ACCOUNTANCY

Accountancy refers to systematic knowledge of accounting concerned with the principles and techniques which are applied in accounting. It tells us how to prepare the books of accounts, how to summarize the accounting information and how to communicate it to the interested users.

ACCORDING TO KOHLER

“Accountancy refers to the entire body of theory and practice of accounting.”

It is wider in scope than book-keeping and accounting. It is a body that consists of the guiding principles and rules of book-keeping and accounting.

FEATURES OF ACCOUNTANCY

SYSTEMATIC AND SCIENTIFIC BODY OF KNOWLEDGE: It is the systematic and scientific body of knowledge consisting of rules and principles of accounting.

NATURE: Accountancy is analytical in nature and needs specific and specialized skills, expertise and knowledge.

SCOPE: Accountancy is wider in scope and involves both book-keeping and accounting.

SCIENCE AND AN ART: Accountancy is a science as it is based on certain principles which are universally applicable. These principles are based on experiments and observations.

It is an art as it requires specialized skills and knowledge. Some personal judgments and certain assumptions are requires while maintaining the books of accounts.

CONSTITUENTS: Accountancy consists of principles, postulates, assumptions, conventions, concepts and rules that govern maintenance of accounts.

RELATION: It depends on book-keeping and accounting.

FUNCTION: It includes the decision making function which is based on the information provided by book-keeping and accounting.

OBJECTIVES

The main objectives are:

• To keep the systematic records of accounts.
• Helps the management to take decisions about business operations.
• Aims at showing the accurate financial position of the business.
• To ascertain the true profit and loss of the business.
• Helps in complying with the legal requirements of various authorities.
• Helps in detecting the various frauds and errors.
• Aims at communicating the financial information to the various users.

Thus, accountancy is main head under which book-keeping and accounting prevails. Without this, it is impossible to perform any operation of book-keeping or accounting.

Also Study	Also Study	Also Study	Also Study
Accounting	Non profit organisation	Depreciation	Liquidity ratios
Nature of Accounting	Receipts and Payments Account	Depreciation Accounting	Acid Test Ratio
Benefits of Accounting	Scope of accounting	Hire Purchase Accounting	Cash Ratio
Difference between cost accounting and financial accounting	Financial accounting, cost accounting and management accounting	Difference between hire purchase and instalment system	Financial ratio analysis
Difference between transaction and event	Transactions	Users of Accounting	Ratio analysis
Limitation of Accounting	Capital Expenditure	Instalment System	Difference between consignment and sale
Book Keeping	Revenue Expenditure	Reserves Accounting	Abnormal loss vs normal loss in consignment
Accountancy	Difference between capital and revenue expenditure	Provisions	Treatment of loss on consignment
Accounting as science or an art	Accounting Equation	Single entry system	Accounting treatment of consignment
Book Keeping vs accounting	Deferred Revenue Expenditure	Difference between statement of affairs and balance sheet	Joint venture vs consignment
Book keeping vs accountancy	Capital receipt	IFRS	Departmental Accounting
Accounting vs accountancy	Revenue receipt	Balance Sheet	Methods of departmental accounting
Basis of Accounting	Difference between capital and revenue receipt	Profit and loss Account	Allocation of expenses in departmental accounting
Branches of accounting	Difference between accounting concepts and conventions	Trading Account	Inter-departmental transfers
Cash and mercantile system of accounting	Accounting Standards	Voyage Account	Different types of branches
Accounting Principles	Objectives of Accounting	Accounting for Incomplete Voyage	Departmental vs Branch accounting
Golden ru les of accounting	Process of Accounting	Joint venture	Methods of branch accounting
Double entry system of book keeping	Scope of Accounting	Joint Venture Vs Partnership	Incorporation of branch trial balance
Double entry vs Single entry system	Accounting Concepts vs Accounting conventions	Methods of recording transactions in Joint Venture	Garner VS Murray Rule
History of Accounting	Difference between provisions and reserves	Consignment