Tamil Nadu HSE First Year Accountancy study guide
Tamil Nadu HSE First Year Accountancy · Work through your exam, one topic at a time.
The Tamil Nadu Higher Secondary First Year Accountancy paper is the Class 11 accountancy examination taken under the state board's higher secondary curriculum, usually at the end of the first year of the two-year Plus One/Plus Two course. It suits students who have chosen the commerce stream and need a foundation in bookkeeping before Class 12, and it also serves private candidates preparing for the same syllabus. The Tamil Nadu HSE First Year Accountancy study guide has 12 sections and about 4,236 words.
01Introduction to Accounting
The opening chapter of the Tamil Nadu HSE First Year Accountancy course sets the vocabulary and the flow of the whole subject. Questions here are usually one-mark and short-answer: definitions, the stages of the accounting cycle, objectives of accounting, users of accounting information, and precise meanings of basic terms.
418 words, about 2 min02Conceptual Framework of Accounting
This domain tests the accounting concepts and conventions that explain why entries are made as they are, plus the meaning and role of accounting standards. Expect questions asking you to name the concept applied in a given situation and to distinguish cash basis from accrual basis.
397 words, about 2 min03Accounting Equation and Transaction Analysis
Assets = Liabilities + Capital. Every transaction changes at least two elements and the equation stays balanced.
326 words, about 2 min04Journal
The journal is the book of original entry. Each entry shows the date, particulars (the debit account first, then "To" and the credit account), the ledger folio, the debit amount, the credit amount and a narration beginning with "(Being ...)".
324 words, about 2 min05Ledger and Trial Balance
The ledger is the principal book: a set of T-form accounts each with a debit and a credit side, and each posting carrying date, particulars, journal folio and amount. Posting is the transfer of debit and credit amounts from the journal to the respective accounts.
338 words, about 2 min06Subsidiary Books and Cash Book
As transactions multiply, the journal is subdivided: purchases book (credit purchases of goods only), sales book (credit sales of goods only), purchase return book (returns outward), sales return book (returns inward), bills receivable and bills payable books, and the cash book. Cash transactions of every kind go to the cash book and never to the purchases or sales book; credit purchases of assets or of anything other than goods go to the journal.
348 words, about 2 min07Bank Reconciliation Statement
A bank reconciliation statement explains why the balance shown by the cash book (bank column) differs from the balance shown by the pass book on a given date, and adjusts one figure into the other. Causes: cheques issued but not yet presented; cheques paid in but not yet collected; bank charges, interest on overdraft and direct payments debited by the bank but not yet entered in the cash book; interest and dividends collected by the bank and recorded only in the pass book; direct deposits by customers; standing instructions; and errors on either side.
369 words, about 2 min08Capital and Revenue Transactions
Capital expenditure is incurred to acquire or improve a fixed asset and yields benefit over more than one accounting period: the purchase price of machinery, carriage on it, installation wages, legal costs of acquiring land, and extensions that increase earning capacity. It is shown in the balance sheet.
327 words, about 2 min09Depreciation and Provisions
Depreciation is the permanent, gradual and continuing reduction in the book value of a fixed asset through use, wear and tear, obsolescence or effluxion of time. It is a non-cash expense charged to the profit and loss account, with a provision for depreciation created and the asset shown net in the balance sheet.
361 words, about 2 min10Final Accounts of Sole Proprietors (without adjustments)
The final accounts of a sole proprietor are the trading account, the profit and loss account and the balance sheet. With no adjustments, every figure comes straight from the trial balance; only closing stock, when given outside the trial balance, has to be brought in.
320 words, about 2 min11Accounting for Bills of Exchange
A bill of exchange is a written instrument containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer, on demand or at a fixed future time. Parties: drawer (the maker, usually the seller), drawee (who accepts and pays, the buyer) and payee (who receives the money).
371 words, about 2 min12Computerised Accounting and Accounting Software Basics
This domain covers the meaning and features of computerised accounting, its differences from manual accounting, the components of a computerised accounting system, the types of accounting software, and basic operations of a standard package such as Tally. A computerised accounting system stores transactions as data, processes them by pre-written rules and produces reports automatically; the principles of double entry do not change, only the medium does.
337 words, about 2 min