Topics
Introduction to Book-Keeping and Accountancy
- Accounting
- Book-Keeping
- Accountancy
- Book-Keeping vs. Accountancy
- Basis (Methods) of Accounting System
- Qualitative Characteristics of Accounting Information
- Basic Terms in Accounting
- Transaction
- Capital and Drawings
- Debtors, Creditors and Bad Debts
- Expenditure and Its Types
- Discount and Its Types
- Solvent Person vs. Insolvent Person
- Accounting Year
- Trading Concerns vs. Not for Profit Concerns
- Concept of Goodwill
- Fundamentals of Business Earnings
- Concepts of Assets, Liabilities and Net Worth
- Accounting Principles
- Accounting Concepts
- Core Accounting Concepts
- Accounting Standards
Meaning and Fundamentals of Double Entry Book-Keeping
Journal
- Accounting Documents
- Goods and Service Tax(GST)
- Types of Accounting Documents
- Voucher
- Tax Invoice (Under GST)
- Credit Memo
- Receipt
- Cheque
- Types of Cheques
- Books of Accounts
- Books of Accounts > Journal
- Journal Entries
- Journal Entries > Goods Account
- Journal Entries > Recording Discount in Journal
- Journal Entries > Other Important Journal Entries
Ledger
Subsidiary Books
- Concept of Subsidiary Books
- Cash Book
- Cash Book > Simple Cash Book (Single Column Cash Book)
- Cash Book > Two Column Cash Book (With Cash and Bank Columns)
- Cash Book > Petty Cash Book
- Simple Petty Cash Book
- Analytical Petty Cash Book
- Purchase Book
- Purchase Return Book
- Sales Book
- Sales Return Book
- Journal Proper
Bank Reconciliation Statement
- Accounting Documents Used in Banking
- Accounting Documents Used in Banking
- Pay-in-Slip
- Withdrawal Slip
- Bank Pass Book
- Bank Statement
- Bank Advice
- Concept of Virtual Banking
- Bank Reconciliation Statement(BRS)
- Cash Book vs Pass Book : Causes of Differences
- Time Difference(Regarding BRS)
- Errors and Omission Made by Bank or Businessman
- Formats of BRS
- Preparation of BRS
- Cash Book and Pass Book Comparison for Common Period
- Cash Book and Pass Book Balances for Different Periods
- Bank Balance as per Cash Book (Favourable / Debit Balance)
- Bank Balance as per Pass Book (Favourable / Credit Balance)
- Overdraft as per Cash Book (Unfavourable / Credit Balance)
- Overdraft as per Pass Book (Unfavourable/Debit balance)
- Reconciliation of Debtors and Creditors
Depreciation
Rectification of Errors
Final Accounts of a Proprietary Concern
Single Entry System
- Concept of Single Entry System
- Single Entry System vs. Double Entry System
- Parts of Single Entry System
- Statements of Affairs
- Statement of Profit or Loss
- Statement of Profit or Loss > Net Worth Method
- Practical Problems on Single Entry System
- Profit vs. Loss
- Revenue vs. Income
- Real-Life Example
- Key Takeaways
Profit vs. Loss
|
Aspect |
Profit |
Loss |
|---|---|---|
|
Occurs When |
SP > CP |
CP > SP |
|
Formula |
SP - CP |
CP - SP |
|
Effect on Capital |
Increases business capital |
Decreases business capital |
| What does it show? |
Financial gain |
Financial setback/deficit |
|
Impact on Business |
Positive (grows money/resources) |
Negative (reduces money/resources) |
Revenue vs. Income
|
Feature |
Revenue |
Income |
|---|---|---|
|
Source |
Just from sales (main business) |
From sales PLUS other sources |
|
When You Count It |
Before you pay any bills or costs |
After adding other earnings (like interest) |
|
Includes Expenses? |
No, just total sales |
No, but income is often used after costs |
Real-Life Example
Imagine you run a juice stall:
-
You spend ₹100 on fruits, sugar, and glasses (your cost).
-
You sell juices for ₹200 in a day (your revenue).
-
At the end, you still get ₹10 from the bank as interest (extra income).
-
Profit: ₹200 (revenue) – ₹100 (cost) = ₹100 profit
-
Loss: If you sold juices for only ₹80, you’d have ₹100 (cost) – ₹80 (revenue) = ₹20 loss.
-
Revenue: ₹200 (just the money from selling juice)
-
Income: ₹200 (revenue) + ₹10 (interest) = ₹210 (your total income)
Key Takeaways
-
Profit is the extra money you make when you sell for more than your cost—it increases your money.
-
Loss happens if you sell for less than your cost—it decreases your money.
-
Profit helps your business grow, while loss reduces its growth.
-
Revenue is just sales.
-
Income is sales plus extras.
-
All revenue is income, but not all income is revenue!
