PCTE Group of Institutes

AccountingRecordingClassifyingSummarisingAnalysing and interpretationReportingOf financial Transactions

PCTE Group of Institutes

Objectives of AccountingPermanent recordAscertain combined effectEvaluate earning capacityProper utilisation of resources

PCTE Group of Institutes

Users of Accounting InformationInvestorsLendersSuppliersCustomerGovt. AgenciesPublic Employees

PCTE Group of Institutes

Book Keeping Vs AccountingStageScopeSkillOperationAdjustments and rectificationStep

PCTE Group of Institutes

Accounting Cycle

PCTE Group of Institutes

TerminologyProprietor/owner: The person who takes the

initiative to start the business.Capital: Amount invested by the proprietor in

the business.Drawings: Amount or benefit withdrawn by

the owner from the business.Business Transaction: Any exchange of goods

or services by the business with any other person in the business transaction.

PCTE Group of Institutes

Cont………Debtor: Person from whom amounts are due

for goods sold or services rendered.Creditor: Person to whom amount is owed by

the enterprise .Receivables: amount which outsiders owe to

the enterprise.Payables: Amount which business owe to the

outsidersGoods:

PCTE Group of Institutes

Cont…………….PurchaseSalesPurchases ReturnSales ReturnStockAssets

PCTE Group of Institutes

Assets

PCTE Group of Institutes

Fixed Assets

Current AssetsFictitious Assets

Tangible Fixed Assets Intangible Assets

Cont…….LiabilitiesExpenseExpenditureLossProfitRevenueIncome

PCTE Group of Institutes

Cont…………………..Account: Date wise summary of transactions

relating to persons, Property or expenses and incomes.

Account

PCTE Group of Institutes

Personal account Impersonal Account

Natural PANatural PA Natural PAReal account Nominal Account

P & L A/CExpenses & Losses A/C

Tangible A/C

Tangible A/C