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 Slide 1 : Accounting Concepts These are the assumptions which are fundamental to the accounting practice and are based on logical considerations. Materiality Concept Money Measurement Concept Conservatism Concept Timeliness Concept Consistency Concept Business Entity Concept Going Concern Concept Double Entry Concept Accounting Period Concept Realization Concept Matching Concept
 Slide 2 : Accounting Equation According to the Double Entry Concept there should be a debit for every credit and a credit for every debit. Capital (+) Liabilities = Assets [Capital+ Revenues-Expenses-Drawings- Dividends] + Liabilities = Assets
 Slide 3 : Show the working of the double entry system in the form of accounting equation. 1) Ashok starts business with cash of Rs 1,00,000. 2) He purchase furniture of Rs 25,000 ,from X ltd on credit basis. 3) Goods worth Rs 20,000 were purchased for cash. 4) He sold goods worth Rs 10,000 for Rs 20,000 . 40% of sales was done on credit basis to Rakesh and rest was on cash basis. 5) 3/5th of the dues were paid off to X ltd.
 Slide 4 : Accounting Equation
 Slide 5 : Exercise Show the working of the double entry system in the form of accounting equation. 1 Rakesh starts business with cash Rs 5 lac ; furniture Rs 50,000 ; loan from friend Akash Rs 1,00,000 ; goods Rs 25,000 ; building Rs 5 lac 2 He purchases stock having value of Rs 50,000 at a trade discount of 10% from Jamnalal , half the amount was paid is cash immediately. 3 He sold goods worth Rs 30,000 at Rs 45,000 to Jaichand on cash basis. 4 Cleared off the dues to Jamnalal . 5 Sold a part of the old furniture valuing Rs 10,000 at Rs 8,000. 6 Paid electricity bill of Rs 2,000 7 Paid wages to staff Rs 7,000
 Slide 6 : Accounting Equation
 Slide 7 : Thank You