Maharashtra HSC Accounting & Office Management (Vocational) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Accounting Equation

Assets = Liabilities + Capital. Every transaction changes at least two elements while keeping the two sides equal, which is why total debits must always equal total credits in the ledger.

Golden Rules of Accounting

Debit the receiver and credit the giver for personal accounts; debit what comes in and credit what goes out for real accounts; debit expenses and losses and credit incomes and gains for nominal accounts.

Trial Balance

A statement listing debit and credit balances of ledger accounts on a given date to test arithmetical accuracy. It cannot detect errors of principle, complete omission, or compensating errors.

Bank Reconciliation Statement

A statement prepared to reconcile the cash book balance with the pass book balance by adjusting cheques deposited but not credited, cheques issued but not presented, bank charges, and direct collections.

Straight-Line Depreciation

A method charging an equal depreciation amount every year, calculated as original cost minus estimated scrap value, divided by the number of years of useful life.

Gross Profit

The excess of net sales over cost of goods sold, shown by the Trading Account. Cost of goods sold equals opening stock plus purchases plus direct expenses minus closing stock.

Centralisation of Office Services

Concentration of office work such as typing, filing, and records in one central department, giving uniformity, economy of equipment, and easier supervision but slower service to distant departments.

Numerical Filing

A filing method where each file is given a number and documents are arranged by number; it is fast for large volumes but requires a separate alphabetical index to locate files.

Company Secretary

An officer responsible for compliance with the Companies Act, 2013, including maintaining statutory registers, filing returns, and advising the Board; prescribed companies must appoint a whole-time member of ICSI.

Annual General Meeting

A mandatory yearly meeting of shareholders that must be held within fifteen months of the previous one and within six months of the close of the financial year, to adopt accounts and appoint auditors.

Quorum

The minimum number of members or directors whose presence is necessary to validly transact business at a meeting; for Board meetings it is one-third of directors or two, whichever is higher.

Voucher in Computerised Accounting

The basic data-entry document recording a transaction, classified as payment, receipt, contra, journal, sales, or purchase voucher; posting it automatically updates ledgers and the trial balance.

Absolute Cell Reference

A spreadsheet reference written with dollar signs before both column and row, such as $B$4, so the reference does not shift when the formula is copied to other cells.

Mail Merge

A word-processing feature that combines a standard document with a data source, such as a list of customers, to produce personalised letters or labels in bulk.

VLOOKUP Function

A spreadsheet function that searches the first column of a table for a value and returns a value from a specified column in the same row, often used to retrieve ledger balances.

Primary Key

A field or combination of fields in a database table that uniquely identifies each record, prevents duplicate entries, and links the table to related tables.

Valid Contract Essentials

Offer, unconditional acceptance, lawful consideration, capacity of parties, free consent, and lawful object are required under the Indian Contract Act, 1872 for an enforceable agreement.

Minor's Agreement

An agreement made by a person below eighteen years is void ab initio and cannot be enforced against the minor, though the minor's estate may be liable for necessaries supplied.

Cheque

A negotiable instrument drawn on a specified banker, payable on demand, and signed by the drawer; it differs from other bills because it is always drawn on a bank.

Partnership Liability

Under the Indian Partnership Act, 1932 partners have unlimited joint and several liability, so creditors may recover firm debts from the personal assets of any partner.

GST Intra-State Supply

Supply of goods or services within one state attracts Central GST and State GST, while inter-state supply attracts Integrated GST under the destination-based GST system.

Law of Demand

Other things remaining constant, quantity demanded of a commodity rises when its price falls and falls when its price rises, producing a downward-sloping demand curve.

Price Elasticity of Demand

The percentage change in quantity demanded divided by the percentage change in price; demand is elastic when the result exceeds one and inelastic when it is below one.

Internal Economies of Scale

Cost advantages arising within a single firm as output expands, through specialisation of labour, better machinery, bulk purchasing, and more efficient management of resources.

LPG Reforms 1991

Liberalisation, privatisation, and globalisation measures that reduced industrial licensing, opened sectors to private and foreign investment, and integrated India with world markets.

Grapevine Communication

Informal communication spreading through an organisation outside official channels; it is fast and influential but often inaccurate, so management should supplement it with formal communication.

Seven Cs of Communication

Clarity, conciseness, courtesy, correctness, completeness, consideration, and concreteness are the qualities that make business letters and reports effective and easy to act upon.

Memorandum

An internal written communication used for instructions and records within an organisation; it has no salutation or complimentary close and usually carries a reference number and subject line.

Minutes of Meeting

The official written record of proceedings and decisions of a meeting, prepared by the secretary and confirmed at the next meeting as evidence of what was resolved.

Primary Data

Data collected directly by the researcher for the specific project through interviews, questionnaires, observation, or experiments, giving fresh information but requiring more time and cost.

Suspense Account

A temporary account opened to hold the difference in a trial balance so that final accounts can be prepared while the error is investigated and corrected later.

Project Report Structure

A typical report includes title page, certificate, acknowledgements, objectives, methodology, data analysis, findings, conclusions, and bibliography, presented in logical sequence for evaluation.