principles of accounts 1 (intro) 2
DESCRIPTION
This Slide show will demonstrate the accounting principles with basic concepts.TRANSCRIPT
Principles of Accounts Principles of Accounts 11
What is Principles of Accounts 1 Principles of Accounts 1 ?
The module covers: Bookkeeping
and Accounting
for Sole Traders
(and Partnerships ?)
What is Bookkeeping & Accounting Bookkeeping & Accounting ?
Bookkeeping– recording the
transactions of an organization
Accounting– analysis of the
performance of an organization
What is BookkeepingBookkeeping 1 ? You have £10. Your mother/father/aunt
gives you £100 because today is your birthday.
You go with your friends to celebrate your birthday.
You have £15 left after the celebration.
How much money did you spend?
In businesses, all of this would be recorded !
‘Books’ would be kept of all your (financial) activities !!
What is BookkeepingBookkeeping 2 ?
the keeping of Accounts the keeping of accounting
records Accounting records are kept
in ‘Books’ or ‘Ledgers’ In businesses all transactions
are recorded Book-keeping is simply
keeping the records of business transactions Records are kept of all
the (financial) activities
What is BookkeepingBookkeeping 3 ?
record important, useful information. the information must be recorded
accurately it is routine It is recording It is ‘accounting for’ business
transactions Examples of transactions: sale/purchase of goods/services every sale, etc., is shown
in moneyAccounts are kept of all the (financial) activities
Book-keeping is often known as ‘Double entry’
What is Accounting 1Accounting 1? Providing financial information
in an organization – objectively
– consistently
– professionally
– conservatively valued to enable management to
perform three functions
– recording
– analysis
– control
What is Accounting 2Accounting 2?
Using financial information to analyse the performance of management of (and inside ) an organization
– objectively
– consistently
– professionally
– with reliable techniques for internal management control
– and comparing overall performance of the organisation
– with (for example) other organizations
What is Accounting 3Accounting 3? Obtaining finance (capital) for
management of an organization
Forecasting management/departmental/ organizational performance
Checking actual performance against planned/forecasted performance
Auditing claims (claimed performance) of organizations
etc.
What is BookkeepingBookkeeping and and AccountingAccounting? Accounting is
– very business-like
– very professional
You must do/be the same
Keeping accounts: – keeps checks on customers and
suppliers
– leads to preparation of overall, summary statements
These Financial Statements are information to the business.
What is BookkeepingBookkeeping and and AccountingAccounting? We cannot keep Accounting records
– without documents (proof of transactions)
– sales, purchases, banking (payment and receipts) documents
these are source documents this documentary evidence:
– tells/shows us the actual transaction
– shows what has happened Accounting records:
– show the impact of these transactions on a business
– show what these transactions mean to a business
AdvantagesAdvantages of studying this subject
To be well-prepared for future career development
All managers need accounting
Easier to find a job All organizations need
accounting Closely related to daily life.
Possible Future CareerCareer Development 1
Pass the prof essional examswith Exemptions
University Graduates
Pass the prof essional examsN o exemptions
N on- University S tudent
A ccountant(A CCA / CI MA / CPA )
Possible Future CareerCareer Development 2
Pass other management examswith Exemptions
University Graduates
Pass other management examsNo exemptions
Non-University Student
Manager(Business, Public Sector, etc)
Exam (ModulesModules) to be completed in the three years
Semester One Semester Two
Principles of Accounts 1
Intro. to Cost and Management Accounting
Principles of Accounts 2
Management Accounting
Financial Reporting
Strategic Management Accounting
Criteria for studyingstudying and succeedingsucceeding in this subject
Diligent - hard work Sensitive to figures (not
necessarily good at Maths.)
Willing to learn Willing to think critically
Any QuestionsQuestions ?
Powerpoint presentation adapted by M C Pratt, St Martin’s College, from: Principles of Accounts (Career Talk) produced by the CNEC Christian College, May 2000.Web page: http://www.cneccc.edu.hk/subjects/poa/resources/Principles%20of%20Accounts%20(Career%20Talk).ppt