An Elementary Tutor to Theoretical Aspects of Accountancy ,

PRINCIPLES OF ACCOUNTING Principles of Accountancy      The principles which are used in accountancy can be divided into two elements. The accounting concepts and conventions are treated as the basic two elements of principles of accountancy. Nearly eight major concepts are adopted in accountancy. Three major conventions are used in accountancy.      While recording the business transactions in books of accounts, the concepts are to be considered at appropriate situation, Concepts are first and foremost in accountancy. In English, alphabets are important. Accounting concepts are foremost in accountancy. Business Entry Concept      Business is separated from its owner. Owner is treated as a principle creditor of the business. Business owes to the owner for the amount of capital invested in business by him. Even though business is owned by the proprietor, it is a separate entity. All accounting processes are done in the point of view of ...

Users of Information of Accountancy      Accountancy is a language of a business which explains the results and financial position of business. There are many users to know the status of businesses. Accountancy is a useful communicative medium to the users to know the results and financial position of a business. Users are classified into internal users and external users. Accountancy provides necessary information that is required by the users Internal Users      Some individuals and groups are inside organization. They are called as internal users. They are 1) owners 2) Management 3) Employees. Owner       The proprietor of business requires the information of accountancy to know the profitability status of business. Accountancy provides the required information in forms of financial statements, financial reports, and statement of accounts to the owners. Management      Management requires the information of accounta...

Branches of Accounting      Techniques have improved vastly so as it effects in accounting, new methods, concepts, etc., have been introduced to accounting. Because of such improvement in techniques, accounting has created many branches to its field. Some examples of such branches are financial accounting, cost accounting, management accounting, social responsible accounting, human resources accounting. Financial accounting, cost accounting, management accountings are the standard branches of accounting. Financial Accounting      The process of identifying, recording, classifying, summersing, the transactions and events and analyzing, interpreting, the results of recorded transactions is called as financial accounting. It communicates the finalized and processed date of all financial transactions and events of business to the end users.      In journal and subsidiary books, transactions are recorded. In ledger, recorded transactions are ...