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
- Introduction: Debit and Credit
- Introduction: Golden Rules of Debit and Credit
- Introduction: Traditional Approach
- Staircase Diagram: Golden Rules of Debit and Credit
- Examples
- Key Takeaways
Maharashtra State Board: Class 11
Introduction : Debit and Credit
Debit & Credit – Where the Words Come From
Debit
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Comes from the Latin noun “debitum”, which means “what is owed” or “a debt”.
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This noun came from the verb “debere”, which means “to owe”.
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In accounting, debit is the left side of an account, where we record things you receive or own (assets, expenses).
Credit
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Comes from the Latin noun “creditum”, which means “something entrusted” or “a loan”.
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This noun came from the verb “credere”, which means “to trust” or “to believe”.
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In accounting, credit is the right side of an account, often used for things you owe to others or give away (income, liabilities).
Maharashtra State Board: Class 11
Introduction : Golden Rules of Debit and Credit
What are they?
- The Golden Rules of Debit and Credit are the most important basic rules that help you record any financial transaction in a business, using the double-entry system.
- These rules tell you which account should be debited and which should be credited in every transaction. This keeps the records accurate, clear, and balanced.
- The rules are called “golden” because they are precious, universal, and always followed—like a golden key that unlocks the correct way to do accounts for any business.
- Every single transaction must follow these rules—no exceptions! They make accounting easy, systematic, and mistake-free for everyone, from students to big companies.
Why do we need them?
- Book-Keeping is about recording “what comes in” and “what goes out”—for money, things, people, profits, or losses.
- Without clear rules, it would be confusing to decide how to record each event.
- The Golden Rules give us easy steps to follow so that all records are correct and business can run smoothly.
Maharashtra State Board: Class 11
Introduction : Traditional Approach
What Is the Traditional Approach?
- The Traditional Approach (also called the British or English approach) is a classic way of recording and organizing financial transactions in book-keeping.
- It sorts accounts into three main types:
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Personal Accounts (people & businesses)
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Real Accounts (assets)
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Nominal Accounts (incomes & expenses)
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- Why use it?
This system makes it easy to decide how to record every money event by applying specific, easy-to-remember rules for debit and credit to each account type.
How Are the Golden Rules Related to the Traditional Approach?
The Golden Rules of Debit and Credit were created for the Traditional Approach and are linked directly to its account classification.
Maharashtra State Board: Class 11
Staircase Diagram : Golden Rules of Debit and Credit
Maharashtra State Board: Class 11
Examples
| Account Type(s) | Transaction Example | Accounts Involved | Debit (Dr) | Credit (Cr) | (Rule/Combination of Rules) Applied |
|---|---|---|---|---|---|
| Real Accounts | Bought furniture for ₹10,000 in cash | Furniture, Cash | Furniture A/c (comes in) | Cash A/c (goes out) | Debit what comes in, Credit what goes out |
| Nominal and Real Accounts | Paid rent of ₹5,000 by cheque | Rent, Bank | Rent A/c (expense/loss) | Bank A/c (goes out) | Debit all expenses, Credit what goes out |
| Personal and Real Accounts | Paid ₹6,000 to Ram | Ram, Cash | Ram's A/c (receiver) | Cash A/c (goes out) | Debit the receiver; Credit what goes out. |
| Real and Personal Accounts | Received ₹8,000 from Mohan | Cash, Mohan | Cash A/c (comes in) | Mohan's A/c (giver) | Debit what comes in, Credit the giver |
| Nominal and Real Accounts | Paid salary to employees: ₹12,000 | Salary, Cash | Salary A/c (expense/loss) | Cash A/c (goes out) | Debit all expenses/losses, Credit what goes out |
| Real and Nominal Accounts | Received commission income ₹2,000 | Cash, Commission Received | Cash A/c (comes in) |
Commission Received A/c (income/gain) | Debit what comes in, Credit all incomes/gains |
Maharashtra State Board: Class 11
Key Takeaways
- “Debit” = something you have or that is due to you.
- “Credit” = something trusted to someone else.
- Debit = Left side of account; value comes in or increases (like assets/expenses).
- Credit = Right side of account; value goes out or increases (like income/liabilities).
- Golden Rules:
Real Account: Debit what comes in, Credit what goes out
Personal Account: Debit the receiver, Credit the giver
Nominal Account: Debit expenses/losses, Credit incomes/gains - How to Use Golden Rules:
First, find the account type.
Then, apply the matching rule for easy & correct entries. - Why Golden Rules?
These rules keep your accounts correct and mistake-free—like the basic traffic rules of accounting!
