Вы находитесь на странице: 1из 17

Introduction to Principles of Accounts

What is Principles of Accounts ?

The modules cover: Bookkeeping and Accounting
for Sole Traders (Partnerships and Limited

What is Bookkeeping & Accounting ?


recording the transactions

of an organization


analysis of the performance

of an organization

What is Bookkeeping 1 ?
You have 10.

Your mother/father/aunt

gives you 100 because today is your birthday. You go with your friends to celebrate your birthday. You have 15 left after the celebration. How much money did you spend? In businesses, all of this would be recorded !

Books would be kept of all your (financial) activities !!

What is Bookkeeping 2 ?
the keeping of Accounts
the keeping of accounting

records Accounting records are kept in Books or Ledgers In businesses all transactions are recorded Book-keeping is simply keeping the records of business transactions Records are kept of all the (financial) activities

What is Bookkeeping 3 ?
record important, useful information.

the information must be recorded

accurately it is routine It is recording It is accounting for business transactions Examples of transactions: sale/purchase of goods/services every sale, etc., is shown in money

Book-keeping is often known as Double entry

Accounts are kept of all the (financial) activities

What is Accounting 1?
Providing financial information

in an organization
objectively consistently professionally conservatively valued to enable management to perform three functions recording analysis control

What is Accounting 2?
Using financial information to analyse

the performance of management of (and inside ) an organization objectively consistently professionally with reliable techniques for internal management control and comparing overall performance of the organisation with (for example) other organizations

What is Accounting 3?
Obtaining finance (capital) for

management of an organization Forecasting management/departmental/ organizational performance Checking actual performance against planned/forecasted performance Auditing claims (claimed performance) of organizations etc.

What is Bookkeeping and Accounting?

Accounting is

very business-like very professional

You must do/be the same

Keeping accounts:

keeps checks on customers and suppliers leads to preparation of overall, summary statements These Financial Statements are information to the business.

What is Bookkeeping and Accounting?

We cannot keep Accounting records

without documents (proof of transactions) sales, purchases, banking (payment and receipts) documents these are source documents
this documentary evidence:

tells/shows us the actual transaction shows what has happened Accounting records: show the impact of these transactions on a business show what these transactions mean to a business

Advantages of studying this subject

To be well-prepared for

future career development All managers need accounting Easier to find a job All organizations need accounting
Closely related to daily life.

Possible Future Career Development

Accountant (ACCA/CIMA/CPA) University Graduates Non-University Student

Pass the professional exams Pass the professional exams with Exemptions No exemptions

Possible Future Career Development

Manager (Business, Public Sector, etc) UniversityGraduates Non-UniversityStudent

Pass other management exams Pass other management exams w Exemptions ith No exemptions

Exam (Modules) to be completed in the two years

Year One
ACCN 1 Introduction to Financial Accounting
ACCN 3 Further Aspects of Financial Accounting

Year Two
ACCN 2 Financial & Management Accounting
ACCN 4 Further Aspects of Management Accounting

Criteria for studying and succeeding in this subject

Diligent - hard work
Sensitive to figures

(not necessarily good at Math.) Willing to learn Willing to think critically

Any Questions ?