#1 Basic Introduction of Financial Accounting

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Short summary: Assumptions -> 1. Bussiness entity assumption: Every Bussiness has a seperate unique identity(Lalaji and Dukaan are both different, maintain accounts of only bussiness entity which is Dukaan) 2. Money measurment assumption: Only write entry in terms of money(convert other units in terms of money), do not write any other things in accounts other than money 3. Going on concern: Bussiness is assumed to be long lasting, it is a continuing enterprise 4. Accounting period assumption: Life of business is divided into short terms, this is to enable different regesters for different period through which we could compare the growth of different periods Common words-> 1. Capital - Lalaji ke paise jo unne business mein dale ab wo paise dukaan ka capital ban gaya 2. Liabilities(karja) - Loan, Creditors(money yet to give to others), outstanding payments, agar lalaji ne kisi se dukaan ke liye udhaar liya to wo liability hai dukaan ki 3. Assets - Things, Debtors(money yet to recieve from others), Prepaid expense Capital + Liabilities = Assets Thank you Naresh sir for explaining the concepts in a wonderful manner.

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