BASIC CONCEPT OF
ACCOUNTING
The document is especially for the
science students who come from a
different background. This is a very
simple and straightforward video so
please make sure you watch this
video till the end to understand the
whole concept of accounting very
practically and logically right let 's
start this video. The balance sheet
gives us the financial position of the
business and profit and loss
account. Accounting accounting is
nothing but recording classifying
and summarising the financial data
into meaningful format that is all
accounting is right so now let 's see
the accounting process. The
accounting process is very simple
accounting process starts with the
source document. The process from
source document till trial balance it
is called bookkeeping. An asset is a
, resource controlled by an entity as
a result of past events and from
which future economic benefits are
expected to flow to the entity that is
what an asset is now previously we
used to say that asset is something
that the company owns if company
owns the land and building then
that 's an asset of the company'
Expenses are the cost of operations
that a company incurs to generate
revenue and from which no further
benefit is expected is the main
difference between a certain
expenses that you know in acid we
get future economic benefit but
here once you incur the expenses
that means you have taken the
benefit already the benefit is
already taken. so see here a
present obligation of the entity to
transfer an economic resource as a
result of past event there will be
some past event for example you
ACCOUNTING
The document is especially for the
science students who come from a
different background. This is a very
simple and straightforward video so
please make sure you watch this
video till the end to understand the
whole concept of accounting very
practically and logically right let 's
start this video. The balance sheet
gives us the financial position of the
business and profit and loss
account. Accounting accounting is
nothing but recording classifying
and summarising the financial data
into meaningful format that is all
accounting is right so now let 's see
the accounting process. The
accounting process is very simple
accounting process starts with the
source document. The process from
source document till trial balance it
is called bookkeeping. An asset is a
, resource controlled by an entity as
a result of past events and from
which future economic benefits are
expected to flow to the entity that is
what an asset is now previously we
used to say that asset is something
that the company owns if company
owns the land and building then
that 's an asset of the company'
Expenses are the cost of operations
that a company incurs to generate
revenue and from which no further
benefit is expected is the main
difference between a certain
expenses that you know in acid we
get future economic benefit but
here once you incur the expenses
that means you have taken the
benefit already the benefit is
already taken. so see here a
present obligation of the entity to
transfer an economic resource as a
result of past event there will be
some past event for example you
