Basic Concept of Accounting –
Class 11 / B.COM / CA Foundation
The video 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
summarizing 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 purchase you
know ten thousand worth of goods yeah and you did n't pay then
you have present obligation to pay that person pay to pay your
supplier. If you owe money to your supplier then that supplier
that creditor he will have claim on your total assets of the
company. Capital is simply whatever money that is brought in by
the owners of the company that's called capital or equity share
capital or preferential capital simple as that. The technical
definition would be it is the claim of owners in the total asset of
the. company after deducting all it 's liabilities. shareholders
Class 11 / B.COM / CA Foundation
The video 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
summarizing 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 purchase you
know ten thousand worth of goods yeah and you did n't pay then
you have present obligation to pay that person pay to pay your
supplier. If you owe money to your supplier then that supplier
that creditor he will have claim on your total assets of the
company. Capital is simply whatever money that is brought in by
the owners of the company that's called capital or equity share
capital or preferential capital simple as that. The technical
definition would be it is the claim of owners in the total asset of
the. company after deducting all it 's liabilities. shareholders
