ACCOUNTING EXPERTISE

ALL ABOUT ACCOUNTING :- 20th BLOG  ☆☆☆ ACCOUNTING ☆☆☆   Hi freinds.,  🙏 Today's discuss 3rd concept of accounting....                                              So let's discuss .....    ★ GOING CONCERN CONCEPT :-  This concepts states that a business firm will continue to carry on it's activities for an indefinite period of time 🕒. Simply stated, it means that every business entity has continuity of life. Thus, it will not 🙅 be dissolved in the near future. This is an important assumption of accounting, as it provides a basis for showing the value of assets in the balance sheet ⚖️. For example, a company purchases a machinery of rupees ₹ 12,00,000 and it's life span is 12 years. According to this concept every year some amount will be shown as expenses and the ⚖️balance amount as an asset. Thus, if an amount is spent on an item watch will...

ALL ABOUT ACCOUNTING :- 19th blog        ☆☆☆ACCOUNTING ☆☆☆ Hi freinds.,  🙏 Today's discuss 2nd concept of accounting....                                              So let's discuss .....    ★ MONEY  MEASUREMENT :- This concepts assumes that all business transactions must be in terms of money, 💰 that is in the currency of country. In our country such transactions are in terms of rupees.  Thus, as per the money 💰measurement📏 concept, transactions which can be expressed in terms of money are recorded in the books of accounts. For example, sale of goods worth rupees ₹1,00,000, purchase of raw materials of ₹ 60,000, Rent paid ₹ 5,000 etc. are expressed in terms of money, and so, they are recorded 🔘 in the books 📚 of accounts. But the transactions which cannot be expressed in monetary terms are not 🙅 recorded in the books...

ALL ABOUT ACCOUNTING :- 18th BLOG    ☆☆☆☆☆ ACCOUNTING☆☆☆☆☆   ★ BASIC ACCOUNTING CONCEPTS :- In the previous  lesson, You have studied the fields of accounting and principle of accounting.  In order to maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules/ principles are classified as concepts and conventions. These are foundations of preparing and maintaining accounting records in this lesson we shall learn about various accounting concepts and their meaning.  ☆ Explain the term accounting concepts : Let us take an example. In India 🇮🇳👳 there is a basic rule to be followed by everyone that one 1️⃣ should walk or drive on his/her left hand✋ side of the road 🛣️. It helps in the smooth flow of traffic 🚥. Similarly,  there are certain rules that an accountant should follow while recording business transactions and preparing accounts.  These may be termed as a...

ALL ABOUT ACCOUNTING :- 17th BLOG        ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds  🙏.,             Today's discuss 12th accounting principle. So let's discuss...    ★   TIME PERIOD :-   The time period principle (or time period assumption) is an accounting principle which states that a business should report their financial statements appropriate to a specific time period. ... In financial terms, a time period is often referred to as the accounting year, or accounting and reporting time periods.                        * R equirement of time period :-  The users of financial statements need current and reliable information to evaluate financial performance and position of the companies to make important decisions and take appropriate actions. The time period assumption enables companies to divide their economic activities into short time periods. ...

ALL ABOUT ACCOUNTING :- 16th BLOG       ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds  🙏.,             Today's discuss 11th accounting principle. So let's discuss...    ★ RELIABILITY  :-  Accounting reliability refers to whether financial information can be verified and used consistently by investors and creditors with the same results. Basically, reliability refers to the trustworthiness of the financial statements. The accounting rule of the reliability principle concerns the financial information of a business, and states that the information presented in the accounting records and statements should be the most accurate and relevant information available.   * For example :-  Company ABC LTD. is being sued for damages by Company XYZ LTD. If Company ABC LTD. loses the case, they will have to pay a significant amount in settlement money, which could threaten the financial stability of their company.   * Types o...

ALL ABOUT ACCOUNTING :- 15th BLOG         ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds  🙏.,             Today's discuss 10th accounting principle. So let's discuss.,   ★ MONETARY  UNIT :-  The monetary unit principle states that business transactions should only be recorded if they can be expressed in terms of a currency. ... According to the monetary unit principle, when business transactions or events occur, they are first converted into money, and then recorded in the financial accounts of a business. * The stable monetary  unit :-             The stable monetary unit concept assumes that the value of the rupees is stable over time. This concept essentially allows accountants to disregard the effect of inflation -- a decrease, in terms of real goods, of what a rupees can purchase.  * Importance of monetary unit  assumption :-             While...

ALL ABOUT ACCOUNTING :- 14th BLOG      ★★★★★ACCOUNTING★★★★★ Hi freinds  🙏.,             Today's discuss 9th accounting principle. So let's discuss.,     ★ MATERIALITY :-  The materiality principle. The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a user of the statements would not be misled. A classic example of the materiality concept is a company expensing a rs.2000 wastebasket in the year it is acquired instead of depreciating it over its useful life of 10 years. The matching principle directs you to record the wastebasket as an asset and then report depreciation expense of $20 a year for 10 years.   * Calculation of materiality :-  The normal materiality evaluation process is to review each item individually and then all items in the aggregate based on the working materiality levels for each...