Principles Of Accounts 1 (Intro) 2
- 2. What is Principles of Accounts 1 ? The module covers: Bookkeeping and Accounting for Sole Traders ( and Partnerships ?)
- 3. What is Bookkeeping & Accounting ? Bookkeeping recording the transactions of an organization Accounting analysis of the performance of an organization
- 4. What is Bookkeeping 1 ? You have £10. Your mother/father/aunt gives you £100 because today is your birthday. You go with your friends to celebrate your birthday. You have £15 left after the celebration. How much money did you spend? In businesses, all of this would be recorded ! ‘ Books’ would be kept of all your (financial) activities !!
- 5. What is Bookkeeping 2 ? the keeping of Accounts the keeping of accounting records Accounting records are kept in ‘ Books ’ or ‘Ledgers’ In businesses all transactions are recorded Book-keeping is simply keeping the records of business transactions Records are kept of all the (financial) activities
- 6. What is Bookkeeping 3 ? record important, useful information. the information must be recorded accurately it is routine It is recording It is ‘ accounting for ’ business transactions Examples of transactions : sale/purchase of goods/services every sale, etc., is shown in money Accounts are kept of all the (financial) activities Book-keeping is often known as ‘ Double entry ’
- 7. What is Accounting 1 ? Providing financial information in an organization objectively consistently professionally conservatively valued to enable management to perform three functions recording analysis control
- 8. What is Accounting 2 ? Using financial information to analyse the performance of management of (and inside ) an organization objectively consistently professionally with reliable techniques for internal management control and comparing overall performance of the organisation with (for example) other organizations
- 9. What is Accounting 3 ? Obtaining finance (capital) for management of an organization Forecasting management/departmental/ organizational performance Checking actual performance against planned/forecasted performance Auditing claims ( claimed performance) of organizations etc.
- 10. What is Bookkeeping and Accounting ? Accounting is very business-like very professional You must do/be the same Keeping accounts: keeps checks on customers and suppliers leads to preparation of overall, summary statements These Financial Statements are information to the business.
- 11. What is Bookkeeping and Accounting ? We cannot keep Accounting records without documents (proof of transactions) sales, purchases, banking (payment and receipts) documents these are source documents this documentary evidence : tells/shows us the actual transaction shows what has happened Accounting records : show the impact of these transactions on a business show what these transactions mean to a business
- 12. Advantages of studying this subject To be well-prepared for future career development All managers need accounting Easier to find a job All organizations need accounting Closely related to daily life.
- 13. Possible Future Career Development 1
- 14. Possible Future Career Development 2
- 15. Exam ( Modules ) to be completed in the three years Strategic Management Accounting Financial Reporting Management Accounting Principles of Accounts 2 Intro. to Cost and Management Accounting Principles of Accounts 1 Semester Two Semester One
- 16. Criteria for studying and succeeding in this subject Diligent - hard work Sensitive to figures ( not necessarily good at Maths.) Willing to learn Willing to think critically
- 17. Any Questions ? Powerpoint presentation adapted by M C Pratt, St Martin’s College, from: Principles of Accounts (Career Talk) produced by the CNEC Christian College, May 2000. Web page: http://www.cneccc.edu.hk/subjects/poa/resources/Principles%20of%20Accounts%20(Career%20Talk).ppt