Smart Accountant Training for beginners- Day 2.pptx

Accounting concepts in easy terms

1. Welcome to Smart Accountant class 200 Hrs 60 Hrs 140 Hrs Chart of Accounts 3 Months, 200 Hours 60 Hours of Class 140 Hours of Practicals

2. Registered Office M-51, Ramakrishna Vihar , IP Extn . Patparganj , New Delhi – 110092 Registered Corporate Office Office No. 404, 410 & 411 Devika Tower, Chander Nagar, Ghaziabad – 201011 Contact 0120-4113633 9560054515 7840054515 www.virtualgroup.in 3 Months, 200 Hours 60 Hours of Class 140 Hours of Practicals

3. Chart of Accounts Importance Liabilities Assets Income Expenditure Chart of Accounts Liabilities Assets Importance Chart of Accounts Income Expenditure

4. Chart of Accounts A chart of accounts (COA) is list of the accounts used by a business entity to record and categorize financial transactions. COA is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity. The accounts are listed in the order of assets, liabilities, owner's equity, revenue, and expenses. The chart of accounts establishes how the business will operate, what information will be captured, and what information will subsequently be readily retrievable by the system for reporting and other needs. Liabilities Assets Importance Chart of Accounts Income Expenditure

5. Chart of Accounts Have you ever wondered after hearing such phrases from accountants like "It's not in the chart of accounts. We don't know how to enter your transaction" or "We can't process your invoice without an account number." In case of new general ledger nothing moves forward unless chart of account has been finalized. While many non-financial managers feels that the client is unnecessarily slowing down payment by discussing chart of accounts too much. That's not really their purpose. Anyone who has some financial understanding knows that this structure needs to be finalized first before other discussions can start since it has a serious impact on the entire general ledger design. Liabilities Assets Chart of Accounts Importance Income Expenditure

6. Chart of Accounts The entire recording process of any accounting system requires a basic organization of data so that the accounting data can be clubbed into meaningful accounts and represented in a way useful for the users and stakeholders. For example – purchases on credit from vendors through invoices can be later summarized and reported with some clarity as to what was purchased, why it was purchased, what organization(s) benefited from those expenditures, and what is the unpaid liability on account of all those purchases. Liabilities Assets Chart of Accounts Importance Income Expenditure

7. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

8. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

9. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

10. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

11. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

12. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

13. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

14. Chart of Accounts Importance Assets Chart of Accounts Liabilities Income Expenditure

15. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

16. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

17. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

18. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

19. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

20. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

21. Chart of Accounts Importance Liabilities Chart of Accounts Assets Income Expenditure

22. Chart of Accounts Importance Liabilities Chart of Accounts Income Assets Expenditure

23. Chart of Accounts Importance Liabilities Chart of Accounts Income Assets Expenditure

24. Chart of Accounts Importance Liabilities Chart of Accounts Income Assets Expenditure

25. Chart of Accounts Importance Liabilities Chart of Accounts Expenditure Assets Income

26. Chart of Accounts Importance Liabilities Chart of Accounts Expenditure Assets Income

27. Chart of Accounts Importance Liabilities Chart of Accounts Expenditure Assets Income

28. Chart of Accounts Importance Liabilities Chart of Accounts Expenditure Assets Income

29. Test Liabilities Assets Importance Chart of Accounts Income Expenditure

30. Chart of Accounts The chart of accounts is a: List of checks and check numbers List of accounts and account numbers List of inventory items and item numbers List of Customers and customer numbers Liabilities Assets Importance Chart of Accounts Income Expenditure

31. Chart of Accounts The chart of accounts is a: List of checks and check numbers List of accounts and account numbers List of inventory items and item numbers List of Customers and customer numbers Liabilities Assets Importance Chart of Accounts Income Expenditure

32. Chart of Accounts Income accounts in a company are used to track: Costs of items sold to customers Sales to customers and other revenue earned Purchases from vendors Costs that have expired or been consumed Liabilities Assets Importance Chart of Accounts Income Expenditure

33. Chart of Accounts Income accounts in a company are used to track: Costs of items sold to customers Sales to customers and other revenue earned Purchases from vendors Costs that have expired or been consumed Liabilities Assets Importance Chart of Accounts Income Expenditure

34. Chart of Accounts What are assets ? Resources that a company owns with future benefit Amounts owed to others and are future obligations Net worth of a company Amounts paid to owners Liabilities Assets Importance Chart of Accounts Income Expenditure

35. Chart of Accounts What are assets ? Resources that a company owns with future benefit Amounts owed to others and are future obligations Net worth of a company Amounts paid to owners Liabilities Assets Importance Chart of Accounts Income Expenditure

36. Chart of Accounts Which one of the following choices is not used to modify the chart of accounts? Adding new accounts Deleting unused accounts Deleting accounts with balances Editing accounts Liabilities Assets Importance Chart of Accounts Income Expenditure

37. Chart of Accounts Which one of the following choices is not used to modify the chart of accounts? Adding new accounts Deleting unused accounts Deleting accounts with balances Editing accounts Liabilities Assets Importance Chart of Accounts Income Expenditure

38. Chart of Accounts The chart of accounts is a listing of the accounts presently having balances in the general ledger: Liabilities Assets Importance Chart of Accounts Income Expenditure Some accounts listed in the chart of accounts will NOT have amounts recorded in them, especially if it is early in the accounting year.

39. Chart of Accounts Some accounting software will classify some accounts as "income" accounts, while accountants might refer to these accounts as "revenue" accounts. Liabilities Assets Importance Chart of Accounts Income Expenditure Many people use the term  income  when referring to sales, service fees earned, contributions received, etc.

40. Chart of Accounts The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a "1" might signify that the account is an asset account, a "6" might signify an operating expense, etc. Liabilities Assets Importance Chart of Accounts Income Expenditure Generally, the larger and more sophisticated the company, the more digits in the account numbers. For sorting the accounts into meaningful reports the various digits do signify a specific category.

41. Chart of Accounts The accounts shown in the chart of accounts can be broadly classified into two categories: balance sheet accounts and  Assets and Liabilities Account Liabilities Assets Importance Chart of Accounts Income Expenditure Correct answer is Balance Sheet account and Profit and Loss Account

42. Chart of Accounts Every transaction will affect two accounts Liabilities Assets Importance Chart of Accounts Income Expenditure Two is the  minimum  number of accounts required to record a transaction; however, many transactions involve more than two accounts.

43. Chart of Accounts In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's  Line of Business Liabilities Assets Importance Chart of Accounts Income Expenditure Correct answer is Organisation Chart

44. Thank You Liabilities Assets Importance Chart of Accounts Income Expenditure