CBSE Class XI Accountancy - Introduction to accounting
CBSE Basic Concepts for Class 11 Accountancy -Introduction to accounting . Based on CBSE and CCE guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.
Introduction to accounting
“There's no business like show business, but there are several businesses like accounting.”
Accounting has greater discipline than book keeping. It includes conceptual knowledge of the subject and applications also. BOOK KEEPING:-It involves journal, ledger, cash book and other subsidiary books, it cannot disclose the results of Business. Meaning of Accounting:-It is process of identifying, measuring, recording and communicating the financial information.
Difference between Bookkeeping and accountancy:
Book keeping does not show the net result and accountancy shows net result of the business.
All events which can be measured in monetary Terms are known as Economic events. (Salary paid to employees, Goods purchased from creditors, cash withdrew from bank)
CHANGING ROLE OF ACCOUNTANCY
1. As a language to communicate information an enterprises.
2. To provide valuable information for judging management ability.
3. To provide quantitative information this is useful in economic decision.
Process of accounting
1. Identification of the economic events. (Selection of important event)
2. Classification of the business transaction (Assets, liability, expenses, income).
3. Measurement in terms (Monetary value transaction.),
4. Recording of business transactions (As per accounting principal)
5. Summarizing the business transaction (Journal, ledger, trial balance and Balance sheet.)
6. Analysis and interpreting the business transactions. (Various reports, ratio etc.)
7. Communication (provide information to internal and external users.)
Please refer to attached file CBSE Class XI Accountancy - Introduction to accounting