Financial Accounting (1).pdf

CT University ★ Submitted by - Class Lovepreet Saini. ★ Registration no. - Assessment - 1 72411162. ★ Submitted to - Ms.Harjot Mam. ★ Course - BBA IBM. FINANCIAL ★ Section - 1st 'D'. ACCOUNTING Financial Accounting (Introduction) : ✿ It is the process...

CT University ★ Submitted by - Class Lovepreet Saini. ★ Registration no. - Assessment - 1 72411162. ★ Submitted to - Ms.Harjot Mam. ★ Course - BBA IBM. FINANCIAL ★ Section - 1st 'D'. ACCOUNTING Financial Accounting (Introduction) : ✿ It is the process of recording, summarizing and reporting a company's business transactions through financial statements. ✿ Financial Statements include : ☆ Income Statement ☆ Cash flow statement ☆ Statement of Retained Earning ☆ Balance Sheet Scope of Financial Accounting : ✿ Recording the Information ✿ Communicating Result ✿ Classification of Data ✿ Make Summarise ✿ Dealing with Financial Transactions ✿ Financial Information ✿ Making Information more Reliable Objectives of Financial Accounting : ✿ Profit Maximisation ✿ Proper Utilization of ✿ Wealth Maximisation Financial Resources ✿ Maintenance of Liquidity ✿ Improved Efficiency ✿ Proper estimation of ✿ Meeting Financial Financial Requirement Commitments ✿ Proper Mobilization ✿ Creating Reserves. Accounting and Book Keeping : ✿ Accounting and Book Keeping are both important for a business to maintain financial records and make informed decisions , but they have different functions: ✿ Accounting is a systematic process of recording , classifying , summarizing , analysing and interpreting the financial transactions and communicating the results to the users. ✿ Book Keeping is a process of recording financial transactions and ☆ events in the books of account.It involves: Identifying financial transactions and events ☆ measuring them in terms of money.  Di erence between Accounting and Book Keeping : Accounting Book Keeping ✿ It involves Measuring and Recording ✿ It involves Identifying and of Financial transactions in a Recording of all Financial Financial year. transactions. ✿ It Aims at Recording, analysing, and ✿ It Aims at Preparing original books interpreting transactions. of Accounts. ✿ It has Wider scope than Book ✿ It has limited scope than Accounting. Keeping. ✿ Methods of interpretation and ✿ It follows Accounting concepts and conventions. reporting may vary.  Voucher : ✿ Voucher is an evidence of transaction having taken place. ✿ Voucher is of two types : ☆Source Voucher. ☆Accounting Voucher. ✿ Voucher System : It is a set of procedures and forms use to manage and document financial transactions. ✿ Components of Voucher System : ☆ Voucher form ☆ Supporting Documentation ☆ Approval Process ☆ Payment processing.  Steps in the voucher System and accounting process : ✿ Purchase Request ✿ Purchase Order ✿ Approval ✿ Receiving Report ✿ Payment Processing ✿ Invoice Submission ✿ Record Keeping ✿ Voucher Creation ✿ Reconciliation  Journal : ✿ MEANING - Journal is a book of primary entry or a book of original entry in which transactions are first recorded in a chronological order from the accounting vouchers that are prepared on the basis of Source document, i.e., cash memo , invoices , purchase bills , etc. ✿ DEFINITION - A journal is a chronological Record of financial transactions of a business. "-M.J.Keeler. Journal Transactions : ✿ It ensures that each transactions are accurately recorded. ✿ Journal Transaction is a process of recording financial transactions in the Journal, which is the first step in the Accounting Cycle. ✿ Each transaction is recorded as a Journal entry , which includes date , account affected , and amounts debited and credited. ✿ This process ensures that all transactions are documented systematically and that the Accounting equation remains balanced.  🙏 Thankyou  Zoho Show Financial Accounting.pdf (This PDF has been generated using Zoho Show) To create beautiful presentations, download Zoho Show from Play Store https://zoho.to/cy7