1. FINANCIAL ACCOUNTING AND ANALYSIS
PRINCIPLES OF ACCOUNTING

2. ACCOUNTING The art of recording, classifying and summarizing in a
Significant manner in terms of money transactions and events which in part, at least of a financial character and interpreting the results thereof
---by AICPA

3. OBJECTIVES
To ascertain whether the business operations have been profitable or not
To ascertain the financial position of the business
To generate information

4. FUNCTIONS Systematic record of business transactions
Protecting the property of business
Communicating results to interested parties
Compliance with legal requirements

5. USERS Owners Creditors Investors Employees Government Public
Research scholar
Managers

6. Financial accounting Cost accounting Management accounting
DIFFERENT BRANCHES
Financial accounting
Cost accounting
Management accounting

7. CLASSIFICATION
ACCOUNTS
IMPERSONAL
PERSONAL

8. PERSONAL ACCOUNTS Name of a person Name of institution
Representative accounts
RULE ---DEBIT THR RECIEVER , CREDIT THE GIVER

9. IMPERSONAL ACCOUNTS
REAL
NOMINAL
IMPERSONAL

10. REAL ACCOUNTS RULE--- DEBIT WHAT COMES IN, CREDIT WHAT GOES OUT REAL
TANGIBLE
INTANGIBLE
RULE--- DEBIT WHAT COMES IN, CREDIT WHAT GOES OUT

11. NOMINAL All the accounts which deals with expenses, incomes
Profit and losses
RULE--- DEBIT ALL EXPENSES AND LOSSES,
CREDIT ALL INCOMES AND GAINS

12. ANALYSIS OF TRANSACTIONS
Which are the two accounts involved in transaction to be recorded
Whether the accounts are personal, real or nominal
What rules of debit and credit are applicable
Which accounts should be debited or credited

13. BASIC TERMS Debtor –Creditor, Incomes –Expenses, Profit –loss,
Goods, Capital, Equity, Expenditure, Drawings,
Assets –liabilities, Voucher, Net worth, Turnover

14. ACCOUNTING EQUATION
LIABILITIES
EQUITY
ASSETS

15. RULES OF ACCOUNTING EQUATION
If assets, expenses increase—debit, decrease—credit
If liabilities, equity, incomes or profit increase—credit, decrease—debit

16. ADVANTAGES OF DOUBLE ENTRY SYSTEM
Complete record of transactions
Accurate information
Arithmetical accuracy
Ascertain profit or loss
Preventing frauds and errors
Financial position

17. ACCOUNTING CYCLE ACCOUNTING PROCESS JOURNAL LEDGER TRAIL BALENCE
FINAL ACCOUNTS

18. BASIC ACCOUNTING CONCEPTS
BUSINESS ENTITY
MONEY MEASUREMENT
GOING CONCERN
ACCOUNTING PERIOD
COST CONCEPT
DUALITY ASPECT
REALISATION
ACCRUAL
MATCHING

19. JOURNAL A daily record of business transactions
For this we enter in 5 coloumns
1 –date : to record on date wise
2 –particulars : regarding the transaction
In 1st sentence ends with dr, 2nd starts with cr
3 –l.f :ledger folio number :in which ledger the transaction entered
4 –debit amount
5 –credit amount

20. LEDGER All the individual accounts are to be prepared
This is to be prepared for the month
This is a T –shaped format
On the left side of T all the debits are posted
On the right side of T all the credits are posted

21. THANK YOU
-----BY ROHIT KUMAR