![]() Present the information in such a way that is understandable to the management Used for assessing the liability for tax(income tax, sales tax) To ascertain the total cost and per-unit cost of the product. To provide information to the various parties. ![]() To find net results (p & l) and the financial position (B/S) of business Diagrammatically, the relationship can be viewed as follows: RELATIONSHIP BETWEEN ACCOUNTANCY, ACCOUNTING AND BOOK-KEEPINGīook-keeping is a part of Accounting. To find net results (p & l) and the financial position (B/S) of the business. To keep is a systematic record of all transactionsĭifference between accounting and accountancyĬoncerned with recording, classifying and summarizing of transactions.Ĭoncerned with the rules of recording, classifying and summarizing transactions. Measuring the transactions in terms of money. Identifying the transactions of financial nature. Financial position is known from the balance sheet(shows the position of assets and liabilities)ĭifference between Book keeping & Accounting To ascertain the financial position of the business: Another objective is to communicate the accounting information to various parties like owners, creditors, banks.ħ. To provide information to various parties To ascertain the progress of the business year after year.Ħ. To know the exact reasons behind those profits and lossĤ. Another objective of the business is to determine the financial performance of the business(find profit and loss)ģ. The main objective of the business is to record all the transactions in a chronological (day to day) manner on the principle of a double-entry system. To keep a systematic record of all the business transactions: Finally, the results (financial statements) of the business are communicated to the users to help them in decision making.ġ. FINANCIAL ACCOUNTING NOTES IN HINDI PDF FULLThe purpose is to present the results of the business in such a manner that all the interested parties should have full information about the profitability and financial position of the business. FINANCIAL ACCOUNTING NOTES IN HINDI PDF TRIALOn the basis of trial balance financial statements namely Trading and Profit & loss account for finding the profit and loss and balance sheet to ascertain the financial position of the business are prepared. Trial balance is a statement which is prepared with the debit and credit balances of the ledger to check the arithmetical accuracy of books of accounts. This involves balancing the books of accounts and preparation of trial balances on the basis of it. ![]() It is the art of presenting the classified data in a manner which is understandable to the internal and external users. Like salary account, wages account and Ram’s account etc. A separate account is prepared for every person, assets, liabilities, expenses and incomes on basis of all transactions. Grouping similar nature of items at one place under their respective accounts is called classifying which is done in the ledger When the business grows it prepares separate books for original entry which is called subsidiary books like cash book (records all cash receipts and payments), purchase book (records all credit purchases), sales book (for all credit sales), purchase return book, sales return the book, bills receivable and bills payables book also. For a small business where transactions are less journal is prepared ![]() Accounting is the art of recording the financial transactions in the books of original entry. Value of 4 tables and 5 chairs will be recorded instead of their number 4 tables= Rs.4000 and tables=Rs.500. Ex: a quarrel between production and sales manager, a strike by employees etc will not be recorded There are a number of transactions in business but are recorded only when they can be expressed in terms of money Only those transaction will be recorded which re of a financial character (can be expressed in terms of money) Identifying and measuring the financial transactions only: Science is a specified body of knowledge that is based on certain principles and accounting is a science as it is also based on accounting standards and principles.Ģ. ART is the technique of attaining some predetermined objectives and Accounting is the art of recording, classifying, and summarizing the business transactions for the purpose of finding the profit & loss of the business. ‘Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof'.Ĭharacteristics/ Features & Attributes of Accounting:ġ. ![]()
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