1. Kamran Khan nd Lecture

2. Accounting is an art of Analyzing, Recording, Classifying, Summarizing
What is Accounting?
Accounting is an art of Analyzing,
Recording, Classifying, Summarizing
and Interpreting the results.

3. The Accounting Process
1) Analyzing
2) Recording
3) Classifying
4) Summarizing
5) Interpreting

4. To analyze, judge, or identify an event is known as analyzing.
Define Analyzing
To analyze, judge, or identify an
event is known as analyzing.

5. Event Happening of anything in this world is known as event.
e.g. reading a book
Met with an accident

6. Event
Simple Event
Economic Event

7. 1) Simple Event
An event which does not involve any monetary value is called simple event. OR
An event which can not be expressed in terms of money.

8. 2) Economic Event
An event which can be measured in terms of money is called economic event.
Economic event is also called as Transaction
e.g. purchasing of car for cash 50000

9. Basic Elements of Accounting
1) Assets
2) Equities

10. What is asset?
The things & properties possessed by the business are called assets. OR
any tangible or intangible thing owned by a business is known as assets
e.g. Cash, Machinery, Building, Car, Account Receivable, Goodwill, Trademark etc.

11. What is equities? It is also called as LIABILITY
The rights possessed by the OWNERS or OUTSIDERS against the assets of
the business .OR
The assets provided either by owner or outsiders is considered as a liability of the business

12. There are two types of Equities
Internal Equities
External Equities

13. a) Internal Equities
The amount and things provided by the owner is known as internal equities or Owner Equity or Capital .
e.g. Ali started a business with cash

14. b)External Equities
The claims of outsiders against the assets of the business is called External Equities.
e.g cash is provided by a bank to our business.