लेषण िे लेख ांकन के मुख्य क यों को िांक्षेप में प्रस्तुत ककय ज िकत है।

(1) व्यवि सयक लेनदेन क व्यवसस्थत ररकॉडा रखन ।

 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.

(2) व्यवि य के सहत की रक्ष करन ।

(3) व्यवि य िे जुडे य उििे जुडे सवसभन्न पक्षों को पररण मों क िांच र करन ।

(4) क नूनी आवश्यकत ओं को पूर करन ।

लेख ांकन के उद्देश्य:

(1) व्यवि य और उिके सहतों की िुरक्ष के उद्देश्य िे उपयुक्त ज नक री प्रद न करन प्रोपर इटर और
इििे जुडे अन्य लोग।

(2) व्यवि य में अर्जात ल भ य ह सन क पत लग न और प्रदशान करन ।

(3) पूरे व्यवि य की सवत्तीय सस्थसत क पत लग न ।

(4) यह िुसनसित करने के सलए कक कु छ स्वीकृ त लेख ांकन अवध रण ओं के अनुि र ख ते तैय र ककए
ज ते हैं जो आम तौर पर स्वीकृ त लेख ांकन सिद् ांत (GAAP) िे ज न ज त है।

(5) कां पनी असधसनयम, आयकर असधसनयम आकद की आवश्यकत ओं क प लन करन ।

1.4 बहीख त की पररभ ष :

बहीख त पद्सत को "व्यवसस्थत तरीके िे ख तों की पुस्तकों में व्य प ररक लेनदेन को ररकॉडा करने की
कल " के रूप में पररभ सषत ककय ज िकत है। एक व्यसक्त जो व्यवि य के लेनदेन क ररकॉडा रखत
है और जो रखने के सलए स़िम्मेद र है और है, उिे बुककीपर के रूप में ज न जत है। उनक कम
मुख्य रूप िे प्रकृ सत में सलसपक है। दूिरी ओर, लेख ांकन मुख्य रूप िे ररकॉर्डिंग, वगीकरण, िांक्षेपण, सवत्तीय
डेट की व्य ख्य और लेख ांकन ररकॉडा द्व र बत ई गई ज नक री को उन लोगों िे िांव द करन है जो
व्यवि य िे िांबांसधत लेख ांकन ज नक री में रुसच रखते हैं।

1.5 लेख ांकन की िीम एँ:

(1) लेख ांकन के वल िीसमत ज नक री प्रद न करत है क्योंकक इििे चचांत की ल भप्रदत क पत चलत
है पूर क पूर ।

(२) लेख ांकन के वल उन्हीं लेन-देन पर सवच र करत है सजन्हें धन के िांदभा में म प ज िकत है
य म त्र त्मक रूप िे व्यक्त ककय गय । गुण त्मक ज नक री को ध्य न में नहीं रख ज त है।

(3) लेख ांकन प्रबांधन को िीसमत ज नक री प्रद न करत है।

(4) लेख प्रकृ सत में के वल ऐसतह सिक है। यह व्यवि य क के वल पोस्टम टाम ररकॉडा प्रद न करत है
लेन-देन।

1.6 लेख ांकन की श ख एँ:

लेख ांकन क मुख्य क या सवसभन्न दलों के सलए आवश्यक िूचन प्रद न करन है जो िांबांसधत उद्यम के
कल्य ण में रुसच रखते हैं। प्रबांधन और ब हरी लोगों की जरूरतों को पूर करने के सलए लेख ांकन की
सवसभन्न नई श ख ओं को सवकसित ककय गय है। लेख ांकन की मुख्य श ख एँ सनम्नसलसखत हैं:

(1) सवत्तीय लेख ांकन।

(2) ल गत लेख ांकन।

 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.

(3) प्रबांधन लेख ांकन।

1) सवत्तीय लेख ांकन: िमय की एक सवसशष्ट अवसध के सलए ल भप्रदत और चचांत की सवत्तीय सस्थसत
सनध ाररत करने के सलए सवत्तीय लेख ांकन तैय र ककय ज त है।

(2) ल गत लेख ांकन: ल गत लेख ांकन ररकॉर्डिंग ल गतों के सलए औपच ररक लेख प्रण ली िेटअप है। यह
उत्प कदत य िेव प्रद न की गई उत्प दन की इक ई ल गत क सनध ारण करने के सलए एक व्यवसस्थत
प्रकिय है।

(3) प्रबांधन लेख ांकन: प्रबांधन लेख ांकन प्रभ वी सनणाय लेने और सनयांत्रण के सलए प्रबांधन को लेख ांकन
िूचन की प्रस्तुसत िे िांबांसधत है।

1.7 लेख ांकन सिद् ांत:

सवसभन्न लेख प्रण सलयों और तकनीकों को प्रबांधन की जरूरतों को पूर करने के सलए सड़ि इन ककय गय
है। िूचन को इि तरह िे ररकॉडा और प्रस्तुत ककय ज न च सहए कक प्रबांधन िही सनष्कषा पर पहुांचने में
िक्षम हो। प्रबांधन क अांसतम उद्देश्य ल भ को बढ न है। िमग्र रूप िे चचांत के उद्देश्यों को प्र प्त करने के
सलए, आमतौर पर स्वीकृ त सिद् ांतों और प्रकिय ओं के अनुि र लेख सववरण तैय र करन आवश्यक है। सिद् ांत
शलद क त त्पया लेख ांकन में ल गू ककए ज ने व ले किय के सनयम िे है। लेख ांकन सिद् ांतों को " प्रकिय
के उन सनयमों के रूप में पररभ सषत ककय ज िकत है जो लेख लेनदेन को ररकॉडा करते िमय, एक उां टेंट
द्व र ि वाभौसमक रूप िे अपन ए ज ते हैं।"

लेख ांकन सिद् ांतों को दो श्रेसणयों में वगीकृ त ककय ज िकत है: (1) लेख अवध रण ए (2) लेख
िम्मेलन

1) ले खा अवधारणाए:

लेेख ांकन अवध रण ओं क अथा है आवश्यक ध रण एां य सवच र श समल हैं जो लेख ांकन अभ्य ि और
सवत्तीय सववरणों की तैय री के सलए उपयोग ककए ज ते हैं। लेख ांकन की सनम्नसलसखत महत्वपूणा अवध रण एँ
हैं:

(1) अस्तित्व अवधारणा:

असस्तत्व कॉन्िेप्ट क मतलब है कक सबजनेि यूसनट य कां पनी एक सनगसमत कां पनी बॉडी कॉरपोरे ट है और
उिके म सलक िे अलग एक लीगल स्टेटि है। म सलक य िदस्य कां पनी के कृ त्यों के सलए उत्तरद यी नहीं
हैं। लेककन ि झेद री व्यवि य य एकल व्य प ररक व्यवि य के म मले में, उिके म सलक िे अलग कोई
क नूनी इक ई नहीं। यह ां म सलक य िदस्य फमा के कृ त्यों के सलए उत्तरद यी हैं। जैि लेख ांकन की अलग-
अलग इक ई अवध रण के अनुि र यह व्यवि य के िभी रूपों पर ल गू होत है कक क्य दजा ककय ज न
है य क्य व्य वि सयक पुस्तकों िे ब हर रख ज न है।

उद हरण के सलए, यकद व्यवि य क प्रोप्र इटर अपने व्यवि य में रु 50,000 क सनवेश करत है, तो यह
म न ज त है कक प्रोप्र इटर ने व्यवि य को उतनी र सश दी है जो पूांजी ऋण के रूप में दी गई है, जो
व्यवि य के सलए पूांजी के रूप में कदख ई ज एगी। ककिी भी र सश की व पिी पर इिे नकद ख ते में डेसबट
ककय ज एग और प्रोप्र इटर के पूांजी ख ते में जम ककय ज एग । अांत में, यह अलग इक ई अवध रण
एकम त्र व्य प ररयों और ि झेद री फमों की तुलन में सनगसमत कां पनी के क्षेत्रों में बहुत बडी है।

(2) दोहरी पहलू अवधारणा:

 Dr. Neyaz Ahmad
Assistant Professor
R.D.S. College, Muz.

इि अवध रण के अनुि र, प्रत्येक व्य प ररक लेनदेन में दो पहलू श समल होते हैं, अथ ात् प्र प्त प्रत्येक ल भ
के सलए एक िांगत ल भ कदय ज त है। दोहरी पहलू अवध रण दोहरी प्रसवसष्ट पुस्तक रखने क आध र है।
इि प्रक र, प्रत्येक डेसबट के सलए एक िम न और िांगत िे सडट है। दोहरी पहलू अवध रण क लेख ांकन
िमीकरण है:

पूांजी + द सयत्व = िांपसत्त (य )

िांपसत्त = इकिटी (पूांजी)

पूांजी शलद क त त्पया व्य वि य िांबांसधत स्व मी द्व र प्रद न ककए गए धन िे है। दूिरी ओर, शलद द सयत्व
लेनद रों और सडबेंचर ध रकों द्व र प्रद न की गई धनर सश को व्य प र की िांपसत्त के सखल फ दश ाती है।
िांपसत्त शलद व्यवि य के स्व समत्व व ले िांि धनों क प्रसतसनसधत्व करत है।