Accountancy Class 11

Rules of Debit and Credit . sometimes also referred to as the Golden Rules of Debit and Credit, are the fundamental (most basic) basis of  Double Entry bookkeeping. These rules, lays down, how the accounting is to be performed in respect of various expenses/income, assets/liabilities amongst others, and are summarized as under : – Rule … Read more

Debit Credit Rules are applied to every transaction recorded in the books of accounts. If one account is debited, another account/s , will be credited with the same amount . For example,  if someone purchases goods, such purchase would increase the goods or an asset. Therefore, we will debit the Purchase account (Increase in Asset … Read more

What is Accounting Equation ? Dual principle of accounting states that every transaction has two fold impact, i.e it impacts at least two accounts. Accounting equation for class 11, represents this dual principle of accounting, and it  is generally written as under : – Assets = Liabilities + Capital (Accounting equation Problems and Accounting Equation … Read more

What is Business Transaction? A business transaction is a transaction with a third party that is recorded in an organization’s accounting system. Such a transaction MUST be measurable in money. This is where money measurement concept comes in which says that only monetary transactions should be recorded in the books. Characteristics of Business Transactions: A … Read more

Accounting Standards are written statements of uniform accounting rules and guidelines or practices relating to measurement, valuation and disclosure. Accounting standards in India are developed by the professional body called Accounting Standards Board. Board consists of members of the Institute of Chartered Accountants of India. (ICAI) These standards bring uniformity in accounting practices and ensures … Read more

Basis of Accounting – The basis of accounting refers to the method under which revenues and expenses are recognized in the financial statements of any organization. Businesses need to record transactions using one of two primary methods: Cash Basis Accrual Basis and; Hybrid Basis Cash Basis of Accounting: In this system, income is reported when … Read more

Single Entry System or Accounting from Incomplete Records,  is a method of accounting , in which , unlike the Double Entry System of Accounting, both the aspects of a transaction , are not recorded .  In  a Single entry system,  transactions relating to Cash Book, Personal Account of Debtors & Personal Account of Creditors are … Read more

Basic Accounting Concepts Accounting is based on some Principles which are based on some assumptions which are called Accounting Concepts. These basic accounting concepts are widely accepted all over the world by professionals. These concepts / Principles are listed below. a.Business entity; b. Money measurement; c. Going concern; d. Accounting period; e.Cost Concept f. Dual … Read more

Generally Accepted Accounting Principles (GAAP) Theory base of accounting comprises concepts, conventions, principles, rules, standards and guidelines developed, to provide uniformity and consistency to accounting records and enhance its utility, to various users of accounting information. It helps us understand the basics of accounting and also brings uniformity and consistency in the financial statements. Theory … Read more

Basic Terms in Accounting  Entity: It means a reality that has a definite individual presence or existence. Business entity implies an explicitly recognizable business enterprise like Super Bazaar, Hire Jewellers, ITC Limited, and so on. An accounting framework is constantly devised for a specific business entity (additionally known as accounting entity). Transaction: An event or … Read more