Scribd
Upload
170 views14 pages

Basic Concept of Accounting

This document provides an introduction to basic accounting concepts. It defines key accounting terms like assets, liabilities, equity, revenue, and expenses. It explains the accounting process from source documents to financial statements. It also demonstrates the basic accounting equation and double-entry bookkeeping using an example transaction. The presentation aims to explain fundamental accounting principles to attendees in a clear and concise manner.

Uploaded by

bdfp it
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
170 views14 pages

Basic Concept of Accounting

This document provides an introduction to basic accounting concepts. It defines key accounting terms like assets, liabilities, equity, revenue, and expenses. It explains the accounting process from source documents to financial statements. It also demonstrates the basic accounting equation and double-entry bookkeeping using an example transaction. The presentation aims to explain fundamental accounting principles to attendees in a clear and concise manner.

Uploaded by

bdfp it
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

Welcome to the Presentation On

BASIC CONCEPT OF ACCOUNTING

brought to you by

Md. Shafiqul Alam LL.B, ACS, FCMA, FCA


Principal and CEO
Shafiqul Alam & Co., Chartered accountants;
Council Member
Institute of Chartered Secretaries of Bangladesh (ICSB)
What is Accounting?

Summarizing the Financial data into meaningful format

Balance Sheet
Profit & Loss Account
Accounting Process
Source
Document

Journal

BK Ledger

Trial
balance
Financial
Statements

PL BS CF SOCIE NOTES
Basics of Accounting
Asset

Liability

5
Elements
Equity
of FS

Revenue

Expense
Asset

An asset is a resource controlled by an entity as a


result of past events and from which future
economic benefit are expected to flow to the entity.
Expense
An expense is the cost of operations that a company incurs to generate
revenue and from which no further benefit is expected.

e.g. Rent, Electricity, Salaries etc.


Liability

A present obligation of the entity to transfer an economic resource


as a result of post event.

It is a claim of outsiders on total assets of the company.


Equity

It is the residual interest in the total assets of the entity after deducting
all its liabilities.

It is the claim of owners in the total assets.


Revenue

It is the gross inflow of cash, receivables or other consideration arising


in the course of the ordinary activities of business such as sale of goods,
rendering of services etc.
Mr. A started a Business by investing Tk.80,000 cash,
Bank loan Tk. 40,00 and Equipment with Value Tk. 20,000.

BS
Capital 100,000 Cash 120,000
Bank Loan 40,000 Machinery 20,000

140,000 T.A 140,000

Loan
B 40,000

Obligation Cash

(L) 40,000 40,000(A)


Double Entry
=

DEBIT TRANSACTION CREDIT

Accounting attempts to record both effects of a transaction or


event on the entity’s financial statements
“Every Transaction has Two effects.”

DEBIT CREDIT

Duality Principle
Or
Dual Aspect
Step 6: Practice and Revise

Balance Increase Decrease


Asset - Dr. Dr. Cr.

Expense - Dr. Dr. Cr.


Liability - Cr. Cr. Dr.
Equity or - Cr. Cr. Dr.
Capital
Revenue - Cr. Cr. Dr.
or Income
MD. SHAFIQUL ALAM LLB, ACS, FCA, FCMA
https://www.youtube.com/channel/UCFMCpQF19HFeFBh
nIDm9VMQ

SHAFIQUL ALAM
https://www.facebook.com/md.shafiqul.alam

MD. SHAFIQUL ALAM ACS, FCMA, FCA


https://www.linkedin.com/in/md-shafiqul -alam-acs-
fcma-fca-81373132/

SHAFIQUL ALAM
[email protected]
Thanks

You might also like