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Accountancy PP T
Accountancy PP T
Accountancy PP T
ACCOUNTING PROCESS
1. RECORDING (JOURNAL) 2. CLASSIFYING (LEDGER)
Debtor Creditors Capital Assets Liabilities Stock Purchases Sales Outstanding Expenses Accrued expenses Prepaid Expenses Prepaid Income
TYPES OF GAAP
Going concern Accrual Money measurement Accounting period Historical cost Matching Business entity Dual aspect Revenue Materiality Consistency Prudence/conservatism
Relevance
Consistency
Comparability
Reliability Objectivity
ACCOUNTING STANDARDS
Conceptual outlook
ACCOUNTING EQUATION
ASSETS=LIABILITIES +CAPITAL
RULES OF ACCOUNTING
Debit the receiver &credit the giver
decrease is credited Increase in Liabilities, Capital& Income is credited & decrease is debited
TYPES OF ACCOUNTS
ACCOUNTS
PERSONAL
IMPERSONAL
REAL
NOMINAL
business. He deposited Rs. 1,30,000 in a newly opened bank account. He purchased goods for cash Rs10000 and credit from sita Rs. 8,000. He purchased goods for Rs. 10,000, payment was made through bank. Shaheed withdrew Rs. 2,000 from the bank for office use. .
use.and took goods worth Rs2000 for personal use He sold goods for cash Rs. 15,000. Out of this he again deposited Rs. 12,000 into the bank Purchased goods on account from X; Rs. 8,000. Sold Goods on account to Y, Rs. 5,000 Sold goods for cash to Y, Rs. 1,000 Purchased goods for cash from Z, Rs. 2,500. Purchased goods for credit from X, Rs. 1,800.
30,000 Cash received from Y, Rs. 1,600 Cash paid to X, Rs. 3,000 Rent outstanding Rs1000 Salary paid Rs1500 Prepaid Insurance Rs500 Income received in advance RS1000 Goods given as charity Rs1000