ACCOUNTING CONCEPTS

INTRODUCTION

 Accounting concepts is basically the accounting rules.

That should be follow while preparing financial statements
and accounts.

MEANING
 The word concept means those basic assumptions or
conditions upon which the sciene of concept is based.
 The following are the important accounting
concepts:
1.Business entity concept
2.Money measurement concept
3.cost concept
4.Going concern concept
5.Dual aspect concept
6.Matching concept
7.periodicity concept.
 BUSINESS ENTITY CONCEPT:
The business is treated as a separate entity from the owners. The
distinction between the owner and the business can only be applied to
limited companies. And does not hold good for sole proprietorship or
partnership.
 MONEY MEASUREMENT CONCEPT:
According to this concept only transactions are which are expressed in
monetary terms are recorded through quantitative records.
 COST CONCEPT:

all transactions are recorded in the books of accounts at actual cost.

 GOING CONCERN CONCEPT:
In this concept the business is assumed to exist for an indefinite period
of time and the transactions are recorded from this point of view a firm is
said to be going concern when there is neither the intention nor the
necessary to wind up its affairs.
 DUAL ASPECT CONCEPT:
According to this concept each transaction has two aspects,
debit and credit.
every business transactions always results in receiving of some benefit
of some value and giving of some other benefit of equal value.
 MATCHING CONCEPT:
According to this concept the expenses for an accounting period should
be matched with related incomes of that period. The liabilities should be
matched with assets.
 PERIODICITY CONCEPT:
According to this concept the profit and loss account and a balance
sheet should be prepared at regular intervals to ascertain information about
the business unit.
THANK YOU

A.SRILATHA
M com 1st year
H.T. NO:107818408016