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
- Books of Accounts: Original vs Final Entry
- Definition: Subsidiary Books
- Subsidiary Books: An Overview
- Definition: Ledger
- Need for Ledger
- Example: Need for Ledger
Maharashtra State Board: Class 11
Books of Accounts: Original vs Final Entry
Maharashtra State Board: Class 11
Definition : Subsidiary Books
Subsidiary books are special accounting books used to record similar types of business transactions in one place.
Maharashtra State Board: Class 11
Subsidiary Books : An Overview
| Subsidiary Book | What Does It Record? | Why Is It Used? |
|---|---|---|
| Cash Book | All money received and paid out (cash/bank) | Keeps track of all cash and bank movements |
| Petty Cash Book | Small, everyday expenses (like postage and snacks) | Makes it easy to record and monitor minor, frequent payments separately from big ones |
| Purchase Book | Goods bought on credit (not cash purchases) | Shows what was bought on credit |
| Sales Book | Goods sold on credit (not cash sales) | Shows what was sold on credit |
| Purchase Return Book | Goods sent back to suppliers | Helps track items returned after buying |
| Sales Return Book | Goods returned by customers | Keeps records of items customers return |
| Journal Proper | Other transactions that don’t fit in above books | Records special or rare transactions |
Maharashtra State Board: Class 11
Definition : Ledger
A ledger is a book of accounts in which transactions from the journal get grouped under different account names.
Maharashtra State Board: Class 11
Need for Ledger
- In accounting, every business transaction is first written in the journal.
- If you want to know how much rent was paid in a year or how much money is owed to a supplier, it’s hard to find directly from the journal. This is because the journal mixes all types of transactions together.
- To make things clearer, accountants use the ledger
- From the journal, transactions are “posted” into their separate accounts in the ledger.
- This way, each type of transaction can be easily tracked.
Maharashtra State Board: Class 11
Example : Need for Ledger
Suppose several payments and receipts have happened during a month:
-
The owner invests ₹50,000 in the business (cash received).
-
The business pays rent of ₹3,000.
-
It buys furniture for ₹10,000.
-
It makes sales and receives ₹7,000 in cash.
When these transactions are recorded in the ledger, each relevant account shows a running balance:
Cash Account
| Date | Particulars | Journal Folio | Amount (Debit) | Date | Particulars | Journal Folio | Amount (Credit) |
|---|---|---|---|---|---|---|---|
| 01/04 | To Capital | JF No. 01 | ₹50,000 | 03/04 | By Rent | JF No. 02 | ₹3,000 |
| 10/04 | To Sales | JF No. 03 | ₹7,000 | 05/04 | By Furniture | JF No. 04 | ₹10,000 |
At any point, a quick check of the ledger shows exactly how much cash is available by subtracting total credits from debits (₹57,000 in, ₹13,000 out, leaving ₹44,000 cash available).
