Abstract

The case study discusses certain events and transactions that took place at Maniratna Private Limited (Maniratna), a jewelry leasing start-up. The founder of Maniratna, Kanika, was confused about how the various events were to be treated in the Books of Accounts. All companies are required to follow the Accounting Principles in capturing (function of Bookkeeping) events and transactions. These Accounting Principles, also known as concepts, conventions, and assumptions, ensure standardization in bookkeeping. The adherence to the Accounting Principles and Accounting Standards in reporting ensures a true and fair presentation of Financial Statements to stakeholders. This case is to be discussed as an opening case in any accounting course and it will help learners understand various Accounting Principles.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand the various Accounting Principles to be followed for Bookkeeping.
• To comprehend the application and impact of the Accounting Principles on the Profit and Loss Account and Balance Sheet of the business.

Keywords

Accounting Concepts; Accounting Information Process; Accounting Principles; Bookkeeping; Accounting Period Concept; Business Entity Concept; Conservatism Principle; Money Measurement Concept; Cost Concept; Matching Principle; Accrual Concept; Realization Concept; Conservatism; Materiality Concept