Introduction to Accounting:

Accounting is a discipline of collecting, summarizing, analyzing and reporting the monetary terms, information about business. It is the language of business in the form of financial statements. Such language should be communicated and understood by the concerned parties of the business. Accounting is built on by few basic concepts and principles. It follows certain fundamental rules, principles and assumptions. Such principles and assumption must be followed by the accountants which are called as universally accepted or Generally Accepted Accounting Principles (GAAP). GAAP may be defined as those rules of action which are derived from experience and practice and when they prove useful, they become accepted as principles of accounting. Generally Accepted Accounting Principles requires the following criteria.

1. Must be meaningful and useful.
2. Should be reliable and trust worthy.
3। Should be implemented without much complexity or cost.

Want accounting software.
Click here to find more accounting software.


Want Accounting Trainings
click on image

Accounting System

Accounting is the acitivities of collecting, recording, classifying, summarizing, analyzing and reporting the events anf transactions of business and interpreting their results as well. Accounting relates only on financial or monetary transactions. It doesn't records any non-financial or monetary transactions such as conflict between labor and management.

Scholars view regarding Accounting

According to American Institute of Certified Public Accountants,"Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a financial character and interpreting the results there of."

In the words of Smith Ashburne,"Accounting is the science of recording and classifying business transactions and events, primilarily of a financial character and the act of making significant summaries, analysis and interpretations of those transactions and events and communicating the results to persons who must make decisions or firm judgements."

From the above definations, it can be concluded that accounting is recording of business transaction which can be express in monetary term, reporting results of business activities and interpretating such results to the concerned parties for the purpose of effective control of future business activities. Similarly accounting denotes to the body of knowledge i.e. principles, assumptions, rules etc. governing the science of recording, classifying and analyzing financial transactions.

Accounting Concept:

Accounting concepts:

Accounting concepts are basic assumption of accounting. It is like foundation on which the structure of accounting is built. Some popular accounting concepts are as follows:

1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Accounting Period Concept
   

Accounting Principles:
Accounting principles are broad rules, law adopted by the accounting professionals as guides for use in recording and reporting business transaction. Some of them are as follows:

1. Cost principle
2. Matching principle
3. Realization principle
4. Consistency principle
5. Dual aspect principle
6. Objectivity principle
   

Accounting process:
Accounting process is also called as accounting cycle. It is a complete sequence of accounting activities that are started with the primary entry of transaction into journal and ends with the preparation of final accounts. It is repeated in the same order during each accounting period. It is a continuous process in the life of business organization. Accounting process includes recording, classifying, summarizing and interpreting of financial transactions. The following diagram shows the components of accounting process or cycle.

Read more

Brief Discription of Accounting Cycle:

1. Identification of Financial Transactions:
Accounting is concerned with only monetary transactions. Therefore, accountants need to identify and assemble financial transactions at first. There should be some evidence like invoice, vouchers, bills etc. associated with each transaction for its validity.
2. Journalizing and Recording in Subsidiary Books:
This is the second step of accounting process. After identifying financial transactions, they are recorded in journal vouchers. Some special and repetitive transactions are sub-divided into subsidiary books as like sales books, purchase books, sales return books, cash books etc. It is performed on the basis of various bills, vouchers, invoices etc.
3. Posting into Ledger Accounts:
Under this step, transactions relating to a particular account are gathered at one place. It is the process of posting into the various ledger accounts like debtor account, creditor account, income account, expenditure account etc. from the subsidiary books.
4. Preparation of Trial Balance:
This is the fourth step of accounting process. After preparing ledger accounts, all the balances of ledger accounts are transferred to trial balance. It is prepared to test the arithmetical accuracy of financial records. It is a basis for the preparations of final accounts.
5. Preparation of Final Accounts:
After preparing trial balance, the final accounts are prepared. It consist Trading, Profit and Loss Accounts and Balance Sheet. Trading and Profit and Loss Accounts are prepared to determine the profit or loss occurred during the year whereas Balance Sheet is prepared to know financial position of the business.
6. Interpretation and Evaluation of Financial Statement:
This is the last step of accounting cycle. Books of accounts prepared earlier are analyzed and interpreted by using various formula and tools. It helps to know about the profitability, liquidity, the reasons of profit or loss, strength and weakness of business operation. Interpretation and evaluation of final accounts and other books of account provide the information to managers, owners, and shareholders to forecast future prospective.

Concept of Government Accounting:
Government accounting is that branch of accounting, which is kept by the government offices. It is basically related to record the revenues (incomes) and expenditures of ministries, departments, operating level offices and other legal bodies of the government. In simple language, it is concerned with keeping records of government revenues generated from taxes, duties, penalties, subsidies, grants, loan etc. and the budget expenditure like salary, rent, office stationery, fuel, public construction, vehicles and furniture etc. Besides recording, it also involves in classifying, summarizing, interpreting and communicating financial information about government.

According to Oshisami and Dean, "Government accounting is the process of recording, analyzing, classifying, summarizing, communicating and interpreting financial information about government in aggregate and in detail, reflecting all transactions involving the receipt, transfer and disposition of government funds and property."

From above definition, it is clear that government accounting is the process of recording, analyzing, classifying, summarizing, communicating and interpreting, monetary transactions of government. It discloses all the transactions relating to receipt, transfer and disposition of government funds or property. It facilitates to estimate the future budget.

Features of Government Accounting:
The main features of government accounting are as follows:

1. It is maintained as per the government act, rules and regulations.
2. It is based on double entry system of book-keeping.
3. It does not have profit motive except in case of some commercial enterprises run by the government.
4. It is guided and controlled by the budget. All records of government expenses and revenues are made as per the principles and policies guided by the budget.
5. Under this accounting system, all the expenditures and revenues of government are recorded according to the budget heads.
6. It gives more emphasis on banking transactions. There is provision of separate bank accounts to operate different funds of government.
7. Books of accounts kept under it, must be audited by the auditor to avoid misuse and misappropriation of government revenues.

Objectives of Government Accounting:

1. To record financial transactions of government.
2. To avoid the excess expenditures beyond the limit of budget.
3. To provide financial data and information.
4. To safeguard the government properties.
5. To facilitate auditing.
6. To prepare annual report.

Distinction between Government and Commercial Accounting:
The primary objective of government and commercial accounting is to record the financial transaction, however they are different due to the following reasons.

Need Accounting Software:

Are you worry about Accounting Software, if yes,
Here you go...........

1. Fact Accounting
2. Tally (Full version with crack)
3. Accord
4. Finpro
5. Maspro
6. TataEx
7. Microsoft Money 2004 and many mores.
   

Want To Learn Fact Accounting

User Guide
Key Features
FACT Accounting for Windows provides you a huge number of facilities to make Data Entry and Analysis easier than ever.

Online Update
No Validation Routine needs to be run. No Update required. Nor do you need to do Postings manually. Validations are carried ........................

No Duplicate Entries
There are no duplications at all. When you enter.....................

Real-time Computing Power
FACT Accounting for Windows brings to you Real Time Computing Power. You can print all your Source Documents (like, Vouchers, Purchase ....................
Great Speed
FACT Accounting for Windows is the fastest .....................
Multi-Currency
FACT Accounting for Windows allows you to transact in any...................

Reports
The Reports answer all your accounting needs, and more. Virtually all the ....
24-Month Accounting Period
This allows you the flexibility of carrying on with the next year's work ....

more...

TALLY GUIDE

Introduction:
The Security of Data, Financial or otherwise, has always been a matter of concern. Most businesses depend on the confidentiality of information. Tally Vault is an enhanced security system which allows for encryption of the company data with the most secure method of encryption being used. Tally Vault ensures that under no circumstances, the original information is available in any form. The technique could be likened to "encryption-decryption-on-the-fly", and the decrypted form of data is never stored in the system. Apart from this, it uses the "non-stored password" mechanism. By using highly advanced mechanisms to validate a new user without any prior knowledge of the original password. The combination of these facilities means, that Tally Vault becomes one of the most secure means of information storage.

Introduction of bottom bar:
Ø Wave Browser
Ø Select Company F1
Ø Short company
Ø Date F2
Ø Period Alt + F1

Creation of Company:
Ø Click on company info from bottom bar
Ø Click on account info
Ø Select Company Creation &
Ø Click on it.
Ø Then appear a company creation dialog box
Ø Fill the form as your require
Ø Type the name of the company
Ø Malign name of the company
Ø Email address of the company

Mention:
Ø Inv, only
Ø A/C with Inv
Ø A/C only
Ø Financial year from
Ø Book begging from
Ø Tally password
Ø Base currency symbol
Ø Decimal places
While finished filling the box at last accept it by pressing enter key.

Use of calculator:
Ø To use calculator Ctrl + N
Ø To return from calculator Ctrl + M

Altering of company:
(To modify or delete company)
Ø From Tally dialog box click on alter
Ø A company list will appear
Ø Choose the company & highlight it which you want to alter
Ø Then press enter your selected company form will appear delete or modify the company's data as your require

Shutting of company:
(To hide unnecessary company from selected company list)
Ø From company info
Ø Choose shut company &
Ø Click on it
Ø Highlight the company which you want to shut &
Ø Click on enter
Ø Your Chosen Company will hide (shut) from list.

continue to next page........

"Want To Learn FACT Accounting"

User Guide

Key Features
FACT Accounting for Windows provides you a huge number of facilities to make Data Entry and Analysis easier than ever.

Online Update
No Validation Routine needs to be run. No Update required. Nor do you need to do Postings manually. Validations are carried out at the time of data entry itself. And, all Updates and Postings are carried out instantaneously as soon as you enter the Document.

No Duplicate Entries
There are no duplications at all. When you enter a Sale invoice, the Accounts Receivable, Inventory and General Ledger are all, automatically, updated, right through to the Profit & Loss and Balance Sheet.

Real-time Computing Power
FACT Accounting for Windows brings to you Real Time Computing Power. You can print all your Source Documents (like, Vouchers, Purchase Orders, Delivery Orders, Invoices, Receipts, to name a few) online. Your Accounts will never be backlogged now.

Great Speed
FACT Accounting for Windows is the fastest Online and integrated Business Accounting Software of its class available currently – both at the data entry as well as at the Report level.

Multi-Currency
FACT Accounting for Windows allows you to transact in any Currency that you wish. All Foreign Currency transactions are posted in the Home Currency as well. Exchange Gain/Loss is computed at the time of the entry, and automatically posted to the General Ledger without any extra work.

Reports
The Reports answer all your accounting needs, and more. Virtually all the Reports are available on screen and on printer. Reports are available in both Graphics and Text modes.

24-Month Accounting Period
This allows you the flexibility of carrying on with the next year's work uninterrupted till you run the automatic ‘Year End’ process. All the data for the 24 months are kept live.

History of Transactions
You may make query on any transaction (Vouchers, Purchase Orders, Delivery Orders, Invoices, Receipts, Debit Notes etc.) on Screen or on Printer for the transactions of the entire year. It will show you all the relevant information.

You may consolidate the Trial Balance, Profit & Loss Account and Balance Sheets of your subsidiaries and, joint Venture and group Companies, based on the percentage of equity holding and conversion of the Foreign Currency to Home Currency.

Multi-User Version Document Class
You may classify each document with a Document Class. The Document Class may be used to classify Vouchers, Purchase Orders, Delivery Orders, Invoices, and Receipts for the different Cost Centers, Divisions, Departments, or Employees in your Company. This helps in reporting.

TALLY

Introduction:

The Security of Data, Financial or otherwise, has always been a matter of concern. Most businesses depend on the confidentiality of information. Tally Vault is an enhanced security system which allows for encryption of the company data with the most secure method of encryption being used. Tally Vault ensures that under no circumstances, the original information is available in any form. The technique could be likened to "encryption-decryption-on-the-fly", and the decrypted form of data is never stored in the system. Apart from this, it uses the "non-stored password" mechanism. By using highly advanced mechanisms to validate a new user without any prior knowledge of the original password. The combination of these facilities means, that Tally Vault becomes one of the most secure means of information storage.

continue from previous....

Accounts-with-Inventory

This obviously allows you to maintain both financial accounts and inventory. You may choose not to use one or the other until the need arises.
You can always modify the company information to change these settings to allow or to discontinue accounts or inventory.

Once you have created the company and load it you would find a button - [F11] Company Features - on the bottom right hand corner of your screen. Companies Features are modifiable settings pertaining to the current company you are working with. One of the settings is a question pertaining to maintenance of accounts-with-inventory.

Group

It is use for classification or identatification of account head. A new group selected under primary group will appear in same listing major group are, Assets, Liabilities, Expenditure & Income. That determines the accounting preparation. It affect in profit and loss A/C balance sheet.

Name of main group of accounts:
1. Assests Group
2. Income Group
3. Liabilities Group
4. Expenditure Group

Maintain
Specify whether you want to maintain only financial books of accounts or only inventory or both accounts and inventory. Select from the popup list.

Let us examine each option and its applicability.

Accounts only
Select this only if you do not have any inventory transactions (suitable for professionals and corporate offices). Tally would not permit intrusion of Inventory related information that is not required.

Inventory only
Select this only if you do not want to maintain ANY financial records for this company (may be suitable for pure stock points/go downs and factories). Tally prevents financial information from being recorded or displayed.
You may opt for Accounts Only in your corporate office and Inventory Only at your remote stock point.

Introduction to Accounting:

Accounting is a discipline of collecting, summarizing, analyzing and reporting the monetary terms, information about business. It is the language of business in the form of financial statements. Such language should be communicated and understood by the concerned parties of the business. Accounting is built on by few basic concepts and principles. It follows certain fundamental rules, principles and assumptions. Such principles and assumption must be followed by the accountants which are called as universally accepted or Generally Accepted Accounting Principles (GAAP). GAAP may be defined as those rules of action which are derived from experience and practice and when they prove useful, they become accepted as principles of accounting. Generally Accepted Accounting Principles requires the following criteria.

1. Must be meaningful and useful.
2. Should be reliable and trust worthy.
3. Should be implemented without much complexity or cost.

Accounting System

Accounting system is the system in which all the transaction relating to account is kept in a systematic manner. The simple systematic manner may be posting in day book. After that posting in journal voucher, ledger and sub-ledger, preparation of trial balance, preparation of profit/ loss account or income / expenditure account and finally preparation of final statement.

The development of accounting system took many years and many generation to this state. In previous generation, accounting concept was very limited but now a days it is too broad. In the development and requirement of actual accounting and financial position, people think to develop new concept of recording business transactions. Hence Single Entry Book-keeping was develop. Due to the limitation of single book-keeping system, Double Entry Book-keeping system was developed. Now a days almost all business transaction are recorded in the principle of double entry book-keeping system.