Genera accounting terms pdf download

Before this, you need to check if any documentation is required for the recording. Such as some companies have protocols that state that the reason for recording the transaction needs to input. At the very least, you have to provide a short description of the journal.

Financial Accounting Journal newhorizonindia. Without a proper accounting journal, this task becomes a whole lot harder. That is why we are providing you with this accounting entry journal template. This template will help you make good accounting journals that are suited to your needs.

The template can be edited and downloaded in PDF format. Sample Accounting Journal Template download. If you want to make such a journal for your organization too, then you need to make use of this journal template. This template has been designed to help you a make proper accounting journal for the proper management of your finances.

Accounting Journal Entry Template seas. You can either make a simple journal entry or you can make a compound journal entry. However, no matter what kind of entry you are making, you can make use of this journal entry template. This template is very simple and easy to use. You can download the template in PDF format.

Accounting Journal Entries Policy web. If you have been tasked with making the accounting journal but are not aware of this policy, then this journal template is for you. This template comes with a general journal entry policy that you can follow to make the accounting journal for your needs. Accounting Journal Report Template cloud. Making such a report without knowing the proper process can be dangerous to the company.

Which is why you need our Accounting Journal Report Template. This template provides distinguished categories such as parameter name, required, default, description, etc. Accounting Journal List Template auburn. The template contains original and suggestive headings and content written by professional writers. The template can be used to make a list of all the transactions occurring in the organization. The template is fully editable and printable. The capital assets whichhave no physical existence and whose value is limited by the rights and anticipated benefits thatpossession confers upon the owner are known as intangible Assets.

Liability: It is an obligation of financial nature to be settled at a future date. It represents amountof money that the business owes to the other parties. It may be in the form of cash, goods,or any other asset which the proprietor or partners of business invest in the business activity. Frombusiness point of view, capital of owners is a liability which is to be settled only in the event of closureor transfer of the business.

Hence, it is not classified as a normal liability. For corporate bodies, capitalis normally represented as share capital. Debtor : The sum total or aggregate of the amounts which the customer owe to the business forpurchasing goods on credit or services rendered or in respect of other contractual obligations, isknown as Sundry Debtors or Trade Debtors, or Trade Payable, or Book-Debts or Debtors.

In otherwords, Debtors are those persons from whom a business has to recover money on account of goodssold or service rendered on credit. Creditors are generally classified as Current Liabilities. Capital Expenditure : This represents expenditure incurred for the purpose of acquiring a fixed assetwhich is intended to be used over long term for earning profits there from. At times expenditure may be incurred forenhancing the production capacity of the machine.

This also will be a capital expenditure. Capitalexpenditure forms part of the Balance Sheet. Revenue expenditure : This represents expenditure incurred to earn revenue of the current period. The benefits of revenue expenses get exhausted in the year of the incurrence. The revenue expenditure results in reduction in profit orsurplus. It forms part of the Income statement. Business usually prepares 3 reports. A statement of financial position referred to as balance sheet 2.

Income statement 3. Statement of cash flows. In this module, we can just concentrate on the income statement and Balance sheet. Balance Sheet : It is the statement of financial position of the business entity on a particular date. It lists all assets, liabilities and capital. It is important to note that this statement exhibits the state ofaffairs of the business as on a particular date only.

It describes what the business owns and whatthe business owes to outsiders this denotes liabilities and to the owners this denotes capital.

Profit and Loss Account or Income Statement : This account shows the revenue earned by thebusiness and the expenses incurred by the business to earn that revenue. This is prepared usuallyfor a particular accounting period, which could be a month, quarter, a half year or a year.

The netresult of the Profit and Loss Account will show profit earned or loss suffered by the business entity. A lot of events affect the business, like receiving cash from customers, making payment to suppliers, tax payments, buying and selling on credit etc. Therefore, to have identical understanding of transactions, Accounting adopts the following four major measurement assumptions: a.

Reporting Entity: The primary assumption here is that the Firm is different from its owners and other firms. It has an existence of its own. Owners might come and go. But the organisation exists. Therefore, the financial statement of the firm shall show the financial position of the firm alone and does not include the financial transaction of any other individual or entity. Reporting entity is also defined by the purpose and the context of financial reporting.

For e. A company might have different subsidiary or group companies; Some businesses might want to reports based on segment of business like based on type of products or Geographical segment etc. This assumption is extremely important to understand, as the businesses go through difficult and successful periods of time.

However, they will be able to meet their commitments to the stakeholders in spite of seemingly difficult position. Usually cost commitments, the assets that the firm owns and the ability of the organisation to generate revenue in the foreseeable future will determine if it is a going concern or not.

Periodicity: As we assume that the organisations continue to exist under the going concern assumption, the stake holders of the firm may want to find out the results of the operation every now and then. To satisfy this condition, firms have to report to its stake holders, on their financial performance and financial position based on an artificial time period.

This is usually a year. However, the current practices also make it mandatory to report once a quarter. Money measurement: Under this assumption, financial transactions are recorded and Financial statements are always expressed in terms of money for the ease of understanding.

If a transaction or activity cannot be measured in terms of money, such things cannot find a place in the accounting records. However, the type of unit of money i. The important assumption here is that money is a stable measure in the same way as Kg is a stable measure for weight. Employees are residual claimants of the profits of the business, i. Who among the following would be interested in a company's financial information for the sake of resource allocation, formulation of taxation policies and investigation of corporate crimes?

What does the accounting assumption 'reporting entity' mean? What does the accounting assumption 'historical cost' mean? The concept of double entry system b. The content of a Balance Sheet c. The Accounting equation d. The effect of a transaction on the accounting equation Double Entry System: Double entry is a simple yet powerful concept each and every one of a company's transactions will result in an amount recorded into at least two of the accounts in the accounting system.

If yes, then you are in the right place. Preparing for the exam requires you to cover a wide variety of subjects, covering each and every topic for the same. Register here to take up practice questions.

In order to maintain uniformity and consistency in accounting records, certain rules or principles have been developed which are generally accepted by the accounting profession. These rules are called by different names such as principles, concepts, conventions, postulates, assumptions, and modifying principles. Thus, Generally Accepted Accounting Principles GAAP refers to the rules or guidelines adopted for recording and reporting of business transactions, in order to bring uniformity in the preparation and the presentation of financial statements.

Click Here. The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting and are broad working rules for all accounting activities and developed by the accounting profession.

The important concepts have been listed below:. The concept of money measurement states that only those transactions and happenings in an organization that can be expressed in terms of money such as the sale of goods or payment of expenses or receipt of income, etc.

All such transactions or happenings which can not be expressed in monetary terms, for example, the appointment of a manager, capabilities of its human resources or creativity of its research department or image of the organization among people, in general, do not find a place in the accounting records of a firm.

The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely, i. This is an important assumption of accounting as it provides the very basis for showing the value of assets in the balance sheet.

Get complete study notes on General Accounting and Principles here. Accounting period refers to the span of time at the end of which the financial statements of an enterprise are prepared, to know whether it has earned profits or incurred losses during that period and what exactly is the position of its assets and liabilities at the end of that period. Such information is required by different users at regular intervals for various purposes, as no firm can wait for long to know its financial results as various decisions are to be taken at regular intervals on the basis of such information.

The financial statements are, therefore, prepared at a regular interval, normally after a period of one year, so that timely information is made available to the users. This interval of time is called the accounting period. Under this cost concept, the value of the asset is determined based on historical cost i. The cost concept requires that all assets are recorded in the book of accounts at their purchase price, which includes the cost of acquisition, transportation, installation, and making the asset ready to use.