Financial Accounting Notes PDF Free Download, B.com 1st Year Financial Accounting Notes Book By Vinod Kumar PDF Free Download.
Financial Accounting Notes PDF Free Download
Accounting: Meaning, Purpose, And Importance, Accounting Branches, Accounting Concepts And Conventions, Double Entry System, Journal Preparation, Subsidiary Books, Such As Cash Book, Ledger, Trial Balance, And Final Accounts Of Sole Proprietors And Partnership Firms.
Accounts Of Non-trading Concerns Such As Hospitals And Educational Institutions, Distinction Between Capital And Revenue Items, Depreciation Methods And Accounting, Including As-6. Accounts Concerning Partnerships: Admittance, Retirement, And Death Of A Partner; Dissolution Of Partnership; Merger Of Firms; Sale Of Firm To Company; Gradual Realisation Of Assets; And Piecemeal Distribution.
The Subject Content Has Been Organised And Systematised Strictly In Accordance With The New Syllabus, And The Current Edition Includes The Following Chapters That Have Undergone Extensive Revisions: Debit And Credit Rules: Journal Journal Subdivision: Ledger For Cash Flow Test Of Balance Final Accounts Preparation Organisations Not Engaged In Trading: Accounting Kingdom Accounts Branch Accounts Hire-purchase System Instalment Payment System Depreciation Insolvency Accounts: Concept And Accounting.
- There Is A New Chapter On “Journal Entries Of G.s.t.”
- On The Basis Of The 2013 Companies Act, The Chapter On Converting A Partnership Into A Joint Stock Company Has Been Revised.
- The Final Accounts For Each Chapter Of The Book Were Closed On March 31st Alone, And The Final Accounts For The Companies Were Prepared In Accordance With Schedule Iii Of The 2013 Companies Act.
- The Subject Matter Has Been Divided Into Many Headings And Sub-headings To Provide A Flow In Studying This Numerical Subject, And The Language And Presentation Style Are Quite Simple.
- Theoretical And Numerical Aspects Of The Subject Have Both Received The Attention They Deserve. Theoretical Background Has Been Carefully Graded With The Numerical Illustrations. Explanatory Notes Have Also Been Included In Several Places To Make The Working Of The Solution More Clear.
- Simple To Complex Numerical Illustrations And Questions Have Been Arranged In A Systematic And Scientific Manner.
- Both The Illustrations And The Questions Have Been Arranged In The Same Order So That Students May Quickly Answer Them After They Have Understood The Illustration.
- Priority Has Been Given To The Most Recent University Examination Papers In The Selection Of Illustrations And Questions So That Students May Practise Using Those Criteria.
Business Is An Economic Endeavour Carried Out With The Intent To Generate Profits And Increase The Owners’ Wealth. A Company Cannot Operate In Isolation. Most Business Activity Is Carried Out By Groups Of Individuals Joining Together For A Shared Goal. This Group Is Often Referred To As An Organisation; It May Take The Shape Of A Body Corporate, Partnership, Sole Proprietorship, Etc. The Basic Tenets Of Commerce, Social Values, And Legal Framework Across Domestic Or International Borders Serve As The Foundation For Business Regulations. The Main Goal Is To Enhance A Product Or Service To Meet Consumer Demand, Even If These Factors May Vary For Various Firms, Nations, Etc.
The Company Operations Need Resources, Generally In The Form Of Labour, Materials, Factories, Equipment, And Other Services (Which Are Scarce And Have Various Applications). How Well These Resources Are Handled Will Determine How Successful A Company Is. As A Result, It’s Important To Make Sure The Businessman Keeps Track Of How These Resources Are Being Used. The Resources Are Not Free, Therefore It Is Important To Be Mindful Of How Much It Will Cost To Get Them. Since The Primary Goal Of Company Is To Maximise Profits, It Is Important To Continuously Monitor All Operations Carried Out In The Course Of Doing Business. Two Fundamental Questions Would Need To Be Addressed:
These Questions Have Ongoing Answers, And The Only Way To Identify Them Is To Keep Track Of All Company Activity. Business Actions Must Be Recorded In A Scientific Way In Order To Get Accurate Results. The Science Of Accounting And Bookkeeping Offers A Practical Fix. It Belongs To The Social Science Field. This Study Guide Seeks To Provide Students With A Framework For Comprehending Fundamental Ideas And Concepts That May Be Used To Precisely Gauge Company Success. The Learner Should Be Able To Apply The Concepts, Rules, Conventions, And Practises To Various Business Scenarios, Such As Trade, Manufacturing, Or Service After Studying The Numerous Chapters Included Within.
Giving Stakeholders Like Owners, Managers, Creditors, Investors, Etc. Meaningful Information To Utilise In Making Decisions Is Accounting’s Main Goal. The Accounting Process Measures A Number Of Business Activity Results, Including Costs, Pricing, Sales Volume, Value Under Ownership, Return On Investment, Etc. Stakeholders (Owners, Investors, Creditors/bankers, Etc.) Utilise All These Accounting Metrics Throughout Normal Company Operations. As A Result, Accounting Is Referred To As The “Language Of Business”.
It Is Vital To Maintain A Systematic Record Of All Financial Transactions Of A Company Firm, Which Is Guaranteed By Bookkeeping, In Order To Assure The Accuracy And Reliability Of The Accounting Measures. These Financial Data Are Categorised, Condensed, And Distributed In The Form Of Accounting Measures To The Stakeholders Who Need Accounting Information.
One Essential Accounting Metric Is Profit/loss. By Creating A Profit And Loss Account For A Certain Time Period, It Is Measured. This Profit And Loss Account Is Prepared By Taking Into Account A Number Of Additional Accounting Metrics, Including Various Forms Of Revenue Costs And Revenue Revenues. As A Consequence Of Commercial Activities, The Difference Between These Revenue Earnings And Revenue Costs Is Known As Profit Or Loss. This Metric Has Become The Goal Of Accounting Because Shareholders Use It So Regularly To Make Informed Decisions. For Instance, The Revenue Tax Act Mandates That Each Corporation Have An Accounting System That Can Calculate The Company’s Taxable Revenue And Identify The Type And Source Of Each Item Recorded On The Income Tax Return.
Another Essential Accounting Metric Is “Financial Position.” A Statement Of Ownership, Or Assets And Liabilities, Is Prepared For The Firm As Of A Certain Date To Reveal Its Financial Situation. The Term “Balance Sheet” Often Refers To This Document. When Constructing The Balance Sheet, Several Additional Accounting Metrics Are Taken Into Consideration, Such As The Different Kinds Of Assets And Liabilities That Were Present At A Certain Date. Various Parties May Utilise This Statement In Making Investment And Funding Decisions.
Stockholders May Learn Vital Information About A Company’s Ability To Pay Its Commitments In Both The Short And Long Term From The Balance Sheet And Profit And Loss Account Created As Described Above.
According To Carter, “Bookkeeping Is A Science And An Art Of Accurately Recording In Books Of Accounts All Those Business Transactions That Result In The Transfer Of Money Or Money’s Worth.” The Goal Of Bookkeeping Is To Record And Organise Financial Information Relevant To Corporate Operations In Chronological Order.
Essential Aspects of Financial Accounting
- The Five Main Categories Of Financial Data—income, Expenses, Assets, Liabilities, And Equity—are Described In The Financial Statements Used In Financial Reports. The Income Statement Includes A Breakdown Of Revenues And Costs. They Might Relate To Anything, Such As Payroll Or Research & Development.
- Net Profit Is Determined At The Bottom Of The Income Statement As A Consequence Of Financial Accounting. The Accounting For Assets, Liabilities, And Equity Are Included In The Balance Sheet. The Control Of The Company’s Prospective Economic Advantages Is Disclosed On The Balance Sheet Using Financial Statements.
- Financial Accounting Is Meant To Convey Information To Persons Outside The Organisation, Which Is The Primary Difference Between Financial And Management Accounting. On The Other Hand, Management Accounting Data Is Intended To Support Managerial Decision-making Inside The Organisation.
- The Creation Of Financial Statements In Accordance With Accounting Standards Is Of Utmost Significance To Governmental Organisations And Financial Organisations. The Management Of Corporate Operations May Not Always Correspond Well To Different Accounting Standards. In Order To Conduct An Internal Business Assessment, Internal Management Uses Certain Accounting Standards And Processes.
Financial Accountant’s Role
- Opportunities For Employment As A Financial Accountant Exist In Both The Public And Private Sectors. The Responsibilities Of A Financial Accountant Differ From Those Of A General Accountant, Who Works For Himself Or Herself Instead Of Directly For A Company Or Organisation.
- A Set Of Established Accounting Standards Are Used In Financial Accounting. A Financial Accountant’s Choice Of Accounting Standards Will Rely On The Regulatory And Reporting Obligations That The Firm Must Meet.
- The Indian Institute Of Chartered Accountants’ (Icai) Accounting Standards Are Used In India. These Are Heavily Influenced By And In Line With Ifrs Standards. However, There Are Some Differences Between Certain Accounting Rules And Ifrs.
- With A Few Carve-outs, Indian Accounting Standards Have Lately Harmonised With Ifrs. The Indian Accounting Principles, Sometimes Known As The Ind As, Are These Standards. For Accounting Periods Beginning On Or After April 1, 2016, Both Listed And Unlisted Enterprises Must Comply With These Regulations If Their Net Worth Meets Specific Criteria.
- Companies Listed On The Recognised Stock Market Are Required To Disclose Their Financial Accounts Quarterly In Accordance With The Accounting Standards Defined By The Companies Act.
Importance of Financial Accounting
- Financial Accounting Is Crucial For Tracking And Analysing A Company’s Operations And Performance Over Time.
- When Assessing Management Practises And Constructing Budgets, Accounting’s Openness And Dependability Are Essential.
- In Order For Stakeholders And Investors To Understand And Use The Data To Make Better Choices In The Future, Reports Are Compared.
- Regarding The Origins And Uses Of Firm Funds, It Clarifies Communication Both Internally And Externally.
