Study Material Prepared By
INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA
Junior Accounts Officer(Civil) Examination
CONTROLLER GENERAL OF ACCOUNTS
BASICS OF FINANCIAL ACCOUNING
1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Introduction to Financial Accounting Subdivision of Accounting Concepts and Conventions in Accounting Golden Rule of Accounting Accounting Records Books of Account Trial Balance Specimen Questions with Answers Self-examination Questions 1 4 4 12 14 16 32 48 52
INTRODUCTION TO FINANCIAL ACCOUNTING
Accounting is a social science. The nature of accounting information has been dictated from time immemorial by the needs of the users of the day. The history of accounting reflects the pattern of social developments and the forces which necessitate the changes in accounting system from time to time. Over the years accountancy has made tremendous progress in the field of commerce and industry. Accounting can be described as being concerned with measurement and management. Measurement of recording transactions and management with the use of data for making decisions are the two fundamental aspects.
STUDY MATERIAL PREPARED BY ICWAI FOR J.A.O (CIVIL) EXAMINATION
Financial Accounting Fundamentals
Accounting function is vital for every entity of the society whether individuals, house wives, business entity, nonprofit making organisations like municipalities, panchyats, clubs, etc. All are required to maintain accounts. Accounting is commonly referred to as the “language of the business” as it is effectively employed to communicate the financial performance of business to various interested parties or stakeholders. It is concerned with the measurement and communicating financial data. Financial Accounting is based on double entry system of accounting which comprises of (i) (ii) (iii) (iv) recording of business transactions in the books of prime entry, posting into...