Accoumfaney and inameial Mamagmema

Aecountimg
Deliniior ~vem by tho cogamisaions
oAccountans
Agmericam Tneue Cenkjas
(AICPA) U
Public.

o Amaricán Aecointona Aaosiaion (ANA)

ATCPA Dekniion
Acc.oumimg sa phoci oHecoKding,
clasyingamd uMnatizing Ün d"sia
Tukcit Mamme amd in edma g
Mny PlamaciomA amd yemta ohich .

ara pOrk at Loost omarcial chara

0,

Recotd Clamiky > SummarixR

Recordimg
vem/ PMaporaion o Résuh
tramachon.
Trnlenpree. tha Resulb
Recotdimg åevemts/tanacions having
namieiq°chdnactr.is fo be døra.
Fonameial
Una
Chardctr is dáfecChd bychack
umamciak cordiKOR o am emk.
Dor 0rd alfex: am evemP &change is
Hopa, kriamefad character.ispkANeMtt
offen use, fhu M a pRDNemCL n
cLal chanacten.
Reulb o a Businu» cam beProfit on

Busmey Zt is am ctgamisaior whera

Certoin acivißas a a carind on
atain to
certoim objaciye», which b to an pro
Fimamcial evaluadon, is aluaus MRadad
tobe pex\oUmed im bUsinen, in otdler
a
to chaek whgfha M abRCLyes
0 Not. A ffe obicives a
aNaaHokme
aHaimad,
tha AHocu muust°be caNiLd On kuithn
amd ROt he acavilas MI be' stopped
at ho point: .

Recodimg o each amd evex fHamsac

mused, iu l eoue h0ntper im tha
al RUSulE.
Recordiing is macosaNu Os
T smpofamt
W l be keqixad in puta
Wil mot occw in kutuR.
Recordimg is dona to avoid backlog
'.

Ths Cam &eak a huge dotabae ohich

Cam be Adis fo
eviiata: So, cla»ik
Cabon s dona m 0rdon: o 0lgamixi
tRis datab ae, but it d l Mot Hodica
the sixa o tfu dotaba.
 DDBummarizaion dore gmd
fhem pHpaRahor TNL take Alace

AAA Dekimikan
Accoumtumgo,duncL a apNoCgm o.
dentkcoton, RastUMAMAmk: amd atcou-
Rbkedtkon economAc Un{aumaäon to
pexnik pHudbrt udgumem by fra UeH
acconting mkmaion

Tdimkk Maási. Tudgmamk

Frocilitafe

Stake. Hol.dars Those tohó áta inkkiskd

in busimas. Cam :be: Qhats, Chgditots,
CusfomaU , GOveruMYmAm,-Sociatg ter
Ar accoumtamt TeLd to idamkiky th
kpe o imatumaig nAaded. by aAaRe
oda ahd to cdaj t.
Braches in Accouming
0 Finamcial Aecountimg
Cost Aécousmking: .
Mambgemank ecOum
FUnancal Accounting tfa otdest
bramch Ún accoumliur.
 n abusinen, pasic puKpgsR, tb to cHeak
urplin IRd them erchamge n Hdan
to edwn pRo

Cost Accounfimg
Ovetké yeana, pHoducion becoms mo*u
complicate8 and maruelacuting :
businusourished:
Foi Þekct compeiion; ue cam eifhat
kimad tfe prici b 9Laml, buk not
bofh. Fox MOnOpoy u. have ful camfto
Tot
Over pHiea, 9judmk
Oux maim eltout is on Cost Reducim.
Thios is because,
We camt alond, to uask kesouNce
To rake s e thak iuxk Unetajian.
ha acce to the HesbURCOD.
Bet skamdand o livimg + Reduacad Cost
Beten and odvancad RçhrdoHs
TLdad
Bethot
amd ekvice amd. qpankiy. 80
9ualkidy
In crdan fo claNiy amytüng po»
RaQinad,fo bebaed dn cohieh the fhurg
04ma .
clamikiud.
Cost Cost n g porTT O:Scancad
RONCm .AaCLec to acheye a spesiic
Objechye.
Zncae optimtng a boak on Accouwnting
amd amdor On FUnamctal Manage-
memt
Requemints+ Papérs, Book, Tnk, Paa
the ook, Elecbiciky, opexakoos,"
0FHelpen ekc.

Claicaion Cos
According to kpes o npuis-
0 Maletial s t Cost incaogd to
PHLOCaU Makial inpubs; Kike, Papeta,
Unk ekc. These. impub'ae. Tamgbaie,
have phisical "ëxtamics

Wage- Compembaiom poid toage hu-

mam beimg.ko fra physical ehaust
L nich
d pHoducion. agjidadijot tAApuRpO
FAWages givem to tha,gperakos ámd
holp.
Fpeme Coph on elactiiciy amd
Hmk otha araa.
According to
Tkacsaliity -
0 Douc CosE- the item a co»t
tRctly Pracial toa spec pHOduick
ECOT APapex o Wages fven fo f
operatou
Indixuct Cobt 7 tha iten" o cost.
Mot diructy kacaa to a 4pëeikic.
pHoduc.
Fa Cost o imk ot tsinges givem. fo tupo
Cost ocokon Change tha cost foa
Porthculax pHoduck
'
Reuiud to noco

Cost AUocakon
Eany ko Diuck Cobt-
Diytetk rdiuck Cont
Funchonal Clomikcaiorn: .
0 Prodiciori otFockou CoAE
@ oca Pdmrimükai Cost
Sellimg o Distibution Coe
R D Cose
Acctrdimg to Variabii
0 Finsd Cost.
Varuallla Coadt
Semi-hind ot Semi- Voriabla Cost.
C
SVC

-FC
Cont bhould be Variall,
Cost ib rot:inon Conktol: We otrve tha i
Hpe o Coot asTt OAigm a Clos to itWahi
riae inbubs Huitd ot YaioUS Outpa
COst Vakuy: .

Finad CostSoma inpubs au thara,uohoe

9Lamtity comnot'be'chamiged.

Shoit Run Thai s some kinad cot

AU co>H are VaKialli.
Run:
.

dong
When oe compub cóst, t expHwed in
Centain wnih. WiRout suitalle urik,
COmputaion, ts URlD).
Eg:Cost AC80,000 eemms ange.
Cast 5 ACs80,dod - S22Rs . Maaming. ,

So, wTik b umporlank

For mamulactunurg eckpr ha selacbsn
a codt uTiD amoCOmpu.tahon, o CODt
dikewmk om óffe "imduslios!,
, . {

Cobt CembtaA 2perae segnert o

buime t R *OsbeeL to wck comsuta
Aon d ást is MCOsatH

PHaik CemttaSomi ÁegThemt tohiia

Costamd phoik botki ad dacidad. The
pRopla au "HONPpaSUDlL -{O pr '

nveatmemk Centu his is a laysikco

onUbed Busimem wmits within dam
nlebrieD
Cenkralixad OkgamixnkonMo amd
.asnd BIACUted by fha KoUwtt aveS.

Decemtalixad Okgamixaßon*Moa amd

moR docision aBn fakem ak Kouex Kauel
amd evn ènacued by ttim.

Raua Basicaily indupi Combe.

divided nta:
O Small Scals.
Madim Scala:
dange Scala
Om tfu baris o Coat cómpukaion:
Mamulachuing Secko
Sexvick Secto (Hokbs, pouethóuse,
hospital eke.)
Masnuacbniná Seokot
Goocs can be sfandandixed
Avexage cost Cam be egsily caleulatd
Matho& i easieR
Accuaey is Mot up to mark omd
d e d Soma..0ppHOXSmah on
Goods pHoducad acccdimg to Hiau
Copt is caleulefed by obseving each
asnd eveuy pkoduck
-Mathod &rot o easiwr
-AccuNacy kavel is much highen.
When foral co, o Toranmber o tfe
pHoduch> is dih to calcaulatg, ok
Cost camt' beud Calciulated. C
Samdaxdixed. Secto
0 Singla Stag
Disinck: mulipla Afages
Umit/oukput Conkiná.
Phoci Costing.
Non Atamdandizad Seckoi
dong Teum
-Autem amd Cmdikions dacided
bekrtahasmd .

Conttack accoumt" maimtaimad

Shot Tem
Othex impottamt focto» incdudad in thus
SRcion bu:
Archikck Coxkikcaion
Relaintisn Perkentage
iramcia Acoumtg
This accoumkmg pHOCaduy Stans with
idantik ing orhy Phambackon haa a
narcal cHaractö.
Tramsaci.on
T is asn exchamgg o benekit
Mupt haue tuo Aidus" o dkchamgumg
Must have Sama fthing "fo enchama te
Bemakit.
esnt-
Chang in kinaneial cømdikon
Man be poaiive ol Tagaäve,;
Must be "enpHAMabla int Ums o mOn

Two emty Aystems Un accotunfimg-

o Single enn sstem.
Doudle m Apem.
Sungle emty, éefem- Simple ssfem
o tdcotdiing in accoumtareH añd d
Dnot otlou doubla ety Skm.
Characleinkics
Does Tot Hagine Special Paining .

Regpina kos "timg.

Unstuekuud. syskm.
UbeNkusndly.
Cam be døsimad byown fo suit tha
puHboR.
Not o Much acCunak.
Double emty slem- Ir this szskm,
ench aMd. eveB4 tamsacäons ar Hecod.
aN
AuicO. Recoidig o PtoaMAacio
dana bu botk R Ades
ChanackeoHC)
Reqpie» Apecial Paiming
Defailud sslem
Requino totu fma amd is coaku
Shuickurad áyslem
Accurak Hesilbs.

O
Sounca Deskriabo

Sacieá Goim
Ctadilo Debto.
Touunal Enku
01/o1/207 MA HRceived Rs. O00F un_
-

MY SounciCHadilot
MADestunakon». Debfot .'

JouUnal CFolio No.-

Dak
201 Poriculow -Etmoumk |Amaumk
JaT 1Ma.A AHC Dr
1000
LBeing cash Hacai
ved mMA: YI
 TRTAL BALANCE
i a alamce is dalimad a ha stakememt
phopaned On á AaNCicular dok, wifñ fhg hal,
oall obem kedgens accoumt balancos b[
diding them Ginto cradib and dabih,
ascatai he,aLffmARCal accnacy oha
Occowmbs maLUNtaLrad.
7fial Balance as an dalmom/{88 On
PARTTCULRRS Ptmoumk|mount
XX2
Capital c
Plamt <, XXX

Sales tc

2 ***
IZDT =~Cr, tfu Thial Balamce is ag
astd the accoumt is aitñmatCally coUdet
Aeh/Expemses Debtot.
diobilikw»/ Incames Ckeditot.

ApesGek berakis
:dialiik Provida. bemakh.
Pes Wages, Thavebs ekc
diabiliks +°Capial, Bank doam» ekc.
Reckicaion Ertu> Cotucions that at
madh ot UnkHd, amY MUsfaRes aRR
mada Uma tial ballmce Enty.
Amount Malaaxd by sorea Amoumk
HRCeived by destinali.on.
Pmoumt odebit = Amount cadit.

EDr # ZOr, all misfakes a need

whan all/ mistakes ati coLctad, Suspemx

accomt aufomaically vamishes.

EMUS fñak camnot be dakctad by kaal;

Balanca ate

FHO mispodkmg
EHLON o pHnciple.

Finamcial Yean Two pab-

0 PHoviou ueay Yean ürn uhich ncamA
madd.
sesmert yea Yean in which tRa
Oncome S Ueed.

O Comput aion o Hasulb, al datas

Om jouwmal amd adgk r a kamaewrid
to.
Tadumg. AccountDiteck imcama amd
eMpemdrfe
MHjk amd don Acoum Indirect BN

pHLORE and Lon.

 TRADINGPC
Bya l Dick Revenu
To all Dvuet Revemu
amd Expemses aTo Tmcomas

To Projik amd don

Acoumt xxx|

PROFIT AND Loss Ae

To all Tndixack By all Tndiract
Revemuws EnpeesRevemug Tncoma
To Capital Hc xx

Ne Projik XXX

BALANCE SHEET
as On
diabiliko Pnount Amebs mou
Copital Rc X
Real AIe
tNomunal X
CAebs, plamb
XX X etc.y
PaUonal Afc
CCr) xPouonal Aic xx
(DT
Xxx*
Tngibla
Tntamaibla
Ficiko
Real
Fimd
+CuRmt.
 -

dialilikios-TIneunal
Exunal
dong eum
L-Cuoumk .
Quemk Ayeb-Aneb ohich aiu be
COnverkd Unto Cash i t f i n 12 MONtRA o
fome. E- 18amR: SfocR, Bul ekc.
Fiad a e s - domg feum a e b twhoe ida-
Ttih inad. Eg-0 Building , Can etc.
Tntamgbla Reh Gooduwil o businen,
Pakmt, Cópy DHik. ekc
Fictibou» Aneb himgs which ata aNeh.
but s mot an acbual atet.
Inteunal dialilikier Thag an lialilikus
fowand» Owmx. Eq putal, PRAHE ekC.

Fimancoal Deciniom Makimg.:

0 Imvest memt Decimion
FUnasncimg DeCIsion
Dividamd Decimim.
Ong Texm diablikos (LTL)-
Eqiky Share Capital, Ke.
Retaisnad Eauntng, K¢
PHaenemca Shara, Ke.
Debt Capital, Ka.
Kis krourn as Cost o
Capikal
 Kr Capital Stuckoa
Kp

Ke eighkd avexage ocos capital

: average capital stuckra.
i s dalinad as Rebotn,then
s
O6Rchve oFunasncial Mamagement
to mamite Me Vaua.o Hhaoum
So, Ke is moa þHekxabta.
Computahon o ouRmg Capital
Wcking Capital ; Cuwumt Awebuank
iabilikes
PARTICU LARS PtnoumkAmaum
Cuamt Ayebs

GHO uvwmt Amebs

Cuntant dialii tay

GHO Cuwwnk diabiik

WokUng Capikal