ACCOUNTING

FINANCIAL ACCOUNTING (PAST)

COST ACCOUNTING (PRESENT)

MANAGEMENT ACCOUNTING (FUTURE)

PURPOSE OF PROFIT & LOSS ACCOUNT TO ASCERTAIN WHETHER THE BUSINESS HAS MADE A PROFIT OR LOSS DURING A GIVEN PERIOD

PURPOSE OF BALANCE SHEET TO ASCERTAIN THE FINANCIAL POSITION AT THE END OF A GIVEN PERIOD

SCHEME OF ACCOUNTING

PROFIT & LOSS ACCOUNT

BALANCE SHEET

EXPENDITURE

INCOME

LIABILITIES

ASSETS

PROFIT OR LOSS

PROFIT

LOSS

EXPENDITURE

CAPITAL

REVENUE PROFIT & LOSS ACCOUNT

ASSET

BALANCE SHEET

BOOKS OF ACCOUNTS
JOURNALS

LEDGERS

TYPES OF JOURNALS

LEDGER

PROFIT & LOSS ACCOUNT

BALANCE SHEET

TYPES OF TRANSACTIONS

CASH TRANSACTIONS

CREDIT TRANSACTIONS

SYSTEM OF ACCOUNTING

CASH SYSTEM

MERCANTILE SYSTEM

TYPES OF JOURNAL 1. PURCHASE 2. PURCHASE RETURN 3. SALES 4. SALES RETURN 5. BILLS RECEIVABLE 6. BILLS PAYABLE 7. CASH BOOK 8. MAIN JOURNAL

ACCOUNTING CONCEPTS 1. 2. 3. 4. 5. 6. 7. 8. 9. ACCOUNTING PERIOD CONCEPT MATCHING CONCEPT ACCRUAL CONCEPT BUSINESS ENTITY CONCEPT GOING CONCERN CONCEPT MONEY MEASUREMENT CONCEPT CONSERVATISM CONCEPT MATERIALITY CONCEPT CONSISTENCY CONCEPT

TYPES OF ACCOUNTS

PERSONAL

REAL

NOMINAL

SUPPLIERS CUSTOMERS ORGANISATIONS

ASSETS

INCOMES EXPENSES

BALANCE SHEET

PROFIT & LOSS ACCOUNT

PRINCIPLES OF DOUBLE ENTRY ACCOUNTING

1. PERSONAL ACCOUNTS:

Debit the Receiver Credit the Giver

2. REAL ACCOUNTS:

Debit What Comes In Credit What Goes Out

3. NOMINAL ACCOUNTS:

Debit the Expenses / Losses Credit the Incomes / Gains