Power Point Presentation on Accounting Concepts and Principles

Name of the teacher : JINU L

Subject : Accountancy

Unit : Theory Base of Accounting

Topic : Accounting Concepts &

Accounting Principles

Welcome

Basic Assumptions on which the accounting system is based.

Accounting Assumptions or Concepts

Accounting Entity

Business Man

Business

Separate existence between business and proprietor

V/s

Going Concern

Business will last for a long time

Money Measurement

Transactions involving money or money’s worth will be recorded in account books

INR

Accounting Period

The period of interval for which accounts are

prepared

Accounting Principles

or ConventionsGeneral law or rule

adopted as a guide to action

Revenue RealisationRevenue results out of

sale of goods and services

Verifiable ObjectiveFinancial Statements must be

verified by some objective evidence

Matching PrinciplesExpenses and Revenue should match same accounting period

Full DisclosureAll material facts should be disclosed

DUAL ASPECTEvery business transactions has dual effect

Debit

Credit

Historical Cost

Transactions should be

recorded at their acquisition cost

Thank you