Accounting Courses

Importance of Accounting : 1. Keeping systematic records of financial transactions: Accounting is the process of systematically recording all the financial transactions of a business. It helps in recording the financial transactions of a business in a planned and orderly manner. 2. Helps in decision making: Accounting provides information on financial transactions (income, expenses, assets, liabilities, cash flow, etc.), which guides investors in making decisions. 3. Measuring the performance of a business: Accounting helps in evaluating the business by showing the profitability, financial position and efficiency of the business. The performance of a business can be measured on the basis of financial statements. This can be used to find out the profit or loss and the overall financial position. 4. Legal compliance: Every business must keep records within the scope of government regulations and laws. Accounting helps in preparing accurate and systematic records and information to me...

Defination : Assets: Assets refer to resources or assets owned by any person, organization, or business, from which future economic benefits can be derived.   All types of assets owned by a business organization are called assets. Assets are purchased for future use, not for sale. Types of assets: 1. current assets : Assets that can be converted into cash multiple times within a year are called current assets. These types of assets have a short life span, or only one year. Examples of current assets are cash, closing stock, accounts receivable, bank balances, advances, short-term investments, bills receivable, etc. 2. Fixed assets/ Tangible assets :   All assets purchased for long-term use are called fixed assets. These types of assets have a long life. For example, real estate, machinery, vehicles, furniture, etc. are fixed assets. 3. Intangible assets :   Assets that have no real physical existence can be valued based on various criteria, but it is not clear ...

 Capital : Cash is required to run any business. No business is possible without cash. Thus, to start a business, the owner or entrepreneur initially has to invest cash in the business, which is called capital. Drawing/ Capital withdrawal: The withdrawal of a certain amount of cash or goods from the business by the owner of the business for personal expenses or personal use is called capital withdrawal. This reduces the amount of capital in the business. The capital withdrawal account should be debited and the cash or goods should be credited. Liabilities: If a business borrows money from another person or purchases goods on credit, the amount owed to repay the loan or pay the lender is called a liability.   A business organization creates liabilities when it purchases goods or services on credit, borrows cash from financial institutions, etc. Types of Liabilities 1.  Current liabilities or short-term liabilities: Loans taken from a financial institution for a period ...

Process of Accounting/ Accounting Cycle The accounting process or accounting cycle is a process that begins with the recording of financial transactions and based on that, financial statements are prepared. 1. Identification of financial transactions: The accounting process begins with the identification of financial transactions. Only financial transactions are recorded in accounting records. All business transactions that can be converted into cash are called financial transactions. 2. Recording of financial transactions in journals and subsidiary books: After identifying financial transactions, the transactions are recorded in a journal or subsidiary book in order. 3. Classification of transactions recorded in ledger accounts: In the third stage of the accounting cycle, all the transactions recorded in the journals and subsidiary books are separated into their similar nature and recorded in the ledger. This is called the classification of financial transactions. 4. Summary of rec...

The important concepts and principles of accounting are explained in detail below.   1. Money Measurement Concept: According to this concept, a business records only those transactions that can be measured in money. If they are not converted into monetary values, it is difficult to prepare financial statements, disseminate financial information and provide data. 2. Business Entity Concept: According to this concept, the existence of a business is accepted as separate from its owner for the purpose of accounting. If a business is not considered a separate entity, personal and business economic activities are mixed and it is impossible to determine the business volume or real profit and financial condition of the business. 3. Accounting Period Concept: A business is a continuous process, which also prolongs its life span. The financial year is usually from mid-Baishakh to mid-Chaitra or from Shrawan to mid-Asr and the English date is from January to December or from July to June, ...

Accounting functions play a key role in managing, analyzing, and communicating the financial information of any business organization. 1. Identification and recording of financial transactions : Identification and recording of financial transactions is the basic function of accounting. It is not possible for any organization to remember the transactions that have taken place throughout the year, so it is necessary to identify and record financial transactions. 2. Classification and summary : If the recorded transactions are in order, then the users can use them meaningfully. Classification and summary make it easy to establish the profitability of the business, evaluate the financial position of the business and keep records. Classification and summary make it easy to check the mathematical accuracy. 3. Analysis, interpretation and communication of information : To explain the actual situation of the financial statements prepared in the transactions of the business. This makes it ea...