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Group Report on
          Financial Accounting – I 
             Accounting system
             of an Organization


GROUP MEMBERS
Sweta Singh
Chhitiz Shrestha
Nisha Neupane
Samadhi Tamrakar
The Objective
• To understand the basic accounting system of an
  organization
• Accounting system varies from company to company
• Accounting system we learn in theories also varies in
  practice
• Help understand the process of accounting of an
  organization
The Purpose
• Describe the accounting methodology
• Compare the theoretical and practical aspect of accounting
• Helps in getting complete information about
   – why is accounting done?
   – How is accounting done?
   – When is accounting done?
   – Etc.
• Accounting information of Krishna Pauroti Pvt. Ltd
Introduction to Accounting
• The art of recording, classifying, and summarizing in a
  significant manner and in terms of money, transactions
  and events which are, in part at least, of financial character,
  and interpreting the results thereof. - American Institute of
  Certified Professional Accountants (AICPA)
• More than 700 year old practice
• Called "the language of business“
• Vital part of day to day financial transaction.
Introduction to Accounting
• Functions of Accounting
   – To keep complete and systematic record
   – To ascertain the net profit and loss
   – To ascertain the financial position
   – To obtain accounting information
Accounting Cycle
Introduction of Krishna Pauroti
              Pvt. Ltd
• Established by Krishna Bahadur Rajkarnikar in 1947
• Ghana Shyam Rajkarnikar, Krishna's son, now runs the
  show
• Krishna Pauroti is located at Kamalpokhari chowk
• The factory is also situated in the same place.
• It is recognized as one of the finest bakeries in Nepal.
Types of Accounts
• Different from regular forms of accounting
• Consists of 3 types of accounts
  I. Daybook
  II. Ledger
  III. Book of purchase
Daybook
• Account where transactions occurring on the daily basis are
  recorded
• The purchases and sales that take place daily is recorded
• Purchases like flour, ghee, butter, milk, cream etc, required
  for bakeries are recorded,
• Daily sales in the shop is also jotted down in this book.
• Very essential as it records each and every transaction
  happening in the company.
Daybook
Ledger
• Ledger is another important account in this company.
• After collecting the daily transactions, they are
  separated into various small accounts
• Used to get the accurate total of various types of
  transaction.
• Small accounts such as salaries, debt, bills paid etc, are
  separated and recorded.
Ledger
Books of purchase
• This account holds only those transactions which are
  made by cash
• All the purchases and sales made by cash are recorded
  in this account.
• Transactions made in credit and by cheque are
  recorded in a separate account.
Books of purchase
Other forms of accounts
• Besides, they also have a stock account
• Record total product produced and total raw materials
  used
• At the end of the year estimation of total purchases and
  sales is made
• Eventually the company’s profit or loss is determined
Use of these Accounts
• To record various transactions of the company in any form.
• Help the accountants to determine the financial position of
  the company
• Profit or loss of the company during a year
• To suggest the manager for various financial strategies.
   – which product needs more marketing,
   – which product needs more sales,
   – Etc.
Use of these Accounts
• Helps managers to estimate the salaries and wages of
  many workers working in the company
• Helps in the planning process
• These accounts help to omit errors such as double posting,
  omission of certain transactions, etc.
• Help the managers to keep accurate transactions between
  various dealers and suppliers
Conclusion
• Krishna Pauroti Pvt. Ltd, holds no such formal,
  structured accounting system.
• The accounting process is rough and is used
  internally
• Yet, the account maintained is sufficient to
  determine all the outputs the company requires.
Accounting system of an organization in nepal

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Accounting system of an organization in nepal

  • 1. Group Report on Financial Accounting – I  Accounting system of an Organization GROUP MEMBERS Sweta Singh Chhitiz Shrestha Nisha Neupane Samadhi Tamrakar
  • 2. The Objective • To understand the basic accounting system of an organization • Accounting system varies from company to company • Accounting system we learn in theories also varies in practice • Help understand the process of accounting of an organization
  • 3. The Purpose • Describe the accounting methodology • Compare the theoretical and practical aspect of accounting • Helps in getting complete information about – why is accounting done? – How is accounting done? – When is accounting done? – Etc. • Accounting information of Krishna Pauroti Pvt. Ltd
  • 4. Introduction to Accounting • The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof. - American Institute of Certified Professional Accountants (AICPA) • More than 700 year old practice • Called "the language of business“ • Vital part of day to day financial transaction.
  • 5. Introduction to Accounting • Functions of Accounting – To keep complete and systematic record – To ascertain the net profit and loss – To ascertain the financial position – To obtain accounting information
  • 7. Introduction of Krishna Pauroti Pvt. Ltd • Established by Krishna Bahadur Rajkarnikar in 1947 • Ghana Shyam Rajkarnikar, Krishna's son, now runs the show • Krishna Pauroti is located at Kamalpokhari chowk • The factory is also situated in the same place. • It is recognized as one of the finest bakeries in Nepal.
  • 8. Types of Accounts • Different from regular forms of accounting • Consists of 3 types of accounts I. Daybook II. Ledger III. Book of purchase
  • 9. Daybook • Account where transactions occurring on the daily basis are recorded • The purchases and sales that take place daily is recorded • Purchases like flour, ghee, butter, milk, cream etc, required for bakeries are recorded, • Daily sales in the shop is also jotted down in this book. • Very essential as it records each and every transaction happening in the company.
  • 11. Ledger • Ledger is another important account in this company. • After collecting the daily transactions, they are separated into various small accounts • Used to get the accurate total of various types of transaction. • Small accounts such as salaries, debt, bills paid etc, are separated and recorded.
  • 13. Books of purchase • This account holds only those transactions which are made by cash • All the purchases and sales made by cash are recorded in this account. • Transactions made in credit and by cheque are recorded in a separate account.
  • 15. Other forms of accounts • Besides, they also have a stock account • Record total product produced and total raw materials used • At the end of the year estimation of total purchases and sales is made • Eventually the company’s profit or loss is determined
  • 16. Use of these Accounts • To record various transactions of the company in any form. • Help the accountants to determine the financial position of the company • Profit or loss of the company during a year • To suggest the manager for various financial strategies. – which product needs more marketing, – which product needs more sales, – Etc.
  • 17. Use of these Accounts • Helps managers to estimate the salaries and wages of many workers working in the company • Helps in the planning process • These accounts help to omit errors such as double posting, omission of certain transactions, etc. • Help the managers to keep accurate transactions between various dealers and suppliers
  • 18. Conclusion • Krishna Pauroti Pvt. Ltd, holds no such formal, structured accounting system. • The accounting process is rough and is used internally • Yet, the account maintained is sufficient to determine all the outputs the company requires.