Going Concern!

Going concern are related to the premise that companies have a way to continue in the near future. A bankruptcy company or a company close to bankruptcy is against the active business.

Going concern is the basis of basic accounting. It is a premise that a company or other entity can work for a sufficient period of time to fulfill its obligations, obligations, purpose, etc. In other words, the company does not need to liquidize or fail in the future.

Going concerns give certain logic to the cost principle: Why does it report the current value of an asset in the long run since it makes no sense if a company is constantly concerned? However, if the value of the asset is an obstacle, the value of the asset may be less than the carrying amount.

Go refers to the accounting period of an enterprise with resources to operate indefinitely until the company prove different things, and this term refers to the ability of a company to earn enough revenue. Avoid bankruptcy. If the company is not concerned, this means that the company was bankrupt and the asset broke up..

The accountant uses current business principles to determine what kind of financial statement report should be made. Compared to quarterly earnings, companies can delay the possession of long-term property at a more appropriate time, like the annual report. Companies are still concerned if asset sales are not harmful to the ability to continue operations, such as closing small branches that assign employees to other departments within the company.

An accountant who considers a company as a permanent concern generally thinks that the company is wisely using the asset and does not need to liquidate it. Accountants can also use the current business principles to decide how to continue to incorporate business, reduce costs and move to other products, following asset sales.

principle of going concern:

Principles of basic accounting accepted by companies are continued in the near future. The meaning of this principle becomes apparent when the value of a running business is compared with the value of an injured person.

When an enterprise declares liquidation, all obligations that are perceived immediately immediately are tangible assets only sold for auctions or fires, and intangible assets (such as goodwill) are irrelevant. An ongoing business is the only type of commercial bank to borrow and suppliers earn credits. Directors of listed companies must explicitly state that they are taking all reasonable steps to ensure the company's survival opportunities (audited by independent audits).

 Concepts of going concern:

If an entity is accepted as a project in the near future, the entity will prepare financial statements on fundamental concerns. 

 Concept of concern is an approach to the preparation of financial statements. An entity is assumed to have no intention or need to expand or expand the scope of its business. If management insists that an entity has no alternative to liquidate or reduce the scope of its business, the ongoing enterprise base can not be used and the financial statements are subject to various criteria such as "burst" .

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Double Entry System!

Double entry is a fundamental concept underlying current accounting and accounting. Double entry accounting is based on the fact that each financial transaction is equal and counterfeits securities in at least two different accounts. It is used to satisfy the expression Assets= Liabilities + Equity. Here, each entry is saved to maintain the ratio.

A double accounting or accounting system means that each business transaction contains two (or more) accounts. For example, if a company borrows from a bank, the company's cash account will increase and the liability of the account will increase the fee. If a company pays $ 200 for advertising costs, cash accounts will decrease and advertising costs will increase.

The double entry also foresees that the accounting equation (asset = liability + participation) is always balanced. In the example of cost advertising, the accounting equation is balanced because cost leads to a reduction in ownership cost. In this example, the asset is reduced in cash and the capital account of the owner's interested owner is also reduced.

The third aspect of double entry is that the amount included in the ledger account is included as a debit because the debit must be the same as the amount entered for credit.

In a Double entry system, transactions are recorded from the point of view of debit and credit. Since account credit is credited to another account, the sum of all the debit must be exactly the sum of all credits. Dual entry accounting or accounting system makes it easy to set up accurate financial statements from accounting records and detect errors.

Concept of double entry system:

The basic idea of ​​double entry is to record business transactions using debit and credit. Total flow is always equal to total credit. In principle, assets, expenses, lost accounts are displayed on the left side of the brochure based on accounting and accounting. The accounts, stocks, profits and profit accounts are displayed on the right side and the same amount of reserves are displayed on both sides. At least one account's credit must be attached to one or more account's accounts. The balance of both accounts will increase or decrease. Otherwise, the same credits are balanced on both sides by flows on both sides.

Advantage of double entry system

In the modern world a double entry system is recognized as the best accounting tool. The main advantages of a dual input system are as follows.

According to this procedure, both aspects of each transaction are recorded. So you can think about the whole account.

1-Since both aspects of the transaction are recorded, equal credit equivalent amount is required for each debit. Therefore, the total flow must be equal to the total credit. Indeed, it is possible to verify the accounting accuracy of accounting records by defining whether the two are equal, by tests known as test reports.

2-This system allows you to easily accumulate the income statement by collecting all accounts related to income, profit, cost or loss and identifying the results.

3-You can create a balance sheet by assembling all accounts related to assets and liabilities and evaluating the company's financial condition.

4-In this system, errors and distractions are found, and moral pressure is placed on accountants and staff.

5-In this system, important statistics are readily available so that management can make appropriate decisions and effectively manage the business.

6-You can quickly and easily obtain all details about the transaction.

7- You can easily identify the total amount of debt and the total amount to be paid to the lender.

8-The sale, purchase, inventory, revenue, expenses and profit and loss of various years are equivalent and the success or failure of the project is measured. Then there are the steps necessary to ensure success and successful cause of failure and commercial success.

Disadvantage of double entry system:

The double entry system can have the following disadvantages:

1. In this procedure, each transaction is recorded in two phases (journal and report) and two aspects (debit and credit). This leads to an increase in the number and size of books, and complications.

2.This requires time, work and money. Therefore, small concern is impossible to maintain account under this system.

3. Expertise is required to maintain account on this system.

4. Because the system is complex, it increases the probability of errors and errors.

From the above discussion it is clear that the advantages of double capture capability are more than disadvantages of the system. Therefore, it is considered the best system in the modern world.

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Single Entry System!

A single entry bookkeeping system or single entry accounting accounting system is a single accounting-based accounting method for maintaining financial information. 

A single entry system records each accounting transaction with a single entry in the accounting record, not a dual entry extended system. The single entry system focuses on the company's performance reported in the income statement. The basic information observed in one subscription system is cash payment and cash receipt. Account and account records usually do not exist in a single registry system. These things must be followed separately. The main way to store records in one registry system is the cash register which is essentially an extended registry register. You need to open a column page listing specific source and cash usage and display the final balance. 

Of the major problems related to single entry systems, 

Assets. Since Bates are not detected, it is easy to lose or fly. 

Audited financial statements. It is impossible to obtain an audit opinion on the company's financial performance using a single entry system. To be able to verify, the information needs to be converted to double input format. 

crime. It is easier to create a desktop error with a single entry system, as opposed to a dual entry system where separate entries of different accounts must match. 

load. Since no load is detected, a single system is needed to determine what this is on the due date. 

Report. Because there are few information available to build the company's financial situation, management can not fully understand the company's performance.

Because all computerized systems use dual entry systems instead, manual accounting systems use a single line writing system strictly. 

It is possible for a qualified accountant to compile a set of dual bid accounts from a single introductory accounting record even though the time required is important. This allows you to rebuild balances and cash flow statements.

Advantage: 

Several single entry systems are used for simplicity. They generally have lower maintenance costs than double entry systems that require expertise. If you need a dual input system, the service of the trained person is often needed. 

According to the US Internal Revenue Service, "a single entry system is based on the income statement (income statement), which is simple when starting a small business using: It will be a convenient system. 

1. Daily overview of currency receipt 

2.Summary of monthly receipts and cash payments. " 

In addition, the US Internal Revenue Manual [2] 

1. Registration of the single entry system for individual registration does not include equal debit and balance credits and income statement. The single entry accounting system is not balanced. Therefore, it is common with mathematical errors in gross accounts. Adjusting books and return records is an important step in auditing. 

2. The single entry System only includes transactions that are displayed in books, journals, or journals. However, it may include a complete set of large books and magazines including accounts for all the important things. 

3. Including small business postal checks in a single entry system, issuing newspaper logs, recording daily monthly cash summaries, engagement certificates, debtors and books and credits. 

Disadvantage: 

1. For effective planning and commercial management, data for management may not be available. 

2. The lack of systematic and accurate accounting may lead to inefficient management and poor management of the company's business. 

3. Single registered asset records may be managed. 

4. Theft and other losses are likely to be monitored.

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Bookkeeping!

Bookkeeping is a record of financial transactions and is part of corporate accounting treatment. Transactions include purchases, sales, receipts and payments made by individuals or organizations / companies. There are a few general accounting processes such as accounting for a single accounting system and input for a double accounting system, but if it can be considered as actual accounting, it implies a process including accounting records. 

Bookkeeping is usually done by an accountant. A custodian (or accountant) is a person who records the daily financial transactions of a business. He is often responsible for writing newspapers, including purchase, sales, receipts, payment records. Bookkeeper are responsible for ensuring that all transactions are recorded in the correct journal, supplier's supplier, customer support regardless of cash transactions or margin transactions and General Ledger Accountants are accountants' registered financial instruments Can be reported.

Bookkeeper can create income statements and balance sheets using test reports and accounting records created by accountants.

History:

Although the sources of Bookkeeping are lost in the dark, recent investigations have shown that one way to maintain an account is in front of time. Babylonian records are returned in 2600 BC. J.-C., written in the style of a small plate of clay. The term "garbage" is used in colonial America, which refers to accounting in the United States. The objective is to document daily transactions including revenue and expenses. It is recorded in chronological order, the purpose is only for temporary use. Everyday transactions are counted in one day's log or account, and the account balance is adjusted. The name "waste book" comes from the fact that when the waste data log is moved to the current log, the discarded book can be discarded.

Process:

The bookkeeping  process basically records the financial impact of the transaction. The difference between the manual and the electronic accounting system is the result of the initial separation of records of financial transactions and issuance to the relevant accounts. Delay in the absence of an electronic accounting system due to instant access to the relevant account is a financial transaction that is an essential feature of a manual system that provides important accounts such as cash registries, bank books, purchase books and books Record the immediate effect of.

In normal business, trading is done each time a transaction is made. Normally, sales and purchase will include an invoice or a receipt. Deposits will be made when funds are deposited in the bank account. The check (spelling checks in many countries including the UK) was written to pay money from the account. Bookkeeping  includes recording the details of all source documents in many newspapers (also called books in the first registry book). For example, all credit sales are recorded in the sales log. All cash payments will be recorded in the cash payment log. Each line in the log usually corresponds to an account. In a single entry system, each transaction is saved only once. Most people balancing their check books monthly use this system and most personal finance software follows this approach.

After a certain period, usually one month, each column increases in each column, and a summary of that time is provided. With dual entry rules, these magazine summaries are transferred to their respective books or accounts. For example, sales log entries are taken and you can enter credit entries in the "Class 2 widget sale" account, where each customer's account is debited (confirming that the customer is paying now) ( It shows that this activity produced revenue for us). A summary or process of transferring individual ledger transactions appears. Once the investment process is completed, the account used in the T format will be affected by the prognosis.

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Accounting!

1- Accounting is a systematic and complete record of financial transactions related to the company, included the synthesis of these transactions to the regulatory bodies and the actual tax collection, referring to the analysis and reporting.

2-Accounting is a systematic investigation, reporting and analysis of corporate financial transactions 

Accounting can be described as a means of communicating the financial soundness of a company or organization to stakeholder. This is way to assess the assets, liabilities and cash flows of all currents and future investor, or the future prospectus of the business. The Accounting department is responsible for recording and reporting the cash flows transactions of a company. This department has some key rules and responsibilities. including accounts receivable, accounts payable, payrolls, financial reporting, and maintaining financial control.

Function of Accounting:

Accounting includes business transactions, financial flows, the process of creating assets within the organizations, and preparation of financial record of the business financial situation at any point in time.

Accounting data:

Accounting data is information and data obtained from journals, accounting record and other departments supporting financial statement. e.g spreadsheet.These can be computer readable or paper readable.

Purpose of Accounting:

The purpose of accounting is to summarize and reporting financial information on performance, financial conditions, and cash flow. This information is used for money management, investment and borrowing decision.

Systems of Accounting:

(1) Cash system of accounting (2) Trade or commerce or actual system of accounting 

Cash system of accounting is an accounting method in which receipts are recorded, when they are received and expenses are recorded during the period in which it was actually paid. Cash accounting in which two types of accounting. Others are actual accounting whose revenue and expenses are recognized when they occurs. SMEs tend to use cash accounting, as it is very easy and easy. Its seems to give a clear image of how much money the company is really close. Company, however, need to comply with generally accepted accounting principle of actual accounting. Actual accounting is the basis current accounting treatment. It is also know as the trademark system of accounting. 

Branches of Accounting: 

There are three main branches in accounting which consist financial accounting, cost accounting and management accounting, accounting is based on systematic way to recorded business transactions on accounting principle. This is the original form of billing process. 

Principle of Accounting: 

Accounting principle are rules and regulated that company must obey when financial data is presented. The general scope of accounting principles is based on generally accepted accounting principles in united state of america. 

Concept of Accounting: 

Accounting policies used used to create accounts and financial statements. There are Four basic concepts in accounting. 

Accrual Concept: Revenue or expenses when received or paid in cash are not recognized when the occurs. 

Consistency Concept: The method should be used unless there is valid reason to do if a billing method is selected or not. 

Continuity Concept: Accounts are preparing business in good condition in the foreseeable future profit organizations.

Prudence Concept: This method should be used when income or profit are included in the balance sheet.

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Trial Balance!

In all the debit and credit statements of the double entry account, the discrepancy indicates an the error.

The trial balance is a brochure that sets the credit for all the books credit and loans set. Companies usually prepare trial balance periodically at the end of the each reporting period. The general purpose of the trial balance to ensure that the entries to the accounting system of the company are the mathematically correct.

By creating an enterprises the trial balance, You can detect the mathematical errors that occurs in a dual input accounting system. If the total amount of the borrower money is equal to the total credit, the balance of the trial balance is deemed to be the outstanding and should be no mathematical error in the accounting record. However, this does not means that there is no error in the company's accounting system. For Example, a transaction that is no properly classified or a transaction that is missing from the system may be an accounting material error that can not be tracked by the balance.

Evaluation of the trial balance and roles in accounting process:

The balance of the trial balance is an internal report at the end of the accounting period and the final balances is recorded in the each account. The report is mainly used to ensure that the of all the debit equal the sum of all the credit. In short, There are no impossible entries in the accounting system, so accurate the financial statement. Judges typically ask for the end-of- the year the trial balance when initiating audit to moves the account balance in to the audit report. They can request an electronic version that can be easily copied in to the software.

Although the balance of trial balance can also be used to prepare financial statement, the dominant use of the computer accounting system will automatically create a report to be used for this purpose.

Essentially, there is no need to use the trial balance report in the accounting activities.

When the initial balance of the trial balance is pressed down, it is called unbalance trail balance equilibrium. Next, if the accounting team corrects the errors and the adjust them to displayed the financial statement according to accounting standard ( such as GAAP and IFRS), this report is called a fixed balance trial balance. Appropriate trial balance report are usually printed on the year- end book and stored. Finally, after the period is called the trial balance after the closure.

The balance of the trial balance is the strictly a report accumulated from the account book. However, as a result of the review of the report, this can be done, but the balance sheet accounting contains a configuration process the convert the unadjusted trial balance is in an adjusted trial balance equilibrium state.

Trial balance equilibrium format >

The first trial balance report has the following column:

1. Account number
2. account name
3. Final flow balance (if applicable)
4. Balance of credit period ( if applicable)

Each line contains only one the final account balance. All the account with final balance are listed in the trial balance. Normally the accounting software automatically includes all known account with the zero balance.

In a modified version of the trail balance, you can combine debit and credit in single column and add column to display the corresponding entries and correct balance.

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Ledger!

A ledger is a major book or computer file for recording and preparing economic transactions accounted by accounts items, There are debit and credit in individual column, start of balance indicates the end of the money balance of the each account.

The general ledger is a permanent summary of all accounts included in the supports views and list the individual transactions in daily order. Each transaction moves from one magazine to one or more accounts. The company financial statement are generated summarizing the book's total.

General ledger is a collection of company's accounts of accounting record. The general ledger provides a comprehensive list of the financial transactions in the business life cycle. The general ledger contains account information necessary for financial reporting and includes accounts of assets, liabilities, exclusive interest, income and expenses.

The use of general ledger is the part of t he system the account uses to prepare the company financial statement. The transaction is posted to the general ledger account and the accountant creates a report showing the test balance, all the accounts of each account and multiply account. The balance of the test is adjusted by adding additional entries and the balance of the test is used to generate the financial statement.

The business organization card is the model of the system number of the ledger that contains all the department account used in the business. Each general account is assigned to the number that is available in all the department. Number are also assigned to individual accounts within each department.

Most small business enter-or-four -digit number for each account, depending on the of the transactions. At the end of the accounting cycle, the amount amount of individual account in each department is added and used for preparing the financial statement.

In the account book:

• Sales ledger, receivable notes. This book is made up of financial transactions performed by the customers of the company.
• Book saves money for corporation acquisition.
• General ledger representing accounts of five main types of assets, liabilities, revenue, expenses and the capital.
• A scattered ledger once called a shared ledger is a copy of the copied, distributed, and synchronized digital geographic data distributed across multiples sites, countries and institution.
• For each digital recorded in the ledger, the equivalent credit must be made so that the debit is equal to the total credit.

The general accounts are the accounts or recorded used to start and store balance and the revenue transaction. Example of general ledger accounts includes the assets accounts such as cash, accounts receivable, inventory , investment, land and equipment. Example of general account liabilities includes accounts payable, accrued expenses and and the customer deposit. Example of general ledger income statement including sales, service fee, salary cost, lease expenses, advertising expenses, interest expenses, and the loss of sales assets.Some accounts in the general ledger summarize record called accounts checks. Detail supporting each control account are outside the general ledger called a large back book. An account is an example of the general ledger management account and there is a registration of a subsidiary that includes credit activities of the each customer. Inventory,equipment and accounts of the general account are controlled to be paid and subsidiaries in the book contain supplementary document for each.

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