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Accounting Bookkeeping Presentation ppt Final

Description: We are the tax consulting and best Financial Services in Hyderabad with affordable price<br>Contact Number; 8074716673, 040-40060025<br>E-mail: avconsultantshyd@gmail.com<br>Website: www.avconsultantshyd.com<br>Address: Office: 3-5-17, Indira Nagar, Behind D-Mart, Ramanthapur, Hyderabad u2013 500013, Telangana<br><br>

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Accounting Bookkeeping Presentation ppt Final

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  1. Taxation and Financial Services www.avconsultantshyd.com

  2. Accounting & Bookkeeping Services www.avconsultantshyd.com

  3. ACCOUNTING ANDBOOKKEEPING Introduction  Definition of Accounting andBookkeeping  Importance Accounting andBookkeeping  Users of FinancialStatements Basic Accounting Concepts andPrinciples Accounting Equation and the Rules of Debit and Credit, and the Double Entry BookkeepingSystem AccountingCycle Chart ofAccounts Books ofAccounts Basic FinancialStatements Workshop www.avconsultantshyd.com

  4. Definition… Accounting is an art of recording, classifying, summarizing in a significant manner and in terms of money, transaction and events which areinpart,atleast,ofafinancial characterand resultsthereof. Bookkeeping interpretingthe is the systematic recording of financialtransactions and events in a chronologicalorder. www.avconsultantshyd.com

  5. Recording-this function deals with the writingon the books or records of the business transactions or events. This is technically referred to as bookkeeping. Classifying-is the recording and summarizing functions, similar items aregrouped or sorted under the samenames Summarizing-it is the grouping or incorporating the details of thedata in the accounting records. www.avconsultantshyd.com

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  7. Importance 1. Tohaveacompleterecordsofdaytoday transactions transpired andeventsthathave withintheorganizationfor futurereference; To serve as guide in the formulation of policies andactivities; Bookkeeping records serve as source of information necessary for the directors to properly manage thecooperative; Records are the basis of reportsto members;and 5. The government requires the submission of financialstatements. periodic www.avconsultantshyd.com

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  9. BasicAccountingPrinciples andConcepts BusinessEntity A business is considered a separate entity from the owner(s)and should be treated separately. Any personal transactions of its owner should not be recorded in the businessaccounting book unless the owner’s personal transaction involves adding and/or withdrawing resources from thebusiness. GoingConcern It assumes that an entity will continue to operate indefinitely. In this basis, generally, assets are recorded based on their original cost and not on market value. Assets are assumed to be heldand used for an indefinite period of time or during its estimated usefullife. And that assets are not intended to be sold immediately orliquidated. www.avconsultantshyd.com

  10. MonetaryUnit The business financial transactions recorded and reported should be in monetary unit, such as US Dollar, Canadian Dollar, Euro, etc. Thus, any non-financial or non-monetary information that cannot be measured in a monetary unit are not recorded in the accounting books, but instead, a memorandum will beused. HistoricalCost All business resources acquired should be valued and recorded based on the actual cash equivalent or original cost of acquisition, not the prevailing market value or future value. Exception to the rule is when the business is in the process of closure and liquidation. Matching This principle requires that revenue recorded, in a given accounting period, should have an equivalent expense recorded, in order to show the true profit of the business. www.avconsultantshyd.com

  11. Accounting Period This principle entails a business to complete the whole accounting process over a specific operating time period. Accounting period may be monthly, quarterly or annually. For annual accounting period, it may follow a Calendar or FiscalYear. Conservatism This principle states that given two options in the amount of business transactions, the amount recorded should be the lower rather than the highervalue. Consistency This principle ensures similar and consistent accounting procedures is used by the business, year after year, unless change isnecessary. Consistency allows reliable comparison of the financial information between two accountingperiods. www.avconsultantshyd.com

  12. Materiality Business transactions that will affect the decision of a userare considered important or material, thus, must be reported properly. This principle states that errors ormistakes in accounting procedures, that which involvesimmaterial or small amount, may not need attention orcorrection. Objectivity This principle states that the recorded amount should have some form of impartial supporting evidence or documentation. It also states that recording should be performed with independence, that’s free from bias andprejudice. Accrual This principle requires that revenue should be recorded in the period it is earned, regardless of the time the cash isreceived. The same is true for expense. Expense should be recognized and recorded at the time it is incurred, regardless of the time that cash is paid. This is to show the true picture of the business financialperformance. www.avconsultantshyd.com

  13. AccountingEquation ASSETS=LIABILITIES+RESERVES+EQUITY • Assets are things or value owned orpossessed. • Assets • Liabilities are debts; they are amounts owed to creditors. • Liabilities • Reserves are amounts to be established as mandated by RA 9520 (Philippine Cooperative Code of 2008) for specificpurposes. Reserves • Equity is the excess of assets over liabilities and • Equityreserves. www.avconsultantshyd.com

  14. Rules of Debit andCredit For every value received, there is an equal value partedwith. It is obvioustherefore that a transactionhas a double effect, receiving of value and giving ofvalue. Transaction is the exchange of goods or services atacertain sum ofmoney. • is value received and value parted with. Value is anything susceptible of pecuniary estimation. It may represent money itself, property other than money, services, or rights. Every transaction shouldbe It is an exchange of monetary values. In every transaction, there authenticated by a genuine business form. www.avconsultantshyd.com

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  18. The accounting cycle is the step by step procedures necessary to come out with the end results of accounting and which serves as a communication tool of cooperative to various interested parties, the Financial Statements. www.avconsultantshyd.com

  19. 1. Analysis of business transactions All transactions must be supported with necessary business documents (official receipts, vouchers, checks, invoices). 2. Journalizing The chronological recording of transactions in the books of accounts following the principles of Debit- Credit and the generally accepted accounting principles. www.avconsultantshyd.com

  20. 3.Posting The transferring of journal entries from various books of accounts to the GeneralLedger. The General Ledger is the book where we classify or group similar items using different accounts. Also known as a group of accounts and the book of finalentry. www.avconsultantshyd.com

  21. 4. Preparation of TrialBalance It is a list of accounts with balances (open accounts) found in the generalledger. It checkstheequalityof Value Received/DebitandValueParted With/Credit of the journalentries. Find the total debits and total credits and the corresponding balance of each account. www.avconsultantshyd.com

  22. 5. Make AdjustingEntries www.avconsultantshyd.com

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  24. 6. Preparation of Adjusted TrialBalance An adjusted trial balance is a testing of all company accounts that will appear on the financial statements afteryear-end adjustingjournalentries made. havebeen www.avconsultantshyd.com

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  26. 7. Preparation of FinancialStatements Financial Statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statementtemplates. www.avconsultantshyd.com

  27. 8. Make ClosingEntries The books of accounts are closed at the end of the accounting period. Nominal Accounts (the accounts found in the Statement of Operations) are closed while Real Accounts (the accounts found in the Statement of Financial Condition) are carried forward to the next business operation. www.avconsultantshyd.com

  28. 9. Post Closing TrialBalance 10. Reversing JournalEntries www.avconsultantshyd.com

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  30. Books ofAccounts Cash ReceiptsBook/Journal All cash received are recorded in thisbook. Cash DisbursementBook/Journal Used to record all payments of cashmade. PurchaseBook/Journal Goods bought and are intended for sale are recorded in thisbook. Sales Book/Journal Used to record the sales ofgoods. GeneralJournal Non-cash miscellaneous transactions are recordedin this book. GeneralLedger SubsidiaryLedger www.avconsultantshyd.com

  31. Basic FinancialStatements Statement of FinancialCondition Statement ofOperation Statement of Changes inEquity Statement of CashFlow www.avconsultantshyd.com

  32. Contact Details AJAY KUMAR VHAVLE 040-40060025/ 8074716673 avconsultantshyd@gmail.com www.avconsultantshyd.com

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