CONCEPTS &
CONVENTIONS
• Presentation By
IILM Gurgaon
ACCOUNTING
PRINCIPLES
-related to the growth of the
business
Well being, solvency,earning
potential
Arisen from
experiences,precedents,statements,
INPUT PROCESS OUTPUT
Recording
Economic events Classifying Information to
Measured in Summarising Users
Financial terms Interpreting
PROCESS OF ACCOUNTING
In order to accomplish its main objective of communicating information
to the users accounting performs the following functions:
Step 1 : JOURNALISING
Step 2: POSTING
Step 3: BALANCING
• 1.Convention of Disclosure
• 2.Convention of Materiality
• 3.convention of Consistency
• 4. Convention of Conservatism
FULL DISCLOSURE
Dr Cr
• PERSONAL -- The receiver The Giver
• REAL -- What comes in What goes out
• Nominal-- All Losses & All Gains &
Expenses Incomes
•