Production vo Accountancy ‘accounting for Con Freatment. of Normal & Abr: So coat prea and Invace Price, (Opens (22 Hrs.) jor Branches crerypes of Branches -Meening and features of independent Branches - Foreign 6 dunte by Head office - Meaning & Feature system and Final Account Problems on prepara Debtor system only coat 3 eG: Accounting ( 3 peeing = bsecves 5 «rer oaks of AC mar, eeoro system, wnatesale eer cant price & toveice eranch Wc in the books of Head Office under spreadsheet) a Hl fe — Major institution in India nt Purchase System jortant Definitions. ~ lire Purchase Charge Interest - Calculation of Cé ks of Hire Purchaser (As (4 Hrs) Components of Lease Agreement - Types of (Theory) - Hire Purchase - Meani ~ difference between Hire Purchase Hire Purchase Agreement ~ Hire 1s = Net Hire Purchase Price - ‘ash Price - Journal Entries set Accrual Method only) te ig ene overt ante No. 4: Leasing eng - cements of leas Leasing Financial ase and, Instalme’ purchase - IMP Cash Price - Calculation of Purchase [tess - of Hire Pur ind instalment prchase Price — ee cash Price — mits in the book er AccOUT f EMI in Spreadsheet) (08 Hrs.) snds in Accounting ving-big Data Analytics in Accounting: Accounting through 1p - Human Resource Accounting - Inflation Accourking ane 1 (eacalation of podule No. 5: Emerging TFe n of Account Green Accountin (Concepts _only) Digital Tansformat {Goud Computing Database Accounting Skil Developments Activit Preparation of ‘Proforma. invol jgreements and draft re and accounts sales, with Imaginary figures ive. purchase agreements eth imaginary ANTES cnet ire purchase 2 whe eataplshment of varius, branches tthe procedure and documentations Involved in + colect ‘st cut Capital & Revenue Items Ser ipovaviees’ and developmen incene fitd_ of accountng are relevant to the course * entity ‘+ day other activities, whichPro ae ao aarnierve acl teil a character and interpreting the results thereof. ran Teves a clear term tie 2.3. Mention any two objectives of financial accounting, The two. objectives. of financial. accounting. are: (0) To ascertain whether the business operations have been proftabe not (i) To ascertain the financial position of the business, eee ee Ty The two advantages of accounting are: (|) Maintain. records of transecten (ii) Reveals the result of business (li) Reveals the financial position (Iv) Control me business Cee et The main functions of accounting are; 1) Identification li) Recording il) Classiyng ¥) “Summarizing v) Analyzing and Interpreting vi) Communicating, Book-keeping is the system of recording business transactions in the appropriate count books in @ systematic manner so as to indicate the profit or loss of the business ‘id present a clear picture of the financial position of the businessto sscers Bogress in the Do Bot business tor Bmrers to tne, 3 of abilities. sere to outside parties at ve claims against the ert Be wanes ore Se Phampened._1n Sn ties Rsers refer to tne POF ye liabilities who owes: yee tsi8) thing Is owing respect. to that pal creditors one t© I cedtor so long 26 2 ge tnger_2 rectors ana Br ent of money (5 2 See and ing, When he repaid amount what tie owes, NE jar. amount. ‘One who ‘he owes somet in respect to that particu!statement ‘al expenses. It aso rf turn or fo reflect the isk that th Stock eters tO stock means Inventory, financial enting inermaton seers! partes ae ite Mn Ac which are related to sa he cost, cost the accountant usually while recording accounting transaction, The. 3 can be classified into two ways: account ‘counting concepts and counting beneficialBre accounting con Jeong = concern Py Dual - aspect Wy Business entity cor Why Matching concent fe) Accrual concept ms He accounting conventions are Hpeamvention of meteraity |) cov: Ii) Convention of consistency eee eT Mpual aspect concept are related pect One aspects relates to Bons, For example, when fu Pra nlp of paying cash to the Mnecording to this concept, Ass i expressed by the equation. ipssets = Lables + Capi Ccopital_ = Assets Rh Money measuremen ang expressed in terms ‘Example: If @ business Uetwitey an asset to the business. Bu they are not_shown inthe books of i Under this concept the ans 5 2 separate from the private affeirs of the ig totaly & separate organization anc dif n This fen be the proprietor to ascertain the true busine fermen Reconciliation means compar die in agreement. The process ensures that Be eiesin, In the word of finance and accounting, businesses newt the validity of their transactions and of co nts. ts of data in order to check that they ng different fand and labor. 1 Capital is one of the basi 15 the accumulated assets of 2 s_ that eerste the business, Capital includes all that are made or created by Used for producing goods or services goods or services Revenue is the income 2 busine fistomer, It is typically 2 keySos Er Pee ted ap en aid co numen, MEMO Peay parte rery be ohare bear, Dar Bee, cones, ans, Castors, Fee o>. Explain the. Scope Of scent MMcope of accounting are Reisieessr yeas, in the modern won’, . usness eestor ond all businessmen fo)0¥ Mee pram, ees and francel postion of Dasre aE BT ment organizations: Thousn, oveTTeT™ 2n Genet nena necouin Prncle (GAAP), en sven T® terrder to find the postion of public fund Bie acveramant orguctrations: Nonsgovernnet 8 ects yaar, nad cross Society, SO ete whch Pane * Jevelopment of nation also uses accounting, Scope of4: Individuals: trcvicunie aes peri sore roast g Petom economia team the Be cams 8 ating to craw Moana encoeuen or making Seems a Significance of Accounting 2. Analysis purpose: Investors Brass 0 accounting information It re all obtalned from the information provised ty secceruny, mY emeeney ste 2, Decision making: Ali our tue Sei MME sou analyte of nreraar sees co mMENY Informed cet 3. Record keeping: Accounting is one ele win accounting Data are gathered from their various sourc cee sit ip the long run. “4. Prevention of fraud: Frauds ivronment where there is good intern fe in place where there is no fo : way of Keeping track of all these in a 5. Create of fund and loans: Acco. generally accepted formats which financial measuring the risk of a busines: . Reputation and credit building: Reputation and bu be improved by the simple act of establishing and opera in an organization. ra ees Book Keeping ‘Accounting Tobook Keeping ie a process of accounting not ay recording ‘concerned with recording transactions | Pe eratcna in the books SiieeemnenS in the books of accounts But also their interpretation, In short Aecounting. is centifia analysis and. interpretation ‘Accounting has 2 wide: 5 movers book Keeping plus analysis ané 2, Book keeping has limited scope, and is ‘concerned with recording, classifying and summarising of business transactions 3, Book keeping is restricted to clerical work, since the scope is limited. imterpretat of management, since It has got wid scope, Lowe ep“4, Tt shows the net resutt operating position of the bus extends only ve (0 oF final accounts Book Keeping depend making the accounting the Ameria | and financial fess a5 the SOP ‘ne preparation se on accounting 10°) 5 Tosetute of certifi pemmme kena) een iat position esuks and nen! to depend on naan Seen, Aacpiectng x caine te eau sehr for aceon eco irrana chem Geel for ota, Pe anarceason! makina Brac Accountant (AICPA) and summarizing 1341, accountng flor Ora “accounting Is the, ar ot Tee sons and events te pve anna and egg err te faut heel. FO the abo eee ronorng, nnn: scent a te ‘Classifying (Wil), Summarising (iv) Analysing (i) Recording (i! (W) communicetng Recording: Record concerned with. not only Krsiness transactions recorded nto cash journal, purch Classifying: It is Classification is done in the heads on diferent pages collected, It has seperat Advertising etc ‘Summarising: ng ts the basic fensuring that 2l are of financial re secount ‘summarising Involves presenting the classi feful to the internal as well as external end u: function i transactions are character, It may dé fu journals, sales Journal “J with the systematic analy’ fe book of "Ledger" inder which all financial heads for Traveling Expenses, Printing of financial accounting, ded but also that v2 | sis of the recorded This book contains individual ac ‘yansactions of similar nat and Sta ified data in 2m which is understandable and us accounting statements. Trel Balance, with the help of this process, [Analysing and Interpreting: All the recorded financial data Is analyses » reted for making @ meaningful Judgement about the financial condition and prota! interpr (f the business. operations, For the help of analyzing and interpreting, we can Income statement and Balance Sheet are ore the financial statement of the company, ‘Communicating : This is final function of accounting. It includes besides the Income statement and the Balance sheet and also the add eet an tional information in ‘f accounting ratios, graphs, diagrams, funds flow statement etc.re main advantages of accounting are 8s folk Bipsistaes of waresctorar Eipitineonance of tration abi ern ewe, a one Pe es ee alee toe restrant povon 1 ‘and unfortunately he becomes Insolvent, he Bea ERR DET hap of Be seatete Cacee: 1 protien the cy spol ove buses Sun bs eras, se, ere 4 Scrpany_wise of period-wise ere TP oan ot tnnncat coountin! The eetane ony tonetary wansscion) Te ‘a sary term may be very important for = can wes measured in_monet the. business. books: {uly All information is giving the idea only ss scnouting statements, are prepared by following basic {ily Alternative treatments are permitted: Account (pests vitin generally accented accounting concerts ont Mig) The testing of managerial performance in not re i mananeral performance may nt be avalable Wf the oro accounts. ere Eapeaonting information several parties are interes mting beneficiaries such as Proprietor which are related to acco overnment and other parties. Accounting fedeesberecation ‘paticy, Net Prof, Closing Sto © Tpternal users of Accounting information: Pemmal users are intemal beneficiaries which constitute fre working with the business. They are 26 {olen ip proprietor # Any business fr has man oblers of profi lal ee aiifvcire prospects, The: business therefore ah the frst Importance to the proprietor who wants his business f© 97° Mitishagers = in a/small business vsualy) Oe oprietor is the er, But fessional manage forms several ina large size business It 's managed bY Prcanna aE GAS ea ee | ot esenece tay eonus snemer, PM tad ee compar 5 Poa seats 2 1) Prospective investors: Accounting Interne av ann come ake ef oe rire @ St Commerce to fulfil their own requ Genange and. Chamber of Commerce t0 ees Narcan ammurting refers to the methodology. under which reven expenses are recognized inthe financial statements of a business. The basis of a Ten ik uses, two primary methodologies are most likely to be mentioned: 1, Cash basis of accounting: Under this basis of accounting, a business r evenue when cash is received, and expenses when bills are paid. This is th Gpproach to recording transactions, and is widely used by smaller businesse 2 Accrual basis of accounting: Under this basis of accounting, a recognizes revenue when earned and expenses when expensitures are consum approach requires 2 greater knowledge of accounting, since accruals must be {at regular intervals. If 2 business wants to have its financial statements aucite Use the accrual basis of accounting, since auditors will not pass judgment on | statements prepared using any other basis of accounting,Pe set stale igedosgowen ghuabaeran fil) Management sccounting (the ayes ot Bieiemant lin carrying cut. pore irecting by supplying neces: nie Besar i pores orm CoEETrTSTT i osaunieliauiannaiuaiananadton eames Roaaeaaaseo ‘Accounting principles Oe ‘Accounting Concepts scllustne conver Busines. entry one ong concern. cor oe Gost conces eae Dual aspect. con hecounting period otching concepts ecru! conceats ‘Recounting concepts: and eontions on which accounting system Ripcples ere formulated The prince teal environment of the business i) Money Measurement Concepts those tansachons which pre enable t2 exes Mier nop messurement concept helos a concer to expres Fre re salance, Mechinery, Stock In trade, Furniture and 30 on it ferominato, viz money and use them up for the of assets in 0 particular period bank ‘Example: A business concern has jn trade 2 type writers 4 machines and 2 bul denominator viz money these diverse items cann of money a8 0: © 1,00,000, The term + While preparing accour figure. But it can be expressed in term in trade € 50,000, 2 typewriters, © 20,000 machines € 80,000 Tri possible toladd up the values of all assets 0 state, {e the business of ® 10,50,000Teoncept : under tis cOnceDt i) Going Cone tcoenaare, The BRA HEAT, sorter duration, The Med asst ne es gc ante rectal eae prevents @ oF fay, Sm EP le, where ox te market price of 89 a5 Bes acta we aera te bok Coney res 0,000 and nt 2 : 0 4) dual aspect Concepts: en and every an fauatons, One aspect 5 real ere ad to the giving of benef ase goods for cash She receives and otter aspect 1s relat txample: Sobrata ed gues xen of cual abe vrs concept i based on the assumption tht 10 ne tre reaction, According to ths concept 25 Bae orcas and captal is exresed in the form of equation sets = Lspities + Capt Gaptal = Assets = Lsdities vi) Accounting Period Concepts GQIMLO is nacesary to maitan accouts with reference to 9. con Pe the results are ascertained and fnanciel postion presented Usually accounts are prepared for yest Accounting period is often, referred to as the accounting year: In Engl year the accounting year Is from ist January to 3ist December W/ It is from ist April to. 31st March. wll) Matching Concepts : One of the objectives of every business know its resuts for a given period time. In order to know the profit or business, the costs incurred during a given period Is matched against famed during that period. This helps to known the profit or loss of during a period of time, If the revenue exceeds the cost it represent fn the other hand, if cost exceeds the revenue, it represents the When the business will exist for ' period of one year, which may be 2BRE BatTirevmnien ana expen ae ees eet counting Conventions: ee Msunting conventions ere as follows. rer sas aap to another. When once = ic crete eee ae after year. aes josure all significant li) Convention of Disclosure : Under the convention vention implies. that internation about the business should be discloses. This i (he accounting records and statement conform to generally accepted accounting {As regards the Investments not only the various securities held by prinipes. Pifoern should be disclosed, but also the mode of (eter this convention the financial statements should 4! possible iil) Convention of Conservation : Convention ecounting records end in the financial statements of Frospective losses, risks, and uncertainties should be taken Fit prospective profits should be ignored. Such transa {or doubtful debts, provision for discount on Debtors e (ventions is that the financial statements should ind riality : Convention of Materiality implies that transactions conservation refers to the note of and provided 5 related to provision The importance of this ste the actual position iv) Convention of Mater which ere more important to the business are recorded and transactions ‘which Tp not afect the result of the business drastically should be ignored as the cost Gf tccerisining such insignificant expenses Is more that a trivial expense incurred ample: A'new Pencil purchased and supplied to the office is not doubt, an asset lor the office. Every day when someone in the office writes with 2 oiaion of the pencil is used up, and as such the value of the pencil decreases Wee G taken as Used up at the time it is, purchased or at the time it is Issued to the officeos comp atiNe sige thelr monthly the balance peered Pero oat Cus a er cess checks ih etween,subsilaries loans, deposits and interes nd expenses of group COMP: fabities, income 2 transactions. Scene ee $, suinss spec Reconelitin: These are waue and specifies of indviual bu Te conduct 2 stock take to ensure that the lue of goods held accurately reflects the v Taving to physically count the number of goods held Explain accounting equation with example. OR Explain the procedure of cents Any transaction of a business firm will affect Its assets, liabilities 3 pita. In a transaction there should be equality between the total ass {otal of labities and owner's capital The equality between the total assets and total of liabilities and own: 1 Stated in the form of an equation vi Assets = Liabilties + Owner's capital Such an equation is known as accounting equation. The accounting equation can also be expressed in different waID Ae = ces «cones ent Assets - Capita: ~ A business ‘borrows © 15,000 trom a lender. In this case, the sssets or x, 15,000 on account of the receipt of cash and the lablities | ne Seeamanareg E