PPT - Financial Acc. SNBFinancial AccFinancial Acc

Financial AccFinancial AccFinancial Acc

1. Rajarshi Shahu Mahavidyalaya , Latur (Autonomous) Department Of Commerce Financial Accounting I B.Com I ( Sem I) Miss. S . N. Bagwan M . Com., NET, SET.

2. Introduction to Accountancy Introduction In all activities and in all organisations which require money and other economic resources accounting is required to account for these resources. In other words ,wherever money resource is involved accounting is required to account for it.

3. Meaning and Definition Bookkeeping Bookkeeping is a process of recording business transaction in the books of accounts in very systematic manner. According to J. R. Batliboi, “bookkeeping is an art of recording business dealings in a set of books” Accountancy Accountancy refers to a systematic knowledge of accounting. It explains ‘why to do’ and ‘how to do’ of various aspects of accounting. It tells us why and how to prepare the books of accounts and how to summarise the accounting information and communicate it to the interested parties. According to Kohler, “Accountancy refers to the entire body of theory and process of accounting”.

4. Accounting Accounting is often called as a language of a business. The basic function of any language is to serve as a means of communication accounting is also serve this function by communicating information to the users. According to American Accounting Association, 1966, “Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by uses of information.”

5. Objectives of Accounting To keep systematic records To protect business properties To ascertain the operational profit or loss To ascertain the financial position of the business To facilitate rational decision making To communicate the results To meet legal requirements

6. Rules of Debit and Credit Personal Accounts Debit the Receiver Credit the Giver Real Accounts Debit what comes in Credit what goes out Nominal Accounts Debit all expenses and losses Credit all incomes and gains

7. Thank You