C. A.

Akila Kalyanaraman
SOURCE : http://www.hul.co.in/investorrelations/AnnualReports/AnnualReport2012-13/Downloadcentre.aspx
Balance Sheet : Financial position of an
accounting entity as of a specified
moment in time.

Assets are economic resources of an
entity.

The claims of various parties against
the asset are called equities
(liabilities).

Owners Equity or Capital : the amount
invested by the owners of the accounting
entity.

Current Liabilities : are expected to be
satisfied or extinguished during the normal
operating cycle or one year, whichever is
longer.
Accounts Payable
Taxes Payable

Non Current Liabilities :
Secured and/or Unsecured Loans



Current Assets : Assets expected to be
realised in cash or sold or consumed during
normal operating cycle or a year, whichever
is longer.
Cash and Bank balances
Marketable Securities
Accounts Receivable
Inventories

Non Current Assets :
Land and Building
Plant and Equipment
Investment


Money Measurement
Entity
Going Concern
Cost
Dual Aspect

Money Measurement Concept : In Financial
Accounting , record is made only of
information that can be expressed in
monetary terms.


Entity Concept : Accounts are maintained for
entities , and not for the persons associated
with these entities.
Type of Entity Owner
Joint Stock Companies
Sole Proprietorship
Partnership Firm
AOP / Societies
Trust
Hindu Undivided Family
( HUF)
Shareholders
Sole Trader/Proprietor
Partners
Members
Trustees
Karta and Coparceners

Going Concern Concept : Unless there is
good evidence to the contrary, Accounting
assumes that an entity is a going concern.
Eg. Kirana store, Garment manufacturer

Cost Concept : applied to value Assets.
Assets are economic resources of an entity.
Monetary / Current assets
Non Monetary/ Non Current assets

In accounting, all assets are initially measured
at cost.

Monetary / Current Assets : whose cash value
is fixed by contract . Hence, first at cost and
then at FAIR value.
Eg: Inventory, Trade Securities

Non Monetary/ Non Current assets : whose
real worth may change with passage of time,
but cost concept continues to be basis of
value.
Eg: Land, Plant and Machinery, Building
Dual Aspect Concept : All amounts owned by
entity are owed to someone or the other.
The claims of various parties against the
asset are called equities.
2 types of equity - claims by
Liabilities - persons other than owners
Owners Equity - claim of owners

Fundamental Accounting Equation
Asset = Equities
Asset= Liability + Owners Equity +
Retained Earnings





SOURCE : http://ashishtater.wordpress.com/2012/01/11/schedule-vi-revised-balance-sheet-format/
Anthony, Hawkins, & Merchant (AHM) Chapter 2

http://www.youtube.com/watch?v=j5KxRNbakH4

http://www.hul.co.in/investorrelations/AnnualRepo
rts/AnnualReport2012-13/Downloadcentre.aspx

http://ashishtater.wordpress.com/2012/01/11/sc
hedule-vi-revised-balance-sheet-format/



Thank You