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NATURE OF ACCOUNTING Accounting is art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof. The Nature of Accounting can be defined in two ways: Quantitative Attributes of Accounting Qualitative Attributes of Accounting QUALITATIVE…
PROCESS OF ACCOUNTING The Process of Accounting involves the identification of transactions and events which are financial in nature; ensuring measurement of transactions in the monetary terms; recording the transactions in the journal; classifying the entries in ledger, summarizing the entries in final accounts i.e. Trading Account and Profit and Loss Account and Balance Sheet;…
OBJECTIVES OF ACCOUNTING Accounting is a system which involves the identification of transactions and events which are financial in nature; ensuring measurement of transactions in the monetary terms; recording the transactions in the journal; classifying the entries in ledger, summarizing the entries in final accounts i.e. Trading Account and Profit and Loss Account and Balance…
HISTORY OF ACCOUNTING The history of accounting dates back to the earliest days of human agriculture and civilization when the need to maintain accurate records of the quantities and relative values of agricultural products first arose. Simple Accounting is mentioned in the Christian Bible in the book of Mathew in the parable of the Talents….
FEATURES OF ACCOUNTING Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts such as Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is associated with…
ACCOUNTING MEANING AND DEFINITIONS Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is associated with…
INSTALMENT PAYMENT SYSTEM An instalment payment system is a credit sale system in which payments are made in instalments over a period of time. In this system, the buyer gets the possession of the goods as well as the ownership of the goods right at the time of signing the agreement. During the course of…
STATEMENT OF AFFAIRS AND BALANCE SHEET DIFFERENCE The Statement of Affairs and Balance Sheet are different names of records of assets and liabilities maintained by the different kinds of business organisation. It is necessary to know the Statement of Affairs and Balance Sheet difference to understand their meaning and adoption. BALANCE SHEET Balance Sheet is…
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SINGLE ENTRY SYSTEM IN ACCOUNTING Single Entry System in accounting is a system in which the proprietors or the firms do not follow specific rules of double entry system to maintain accounts. It is an Incomplete Record of Accounts. The accounts are maintain as per the convenience of the users. ACCORDING TO KOHLER “A system…
PROVISIONS MEANING Provisions meaning states the amount set aside by charging to the Profit and Loss Account, to provide for any known liability, the amount of which cannot be determined with accuracy. ACCORDING TO COMPANIES ACT 2013: “Provision usually means an amount written off or retained by the way of providing depreciation, renewals or dimunitions…
