Principles of Accounting

Prepared By NIZAM UDDIN

 PRINCIPLES OF ACCOUNTING

● wnmve Kv‡K e‡j?

‡Kv‡bv GKwU wk‡ivbv‡gi Aax‡b mg RvZxq welq ev `dv mswÿß AvKv‡i Dc¯’vc‡bi
cÖwµqv‡K wnmve e‡j|
AvaywbK c×wZ‡Z wnmve 5 cÖKvi t
1. Assets (m¤ú`)
2. Liability (`vq)
3. Expense (e¨q)
4. Revenue (Avq)
5. Owner Equity (gvwjKvbv ¯^Z¡)
● Assets : ‡Kv‡bv e¨w³ ev cÖwZôv‡bi wbKU hv Av‡Q Ges A‡b¨i wbKU †_‡K hv
cv‡e ZvB m¤ú`|
m¤ú‡`i †kÖYxwefvM t ¯’vqx‡Ëi wfwˇZ m¤úZ 2 cÖKvi| h_v t-
1) Current Asset (PjwZ m¤ú`)
‡h mKj m¤úwËi Avqy®‹vj mvaviYZ 1 eQi ev Zvi †P‡q Kg Zv‡K PjwZ m¤ú` e‡j
ev Current Asset e‡j| ‡hgb-
1. bM` (Cash)
2. e¨vsK (Bank Balance)
3. cÖvc¨ wnmve (Account Receivable)
4. mgvcbx gRy` (Ending Inventory / Closing stock)
5. mKj AMªxg LiP (All kinds of pre-paid expense)
6. cÖvc¨ Avq (All revenue accrued / receivable)
7. gwbnvix (Stationary)
8. mieivn (Supplies)
9. ¯^í‡gqvw` wewb‡qvM (Short term investment)
10. exgv `vwe (Insurance clain)
11. f¨vU PjwZ wnmve Dr DׄË
● ¯’vqx m¤ú` (Fixed Asset)
‡h m¤úwËi Avqy®‹vj mvavibZ 1 eQi ev Zvi †P‡q †ewk Zv‡K ¯’vqx m¤ú` e‡j| G mKj
m¤ú` Kviev‡iI `xN©w`b e¨envi K‡i myweav †c‡q _v‡K|
1. fzywg Ges `vjvb‡KvVv (Land and Building)
2. hš¿cvwZ (Machinery)
3. hvbevnb (Vehicle)
4. BRviv m¤úwË (Leased Asset)
5. mybvg (Goodwill)
6. ‡UªWgvK©v (Trade mark)
7. KwcivBU (Copyright)
8. wewb‡qvM (Investment)
9. ‡c‡U›U (Patent)
● Ab¨vb¨ m¯ú` t
K) A`„k¨gvb m¤ú` (Intangible Asset)
‡h mKj m¤ú` aiv ev †Qvqv hvq bv Zv‡K A`„k¨gvb m¤ú` e‡j|
1. mybvg (Goodwill)
2. ‡UªWgvK© (Trade mark)
3. KwcivBU (Copyright)
4. ‡c‡U›U (Patent)
5. md&UIq¨vi (Software)
L) fzqvm¤ú` (Ficticious Assets) : ‡h mKj m¤ú` aiv ev †Qvqv hvq bv Ges hvi A_©
‰bwZKg~j¨ ‡bB Zv‡K fzqvm¤ú` e‡j| †hgb-
1. wejw¤^Z weÁvcb (Deferred Advertisement)
2. Ae‡jL‡Ki Kwgkb (Underwriting commission)
3. ‡kqvi Aenvi (Share discount)
4. cÖv_wgK LiP (Preliminary expense)
M) wecixZm¤ú` (Contra Asset) : ‡h wnmve m¤ú‡`i wecix‡Z m„wó Kiv nq Zv‡K
wecixZ m¤ú` e‡j| ‡hgb-
1. Abv`vqx cvIbvmwÂwZ (Provision for bad debt)
2. AePq mwÂwZ / cyÄxf~Z AePq ( Accumulated depreciation)

2) Liability account : ‡Kvb e¨w³ ev cÖwZôvb Ab¨ †Kv‡bv e¨w³ ev cÖwZôv‡bi wbKU
cwi‡kv‡a eva¨ ZvB `vq|
¯’vqx‡Z¡i wfwˇZ `vq 2 cÖKvi t
1) Current Liabilities (PjwZ `vq)
2) Longterm Liabilities (`xN©‡gqvw` `vq)
● Current Liabilities (PjwZ `vq) t ‡h `vq mvaviYZ 1 eQi ev Zvi †P‡q Kg mg‡qi g‡a¨
cwi‡kva Ki‡Z nq Zv‡K PjwZ `vq e‡j| †hgb-
1. Bank overdraft (e¨vsK RgvwZwi³)
2. Accounts payable (cÖ‡`q wnmve)
3. Note payable (cÖ‡`q †bvU)
4. All kinds of Accrued expense (mKj e‡Kqv LiP)
5. All advanced received / Unearned revenue (mKj AMÖxg Avq / AbycvwR©Z Avq)
6. Income tax provision (AvqKi mwÂwZ)
7. Vat current account Cr balance
8. Others payables (Ab¨vb¨ `vq/ cª‡`q)
● Longterm Liabilities (`xN©‡gqvw` `vq) t ‡h `vq mvaviYZ 1 eQi ci cwi‡kva
Ki‡Z nq Zv‡K `xN©‡gqvw` `vq e‡j| †hgb-
1. Debenture (FbcÎ)
2. Mortgage payable (eÜKx FY)
3. Bank loan (e¨vsK FY)
3) Expense (e¨q wnmve) t Kviev‡i ˆ`bw›`b cwiPvjbv msµvšÍ mKj e¨q n‡”Q
Expense ev gybvdv RvZxq e¨q| †hgb-
1) Purchase (µq)
2) Rent (fvov)
3) Insurance (exgv)
4) Electricity Expense (we`yr LiP)
5) Utility Expense (M¨vm, we`yr, cvwb)
6) Wage (gRywi)
7) Import duty (Avg`vwb ïé)
8) Export duty (ißvwb ïé)
9) Opening inventory/ Stock (cÖviw¤¢K gRy`)
10) Apprentice allowance (wkÿvbexk fvZv)
11) Advertisement (weÁvcb)
12) Freight in / carriage inward (µq cwienb)
13) Freight out / carriage outward (weµq cwienb)
14) Entertainment (Avc¨vqb)
 15) Depreciation (AePq)
16) Uncollectible / Bad debt (Abv`vqx cvIbv / KzFb)
17) Interest expense (my`)
18) Bank charge (e¨vsK PvR©)
19) Supplies expense (mieivn e¨q)
20) Sundry / Miscellaneous expense (wewea LiP)
21) Discount allowed / Sale discount (cÖ`Ë evÆv)
22)Cost of goods sold (wewµZ c‡b¨i e¨q)
4) Revenue Account (Avq wnmve) t Revenue ej‡Z gybvdv RvZxq Avq †K ‡evSvq|
Kvievwi Kvh©µg †_‡K †h Avq nq Zv‡K Avq e‡j| †hgb-
1. Sales (weµq)
2. Service revenue (‡mev Avq)
3. Discount received / Purchase discount (cÖvß evÆv)
4. Commission received (Kwgkb cÖvwß)
5. Sub rent (Dcfvov)
6. Gain on sale asset (m¤úwË weµq RwbZ gybvdv)
7. Interest revenue (my` Avq)
8. Profit on consignment (Pvjvwb Kviev‡i gybvdv)

5) Owner’s Equity (gvwjKvbv m&¦Z¡) t Kviev‡ii wbKU gvwj‡Ki cvIbv ev `vwe‡K

gvwjKvbv ¯^Z&¦ e‡j| gvwjKvbv m&¦‡Z&¦i
Dcv`vb 3 wU|
1. Capital (gyjab)
2. Profit (gybvdv)
3. Drawing (D‡Ëvjb)
wnmv‡ei †WweU - †µwWU wbY©q
1) Assets (m¯ú`) t m¤ú` evo‡j †WweU, Kg‡j †µwWU|
‡hgb- Purchase of Furniture tk. 20,000
Furniture a/c Debit 20,000
Cash a/c Credit 20,000
2) Liability (`vq) t `vq evo‡j †µwWU, Kg‡j †WweU|
‡hgb-
a) Purchase of goods on account tk. 10,000
Purchase a/c Debit 10,000
Accounts payable Credit 10,000
b) Paid to suppliers tk. 15,000
Accounts payable Debit 15,000
Cash Credit 15,000
3) Expense (e¨q) t e¨q evo‡j †WweU, Kg‡j †µwWU|
‡hgb-
a) Salary of tk. 12,000 paid for cash
Salary expense Debit 12,000
Cash Credit 12,000
b) Return goods to suppliers tk. 1,000
Accounts payable Debit 1,000
Purchase return Credit 1,000
4) Revenue (Avq) t Avq evo‡j †µwWU, Kg‡j †WweU|
‡hgb-
a) Service provided but bill not sent tk. 30,000
Accounts receivable Debit 30,000
Service revenue Credit 30,000
b) Sales return from customer’s tk. 2,000
Sales return and allowance Debit 2,000
Accounts receivable Credit 2,000
5) Owner Equity (gvwjKvbv ¯^Z¡) t gvwjKvbv ¯^Z&¦ evo‡j †µwWU, Kg‡j †WweU|
‡hgb-
a) Owner invested tk. 50,000 in the business
Cash Debit 50,000
Capital Credit 50,000
Owner withdraw tk. 5,000 for personal use
Withdrawal Debit 5,000
Cash Credit 5,000

Accounting term / Word meaning

Provided – ‡`qv / mieivn Kiv
Occur – m¤úbœ nIqv
Accrued – e‡Kqv
Outstanding – e‡Kqv
Prepaid – AwMÖg
Bill to customer – Kvógvi‡K wej †`qv
Transaction – †jb‡`b
Trial balance – †iIqvwgj
Financial statement – Avw_©K weeiYx
Ledger – LwZqvb
Journal – Rv‡e`v
Error – fzj
Principle – bxwZ
During – mg‡q
Income statement – Avq weeiYx
Retained earnings – msiwÿZ Avq
Supplier – mieivnKvix
Receivable – cÖvc¨
Payable – cÖ‡`q
Received – cÖvß
Expenditure – LiP
Goods / Merchandise – cY¨
Unrecorded – AwjwLZ
Invoice – Pvjvb
Perform – KvR m¤úbœ Kiv
Salvage value – fMœve‡kl g~j¨
Adjusting entry – mgb&¦q Rv‡e`v
Hire – fvov Kiv ev wb‡qvM †`qv
On credit – evwK‡Z
Expired – †gqv` DËxb© nIqv
Incurred – msMwVZ nIqv
On account – av‡i ev evwK‡Z
Suspense account – AwbwðZ wnmve
Particulars – weeib
Full settlement – c~b©wb®úwË
Capital – g~jab| gvwjK Kviev‡i hv wKQz mieivn K‡i ZvB g~jab| †hgb- bM`,
m¤ú` ev cY¨|
Drawing – D‡Ëvjb | gvwjK e¨w³MZ cÖ‡qvR‡b Kvievi †_‡K hv wKQz wb‡q
hv‡e ZvB D‡Ëvjb| †hgb- bM`, m¤ú` ev cY¨|
Assets – m¤ú`| hv e¨env‡ii D‡Ï‡k¨ µq Kiv nq Zv‡K m¤ú` e‡j|
Goods – cY¨| hv weµ‡qi D‡Ï‡k¨ µq Kiv nq Zv‡K cY¨ e‡j|