The objective of Account course is to provide the students with an opportunity to acquire knowledge of Accounting Fundamental as well as gain the office skills and Marg Software. This course is intended to introduce the basic theory, concepts and practice of financial accounting and to enable students to understand information contained in the published financial statements of companies and other organizations.
Accounting is the language of business. It is an art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in at least of a financial character and interpreting the result thereof.
Journal Entry is a primary book of accounting. It contains chronological record of transactions. Every business has two fold aspects: 1) receiving and 2) giving aspects. One has to give something to other and in return has to receive something from him. Every receiving has 'equal' giving.
Group Master is called as the “Head of Ledgers” which defines or categorize different types of ledgers like fixed assets, current assets, etc.
A ledger can be stated as an authenticated account record that can categorize a transaction. A ledger can be applied to use in all kinds of Accounting Vouchers including Payments, Purchase, Receipts, Sales, etc. that are classified under ledger accounts. The appropriate classification of all ledgers into suitable Groups is important for appropriateness of Accounting.
A voucher is a basic recording document. It is a written record of expenditure, disbursement or completed transaction. It is used as a part of a company’s internal control system. The main purpose of a voucher is to create an audit trial, so that weeks, months or years later, if a doubt arises regarding a transaction, documented evidence and support can be furnished.
Cash & Bank Book reports all the transactions made by the company whether in cash or through cheque/DD for a specified period. This gives the amount held by the company at a particular time in cash and money held by the company in its bank account.
Trial Balance can be defined as “a list of all balances standing in the Ledger Accounts and Cash Book of a concern at any given time. A Trial Balance is a list of all the nominal/general ledger accounts contained in the ledger of a business. This contains the name and value of the nominal ledger account. The Trial Balance is a part of the double-entry book keeping system and uses the classic “T” account format for presenting values.
Profit and Loss Account or Income Statement is a periodic statement, which shows the net result of business operations for a specified period. All the expenses incurred and incomes earned during the reporting period are recorded in the Profit and Loss account or Income and Expenditure account.
Balance Sheet represents the financial position of an enterprise at the end of an accounting year. It is a periodic statement prepared after preparing the Profit and Loss Account. This statement consists of the closing balances of all assets and liabilities and the net result (Profit or Loss) of an enterprise.
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It is the loss due to decrease in the value of any fixed assets. It is also defined as the expensing of the cost of an asset involved in producing revenues throughout its useful life.