bookkeeping and accounting notes pdf

Bookkeeping And Accounting Notes Pdf

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Chapter 2 Accounts class 11 notes introduce students to accounting concepts, principles, and terminology in a systematic manner. Going through the notes will enable students to become familiar with the basics of the topic at considerable ease. Solving all kinds of questions in examination becomes simple too. The class 11th Accounts chapter 2 notes PDF can be downloaded from Vedantu's website without any cost.

Ohada accounting notes pdf

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To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Bookkeeping and Accounting and Financial Statements. Kripal Barman. Download PDF. A short summary of this paper. Bookkeeping entails maintaining proper records and books for recording complete details of transactions made during the course of business.

Separate books for recording transactions pertaining to these activities are maintained, registering in them the details of respective transaction.

This exercise is called Bookkeeping. Why are Books of Accounts Maintained? It is extremely important to have the latest information about what is happening in business. This helps in taking appropriate and timely action. A doctor needs details about the physiological conditions of a patient to diagnose the illness, its causes and its remedies. Just like that the owner of the business, creditor, or banker needs to know about the latest financial health of the business for taking suitable decisions about the future course of action.

Bookkeeping helps in maintaining and providing the latest financial position of the business and, therefore, assumes great significance. It is advisable to maintain books of accounts for the following reasons as well:They provide up-to-date information about the business.

They reflect the outcome of transactions made during the period under review. They give information about the state of affairs of the business at regular intervals. They help governments and other authorities to decide about the incidence of various taxes. They help analyse the performance of the business.

They help compare the performance of several business firms. The accounting information of business is required not only by the owner of the business but by various other parties too.

They are the government, suppliers, creditors, bankers, investors, shareholders, auditors, etc. They depend on the information prepared by financial accounting for taking various decisions pertaining to their activities. This emphasises the need for writing books of accounts in a systematic and methodical way. Though, as an owner of the business one has the prime responsibility to write and maintain the books of accounts, one is not free to write the accounts, the way one likes.

They have to be written as per the norms and principles of techniques and systems of accounting used the world over. There are a few accounting techniques available for writing accounts but the Double Entry Bookkeeping System has universal acceptability and credibility. It is the modern and scientific accounting system designed to reflect the true and fair position of the business.

Any transaction can have only two effects: 'debit' and credit', and they are always equal. As a result, at the end of the accounting period, the accounts should 'tally', meaning thereby that both 'total debits' and 'total credits' should tally with each other. Double entry bookkeeping is designed in such a way that, while entering the credit entry of a particular transaction, the details of the corresponding debit entry is also given.

The effect of these transactions on the business is recorded in the books of accounts. Only those transactions, which result in exchange of money or exchange of goods or services, whose value can be measured in monetary terms, need accounting treatment.

Transactions may be of the following nature: AccountsTransactions involve 'accounts'. Each transaction has to be done through an 'account'. There are total three types of accounts: i. Personal Account or Individual account: This group of accounts includes all accounts of individuals and organisations like a firm, a corporate entity, a society, etc. Assets Account: This group of accounts covers all types of assets.

Assets mean all those investments made in tangible or intangible form of assets, which have utility value or use value. Moreover, these assets can also be disinvested and converted into cash. Income-Expenditure Account: This group of accounts encompasses all accounts, which represent revenue income and revenue expenditure of the business.

One is called 'Debit' and the other is called 'Credit'. Thus each transaction has minimum one debit effect and minimum one corresponding credit effect. There are prescribed rules for debiting and crediting various accounts, which are classified under three major groups as mentioned above. These rules form the basis of accounting under Double Entry Bookkeeping System. Explanation: Any person involved in a transaction can either be a receiver of cash, asset or services, or be a giver of cash, asset or services, without any immediate consideration.

The account of the person who receives is debited, while the account of the person who gives is credited. Whenever assets or goods come in the business its respective account is debited, while in the case of assets or goods going out of the business as a result of a transaction, its respective account is credited. All those revenue incomes that are generated during the course of the business are credited in their respective accounts and all such revenue expenditures incurred during the course of the business are debited in their respective accounts.

Steps for Identifying Debit or Credit Effecti. Decide whether the transaction needs accounting treatment. Determine which are the two accounts involved in the transaction. Apply the rules of debit and credit for the identified accounts as per their classification.

It should be seen that there couldn't be both 'credits' and both 'debits' in a single transaction. Every transaction must have a debit and a corresponding credit. The Journal EntryA journal entry is the first noting in the books of accounts whereby debit and credit effects of each transaction on accounts are identified and noted along with proper description.

Journal entries help in preparing several books of accounts. A suggestive format for maintaining a journal and writing journal entries is shown below:Explanation:i. Date: The journal entries must be written date-wise in a chronological sequence. It is ideal to make entries of the transactions daily. The year, month and date of the transaction for which journal entry is made should be mentioned in the 'Date' column. Particulars: In this column, for each transaction, the account to be debited and the account to be credited is mentioned.

The account, which is to be debited, is written first followed by the account to be credited. A word 'To' precedes the name of account, which is credited. Ledger Folio No. This helps trace the posting of each transaction and verify it. Debit and Credit: In this column the amount by which the respective account is debited and credited is mentioned. At the end of every page the total of debits and credits is made and is carried forward to the next page. LedgerA ledger is a book, which contains details of all accounts in which transactions are made.

It contains a condensed and classified record of all business transactions transferred from the journal or subsidiary books. Ledger is the principal book under the double entry bookkeeping system.

It contains up-todate information about all accounts, e. X's account maintained in the Ledger. If such accounts were not maintained in the ledger, the owner would be required to go through each transaction involving Mr. X to find out the payment liability.

This exercise is time-consuming and inconvenient. For businesses with a sizeable number of transactions, it is impossible to scan the primary books or journal every time to know the exact position of any account.

It is, therefore, very important to maintain a ledger. A suggestive format for maintaining an 'account' in the ledger is given below: Explanation:It may be noticed from the format that a ledger account has two sides: debit side left-hand side and credit side right-hand side. Each side is further divided into four sections, viz. Date: In this column, the date of a transaction as entered in the journal book from where the entry is brought to the ledger account, is mentioned.

Particulars: In this column the name of the account in which the corresponding credit or debit under the double entry principle is found, is mentioned. Journal Folio Number: In this column the page number of the journal book or subsidiary book from where the transaction is brought to the account is mentioned. Amount: In this column the amount, with which the account is debited or credited, is mentioned.

TransactionsTransactions are entered, as and when they occur in the journal book or subsidiary books. From there necessary records are created in the ledger. The process of transferring entries from the journal or subsidiary books to the appropriate accounts in the ledger is called 'posting'.

If an account is debited with an amount as entered in the debit column of the journal book, the same is posted to the debit side of the account in the ledger. Similarly, if an account is credited in the journal book, it is posted to the credit side of the account. While posting entries, care should be taken to see that the name of the account in which the entry is posted is not mentioned in the column of particulars.

Instead the name of the other account, which is affected under the same transaction, should be mentioned. While posting, each entry to the debit side of an account should begin with the word 'To' in the 'Particulars' column and each entry to the credit side should begin with the word 'By'. Balancing the AccountNormally as it happens, the total of all postings to the debit side and the credit side of the account is not equal. Such businesses must maintain a set of books as suggested below.

CBSE - Class 11 - Accountancy - CBSE Revision Notes

This system has been in use since at least the 12th century and it continues to be the most effective financial accounting system today. This subject guide is written for those of you who are studying principles of accounting. The act now includes provisions for information technologies that contribute towards the smooth running of. From general transaction recording conventions to the full accounting cycle and. Pdf application of the ohada accounting system by companies.

Here, you will get the theoretical answers and practical solutions to the questions of all the chapters of NBSE class 10 bookkeeping subject. Every business wants to make a profit. So every year the business calculates its profits and losses at the end of the year as well as takes records of the assets and liabilities it has acquired. These are prepared at the end of a financial year taking into consideration all other books of accounts. In class 9 you have learnt how to pass journal entries and how to prepare ledgers.

The name derives from the fact that financial information used to be recorded using pen and ink in paper books – hence "bookkeeping" (whereas now it is.

CBSE Class 11 Accountancy Revision Notes Chapter-2 Theory Base Of Accounting

Bookkeeping and accounting are two functions which are extremely important for every business organization. In the simplest of terms, bookkeeping is responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data. Bookkeeping and accounting may appear to be the same profession to an untrained eye. This is because both accounting and bookkeeping deal with financial data, require basic accounting knowledge, and classify and generate reports using the financial transactions. At the same time, both these processes are inherently different and have their own sets of advantages.

Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organisations. There are several standard methods of bookkeeping, including the single-entry and double-entry bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for recording financial transactions is a bookkeeping process.

Basic accounting terms: business transaction, account, capital, drawings, liabilities non -current and current ; assets non-current and current fixed assets tangible and intangible assets , receipts capital and revenue , expenditure capital, revenue and deferred , expense, income, profits, gains and losses, purchases, purchases returns, sales, sales returns, goods, stock, inventory, trade receivables debtors and bills receivable , trade payables creditors and bills payable , cost, vouchers, discount - trade and cash. Accounting principles: accounting entity, money measurement, accounting period, full disclosure, materiality, prudence, cost concept, matching concept and dual aspect. Double entry system of accounting. Bases of accounting - cash basis and accrual basis.

NBSE Bookkeeping Class 10 – Practical and theory

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These are the books of first entry. The transactions are first recorded in these books before being entered in the ledger books. These books are also called as books of Prime entry or Subsidiary books. They are six in number. Purchases Journal or Purchases Book used to record all credit purchases of goods. It is written up from invoice. Sales Journal or Sales Book is used to record all the credit sales of goods.

Cost accounting can be defined within the accounting system as internal reporting for use in management planning, control, and in making routine and non-routine decisions, and external reporting to the extent that its product-costing function satisfies external reporting requirements for reporting to shareholders, government, creditors, investors and various outside interested parties. Cost is the measurement of the sacrifice of economic resources, which has already been made or is to be made in the future, in order to achieve a specific objective. Cost management deals with estimated future or planned costs as well as with past, historical costs. It consists of the following basic activities, whether it is for a manufacturing or service business or for a profit or nonprofit organization:. Costs are classified according to the cost objectives.

Financial Accounting PDF Notes, Syllabus | BBA, BCOM 2020

Fundamentals of partnership and Goodwill. Change in Profit sharing ratio of Partners. Admission of a Partner.

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Accountancy is a very important subject for every student of Class 11 as it deals with the basic accounting concepts. Studying this subject well helps you to strengthen your fundamentals of the subject. Besides, the study materials in the revision notes are precise and offer a comprehensive and easy understanding of the various topics. What will you learn from the chapters of Class 11 Accountancy?

 Komm doch hierher, - сказал немец сдавленным голосом, сбрасывая с себя пижаму и поворачиваясь на спину. Росио через силу улыбнулась и подошла к постели. Но, посмотрев на распростертую на простынях громадную тушу, почувствовала облегчение. То, что она увидела пониже его живота, оказалось совсем крошечным.

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