1 CHAPTER-1 MEANING AND SCOPE OF ACCOUNTING 1. Need: 2. Book keeping: According to ,” Book keeping is the science and art of correctly. Accounting has got a very wide scope and area of application. Its use is not confined to the business world alone, but spread over in all the spheres of the. Meaning and Scope of Accounting. CHAPTER OVERVIEW. (1). (2). (3). Preliminaries. Accounting Assumptions and Concepts. Other Related Matters. • Glossary.
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Nature and Scope of Financial Accounting: The nature and scope.
Accounting identifies transaction and event, which can be expressed ion term of money and bring change in the financial position of a business unit. An event whether meaning and scope of accounting or external is a happening of a consequence to an entity e. Accounting measures the transaction and events in term of money.
CHAPTER-1 MEANING AND SCOPE OF ACCOUNTING - ppt video online download
It is the process of posting of entries in the ledger so that transaction of similar type are accumulated at one place. It is concerned with the establishment of relationship between the various item or group of items taken meaning and scope of accounting Income statement or Balance Sheet or both.
Its purpose is to identify the financial strengths and weakness of the enterprise. It provides the basis for interpretation.
Scope of Accounting in Business and Personal Life
Here proprietors or members are liable for the acts of the firm. As per the separate entity concept of accounting it applies to all forms of business to determine the scope of what is to be recorded or what is to be excluded from the business books.
For example, if the proprietor of the business invests Meaning and scope of accounting. On withdrawal of any amount it will be debited in cash account and credited in proprietor's capital account.
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- CHAPTER-1 MEANING AND SCOPE OF ACCOUNTING
- Scope of Accounting in Business and Personal Life
- Presentation on theme: "CHAPTER-1 MEANING AND SCOPE OF ACCOUNTING"— Presentation transcript:
In conclusion, this separate entity concept applies much larger in body corporate sectors than sole traders and partnership firms. According to this concept, every business transaction involves two aspects, namely, for every receiving of benefit and.
Define Accounting. Discuss the nature and scope of accounting. -
The dual aspect concept is the basis of the double entry book keeping. Accordingly for every debit there is an equal and corresponding credit.
The accounting equation of the dual aspect concept is: On the other hand, the term liability denotes the funds provided by the creditors and debenture holders against the assets of the business.
The term assets represents the resources owned by the business.
Thomas Starts business with cash of Rs. In other words, the business acquires assets of Rs.
Define Accounting. Discuss the nature and scope of accounting.
The above meaning and scope of accounting can be shown in the form of accounting equation: According to this concept, income or loss of a business can be analysed and determined on the basis of suitable accounting period instead of wait for a long period, Le. Being a business in continuous affairs for an indefinite period of time, the proprietors, the shareholders and outsiders want to know the financial position of the concern, periodically.
Thus, the accounting period is normally adopted for one year. At the end of the each accounting period an income statement and balance sheet are prepared.