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Systems of Accounting and Accounting Information System(AIS)

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Today we study about the  Systems of Accounting  and Accounting Information System (AIS) . There are two types of accounting systems. The first is Single Entry system of accounting and another is Double Entry System of Accounting. Today We discuss both the systems in detail. Table Of Contents Double Entry System of Accounting Meaning of Double Entry System of Accounting- There are two aspects of Double entry system of accounting i.e, Debit and Credit. Debit is denoted by Dr. and Credit is denoted by Cr. in the language of accounting. In double entry system of accounting we records both the aspects of any financial transaction. So, at the time of recording the transaction, it is recorded once on a credit side and again on the credit side. A Double entry system will maintain complete records and also gives proper financial results Let us take an example to clarify this:- ABC Ltd. purchases raw material for their further manufacturing process in business...
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Accounting Equation- Concept, Meaning and Formulas

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Hello Guys, Today we discuss about Accounting Equation- Concept, Meaning and Formulas.  Accounting Equation  is the basis for Double Entry System of Book Keeping. Total assets of the business firm are provided by the lenders and the owners. Therefore, at any point of time, the total assets of a business are equal to its total liabilities. Liabilities or loans to the outsiders are known as "liabilities" but liability to the owners, in accounting is referred to as "capital". Accounting Equation We Learn- Meaning of Accounting Equation Transactions affecting two items Transactions affecting more than two items Meaning of Accounting Equation Accounting Equation also known as Balance Sheet Equation, which is a mathematical expression which shows the assets and liabilities of the firm are equal, here liabilities include owner's equity and claims from outsiders. It means total claims (claim of outsiders and claim of proprietors) will always equal to the total assets of...
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International Financial Reporting Standards(IFRS)- Concept, Meaning and Assumptions

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Hello Friends today we learn about  International Financial Reporting Standards(IFRS)  The international Accounting Standards Committee (IASC) found in 1973 which is replaced by International Accounting Standards Board (IASB) in the year 2001 which now issues International Financial Reporting Standards (IFRS) . The objective behind setting up the IASC and later IASB was to develop accounting standards that would be acceptable worldwide to produce and present financial information based on similar accounting standards and improve financial reporting internationally. Table Of Contents Meaning of International Financial Reporting Standards(IFRS) International Financial Reporting Standards(IFRS) are the set of Accounting Standards developed by International Accounting Standards Board (IASB) in the year 2001. IFRS are referred to as principles-based accounting standards because standards issued by IASB are based on sound and clearly stated principle...
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