Accounting rules

Meaning of accounting
Functions of accounting
Systems of accounting
Types of accounts
Accounting rules

1. Accounting rules Chaithra J A 1 st M com Under The Guidance of SUNDAR B. N Asst. Prof. And course Co-ordinator Post Graduation Studies in Commerce G. F. G. C. W HN Pura 1

2. Contents Meaning Functions of accounting Systems of accounting Accounting Rules Types of Accounts 2

3. INTRODUCTION TO ACCOUNTING Modern Accounting Father of Latin Luca Pacioli . In 1494 . The recognized as the father of accounting and book keeping Was the first person. 3

4. What is accounting ? Accounting is the process of identifying, M easuring , Recording, classifying, Summarising, Analysing and Interpreting ,communicating business transaction. 4

5. Functions of Accounting 5

6. Identifying ; Identifying the business transactions form various sources is the first step of accounting . Recording ; Only those transactions are recorded in books of accounts which can be measured in terms of money . Classifying ;After recording the transactions they are classified . Summarising ; It is the process of putting the balances of all accounts at one place Communicating ;Accounting also includes the communication of financial date like financial statements to the users who analyse them as per individual requirements . 6

7. 7 Two systems of accounting 1. single entry system . A system in which only the personal aspects of the transactions Are recorded in the books and the impersonal aspects are ignored . 2 . Double entry system . It is the most common system of keeping records whereby the two aspects of every transaction the giving aspect are The receiving aspects are recorded in the books of accounts. Each aspect will be recorded in one account.

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9. Types of accounts 1. personal account 2 . Real account 3. Nominal account 9

10. what is personal Account? A personal account is an account for use by an individual for that person's own needs. It is a relative term to differentiate them from those accounts for business or corporate use . 10

11. 3. Types Personal account . P hysical or natural personal account ; These are account which are being held by human being or individual Ex: suresh account , ramesh account. Artifical or legal personal account ; These are the accounts belonging to artificially created person by law such as firms , companies, clubs, associations, banks,shcool,colleges etc. Ex: TATA, HAL, SBI etc. Representative personal account ; These are the personal accont which belong to amount received or amount to be received in advance or outstanding expenses.\ Ex:capital, drawings etc. 11

12. Real Account. Account relating to properties or assets are called real accounts. You have to maintain a separate account for each asset. 12

13. 2 types of real account. Tangible real account : The assets which can be touched such as building, land, furniture etc. Intangible real account : These are the assets which can’t be touch but can be feel such goodwill, copyright, patent and so on. 13

14. ACCOUNTING GOLDEN RULES Type of Account Real account Personal account Nominal account Golden Rules * Debit what comes into The business * Credit what goes out from the business * Debit the receiver * Credit the giver * Debit the expense or loss of the business *Credit the income or gain of the business 14

15. M C Q Which of the following is not a Real account : Plant and machinery Bank account Trademark account Software account 2. ‘State Bank of India’ is an example of : Nominal account Real account Personal account Impersonal account 15

16. 3 . Capital account is an example of : Nominal account Real account Representative personal account Personal account 4.Cash Withdrawn by owner for his personal use, the result will be : Assets increase and Capital Decreases Assets Decreases and capital decreases Assets Decreases and capital increases Assets Increases and Capital increases 16

17. 5. Which of the following is not an Artificial Personal account. a. Joint stock company b. ISC board account c. Government account d. Kapil ‘s account 6. The Father of Dauble – entry system is a. Kautilya b. Luca pacioli c. William pickles d. J. R. Baltiboi 17

18. Reference Topic : ACCOUNTING RULES RETRIVED FROM https://www.merriam-webster.com . https://www.deskera.com>blog>golden-of-account . 18

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