Class-XI Aecountan oy Chapwr-2 6ASICACtOUNTIN^

Cla is - X TERMS.
Buyness 7ransachons 8uiness transq ethon meqns a
inqnual
transachn ente recl béfieen two pqrh1s
nd
recox ded ih t e 4opks of a(couns.
F
exarple: Sal of Good, Purkae f MazA'ne, Rent aid.
Capitak: Caßital means he
amounthat s inveytd áy he
Ouner in he
bunne 6. Fo xampie Rom starRA
6ujness wih7 oo0o. So here F 4oo0o is he
Capital.
Drawings Drawinu meqns he mount or value of goods
withdra wn the rerfr personal r domests
Drawiny reduce? he Cpital Owne T.
Jiabil' ty iabili ly means
theamount hat is
Ke bunness to
}yable s
tH&atsiders. For example
Bank loan, CrgtorA Deshh
Asset Asset means eprerty or egal righk owhed
6 a
b uynesAny ting
that willro
vide he
beneft to he 6hnness in the futun is Called
anet of Re inc. F
ekample: Lan, Madinery
Furnitux, St>ck, Can, Bank Balq nce.
angi6le Aues. 7he apets hose Can be seen, hose Cqn be
touhed epd those hqve
Called physical xisknte ae
tagible aek. For
example and, Build'nz
Furnitu Cmpiutkr, Maclinery
|htangible Arsets7he anet hose can not be
not seen, those Can
befouhed and 1ose hqve not
p hysical exisknce
ae Called
intangi ble a Fo examp/e .

setwan, Goodwi ll, Trade Ma>k, Cempua

Current Assets 7he anes those Patents.
Can be
winin aa
cone rkd into Cash
period of
ome a r q r
called cu renT
aRet. These aealso called
Exaple: 7loainy akuß.
Cah in hand, cash at Bank, Desto78, Stoik
 Banc Acc ounhng T e rms Clars XI
bcyne
Non Cuent Aet The aness hose ae kept by a

Tur the lmg erm u in the buiness

a r Called Non- u r n i t s s e s . 7hese
aMes a hot for 6al,They a kpt
in hebtusjnes fon þéfhanent w
Fer Example : C Machinery
Land, Buildng, firniftrha, .

|Fictito tu Asers; Fich hous anes ae those anek

wh
ax neg nei ther angi6le no ht9gi6le. 7hey qn losses
thoge wil be wü Hen of in
Inur
Re ceibt : Receipt meqns Keramoun t that is receired
6a 6iuszhess ing the goos ovroviding
he services.

TYPESof RECEL PTS

Revenu e Re ceipts
Capitas Receipt
Revenue Receipts ; J+ is he qmount that is re ces'e d
b aujness in which it is
dealing,
for example: Jf
For an ice creqm
vendor sells iceceam
recaves t e amounf, hat is
called
Fh re eipt. /# means mount receired
sale of Joods r
prviing ervices i
ALle erenue
Capitl ReceibA e
reeipts.
qmo4nt hat is e ceived by
a buines frm sale of Hxed anes and
long erm in rejtments is Called
receiptp Fer examble Amount Capital
Trm Sa f Land, fui'lng, PlartReceire kK
Furnitu*, nvetmcnp.
Midiney
 XI Ban'e A Ountt'ng Te gms:

xpe nditue Expendi'tu e means he amount

spent for
purchain 90 Ods, auets dr se rvices,
TYPES of ExPEN DITURES)
Capitk Revenue DPerred Rerenue
Expenditure Expendi tu* Expendiure.
Capital Experdt 7+ s an
exknaliture that 1s dme
9+ byovides purthau thg)Axed anes r
nm Ccs
beneAt
m
f
Kan
rrent /es, Cabits
exenel' tux
inCa#e ar*ibrves he
yeqr
Capaug earnin
i hown
burjness. Capinl exjendi hue
mti anes sidle of Balana Sheet.
Revenue Exhendi tuei Jtis
he 6a
theexkndi'tue hat rvvioles
t
to e uinen oly
ojh in me
year
hr exanple: Rent Paid, Salary Paid,
Defe rred Revenue
Exhenditure:
Electiety Exjenses.
7he
is eenu exbentdtre im natyre
expendi
xpe ndi'tre
ture that
ht
but whis i
shown as an
eense moR an year
alepe
s Callek
rrea re
vae expendi't .
For examfle i
ar ader#ement expe nd'hir
ro vide benefrt mort than
dhe
Lar|
Expens e Expne i'she ameunt
the ih Cme.
sbent to eqrh
 XI Bane Accoun ing Te rms or lau x/ )
P u r

repaid Expenses or Unexpj red Ex/enses The exePseS

those ax þaid in adrance and the benef
will 6e avai/able ih the futur ) called prpaid
expenses. Prepaid expense s anet f 6uine s5.
Outs tanding Expe nses The expense4 those a '
n cauTred ( ) JTe> but a mount hasnot been paid
Called outandin9 exeises. I n J u t t 1 r , e hak

7D hese expentej. So, i t is ábiL:ty f hunness.

ncome r
rofit: Reyenu Expenses
Sal

Fer Exa mble Sale =

2goo Cost Pna r Purhas Pja
= I5odo

/nceme r Profit t o ' d o - 1 S D d o = 6ooo

=

ron Pefit 7he die* nce e saes and n

toe
diret Exps Cos g°ods s o l is called Gron Prefit

Net lfit: The dit nu be rueen e vehues 9n

all
expen se is called net þrft.
+
a l l exjenseto ta is mo than
erenus, it
means thes Net loss.

Gain The
f i t of iregular naty i Ca/le
n.for example prpt n iale f
hxed ateh is Celled
gaih.
Purchews: The gui'siten og0ods ar arhele in
which a bujness
deal is called
Prhaes Can be purhases,
Credi+ r Cah.
 XI BaHc A ccounting Terms ; For Clan X -

Purchae Ketirn The ret1 r n af J0 ods to the suhplie rs

6y a bumne n due to
any easm is Calted purhan re turn.
go ody ax
deectie, net
o7/ginal, hst 90od 9ualiy
not aser he 0rder, Then good q reirned,
Sales Sale m ale of g0ods 4 rhele in whis
thebuiness ir de alin. For examble : y
aFurniun Hout selts h i furnitur, i+1's sale
fr the bujnen becauie Furnih* Ho u n is ade
elng
i furni tun nli
|Sales Rehurn: / sold g0ods q r retumed by the
buyers or custome 75, it is called sales
re turn

Stoek In ventory: The value f g0od thoe a re

&till ying ( nso d in the 6uhness 4 calle

tok r ihvento ry
Cpei ng Sfodk.: 7he Afok i hand in he bezinnin7 o
acc ounhng year is Called openimg dtock.

Clesi hg Stok: The stok m

hqnd in the end
ehd

accounhhg yeqr iz Called closin dtoA.

De hto : Debtor meqns he be ys n cr
we hat sold the
buyness to whom
goods m Credit and
qmount has nt been Kcuved.
Fr
example: 22 our buiness sels .g0ocls to
Pooja cm Cndit, So,
hoja /'s the
debtor of our
businan.
 XI- Banc Accountng 7erms Fer Cta5 X/
Bills Reci vable Bils Receivable means hill of erchange
desto 6. he
that is acceped by a

will be
amoynt Bill Keced vable
receied en a Apeified date.

Trade Re cei vakle = Debthr + keceivable.

Credi tor: reditor meqns the penn a he Corhahy

trom whom our buyhes has purhaed
otdt
0ods o7 6e rvicephut amnount haj noz

haid.
Bill
Bill Pay able: B11 bayableneans a 6i of exchqn7e
whieh will be
aceped Aount f
paid in
e futureon ápeeified date.

Trade Pyask = Trede a y a is the A4m total of

Ceaitor and Bi Pay abie

Cnd'to + Bil yab/e
qoods Goods nians a l those thin4 which ar burhatd
or re- S
a hore a ued ih podu cing he
goods. F example Fer
Chairs 2 Ables ax
g0ods. Rut fer ohers
itis xed anet
Voucher: Vouher is an evidente ef a
burjness
Trans a tio Examblas f
Cayh Me mo, Vouchers Ax
hurhau Invoice, Salt
Invoju, Receipt, Chey tu
 X7 Bac
Accouning Te rms T» Clas. X|
DIS COnt Reducthen in he hrices ef
is Called discount. g0ods A Aervices
DiAcOunt it expense
fir a
buiness that
9ie the discount.
Disount is income fr a husjness that
ecci cci vej the di^count )

rad Dis count 7he discount hat is allowed by

Aelle r to 17s Custo mers at a
fixedercentaze|
C the
Cataloqu prig of 90ods /s Callel
Trade
Discount. TFadi Diz Count is hot
re corded in the
books of accounts.
Ca D/s Count ; kken
distount or 7ebate s allo wed
the Csto mers fr makij
o t ay ment, i is
Called Cash Quru
dis coynt.
Books sf Accounts Bpoks in whi'ch
transach'ons are
recded ae called book of
acgount. Fr E xamplk
JourIl, lqe rs qx 8ooks of
A ran
sach
is Called eny.
on when reCrded in booka of accou nt

De 6it : The eft hand 4rdle of

Called Debit Dr. an alcount is
is
Crelit: The
ght hand
4ide fqn
of an accoyn
Called CRdit cr.) acoynt i
 XI- 6aye Accountng Te Ymi.
Clay- 8
Propyietoa he p rsn who invest tA«
menty 12 he buiness
n beqrs 7E alt he z/sks is Calleaa-
Debr ci aten
Deceau in the value
due to ih
onfixed auet
usage, afux of tine *7
Ch in
techno/og oriarridens is called 2|
derei atm, Dehreci atjAis lors a
buynegs r the
Cost of Soods Sold. Diret
costApent thethe 90o
90ods m

Soll is
Bad de bts. Called cost of goods dold.
The qmount
thithas become irreco verable
rom he debto Called bad dests.
Fer
example: Ouryb ujness has Aold He
Prem m good
the
Gpit. Now Prem has become
destsr of
jusyhes. hem doe not
amo nt
ifutuH, hen
þay
thl mount will
Callead bad debts. be
Inselvent: he
persn 0 Company any
whieh i's
any entrprise
en t K6uines
rprise <6ujneis
is
neti in asosi tien to pay its
Calledinso/vent. debs h
Solvent: The persen Conpay whieh is in
Balance Sheet: pay a
pesi Hon
is destal to
It is a
tatinent that shows hetk and
ines. I t meqns balanu shect is a Liabik'he
that sho s the Fi nancial 3t ment
Book Valu þositim of a bujness.
Thi's is the ameunt at whr'eh
ihthe books an itm
acrovnts, Book vakue C.f-aears
D.
Entity
Entity: An cco nomic unit which
perfoms economic
achyihee is (alled entity. Rel/'ane hdu mu limi' kd,
Baj'aj Auto, Ma zith Szaki qe
exonpie