Accounting basics

1. Accounting:

                  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 there of.

2. Book Keeping:

                  It is mainly concerned with recording of financial data relating to the business operations is significant and orderly manner.

3. Branches of Accounting:

       

               Financial Accounting and Management Accounting

4. Concepts of Accounting:

a. Separate entity concept

b. Going concern concept

c. Money measurement concept

d. Cost concept

e. Dual aspect concept

f. Accounting period concept

g. Periodic matching of costs and revenue concept

h. Realization concept

5. Conventions of Accounting:

1. Conservatism

2. Full disclosure

3. Consistency

4. materiality

6. Systems of book keeping:

a) Single entry system,

b) Double entry system

7. Systems of Accounting:

a) Cash system accounting,

b) Mercantile system of accounting