Accounts Adda #5 “Tatroduclin of econ Ge sae) (ied daa in am undongiandable po Q = [Prceeniction of, Clawa\hied dala in an m1 Ord, Accounting a é systematic porocets a wtelul oa Kan interned a8 whos fon extamdiaes] dent jying smeaauiing , oacording schbtr{y ing “Brclasie and interpnttation $0 That tine Ubens, ra Ssemmmerusing sivten preting and communiating |. cron com make meaning judgomuit] Simamclab information . + Cowmunicattin Pccousting —® language a Gusinus information mast be provided intime ond puteited {po the wierd Bo that appropriate dicizions way be Taken of tra seght time | 4 Gromches gf Accouritin, 1) Fimomesase eatay 3 la) cost Frecousiting.| Chonactenstics of Accounting + Tderitification of Giremeial thampatlion 5 cAiens fhould be give Records Limamciad tramgactions eyed etch ome mentond ope belt ommewse toe |) engumutt 7 Ferma 03 0g) interprets thn before como- |? ‘ + Measwung tH idimtfied demsaction- —< subult tothe Pcounftine A Lin terms of moray]. + Recording Lin the books] - SE etn gent te Tt determines PRL imewned - ~E8 product» Pit, B/Sruct 1Book Raping: \ Tr xa posit Ah Piccouriting being a \ Process, - ond ae meee finenciad bare + sevolves., 7, ages Ale “39 PRR 3 2clasibyings NANO 4 Accountancy .— Tri aaystematic Krowl hin Beare aie cua ee Oapects a Alcing - Tt educates how te maintain the books &§ ffc"* Grd. how to summenize the accomsting information amd Communicate to it8 users. Accounts Adda #6 +Foc tating Manageme - + Facilitates compart Shay, Lrcing pooviden freak infomition |*Paci te ans ‘To cenish the-mamogemest in ais- _ |* Helps im dacision wating. Knoviding fc ing informndlion'te peta Darton ee Wen imitans 5 ning sucond ¥ Azadl wohich enable |= Alcing i sb fully exact peony Tye Pretect trun amd rise | Lie. Dep, aoa Functions ef Aeing- 1" Un aaadiatic ingormetion. “Maintaining Systowatie: Ncing records |” “Greer Qualitetve * Preparation al Snamcial Statements t+ Tjmorus the eect of eee legad requiremacts I price lever , acceptea ana evidince by count]: | Pay lead Tc : ! ay lead Window dating + Gommumicating thn dinamciakinge « + Assigtence To management sting 94 books. Monipulatng it ne a = “Financial info. about Bug = Rasiine fo oe# Accounts Adda # #7 pons vy asec adit, ee ao jaden i 0 prove glthe Stowe! U3" oie Dysters of Accountiny 1 Ones: Poul Gy oyster 38182 span a nd, dex sea it 0 micnton peel me! jn natufe , abost ewonorn's Manage" Ge Anat intended eke te one wse§el in making etonom'e weg 3) o e — Eemal © ers ngacti ONS ae es Finenaiel Lnstttohon® ee pedit and “e syansaction 3 debit Wonkets eo Om Bet and Cn ce ss Fanta rake " W Tovestors 4 Potential Testor’. re Tee MTENitors ; Qvsttalive of ret ed ome” iia Filer Recta fo 1S Government! Thonadonkes sie ond ant on te eat ajt_ On Sunplos iy Resenchers. 1! Raiabilt Side. — = ‘1 Gewmen ne | msoutts ot of 10 ecard mer. wevanisy oR eaiy Recor im On oR Single pies y [only Persona Sud Josition- 1) Related to firorcial aes ) “|v Gmpazabiity © “a 1) Abat Cash Flow / \ Lee dng. Cash fie RtpanEetCLASS Tlaccounts roy subtest amt BASIC ACCOUNTING TERMS economic recording in the books accounts. (or pve) mt. withdrawn or taken by the owner's foGersonalus) mony or oney worth it will be deducted from capital.¥ CLASS Tl accounts BASIC ACCOUNTING TERMS Zimwdeond © WWE yg Fe yor sae fen Re XX? ats mere egy) ig ea ee ee) ExernaNiobiity Further classification of liabilities Geedipransactions, (Gediuansictons tan, \oan, et) — « Ron-current} payable after a period of mor) than one yea Ex. flong term loans. CBowk Soon 7 + Current liabilities * payable with igi months f gael Non conoot g De Be Covent ec use ne COMMERCE KING oo hee Es em ieee oteidan 2 eeCLASS Ilaccounts Da vine BASIC ACCOUNTING TERMS ‘Assets - Properties (money or money value] owned by the ‘© enterprise / Business fentity: Ex. land, Building, furniture, cash, Bank Balance etc. Types of Assets. Sue eure ne business operations (long term) Ex > fixed Asset, [ong term Advance etc. Intangible ‘can’t be seen or touched Ex software, goodwill, trademark etc.CLASS Tl accounts ane BASIC ACCOUNTING TERMS (idcurrent Asset- held by the entity with the purpose of converting them into cash with in a short period of time [mostly in 1 year] Example {Amt. receivable from credit sale }Debtors) a in more than one accounting year. Ex- Deferred revenue expenditure, such as advertisement Expenditure, Operating cycle Itrefers to the time b/w the acquisition of an asset for processing and its conversion into cash and cash equivalents.CLASS Ilaccounts Be us BASIC ACCOUNTING TERMS Payable ample - Sale of machine, Building , furniture etc. are! ea} 8. Expenditure{- Amt. spent or liability incurred for acquiring Assets, goods or services. =, Revenure expenditure Expenditure whose benefits doesn't write ofin 1 year butis — * On acquiring Srimprotinf assets expected to aceure a more than i year. On acquiring orimproding asset + increases the earning Capacity of Business iia es) Ex- purchase of Asset. It's benefit exhausted within the accounting period Salaries, remCLASS Iaccounts , BASIC ACCOUNTING TERMS COMMERCE K}NG ms 4 — Thies = Rec - Dap OOS. Prepaid Expenses paidin advance Meegeru AEP cutstanding expenses! —_——S_ ee si ar (salary, dep. , etc. 10 Sole Ex- Sale of machinery (gain) L~ purchaseCLASS I accounts commence xno Ake BASIC ACCOUNTING TERMS 11. Goods {Physical tems of rad} that are purchased forthe purpose ECD) (28h) 12.| Stock / Inventory } Linsold goods Becher CA Opening stock ‘or at the end of preyigus yea? 13. Trade,ecievable: Dpbeben | Son mie Nag ails receisaBicr aiof exchange accepted by te debr™ “Debtors Person to whom goods has (its an asset for the firm) Bad Debts - irrecoverable debtorsCLASS Il accounts ne BASIC ACCOUNTING TERMS 2, ills payabl}- bill of exchange accepted by the creditor Slab fortes J = Cait = ipgnee ) 15. Discount - Reduction in price of Oe > discount Discount allowed for timely payment of due amount. i rareipenre henceTeNeereancedinthe a mera ICib an expense, hence willbe recorded in the Reduction in price by the se purchaser of goods when ages eee SeCLASS Il accounts ieee ete BASIC ACCOUNTING TERMS 16. Depreciation (Fall in the value of an asset because of usage or with time or accident. aC ex 22, —=> Yu A7.Account-Tshapewith abeading QELS —D Low. Dr. Head » cash, bank etc. cr. Date Particulars LF © Amount Ss ee eee Credit side x =. Total |