11th Accountancy - ch-1
11th Accountancy - ch-1
11th Accountancy - ch-1
Jitendra Udawant
M.Com, CFP, GDCA, NET, M.Phil, GST Practioner
Reserchers Management
Customer Lenders
Government Investors
Labor Unions
Accounting is the process of identifying,
measuring, recording and communicating the
financial information relating to organization to
the interested users.
Accounting plays important role in providing
quantitative information.
Primarily financial in nature,
About economic entities, that is
Intended to be useful in making economic decisions.
Accounting is an Art and Science of
Recording, Classifying and Summarizing the
Financial Information in Systematic and
Scientific manner and in monetary term to
calculate financial result and Financial
Position and communicate it to various user
to make decisions.
Identifying Financial • From Vouchers
Transactions
Mercantile /
• Records Cash as well as Credit Transactions.
Accrual • All Business and Industries
Basis
2 •Relevance
3 •Understandable
4 •Comparability
1. Debit and Credit
Debit
(even though positives and negatives are not used in the actual journal entries).
2. Transaction
Exchange of Goods and Services between TWO persons for
money or money worth.
Monetary Non-Monetary
Transactions Transactions
Cash Barter
Transactions Transactions
Credit
Transactions
Classes
Available
1) 11th, 12th
2) B.Com, BBA
3) M.Com,
MBA
4) LLB, DTL
5) CA, CMA, CS
Foundation
6) CA, CMA, CS
Inter (Exe)
•CREDIT TRANSACTIONS:
•Cash is payable or receivable later.
3. Capital and Drawings
TYPES OF EXPENDITURES
Capital Expenditures
Revenue Expenditures
b) Revenue Expenditures
• The Expenses which are in Revenue nature but paid for more
than one year, so that it is recovered proportionately
over the years.
• The balance not recovered is temporarily called as Assets.
• Examples- Prepaid Expenses, Preliminary Expenses, License
Fees, etc.
Revenue Expenses
Indirect Expenditures
Types of Discount
Trade Discount
•When seller allows concession on offer price to buyer for purchase more.
•After deduction of Trade Discount selling price is final, so it is not Loss.
•It is bargaining difference, so it is not consider into Account.
Cash Discount
•When concession allowed for fast or immediate recovery from Debtors.
• It is actual loss.
7. Trading and Non-Trading Concern
Trading Concern
Non-Trading Concern
Accounting Year
Financial Year
Accounting Year
Financial Year
Insolvent
• Person who is not capable to pay his liabilities easily out of his
assets.
• Persons who‟s Liabilities more than his Assets.
• Person who is Financially not Sound and not in a position of to
pay off his all debts.
11. Income and Revenue
Types
Profit
Loss
Assets
Types
Fixed, Current and Fictitious
Liabilities
Types