Accountancy is the science of recording, classifying and summarizing transactions so that relation with outsiders is exactly determined and result of operation during a particular period can be calculated, and the financial position as the end of the period may be shown.
Aims
- To familiarize the students with accounting as an information system.
- To acquaint the students with basic concepts of accounting & accounting standards.
- To develop the skills of using accounting equation in processing business transactions.
- To develop an understanding about recording of business transactions and preparation of financial statements.
- To enable the students with accounting for reconstitution & dissolution of partnership firms.
- To familiarize students with the fundamentals of computerized system of accounting.
Objectives –
Accounting helps the students:
- To maintain the cash accounts through the Cash Book and to find out the Cash balance on any particular day.
- To maintain various other Journals for recording day-to –day non –cash transactions.
- To maintain various Ledger Accounts to find out the exact amounts of incomes and expenses or gain and losses or receivables and payables.
- To furnish information regarding Purchases and Sales, both Cash and Credit.
- To find out the net profit or net loss or surplus or deficit for any particular period.
- To find out the total capital on a particular date.
- To find out the positions of assets on a particular date.
- To find out the position of liabilities on a particular date.
- To detect any defalcations and to check the frauds and misappropriations of money.
- To detect the various errors and to rectify those through entries in the journal proper.
- To confirm about the arithmetical accuracy of the books of accounts.
- To help the management by supplying accounting ratios, reports and relevant data.
- To calculate the cost of productions.
- To help the management formulate policies for controlling cost, preparation of quotation for competitive supply etc.