TOPIC_6_basic_accounting.ppt

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CHAPTER 6

BASIC ACCOUNTING

PB2 1

ENTREPRENEURSHIP



MUHASABAH1. Syariat Islam diturunkan untuk

memelihara kepentingan manusia,termasuklah urusan harta

2. Beberapa aspek urusan pengurusan

harta dalam perakaunan Islam ialah zakat, jualbeli,faraidh, wakaf,wasiat, hutang danpinjaman, gadaian dan lain2.

3.Begitu juga dalam prosedur pengurusan

harta juga dijelaskan dalam Islam sepertimenyediakan dokumen, catatan rekodakaun, pengukuran nilai,keseimbangandalam kira-kira, dan lain2



Definition of Accounting

What is Accounting?

the system of classifying recording, summarizing, and

analyzing an economic entity's financial transactions.

provides both information about current activities and

forecast of what may happen in the future.

Use accounting information as a basis for making economic

decision - manager, investors, lenders and consumer



Definition of Accountingand Bookkeeping

Bookkeeping

Classifying

Recording

Summarizing

Analysing

Interpreting

Accounting



IMPORTANCE OF FINANCIAL

MANAGEMENT

1. It brings economic growth and developmentthrough investments , financing, dividend andrisk management decision which help

companies to undertake better projects.

2. When there is good growth and developmentof the economy it will ultimately improve thestandard of living of all people.

3. Improved standard of living will lead to goodhealth and financial stress will reduceconsiderably.



4. It enables the individual to take better financial

decision which will reduce poverty, reducedebts and increase savings and investments.

5. Better financial ability will lead to profitabilitywhich will create new jobs and in turn lead to

more development , expansion and willpromote efficiency.

IMPORTANCE OF

FINANCIAL

MANAGEMENT



ELEMENTS OF

ACCOUNTING

1.Assets.

2.Liabilities

3.Expenses

4.Revenues

5.Owner’s equity



1 ASSETS

CurrentAssets

FixedAssets/non-

current assets

Assets used to run the

business. It is purchasednot for resale. Its life use is

more than one year. Eg.

Vehicles, lands…

These assets are eithercash-in-hand, deposits in

the bank or the items that

are expected to be

converted into cash within

one year.



Fixed

Assets/non-currentassets

Tangible fixed assetsLand, buildings, machinery,vehicles, equipment, toolsand furniture may beincluded in this category.

Intangible fixed assets

This category includes itemslike goodwill, patents,copyrights and trademarks.



2. LIABILITIES Debts owed by a business entity to

external parties

Can divided into:

i.Long term liabilitiesii.Current liabilities

Liabilities - credit balance



i. Long-Term Liabilities /

non-current liabilities Debts that must paid more than one year

ExampleBank loan

Debentures

Mortgage



ii. Current Liabilities Debts that must paid within one year

ExampleCreditors

Bank overdraft



3. EXPENSES Money that paid or will be paid to operate

a business

Example: purchase, salaries & wages, assessment

rate and freight charges., interest on loan,insurance, stationary, rent



Reduce the profit & capital of a businessentity

EXPENSES



4. REVENUES

Income from business activities throughthe selling good or providing services.

Example :

sales, service provided, commission,interest & rent received, Profit from thesale of used assets, Dividend from

investments, discount received.



Receipt of revenue will increase the profit

& capital of a business entity.

REVENUES



Residual amount after deducting

all business assets with business

liabilities. It represents the

owner’s claim against net assets

of a business.

OWNER’S EQUITY



OWNER’S EQUITY

Capital

Drawings

Refers to resources supplied bythe owner to the business, suchas money, motor vehicles andbuilding.

Any business resource that istaken out by the owner from

the business for personalpurposes or use. It can be inmonetary or non-monetaryform eg. goods



Any Question?

The End

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TOPIC_6_basic_accounting.ppt