Overview

Meaning of Double Entry SystemCharacteristics of Double Entry SystemAdvantages of Double Entry SystemWhat is Book keepingDifference between book-keeping and accountingSubsidiary BooksRules of Double Entry System: Traditional Approach and Modern ApproachTypes of Accounts:1. Personal Account: A. Natural person B. Artificial person, C. Representative personal account2. Real Account: A., Tangible Real Account, B. Intangible Real Account3. Nominal AccountGolden Rules of Debit & Credit or Traditional Approach or English ApproachMeaning of JournalObjects/Importance/Advantages of JournalCompound Journal entryOpening EntryMeaning of LedgerClosing and Balancing of AccountsMeaning of Trial BalanceAccounting ErrorsSuspense AccountMethods of Preparation of Trial BalanceFinal Account / Financial Statement of Sole ProprietorshipContents: Two statement include in final accounts. (a) Final Account(b) Balance Sheet 1. Deep analysis of liquidity, solvency, profitability and efficiency 2. To known the profitability and financial position 3. Useful in decision making4. Analysis of performance and situationIntroduction of Final AccountTypes of Capital & Revenue nature itemsRevenue Expenditure and Its ExamplesContents: 1. Routine expenses 2. Relation with production to sale of goods 3. Short term benefit 4. To maintain the assets but they do not increase the value of an asset. 5. Shown on the debit side of the trading and P/L Account.6. Do not increase the profit earning capacity of the concern but simply maintain it. Revenue Receipt and Its ExamplesCapital Expenditure and Its ExamplesContents: 1. Relation with fixed asset 2. Not for sale 3. Long term benefit 4. Increase the value of assets 5. Increase the profit earing capacity of the business 6. Rare expenditure 7. Shown in the asset side of the balance sheetCapital Receipt and Its ExamplesDeferred Revenue ExpenditureTrading Account: Meaning of Trading Account and Format of Trading AccountProfit & Loss Account: Meaning of Profit & Loss Account and Format of Profit & Loss AccountBalance Sheet : Meaning of Balance Sheet and Format of Balance sheet AccountProvision for Doubtful debts Or Provision for bad debtsSome Practical Problems for Revision

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