Accounting for Managers by Vardhaman Mahaveer Pdf
Download Accounting for Managers by Vardhaman Mahaveer Pdf book free online – from Accounting for Managers by Vardhaman Mahaveer Pdf book; This book explains the following topics: Double Entry System Of Accounting, Final Accounts, Cost Accounting, Marginal Costing, Management Accounting, Financial Analysis, Tools Of Financial Analysis, Funds Flow and Cash Flow Statements.
A business transaction involves the transfer of value in the form of money, goods or services in terms of money from one party to another. One party gives some value and another party receives the same in exchange for an equivalent value. There is a reciprocal exchange of value between two parties, that is , each party receives value and gives value in exchange. It must be carefully noted that the giving and receiving aspects take place between accounts and in the same set of books.
In order to have complete record of each business transaction, its two-fold aspect must be recorded simultaneously. The best known system which recognises the two-fold aspect of every business transaction is called the Double Entry System. It is based upon the fact that just as every business transaction involves atleast two parties so the record of each transaction must be made in the light of its two-fold aspects or two accounts.
“Every business transaction has a two-fold effect and that it affects two accounts in opposite directions and if a complete record were to be made of each such transaction, it would be necessary to debit one account and credit another account. It is this recording of the two-fold effect of every transaction that has given rise to the term Double Entry System.. J. R. Batliboi