Financial Accounting by University Of Calicut Pdf
Download Financial Accounting by University Of Calicut Pdf book free online – from Financial Accounting by University Of Calicut Pdf book; This note covers the following topics: Introduction to Accounting, Capital and Revenue, Classification of Income, Receipts and Expenditure, Hire Purchase and Installament System, Departmental Accounts, Accounting for Hotels.
Accounting process begins when a financial transactions takes place. Firstly day to day transactions are recorded in the journal or subsidiary books. From the journal the transactions move further to ledger. Here entries are posted in the appropriate accounts, and then accounts are balanced to get the effect of debit and credit. The se balance moves to a statement called trial balance. From the trial balance, we can prepare trading and profit and loss accounts and balance sheet. The different stages through which the transactions move from journal to final accounts are collectively known as accounting cycles or accounting process.
It is a system of recording and reporting business transactions in financial terms, to interested parties. Accounts are classified in to three namely real accounts, personal accounts and nominal accounts.
All accounting items are broadly classified into capital and revenue items. Capital items are further classified into capital expenditure and capital receipts similarly all revenue items are sub divided revenue expenditure and revenue receipts.
Final account means accounts. Which are prepared at the final stage to give the financial position of the business It consists of trading account profit and loss account and balance sheet.
Trading account gives the overall result of trading, that is purchasing and selling of goods. The result of trading accounting may be gross profit or gross loss. If the sale proceeds exceed the cost of goods sold the difference is gross profit. Opening stock, purchases, direct expenses, are debited and sales and closing stock are credited to this account.