Basics Theory of Accounting : Accounting courses in Chandigarh

Accounting and Auditing | Hindi | Finance | Public administration | Accounting course in Chandigarh

1. Meaning of accounting:

The accounting has been defined by the scholars as following.

1. According to Dr. M. P. Sharma, "Accounting means to make financial transactions, whether it is
    from any public interest or to make a sequential record of private industry or person."
2. According to Francis Okay- "The method of creating and expressing facts related to that financial
    situation and operations is called accounting only, which is necessary as a basis for 
   management."
3. Accounting arrangements are being arranged for the general public to keep getting public
    information publicly in a systematic manner. In the absence of accounting, the financial system
    can not run smoothly.
4. The amount of money collected in government funds and how much of the amount has been 
   spent in it, the information is received only through accounting. Looking at the details of past 
   income-expenditure described in the articles, assistance can be obtained in determining future 
   financial policies.

2. Essential Elements of Accounting: Learning the essential
 elements of Accounting with accounting course in Chandigarh

The key elements of public accounting are :

(1) Nature of Accounting System:

The system of Double Entry System should be adopted in public accounting and general bookkeeping 
should be prepared on the following basis:

(i) Articles are classified as Balanced Fund Groups.

(ii) The part of the permanent income which can not be incurred, should be completely separated.

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(2) Funds and Funds of Funds:

Each class of assets, liabilities, and funds should be kept as a separate balanced class of articles. 
A completely balanced Balance Sheet should be prepared for each fund.

(3) Budgetary Control Accounting:

Under the Public Accounting System, budget related regulations should be kept in the government 
revenue expenditure and debt heavy.

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(4) Revenue Accounting:

In the accounting reports, many items should be shown in such a way that the items of revenue and
 non-revenue nature vary. Income received in the form of income or source received by the fund 
should also be kept separately.

(5) Centralization of Accounts:

Accountability should be assigned to the same officer as the account holder. This will facilitate the 
integration of articles and the preparation of articles.

3. Types of Public Accounts:

The following two systems of public accounting are:

(1) Cash system of Accounts of the cash system and:

Under this system, the income-expenditure account is written at the time of actual income-expenditure
 and control is done at the time of assessment. This system is in circulation in France, and in the
 1950s it is also in the US! This system is in line with the Cost-Based Budgeting.

(2) Cost Accounting System:

Under this method, many types of costs are given, as well as the cost of different tasks. This system
 is more useful in reference to the product unit of the government. It is implemented in the 'Public 
Works Department' (P.W.D.). This system compares the cost to any two services.

4. Indian Accounting System in India:

The executive has to do the job of accounting, but in India, this work is done by the Comptroller and
 Auditor General. He drafted government articles. In this work, he provides the Accounting General, 
the Comptroller and the Auditor General.

Railway articles are arranged by the Financial Commissioner concerned with the Railway Department 
and in this way the work of articles in the Security Department is prepared by the Accountant General
 of Army. Also, a financial advisor is appointed on behalf of the Finance Ministry.

Two accounts are prepared by 'Comptroller and Auditor General' - Appropriation Accounts and 
Finance Accounts. Approved funds are shown for various items in the appropriation account and
 expenditure to be made in them. Financial accounting is the essence of the liabilities and arrivals of 
the articles of all governments.

5. Meaning and Importance of Auditing:

The audit is the last step of the budget process. J. According to C. Charles-worth, "Audit is the process
 of knowing whether the administration spent the amount sanctioned by the Legislature according to its 
terms." The expenditure did not exceed the prescribed limit, financial considerations were kept in mind 
or Not this thing is also checked.

According to Robert H. Montgomery - "Audit Testing" to check the systematic accounts of books and 
records of any business or organization to determine, accurately and inform the facts related to 
financial operations and outcomes.

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