Anda di halaman 1dari 16

DEPARTMENT OF TECHNICAL

EDUCATION ANDHRA PRADESH


Name : R. Radha
Designation : Assistant Lecturer
Branch : Commercial and Computer
Practice
Institute : Central Institute of Commerce
Year : I year
Subject : Accountancy-I
Subject Code : CCP-102
Topic : Recording of transactions-
Journal
Duration : 50 minutes
Sub Topic : Accounting concepts and
conventions
Teaching Aids : Animations
CCP-102.6 1
Recap

We have learned in previous session

 Systems of book keeping


 Some Accounting terms

CCP-102.6 2
Objectives

On completion of this period you would be able to


know
 Basic accounting concepts
 And conventions

CCP-102.6 3
Important points in recording

In Journalizing the transactions the


following concepts and conventions
are to be followed

CCP-102.6 4
Accounting Concepts

To be followed while recording transactions

Business entity concept

Distinction is made between firm and proprietor

Entries are made from the point of view the firm

CCP-102.6 5
Money measurement concept

 Transactions interpreted in terms of money are


recorded

 Those that cannot be interpreted, however


important are not recorded

CCP-102.6 6
Cost Concept

 Business transactions at cost are recorded

 It cannot be recorded at the whims and


fancies of a person

CCP-102.6 7
Realisation Concept

 Transactions are recorded on the basis of actual


happenings
 Not on the basis of possibilities

CCP-102.6 8
Dual Aspect Concept

 Every transaction has two aspects

 Receiving aspect and Giving aspect

 Each debit has corresponding credit

CCP-102.6 9
Accounting Conventions
Consistency
 Uniform practice should be followed

Disclosure
 Business results should be disclosed periodically

CCP-102.6 10
Relevence
 Relevant accounting information as and when
required should be given

Feasibility
 The practice of comparing expenses with the
income is called feasibility
 Expenditure should be less than income

CCP-102.6 11
Conservation

 Actual financial position should be recorded

 Anticipated losses can be recorded but not profits.

CCP-102.6 12
Summary

We have learned in this session

 Accounting concepts and conventions

CCP-102.6 13
Quiz
• Recording the transactions on the basis of actual
realization concept
happenings is _________________

• When transactions are recorded without changing the


consistency convention
methods is called _____________________

• capital
Assets = ________+liabilities

CCP-102.6 14
Frequently Asked Questions

Short Questions
2. Define the term Dual aspect Concept
3. Write short notes on
d) Money Measurement Concept
e) Realisation Concept

Essay Questions
8. Explain various Accounting concepts
9. Distinguish between Accounting Concepts and
Conventions
CCP-102.6 15
THANK YOU

CCP-102.6 16