Financial Accounting Class 11

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Chapter 2 BASIC  ACCOUNTING  TERMS LEARNING OUTCOMES: CONTINUING FROM THE PREVIOUS CLASS: DEBTORS BAD DEBTS CREDITORS DISCOUNT ASSIGNMENT BASED ON THE ACCOUNTING TERMINOLOGY DEBTORS, BAD DEBTS, CREDITORS (CLICK BELOW FOR MY AUDIO) DEBTORS, BAD DEBTS, CREDITORS  12.Debtor Is a person or a firm to whom goods have been sold or services has been rendered on credit. The payment has not yet been received from them. They are the Assets to the Business. As they still owe some amount to the Business. For example, if goods worth rupees 5000 have been sold to Mohan on credit, he will continue to remain the debtor of the business so long as, he does not make the full payment.  13.  Bad Debts:  It is the amount that has become irrecoverable from a debtor or when the debtor fails  to pay the money, it is a business loss and is called as  bad debts. 14 Creditors: The term creditors represent those persons of firms from whom goods have been purchased or

30/ 04 /2020 Class 11 A & B Class Assessment 2 class 11 1.Which of the following equation is incorrect? 1.Capital = Assets - Liabilities 2.Liabilities = Assets + Capital 3. Liabilities = Assets - Capital 4. Assets = Capital + Liabilities Ans. 2 2. According to  ______, irrelevant information or facts need to be disclosed. 1. Consistency 2. Matching 3. Going Concern 4. Material Ans. 4 3. Conservatism Principle takes into account: 1. All future profits and losses 2. All future profits and not losses 3. All future losses and not profits 4.  Neither profits nor losses of the future Ans. 3 4. A concept that a business enterprise will not be sold or liquidated in near future is known as: 1 going concern 2economic activity 3monetary unit 4none of the above  Ans. 1. 5 Identify the principle due to which the proprietor of a business is treated as creditor to the extent of his capital. 1.Money Measurement Principle 2. Dual Aspect Principle  3. 

LEARNING OUTCOMES: REVISION OF THE BASIC TERMINOLOGY USED IN ACCOUNTING. INTRODUCTION (CLICK BELOW FOR THE AUDIO) INTRODUCTION Hello Boys,  With four chapters completed in a row and two class assessment tests  taken, we stop here ,for a while ,to take a deep breath. Accountancy is a practical subject. To start with the language of accounting, we need to understand, few accounting terminologies and the accounting principles clearly. So, let's revise the major accounting terms and accounting principles.  I have taken vital accounting terms, explaining once again using examples.  *Point to be Noted*  All accounting terminologies have to be understood from the point of view of the business.  Let's recall  BUSINESS ENTITY PRINCIPLE:  The owner of a business is always considered as distinct and separate from the business he owns.  BUSINESS unit should have a completely separate set of books and we have to record business transactions from th

29/04/20 Day 2 11A & 11B 7th Period DEAR BOYS, WELCOME TO THE ACCOUNTING CLASS!! LEARNING OUTCOMES: TO TEST YOURSELF IN THE UNDERSTANDING OF THE BASIC UNDERSTANDING OF THE TWO CONCEPTUAL CHAPTERS. HOW WELL ARE YOU PREPARED TO WRITE YOUR CLASS ASSESSMENT TEST FROM TWO SIMPLE, THEORETICAL, & APPLICATION BASED CHAPTERS( VERY IMPORTANT) FOR THE CLARITY OF THE BASICS/ FOUNDATION OF THE SUBJECT (ACCOUNTANCY). POINTS TO BE NOTED: 1.ATTENDANCE WILL BE ON THE BASIS OF THE TEST ONLY. 2.THERE ARE 16 QUESTIONS TO BE ATTEMPTED 3.ALL ARE MULTIPLE CHOICE QUESTIONS 4.YOU WILL BE GIVEN 20 MINUTES TO DO THE TEST. 5.THE LINK WILL OPEN AT 12.30PM. 6.THE LINK WILL BE CLOSED AT 12.50PM. 7.BE PREPARED WITH PEN, PENCIL, NOTEBOOK READY FOR CALCULATIONS (WHEREVER REQUIRED) 8.BE MINDFUL OF THE TIME. 9.BE HONEST IN DOING YOUR TEST 10.ALL THE BEST!! LINK FOR THE TEST                 ⬇️ CLASS ASSESSMENT TEST

Chapter 4 BASES OF ACCOUNTING LEARNING OUTCOMES:  INTRODUCTION  CASH BASIS OF ACCOUNTING  ACCRUAL BASIS OF ACCOUNTING INTRODUCTION: INTRODUCTION TO THE CHAPTER  (LINK) The main objective of accounting is to determine profit earned on loss incurred by a business at the end of each accounting period. There are two bases of ascertaining profit or loss: 1. Cash Basis of Accounting 2.  Accrual or Mercantile Basis of Accounting CASH BASIS OF ACCOUNTING: CASH BASIS OF ACCOUNTING  (LINK) Cash basis of accounting is a system in which transactions are recorded when cash is received or paid.  * Revenues is recorded when cash is received. For example, good sold on credit will be recorded only when sale proceeds are received. * Similarly, expenses are recorded when cash is paid for them. For example, if salary for the month of December is paid in January, then it will be recorded in January. * So, under Cash Basis of Accounting, only cash transactions

C HAPTER 3  THEORY BASE OF ACCOUNTING,ACCOUNTING STANDARDS, IFRS AND GST LEARNING OUTCOMES: INTRODUCTION ACCOUNTING PRINCIPLES ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL REPORTING STANDARDS(IFRS) GOODS AND SERVICES TAX (GST) INTRODUCTION   (CLICK FOR  THE AUDIO) 8.  FULL DISCLOSURE PRINCIPLE  : (HEAR ABOUT THE PRINCIPLE) According to this principle, the financial statement should completely disclose all the significant information relating to the economic affairs of an enterprise.  • The disclosure can be done either in the financial statements or in the footnotes like in case of contingent liabilities. • Full Disclosure is not only a legal requirement, but it also makes the accounting system fair and transparent.  • As per the Companies Act, every company is required to disclose essential information in the financial statements. • Incomplete information hampers the basic purpose of financial statements. So, all the material and relev

C HAPTER 3  THEORY BASE OF ACCOUNTING,ACCOUNTING STANDARDS, IFRS AND GST LEARNING OUTCOMES: INTRODUCTION ACCOUNTING PRINCIPLES: 1.BUSINESS ENTITY PRINCIPLE 2. MONEY MEASUREMENT PRINCIPLE  3. ACCOUNTING PERIOD PRINCIPLE  4. COST CONCEPT OF HISTORICAL COST PRINCIPLE  5. DUAL ASPECT OR DUALITY PRINCIPLE  6. REVENUE RECOGNITION PRINCIPLE  7. MATCHING PRINCIPLE CLICK THE LINK BELOW FOR MY AUDIO: INTRODUCTION, BUSINESS ENTITY PRINCIPLE INTRODUCTION As discussed earlier : Accounting Principles are man made, are not rigid and act as a guide for accounting and are generally accepted. There are 11 ACCOUNTING PRINCIPLES. Let's take Each of them, one by one. The first one to start with is a very IMPORTANT PRINCIPLE :   1. BUSINESS ENTITY or ACCOUNTING ENTITY PRINCIPLE:  According to this principle, business is considered to be a separate and distinct entity from its owners. Accounting is always done from the point of view of the b

CHAPTER 3 THEORY BASE OF ACCOUNTING , ACCOUNTING STANDARD, IFRS AND GST Learning objectives: *Introduction  *Meaning and Nature of Accounting  Principles  *Generally Accepted Accounting Principles(GAAP)  *Fundamental Accounting Assumptions  *Accounting Principles *Accounting Standards *International Financial Reporting Standards(IFRS) *Goods and Services Tax (GST) CLICK THE LINK BELOW FOR MY AUDIO: INTRODUCTION Introduction As discussed before, accounting is concerned with identifying, recording, classifying and summarising of financial transactions and interpreting and communicating the results thereof. So, accounting aims at providing information about the financial performance of a firm to its various users such as owners, management, investors, creditors, and help them in taking important decisions. • For making the accounting information meaningful to its users, it is very important that such information is reliable, relevant, c