AP Intermediate Commerce (BIEAP) cheat sheet

Accounting equation: Assets = Liabilities + Capital; every transaction keeps it balanced, so total debits always equal total credits.

Golden rules: debit the receiver and credit the giver (personal accounts); debit what comes in and credit what goes out (real accounts); debit expenses and losses, credit incomes and gains (nominal accounts).

Trial balance totals must agree; a difference is posted to a Suspense Account and cleared after locating the error. Errors of principle and complete omission do not disturb the trial balance.

Depreciation by Straight Line Method = (Cost − Scrap value) ÷ Useful life; under Written Down Value Method the rate is applied to the opening book value each year.

Bank Reconciliation Statement: balance as per cash book ± cheques issued but not presented ± cheques deposited but not credited ± bank charges/interest ± direct collections, to arrive at the pass book balance.

Final accounts order: Trading Account gives Gross Profit = Net Sales − Cost of Goods Sold; Profit and Loss Account gives Net Profit; Balance Sheet lists assets and liabilities on the closing date.

Goods sent on consignment are not sales: the consignor records consignment stock and expenses; the consignee earns commission, and a del-credere commission covers bad debts.

In the absence of a partnership deed, profits and losses are shared equally, no interest on capital or drawings is allowed, and interest on advances by a partner is 6% per annum.

Sole proprietorship: unlimited liability, no separate legal entity, single owner bears all risk and keeps all profit; least legal formality.

Partnership under the Indian Partnership Act, 1932: minimum two partners, maximum 50; registration is optional but an unregistered firm cannot sue third parties for its dues.

Joint Stock Company: separate legal entity, perpetual succession, limited liability, common seal; minimum 2 members (private) or 7 (public) under the Companies Act, 2013.

Cooperative society follows the principle of one member, one vote irrespective of capital contributed; service motive dominates over profit motive.

Functions of management: planning, organising, staffing, directing and controlling; coordination is the essence of management and runs through all functions.

Maslow's hierarchy of needs from bottom: physiological, safety, social, esteem, self-actualisation; a satisfied need ceases to motivate.

Marketing mix 4 Ps: Product, Price, Place, Promotion; the extended service mix adds People, Process and Physical evidence.

Levels of management: top (policy and strategy), middle (departmental plans and coordination), supervisory (day-to-day direction of workers).

Law of demand: other things equal, quantity demanded rises as price falls; the demand curve slopes downward. Exceptions include Giffen goods and status goods.

Price elasticity of demand (point method) = (ΔQ/Q) ÷ (ΔP/P); total expenditure method classifies elasticity by whether outlay moves opposite to price or with it.

Law of variable proportions: total product rises, then rises at a diminishing rate, peaks, and falls; marginal product crosses zero at the maximum of total product.

Market forms: perfect competition (many sellers, homogeneous product, price taker), monopoly (single seller, price maker), monopolistic competition (product differentiation), oligopoly (few sellers, interdependence).

National income concepts: GDP at market price, GNP = GDP + net factor income from abroad, NNP = GNP − depreciation, NNP at factor cost = national income.

Money measures in India: M1 = currency with public + demand deposits + other deposits with RBI; M3 = M1 + time deposits with banks (broad money).

Central bank tools: bank rate, repo and reverse repo, cash reserve ratio, statutory liquidity ratio, and open market operations; selling securities absorbs liquidity.

Balance of payments has a current account (goods, services, transfers) and a capital account; a deficit is met from reserves or external borrowing.

Number systems: binary base 2, octal base 8, decimal base 10, hexadecimal base 16; each hex digit maps to exactly four binary bits.

1 KB = 1024 bytes, 1 MB = 1024 KB, 1 GB = 1024 MB; a byte holds 8 bits and can represent 256 distinct values.

Spreadsheet cell reference: relative (A1) shifts when copied, absolute ($A$1) stays fixed, mixed ($A1 or A$1) fixes only one part; formulas begin with =.

Common spreadsheet functions: SUM, AVERAGE, COUNT, MAX, MIN, IF(condition, value_if_true, value_if_false), and VLOOKUP for table lookups.

HTML basics: , , , <body>; links use <a href="..."> and images use <img src="..." alt="...">. Tags are paired except void tags such as <br>.</p>

Database terms: a table is a collection of records; a primary key uniquely identifies each row; SQL SELECT retrieves data, WHERE filters rows, ORDER BY sorts them.

Network devices: hub broadcasts to all ports, switch forwards by MAC address, router forwards by IP address; LAN is local, WAN spans wide areas.

Boolean logic: AND is true only when all inputs are true, OR is true when any input is true, NOT inverts; De Morgan's laws: (A·B)' = A' + B' and (A + B)' = A'·B'.

Journal entry format: date, particulars (debit account first, credit account indented with 'To'), L.F., debit column, credit column, and a narration beginning 'Being...'.

Source documents to record: cash memo for cash sales, invoice for credit sales, debit note for sales returns, credit note for purchase returns, and pay-in-slip for bank deposits.

A cheque is valid for three months from its date; a bearer cheque is payable to the holder, a crossed cheque must be deposited into an account.

Filling a pay-in-slip requires the account holder's name, account number, date, and the amount in figures and words, with denominations listed for cash.

Bank draft and NEFT/RTGS are used for outstation remittance; RTGS is for high-value transfers settled in real time, NEFT settles in batches.

A bill of exchange requires a drawer, drawee and payee; on acceptance the drawee becomes the acceptor, and days of grace of three are added to compute the due date.

Insurance: fire policy covers loss by fire, marine policy covers transit risks, and the principle of indemnity limits recovery to the actual loss suffered.

Warehouse receipt and railway receipt are documents of title to goods; a delivery note accompanies goods but is not a document of title.

Active voice: subject performs the action (The clerk filed the report). Passive voice: object becomes subject plus a form of 'be' and the past participle (The report was filed by the clerk).

Reported speech shifts tense one step back: present to past, present perfect to past perfect, will to would; time words shift (now to then, tomorrow to the next day).

Formal business letter parts: sender's address, date, receiver's designation and address, subject line, salutation, body, complimentary close, signature.

Common preposition pairings: comply with, consist of, depend on, differ from, insist on, prefer to, responsible for, capable of, superior to.

Reading comprehension strategy: identify the main idea from the first and last sentences, then locate specific answers by scanning for keywords rather than reading every word twice.

Note-making uses headings, sub-headings and abbreviations; a summary should retain the main points and omit examples and repetition.

Fix common errors: 'one of the boys is' (singular verb), 'each of the students has' (singular), 'neither...nor' takes the verb of the nearer subject.

Punctuation rules: use a comma after an introductory phrase, a semicolon between related independent clauses, and an apostrophe for possession (manager's, managers').

Telugu: the alphabet has 16 achchulu (vowels) and 36 hallulu (consonants); gunintam signs attach vowel sounds to consonants, and vottulu combine consonants.

Telugu sandhi: savarna deerga sandhi joins a similar vowel into a long vowel; guna sandhi combines a with e, ee, o or oo to give e, ee, o, oo respectively.

Telugu samasam: tatpurusha (case relation hidden), dwandwa (two nouns joined by 'and'), bahuvrihi (compound denotes a possessor), dwigu (numeral-based compound).

Hindi: Devanagari has 11 vowels and 33 consonants; nouns carry gender (masculine/feminine) and number, and the verb agrees with the subject in person, number and gender.

Hindi cases: direct (कर्ता) versus oblique (कारक); postpositions ने, को, से, में, पर follow the oblique form, as in लड़के ने.

Hindi tenses: वर्तमान काल, भूतकाल and भविष्यत काल; the habitual past uses था/थी/थे and the continuous present uses रहा/रही/रहे with है/हैं.

Sanskrit vibhaktis: प्रथमा (nominative), द्वितीया (accusative), तृतीया (instrumental), चतुर्थी (dative), पञ्चमी (ablative), षष्ठी (genitive), सप्तमी (locative), सम्बोधन (vocative).

Sanskrit sandhi: सवर्णदीर्घ joins similar vowels into a long vowel; गुण sandhi gives अ/आ + इ/ई = ए, अ/आ + उ/ऊ = ओ, अ/आ + ऋ = अर्.