Revision: Introduction to Accounting Accounts ISC (Commerce) Class 11 CISCE

“Accountancy refers to the entire body of the theory and process of accounting.” By Kohler.

In the words of Kohler: “Accounting standards are codes of conduct imposed by customs, laws or professional bodies for the benefit of public accountants and accountants generally.” 

The Accounting Equation shows that everything a business owns (Assets) is funded by either money borrowed from outsiders (Liabilities) or money invested by the owner (Capital).

A voucher is a formal written document that supports and records a financial transaction in business or accounting. 

Money the business still needs to pay. 

Anything valuable the business owns or controls, measured in money. 

Anything valuable the business owns or controls, measured in money. 

Money the business still needs to pay. 

Profits are defined as the difference between the revenue that the firm earns from selling its output and the cost of producing that output, i.e.,

π = TR − TC

where, Greek letter π (pi) shows total profits,

TR denotes total revenue.

TC indicates total costs.

Prof. Robert N. Anthony has defined accounting as “Nearly every business enterprise has an accounting system. It is a means of collecting, summarizing, analyzing and reporting in monetary terms information about the business transactions."

Assets = Capital + Liabilities