Financial Accounting

Financial Accounting Module

Financial accountancy (or financial accounting) is the field of accountancy concerned

with the preparation of financial statements for decision makers, such as stockholders,

Suppliers, banks, employees, government agencies, owners and other stakeholders.

Financial capital maintenance can be measured in either nominal monetary units or units of

Constant purchasing power. The central need for financial accounting is to reduce the

Various principal-agent problems, by measuring and monitoring the agents' performances

and thereafter reporting the results to interested users.

Financial accountancy is used to prepare accountancy data for people outside the

Organization or for those, who are not involved in the mundane administration of the

Company. Management accounting, provides accounting information to help managers

make decisions to manage and enhance the business.

In short, financial accounting is the process of summarizing financial data, which is

taken from an organization’s accounting records and publishing it in the form of annual or

quarterly reports, for the benefit of people outside the organization. Any organization that deals with money or money’s worth needs to record every transaction that it enters into. The courses in this product give a complete understanding, right from scratch to preparation and analysis of financial statements. The product is supplemented with a number of interactive exercises, in accordance with the 'learn by doing'

approach.

Financial Accounting Module is very important to the DFP Fellows, because of,  It provides legal information such as financial accounts in the form of trading, profit and loss account and balance sheet, It shows the mode of investment, It provides business trade credit for suppliers and It notifies the risks of loan in business for banks and lenders.

Trial Balance As on 31-03- 2012
No	Particulars	Debit(Rs)	Credit(Rs)
1	Bank overdraft		2800
2	Cash in Hand	400
3	Purchase Returns		800
4	Sundry Expenses	2400
5	Sales Returns	1600
6	Salary	1600
7	Purchases	5600
8	Sales		8800
9	Creditors		2400
10	Debtors	1600
11	Stock(Opening)	2000
12	Plant & Machinery	4000
13	Capital		4400
	Total	19200	19200