• You are having a capital of Rs 100,000 and expected

to start a retail business of your choice.

• Furniture, Cloths, Groceries etc.
• Allocate your funds to various things you would want
for your business and show it in your books.
 THINK…

What do you call the statement prepared by you??

 ITS KNOWN AS…
A Statement of Account
FATHER OF ACCOUNTANCY
 ACCOUNTANCY
• The discipline which analyses the art and
principles of recording all monetary
transactions.
• It is the art and practice of accountants.
WHY DO YOU THINK ACCOUNTING
IS REQUIRED?
HOW DO THEY USUALLY RECORD
ACCOUNTING??

LEFT Right
 METHOD OF RECORDING OR THE
“T” FORMAT
Expense Amount Income Amount
Purchase : Contribution by:
Pens 500 Friends 2500
pencils 600 parents 5000

Rent paid 1500

Books 2000
Electricity charges 500
Savings (balance) 2400

Total 7500 Total 7500

WHAT ACCOUNTING DOES?
 ENTREPRENEUR

• Control over the finance and overall performance

of the business.

• Proper maintenance of accounts.

• Through accounting processes the entrepreneur can

obtain many useful information regarding sources
and application of funds, amount of expenses,
sales, purchases, cost of goods sold etc.
WHAT DOES ACCOUNTING
COMMUNICATE?
• Today, accounting is referred to as “the language of business”
because it is the vehicle for reporting financial information about a business
entity to different groups of people.

• Accounting that concentrates on reporting to people inside the business entity

is called management accounting.

• Accounting that provides information to people outside the business entity is

called financial accounting.

Who are the users of accounting
information?????
• Applications

Trading
Government Household organisations

Non trading
Agriculture
organisations
ACCOUNTING TERMS

Book keeping

Accounting
Accountancy

Capital
PROPRIETOR
Transaction

-Events
-Measurable
-Exchange
-Change of financial
position
TYPES OF TRANSACTIONS

• Cash transaction

•Credit transaction

•Barter transaction
ASSETS
 TYPES OF ASSETS

CURRENT ASSETS FIXED ASSETS

LIABILITIES
NET WORTH
STOCK/INVENTORY
GOODS
DEBTOR
S
CREDITO
RS
DEBT

• GOOD DEBTS

• BAD DEBTS

• DOUBTFUL
DEBTS
SOLVENT INSOLVENT
BANK BALANCE

BANK
OVERDRAFT
PURCHASES

SALES
EXPENSES

INCOMES
PROFIT LOSS
 UNDERSTAND THE STORY LINE:
•Bheem and Chutki were two of the closest
friends who always had each other's back in
any situation.

•Both Bheem and Chutki used to get monthly

pocket money from their parents but as they
grew up they realised that the pocket money
given by their parents was no longer sufficient
to satisfy their needs.
•So, they decided to start a business where they
would yield more than what they invested. After
a lot of discussions they decided to start a Ladoo
business. Chutki was excited and started
planning as to how much would each of them
invest in the business. They decided to invest
₹5,00,000 in the business. Bheem told Chutki
that they would have to buy a building, cooking
equipments and furniture to start their business.
• The money which they had wasn't enough to buy
the building. Chutki got a fantastic idea.
• She suggested that they could borrow money from
Raju and it wasn't necessary to repay him since he
was their friend.
• Bheem replied that in business, any act of
exchange of money or money's worth would be
treated from business point of view and not
owner’s point of view.
•Thus, they decided to borrow ₹2,00,000 from
Raju. With this money they bought a building
and furniture.

•For preparing ladoos they required flour, oil,

sugar, ghee and so on.

•They bought these from a shop at bulk and

commenced their business.
•They started preparing ladoos and sold the
ladoos to their customers from which they
earned money.

•Once Jaggu, a close friend of Chutki craved for

ladoos but had ran out of money.

•So Chutki gave him the ladoos and asked Jaggu

to pay the money later.
•Even after a month Jaggu couldn't repay the
money, so Chutki asked him to pay only half of
the money.

•Jaggu was delighted, he paid the money and

left. Bheem and Chutki always had ladoos
stored in boxes so that they would never run out
of ladoos.

• But then, summer vacation began.

•Their friends went to distant places and there
were no one to buy the ladoos. They were
scared that the ladoos would get spoilt and
hence, sold the ladoos at a price less than they
made it for.

•They learnt a lesson from this incident and

thereupon they never had many ladoos stored
and were super successful in their venture.
•Both Chutki and Bheem used to take
₹3,000 as pocket money from the
business.

•Thus, they achieved their aim of

securing more pocket money.
•From the story above, identify the various
accounting terms that you have learnt and
write it down in your books.
SKILLS NEEDED TO STUDY
ACCOUNTANCY

• Self management

• Time Management

• Summarizing the content at the end of the day

• Finding Information related to the topic through

various sources
Cont…

• Processing the information based on its

importance

• Problem solving

• Thinking and creativity

• Communicating with the teacher and fellow

students
 AQUIRING KNOWLEDGE

•Observe and listen in class

•Read and practice Day to Day basis

•Discuss among the peers(not while teacher is teaching)

Cont…

•Find answers to questions (getting doubts

cleared)

•Think-Plan-Write-Revise

•Enhance knowledge through reading business

magazines, newspapers, etc.
SYLLABUS AND EXAMINATION SKILLS

•Syllabus
•Attempting Practical Paper
•Attempting Theory Paper
•Pattern of Question Paper
•Marking System
•Internal Assessment System
•Practical book and Assignment Books
•Submission and Valuation
 SYLLABUS
1. Introduction to Accounting
2. Theory Base of Accounting
3. Recording of Transactions –I
4. Recording of Transactions –II
5. Bank Reconciliation Statement
6. Trial Balance and Rectification of Errors
7. Depreciation, Provisions and Reserves
8. Bills of Exchange
9. Financial Statements-I
10. Financial Statements-II
11. Accounts from Incomplete Records
12. Application of Computers in Accounting
13. Computerised Accounting System
• QUESTION PAPER PATTERN

SECTION NO OF MARKS TOTAL

QUESTIONS ALLOTED
A 8 1 8
B 5 2 10
C 4 6 24
D 4 12 48
E 2 5 10
TOTAL 100
 CONTINUOUS ASSESSMENTS
• Online Tests

• Class Tests

• Summative Exams
TEACHING METHODOLOGIES

•Lecture Method
•Problem solving
•Audio Visual Aids
•Assignments
•Projects
•Accounting Magazines and Journal
•References
Now its your
time to Ride
with
Accounts………