Accounting is necessary in any free-market, capitalist economic system. It’s equally necessary in a centrally controlled, socialist economic system. All economic activity requires information. The more developed the economic system, the more the system depends on information. Much of the information comes from the accounting systems used by the businesses, individuals, and other institutions in the economic system. This book is intended for the teacher-educators, students of undergraduate, graduate and professional courses who are interested in the real magic of debit and credit rather than accounting number-driven problem-solution. Contents: Preface 1. Accounting: Concept and Context 2. Financial Accounting 2.1 Journal and Ledger 2.2 Trial Balance 2.3 Bank Reconciliation Statement 2.4 Bad Debts and Provision for Bad and Doubtful Debts 2.5 Accounting for Depreciation 2.6 Financial Statement for Profit-Making Entities 2.7 Financial Statement for Non-Profit Seeking Entities 2.8 Single Entry System 2.9 Bills of Exchange 2.10 Sectional and Self-balancing System 2.11 Partnership Accounts 2.12 Company Accounts 2.13 Consignment Accounts 2.14 Joint Venture Accounts 2.15 Acquisition of Business by Company 2.16 Profit or Loss Prior to Incorporation 2.17 Amalgamation, Absorption and Reconstruction of Companies 2.18 Alternation and Reduction of Share Capital 2.19 Holding Companies 2.20 Valuation of Goodwill and Shares 2.21 Liquidation of Companies 2.22 Royalty Accounts 2.23 Hire Purchase Accounts 2.24 Sale on Return or Sale on Approval 2.25 Packages and Containers Accounts 2.26 Departmental Accounts viii Teaching and Learning Accounting: Concepts and Principles 2.27 Branch Accounts 2.28 Investment Accounts 2.29 Insurance Claims 2.30 Insolvency Accounts 2.31 Voyage Accounts 2.32 Double Account System 2.33 Accounts of Banking Companies 2.34 Accounts of Insurance Companies 2.35 Company Final Accounts 2.36 Accounting Standards 3. Cost Accounting 3.1 Cost Accounting Concept 3.2 Elements of Cost and Cost Sheet 3.3 Materials 3.4 Labour 3.5 Overheads 3.6 Job, Contract and Batch Costing 3.7 Process Costing 3.8 Operating or Service Costing 3.9 Cost Accounting Records 4. Management Accounting 4.1 Management Accounting Concept 4.2 Funds Flow Statement 4.3 Cash Flow Statement 4.4 Ratio Analysis 4.5 Working Capital Management 4.6 Marginal Costing and Break-Even Analysis 4.7 Standard Costing 4.8 Budgetary Control 4.9 Inflation Accounting 4.10 Management Decision Index