Chapter 02: Basic Accounting Terms There are certain basic accounting terms which are daily used in the business world. These basic terms are called accounting terminology. (1)Entity: Entity means an economic unit,which may be business entity and non-business entity. Business Entity: A business entity is a specific, distinguishable organization or unit that operates with the … Read more

Chapter 3: Accounting Principles Topic 01: Introduction to Accounting Principles Accounting principles are a set of rules and guidelines that govern how financial transactions are recorded, classified, summarized, and presented. These principles ensure uniformity, consistency, and comparability in financial reporting. They are essential for understanding a business’s financial health and performance. These rules are usually … Read more

Chapter 04: Process & Base of Accounting   TOPIC 01: PROCESS OF ACCOUNTING The accounting process is a series of logical steps followed to identify, record, classify, summarize, and report financial transactions of a business. It typically involves the following steps: 1. Identification of Transactions: Only monetary transactions those that can be expressed in terms … Read more

Chapter:05 Accounting Standards Meaning of Accounting Standards: Accounting standards are written statements that provide uniform rules and practices for preparing financial statements. They are a set of norms or guidelines that businesses must follow, often established by legislation, statutes, or professional organizations like the ICAI in India. Nature of Accounting Standards: They lay down accounting … Read more

Chapter: 06  Accounting Equation  The accounting equation is the fundamental principle of double-entry bookkeeping and forms the basis of the Balance Sheet. It shows the relationship between a business’s assets, liabilities, and owner’s equity or capital. The most fundamental form of the accounting equation is: Assets = Liabilities + Owner’s Equity (or Capital)  Assets: These … Read more

Chapter 07  Double Entry System   Introduction to Double Entry System  The Double Entry System is a scientific and universally accepted method of recording financial transactions in the books of accounts. It’s based on the principle that every business transaction has two-fold effects and, therefore, affects at least two accounts. One account is debited, and … Read more

Chapter 08: Origin of Transactions: Source Documents of Accountancy Source Documents of Accountancy: The “origin” of a transaction lies in the source document. These are the original written evidence of a transaction. They provide the necessary details and proof for recording the transaction in the books of accounts. 1) Cash Memo: Issued by a seller when … Read more

CHAPTER 09: BOOKS OF ORIGINAL ENTRY-JOURNAL Introduction to Books of Original Entry: These are the primary books where business transactions are first recorded in chronological order as and when they occur. They are also known as Subsidiary Books or Prime Entry Books. Transactions are recorded in these books directly from source documents. The subsidiary book … Read more

CHAPTER 10: ACCOUNTING FOR GOODS AND SERVICES TAX(GST) Meaning of GST: GST is a comprehensive, multi-stage, destination-based indirect tax levied on the supply of goods and services in India. It replaced various indirect taxes previously levied by central and state governments. GST Act was passed in the Parliament on 24th March,2017 and it came into … Read more

Chapter 11: Books of Original Entry – Cash Book Each subsidiary book is meant for recording all the transactions of a similar nature. For example, all cash transactions may be recorded in one book, all credit transactions in another book. Thus, the subsidiary books may be defined as books where the transactions are entered first … Read more