OBjects OF accounting

Step1:finanical information is necessary in order to run a business in an efficient manner.Reliable information will be available only trough keeping proper of accounts.
Step2: proper accounting is essential , if money is to be borrowed for the purpose of business.The lender will only agree to lend money when he is satisfied as to the solvency of the borrower.Information available from books of accounts is the means of measuring such solvency.
step3:cash in hand can verified and any defalcation can be detected ,if proper books of accounts are maintained.
step4: payment of sales tax and income tax is only possibile if bools of accounts are maintained.
step5:In case of any dispute , books of accounts can be produced in the court of law as a documentry evidence.6: Goverment Fixes up fair prices,formulates industrail policy ,prepares economic plans , decides import -export quotas and does many other functions on the basis of accounting information available from the books of accounts

LEDGER For Accounting students

does the journal replace the need For a Ledger?
No the Journal does not replace the ledger.The journal provides a complete listing of the daily transactions of a business.But It does not provide information about a specific account in one place . To know how much cash balance we have, for example the accounting clerk would in one place. To know How much cash balane we have for example the accounting clerk would have to check all the journal entries in which cash involved and this is very labourious job becuse there are hundreds or even thousand of a cash transactions we recorded on different pages of journal.To avoid the diffiulty the debits and credits of journalised transactions are transferred to Ledger accounts.Thus All the changes For a single account are located in one place in a ledger account.This makes it easy to determine the curent balance of any account.
The book in which accounts are maintained , is called Ledger.Generally , one account is opened on each page of this book,but if Transactions relations to a particullar account are numerous ,
it mat extend to more than one page.All transactions relationg to a account are recorded therein chronologically .from journal each transaction is posted to at least two concern account---Debit side of one account , and credit side of another account.Remember That if there two accounts involved in a journal entry.It will be posted to three different accounts in the ledger.This process of transferring information --debit and credit.---From journal to ledger is known as posting.The goal of all transactions is ledger

accounting concepts

separete entity concept:
accounts are kept for entities, as distinguished from the person who are associated with these entities . in recording events in accounting , the importent question is : ''how do these events affect the entity ? how they affect the persons who own , operate , or otherwise are associated with the entity is irrelevant. For example when a person invest Rs 200.000 into business
it will be deemed that the owner has given that money . to the business which will be shown as a liability in the books of the business.in case the owner withdraws RS.170,000
The Concept of separate entity is applicable to all forms of business organazation , Forexample , In case of a sole proprietorship or partnership business Though the sole propritership and patner are not considered as separate entities in the eyes of law , but for accounting purpose they will be considered as separate entities.
Going Concern Concept:
according to this concept it is assumed that an entity is a oing concern ----That it will continue to operate for an indefinite time period there is no intention to liqrate the particular business venture in the foreseeable future.On account of this concept , the accountant while valuin the asset does not take into account the sale value of assets . moreover , he chares deprecation on fixed assets on the basis of their expected life rather than on their markets values.
For example.
suppose that a company has just purchased a three- year insurance policy for Rs45,000 , if we assume that the business will continue in operation

Accounting Complete Details for All Students

acceptance bad debts
accrued income
balanced account
accommodation bill
balance sheet
acceptance for honour
balanceing
accounts clerk
balacing procedure
accounts
bank account
accounts department
bank discount
accumulated depreciation
bank reconciliation statement
accountancy
bank statement
accountant
bearer cheque
accounting
bill
accounting of bill
bill of exchange
accounting period
book-keeping
accounting cyle
book value
account book
business
account holder
business concern
accumulared profit
calls in advance
accumulated entries
called up capital
adjustment
capital
adjustment of receivables
capital accounts
administrative expense
capital expenditures
allowance
capitalised expenditures
allowed discount
capital income
allotment money
capital receipts
amalgamate
carriage
amount of remittance
cash
amount recevable
cash account
article of association
cash book
assets
cash discount
authorised capital
cash in bank
cash in hand
cash memo
cash on hand
cash on hand
cash purchases
cash sale
cash transactions
casting
certificate of incorporation
charges
cheque
classification
closing stock
clossing entries
collection charges
column
commerce
commercial bank
commercial terms
commision
compensating errors
compund entries
consignee
consignor
consignment
consignment account
consignment agreement
contra entry
corresponding entries
counterfoil
credit
credit balance
credit entry
credit institutions
credit purchases
credit sale
credit transaction
creditors
crossed cheque
current account
current assets
current liabilities
custom duty
day book
days of grace
debentures
debit
debit account
debit balance
debit entry
debit side
debtor
deffered expenses
deprecialtion
determination of depreciation
dimishing balance method
discount
discount account
discount allowed
disccounting of bill
discount receivable
dishonour
dishonour of bill
direct expense
dissolution
distribution expense
dividend
double entry
doubtful debts
drawee
drawer
drawing
due date
duty
entry
endorsement
entertainment expense
errors of omission
errors of commision
erorrs of original entries
errors of principle
essentials of bill
execptional expense
Evalution
Excise duty
Extracted
final accounts
financial expense
financial loss
financial position
financial statement
finished goods
firm
fiscal
fixed
fixed assets
fixed capital account
fixed capital method
fixed deposits
fixed insalment method
fixed liabilities
flexible
floating assets
floating liabilities
fluction capital
fluction capital method
folio
foreign bill
forfeture of shares
form of journal
founder shares
freight
foundation
foundamental
general charges
goods
goodwill
goodwill account
gross
gross proceeds of consignment
heads of accounts
hire purchases
llustration
imprest
income
incomporation stage
incure
index
inderect income
indirect expense
industriial
inland bill
irrecoverable debts
insolvent
intanggible
interest
instalment purchases
insurance companies
inventory
invoice
issued capital
issue at a discount
issue at a premium
issue shares at par
joint stock company
journal
journal proper
main ledger
overdraft
patnership
journalise
offer
journalising rules
office equipment
Ledger
Legal charges
Legal position
Liabilities
Limited Liabilities
Liquid assets
List of balance
Loan account
location of company
location of errors
Long patnership
Long term liabilities
Loss
Main Ledger
Memoradum of association
Misellaneous journal
Misecellaneous expense
mortgage
narration
net loss
Net profit
Nominal account
nominal capital
non-trading concerns
objectives
octrori duty
offer
office equipment
Omission of posting
OPening stock
Ordinary Shares
organizatoin
original Capital
original entry
Original record
Outstanding assets
Paid up capital
Particulers
parties to a bill
party sold
partner
partnership
partnership account
patnership act
patner capital account
pass book
patent right
payable expenses
payee
paying-in-slip
payment
personal acount
petty cash book
posting
posting on wrong account
posting on wrong side
preferred shares
preliminary shares
preliminary expenses
premium
pre-paid insurrance
pre-receipts
prescribe form
price list
private limited companies
procedure
proceeds
proforma invoice
profit and loss accouunt
profit and loss approation account
profit and loss sharing ratio
promotion
promoters
prospectus
propritor
proprietorship
provision
public company
purchase
purchase account
purchase journal
Raising of shares
real account
Realization
Realization account
receipt
receipt counter
Rectification
Registered
Relevant Accounts
remuneration
Renewal
rent
Repairs charges
Reserve
Residual Value
Reail business
Retailer
retirement
return
return inward
return outward
Revaluation method
Revaluation of assets
sales account
sale agreement
sale
sales journal
sale return journal
saving account
secret reserves
self-assesment
self balancing ledger
selling and distribution expense
share
share capital
shift
shifting
short partnership
simple final account
sinking fund
sole proprietor
sole trader
specific
stamp duty
statement
stock
straight line method
sub
subscription
subsidiary book
sundry
terms
three column cash book
title
total
trade discount
trading account
trading period
trial balance
transaction
travelling expenses
un-called capital
un-earned income
vertical
voucher
wages
wages payable
winding up
whole sale business
work sheet
written down value.
cheque
goods
investment
accounting cycle
gross total
octri duty