Maharashtra HSC Bookkeeping & Accountancy study guide
Maharashtra HSC Bookkeeping & Accountancy · Work through your exam, one topic at a time.
The Maharashtra HSC Book-keeping & Accountancy paper is the Class XII accountancy examination set by the Maharashtra State Board of Secondary and Higher Secondary Education (MSBSHSE). It is taken by Commerce stream students who need the subject for their Higher Secondary Certificate, and it also serves as the accounting foundation for candidates moving into B.Com, CA foundation, CS, CMA or office and accounting jobs. The Maharashtra HSC Bookkeeping & Accountancy study guide has 12 sections and about 3,397 words.
01Introduction to Book-keeping and Accountancy
Book-keeping is the art of identifying, measuring and recording financial transactions in books of accounts in a systematic manner. Accountancy is the wider process: it includes book-keeping plus summarising, analysing, interpreting and communicating results.
325 words, about 2 min02Meaning and Fundamentals of Double Entry Book-keeping
Every transaction has two effects, so double entry records a debit in one account and an equal credit in another. The accounting equation is Assets = Capital + Liabilities.
283 words, about 1 min03Journal
The journal is the book of original entry. It records transactions chronologically with columns for date, particulars, ledger folio, debit and credit.
280 words, about 1 min04Ledger
The ledger is the principal book containing all accounts. Each journal entry is posted to the relevant ledger accounts: the debit entry goes to the debit side of one account and the credit entry to the credit side of another.
298 words, about 1 min05Subsidiary Books
Subsidiary books divide the journal by transaction type: cash book, petty cash book, purchases book, sales book, purchase return book, sales return book, bills receivable book, bills payable book and journal proper. They save time, allow division of work and provide control.
283 words, about 1 min06Bank Reconciliation Statement
A bank reconciliation statement explains why the cash book bank balance and the pass book balance differ on a given date. Common causes are timing differences: cheques deposited but not yet credited, cheques issued but not yet presented, bank charges and interest not entered in the cash book, direct deposits by customers, standing instructions, and errors by the trader or bank.
291 words, about 1 min07Depreciation
Depreciation is the permanent, gradual and continuing reduction in the book value of a fixed asset due to use, wear and tear, obsolescence or passage of time. It is a non-cash expense.
280 words, about 1 min08Rectification of Errors
Errors may be of omission, commission, principle, original entry or compensating. A complete omission does not affect the trial balance; a one-sided error does.
267 words, about 1 min09Final Accounts of a Proprietary Concern
Final accounts include Trading A/c, Profit and Loss A/c and Balance Sheet. Trading A/c finds gross profit or loss from sales, opening stock, purchases, direct expenses and closing stock.
282 words, about 1 min10Single Entry System
A single entry system records only some transactions, often cash and personal accounts, and ignores the dual aspect. It is incomplete, unscientific and unsuitable for large businesses.
258 words, about 1 min11Bill of Exchange
The drawer makes the bill, the drawee accepts it and becomes the acceptor, and the payee receives payment. A bill may be at sight or after a tenor.
271 words, about 1 min12Accounts of Not-for-Profit Concerns
Not-for-profit concerns, such as clubs and societies, do not aim at profit. They prepare a Receipts and Payments A/c, an Income and Expenditure A/c and a Balance Sheet.
279 words, about 1 min