ACCOUNTING FOR STUDENTS

This book is brought up in accordance with the subject of Accounting for students. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned the Accounting basics like Accounting, all the concepts and conventions of Accounting principles, Accounting cycle, Golden rules (classification) of accounting, Double entry system, brief study on subsidiary books, Trial balance, Trading account, Profit and loss account, Balance sheet and most important is accounting cycle. For this Accounting cycle steps, I created 42 transactions, Given the journal entries for these 42 transactions, prepared all the various ledger accounts from these journal entries, then, prepared Trial balance with these ledger account balances and finally, prepared the final accounts (Trading, Profit and loss account and Balance sheet) based on the Trial balance. Hence, I conclude that the end-to-end process of Accounting cycle with data interpretation has done in this book which will help the readers to understand that “where can we get the amounts which are appear in trial balance). I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of Accounting basics. I wish that this book will win the heart of every user.

The main features of the book are simple understanding and key concepts.

This book is very helpful to readers to learn about Accounting Concepts and conventions, end-to-end knowledge of Accounting cycle with the help of interpretation.

This book is useful to everyone in Accounts field like students, Accounts executives, Analysts etc… .

It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

 

CONTENTS

1. INTRODUCTION TO ACCOUNTTING

1.      Accountancy

2.      Accounting

3.      Branches of Accounting

4.      Methods of Accounting

5.      Generally Accepted Accounting Principles (GAAP)

6.      Accounting Principles

Concepts

                           I.          Business Entity

                          II.          Money measurement

                        III.          Cost concept

                        IV.          Going concern

                         V.          Realization

                        VI.          Dual aspect

                      VII.          Accounting period

                     VIII.          Accrual

                        IX.          Matching

Conventions

                           I.          Consistency

                          II.          Disclosure

                        III.          Materiality

                        IV.          Conservatism

                         V.          Relevance

                        VI.          Feasibility

                      VII.          Objectivity

7.      Account

8.      Classification of Accounting

9.      Capital type accounts vs Revenue type accounts

10.   Permanent accounts vs Temporary accounts

11.   Debit balance vs Credit Balance

12.   Accounting Cycle

 

2. DOUBLE ENTRY SYSTEM

Book keeping

Single entry system

Double entry system

Journal

Ledger

Classification of ledger

 

3. SUBSIDIARY BOOKS

Cash book and its subsidiaries

Purchase book

Sales book

Purchase Returns book

Sales Returns book

Bills Receivable book

Bills Payable book

Journal proper

 

4. TRIAL BALANCE

Suspense account

 

5. FINAL ACCOUNTS

Trading account

Profit and loss account

Balance sheet

 

6. ACCOUNTING CYCLE (END TO END INTERPRETATION)

a. 42 Transactions selection

b. Journal entries for 42 transactions

c. Preparation of Ledger accounts and balanced for those transactions

d. Preparation of Trial balance with those ledger balances

e. Preparation of Trading and Profit & Loss account based on the Trial balance

f. Preparation of Balance sheet based on the Trial balance