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Book Keeping & Accountancy

This document discusses key aspects of bookkeeping and accounting. It introduces bookkeeping and explains that it is the recording of business transactions and is necessary for accounting. It then discusses various quantitative and qualitative records that must be maintained, such as purchases, sales, expenses, number of employees. It defines accounting and discusses the main branches of accounting - financial accounting, cost accounting, and management accounting. Finally, it covers basic accounting terminology and concepts.

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Aditya Kulkarni
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50 views12 pages

Book Keeping & Accountancy

This document discusses key aspects of bookkeeping and accounting. It introduces bookkeeping and explains that it is the recording of business transactions and is necessary for accounting. It then discusses various quantitative and qualitative records that must be maintained, such as purchases, sales, expenses, number of employees. It defines accounting and discusses the main branches of accounting - financial accounting, cost accounting, and management accounting. Finally, it covers basic accounting terminology and concepts.

Uploaded by

Aditya Kulkarni
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BOOK KEEPING &

ACCOUNTANCY
 INTRODUCTION
 VARIOUS ASPECTS OF BOOK KEEPING
RECORDS
 Has the business made a profit or suffered a
loss
 What is the amount of profit or loss
 How much property does the business own
 How much does the business owe others

 Book keeping is an important activity without


which accounting is not possible.
What is to be recorded
Both types require assessment of
work done and for this they
require information
 Quantitative (B)  Quantitative (A)
 General  Relating to Operations
 Total no.of employees  Total Purchases
 Avg.age of employees  Total Sales
 Average experience  Expenses for year
 Production targets  Value of closing stock
 No.of sales outlets  Tax payable
Continued
 Qualitative (C)  Financial Accounting
 Efficiency  Uses A
 Labour unrest  Cost Accounting
 High Morale  Uses A+B
 Loyalty  Management
 Self-esteem Accounting
 Uses A+B+C
Meaning of Accounting
 Accounting is an art of recording,classifying and
summarising in a significant manner and in
terms of money,transactions and events which
are in part at least of a financial character and
interpreting the results thereof.
 It is the science and art of correctly recording in
the books of accounts all those business
transactions that result in the transfer of money
or money’s worth.
Branches of Accounting

 FINANCIAL  Cost Accounting –


ACCOUNTING- main main aim is
aim is to ascertain  To ascetain the cost
 the profit or loss made
incurred for various
during a period activities
 Financial state of
 To enable
affairs at the end of
period
management to
exercise cost-control
 To maintain control
over firm’s property
Branches of accounting

 Management Accounting : The aim is


 To supply the management significant
and necessary information in order to
assist them in discharge of their
functions such as decision
making,control,etc
Objectives of financial
Accounting
 To ascertain the results of operations i.e. profit or loss
 To ascertain the financial position of the business
 To provide control over assets
 To provide information to all interested parties which are as
follows
 Owners : To know profit or loss or financial position
 Creditors : To know whether the business is creditworthy
and trustworthy
 Government : To assess tax liability
 Investors : to know whether they may invest
 Management : To keep a control over the various aspects
of business
Importance & Utility
 Assistance to Management in Planning, decision-
making, controlling
 Overcomes the shortcomings of human memory
 Comparitive study
 Valuation of business
 Evidence in court
 Settlement of taxation liability
Limitations of financial
Accounting
 Financial accounting is not fully exact
 Financial accounting doesnot tell the whole
story
 Accounting statements may be drawn up
wrongly
 The most important asset human resources
cannot yet be included in the balancesheet
 Due to inflation many figures are out of date
Basic Accounting
Terminologies
 Assets  Proprietor
 Liabilities  Drawings
 Capital  Goods
 Revenue or Income  Debtor
 Expenses  Creditor
 Losses  Transaction
 Gain  Entry
 Books of account
Continued
 Capital,Revenue and  Accounting year
deferred revenue  Goodwill
expenditure
 Contingent Liability
 Cash Discount
 Trade discount
 Solvent
 Insolvent

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