1. JAIIB-Accounting & Finance for Bankers
MODULE – B
Book-Keeping
Definition & scope of Book-keeping
Basic Accountancy procedures
Maintenance of cash / subsidiary Books and Ledger

2. Definition & scope of Book-keeping
Accounting is often called the language of business.
Book-keeping and Accounting not one and the same – Book-keeping means recording the business Transactions. Accountancy means compilation of accounts in such a way that one is in a position to know the state of affairs of the business.

3. Definition & scope of Book-keeping
Financial Statements:
- Manufacturing Accounting.
- Trading Account
- Profit & Loss Account
- Balance Sheet
- Funds Flow (Changes in Financial Position)
- Cash Flow Statement

4. Definition & scope of Book-keeping
Basic objective of Accountancy- to provide information to various users.
Income Tax Authorities
Sales Tax Authorities
Share holders
Investors
Business Associates
Directors
Banks for lending purpose

5. Definition & scope of Book-keeping
Purpose:
- To know the Profit & Loss
- To know the Financial position & Liabilities position
- To interpret the Financial Position
Objectives:
- To keep a systematic record
- To ascertain the results of the operations
- To ascertain the financial position of business
- To facilitate rational decision-making
- To satisfy the requirements of law

6. Definition & scope of Book-keeping
Advantages:
- For Economic Decisions
- To provide information to Investors
- To compare the financial position
Types of Accounting:
- Financial Accounting
- Cost Accounting
- Management Accounting
- Social Responsibility Accounting
- Human Resource Accounting
- Inflation Accounting

7. Definition & scope of Book-keeping
Accounting Standards:
-Accounting Standards Board (ASB) – The council of ICAI may mandate such standards. The council of ICAI will consider the final draft and if found necessary modify the same in consultation with ASB.

8. Definition & scope of Book-keeping
- AS-1 Disclosure of Accounting Policies
- AS-2 Valuation of Inventories
- AS-3 Cash Flow Statements
- AS-4 Contingencies and events occurring after balance sheet
- AS- 5 Changes in Accounting Policies
- AS – 6 Depreciation Accounting etc.

9. Basic Accountancy procedures
At the recording stage:
Business entity concept
Money measurement concept
Objective evidence concept
Historical record concept
Cost concept
Dual aspect concept

10. Basic Accountancy procedures
At the reporting:
Going Concern concept
Accounting period concept
Matching concept
Conservatism concept
Full disclosure concept
Materiality concept

11. Basic Accountancy procedures
Main conventions of Accounting
Accounting of full disclosure
Convention of Materiality
Convention of Conservatism
Convention of Consistency

12. Two systems of keeping records
- Single entry system
- Double entry system
Journal / Subsidiary Books and Ledger
Recording keeping Basics
- Recording
- Classifying
- Summarizing

13. Classification of Accounts Personal Accounts Impersonal Accounts
Real Accounts
Tangible
Intangible
Nominal Accounts
Interest, Rent, Carriage, Commission, Insurance
Salaries, Discount and wages etc

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