21-03-2014, 03:17 PM
Basics of Accounting and Finance
Accounting and Finance.ppt (Size: 265 KB / Downloads: 15)
What is Accounting?
Identifying a business transaction
Preparation of Business Documents.
Recording of the transaction in the book of first entry (Journal)
Sales or Purchase Module
Relevance with the banking operations
Posting in the ledger (Automatic in Software)
Preparation of Trial Balance (System Generated)
Preparation of Profit and Loss Account and Balance Sheet
Important accounting concepts
Dual Entity
Money Measurement Concept
Accounting Period Concept
Going Concern Concept
Conservatism Concept (Provisioning for NPA in Banks)
Accrual Concept ( Accrual of interest income and expenses in Banks)
Consistency Concept
Matching Concept
Process of Accounting
Types of business transactions
Cash and credit
Double Entry Principle in Accountancy
Debit and credit effect
Implications
Basic Categories of Accounts
Personal, Real and Nominal
Finalization of accounts
Refers to the preparation of Profit and Loss Account and the Balance sheet as per the legislative famework.
Adjusting entries are to be passed.
The revised trial balance is generated.
Financial statements are prepared.
Relevance of Accrual Concept, Matching Concept, Accounting Period Concept, Conservatism Concept at the time of finalization.