Class 11 Accounts - Basic Notes
1. Introduction to Accounting
Accounting is the process of recording, classifying, summarizing and interpreting financial
transactions.
2. Objectives of Accounting
1. To maintain systematic records 2. To ascertain profit or loss 3. To know financial position 4. To
provide information to users
3. Basic Accounting Terms
Assets: Resources owned by business Liabilities: Obligations of business Capital: Owner’s
investment Revenue: Income earned Expenses: Cost incurred
4. Accounting Equation
Assets = Capital + Liabilities
5. Types of Accounts
1. Personal Account 2. Real Account 3. Nominal Account
6. Rules of Debit and Credit
Personal: Debit receiver, Credit giver Real: Debit what comes in, Credit what goes out Nominal:
Debit expenses/losses, Credit income/gains
7. Journal Entries
Journal is the book of original entry where transactions are recorded in chronological order.
8. Ledger
Ledger is a book where all accounts are maintained and classified.
1. Introduction to Accounting
Accounting is the process of recording, classifying, summarizing and interpreting financial
transactions.
2. Objectives of Accounting
1. To maintain systematic records 2. To ascertain profit or loss 3. To know financial position 4. To
provide information to users
3. Basic Accounting Terms
Assets: Resources owned by business Liabilities: Obligations of business Capital: Owner’s
investment Revenue: Income earned Expenses: Cost incurred
4. Accounting Equation
Assets = Capital + Liabilities
5. Types of Accounts
1. Personal Account 2. Real Account 3. Nominal Account
6. Rules of Debit and Credit
Personal: Debit receiver, Credit giver Real: Debit what comes in, Credit what goes out Nominal:
Debit expenses/losses, Credit income/gains
7. Journal Entries
Journal is the book of original entry where transactions are recorded in chronological order.
8. Ledger
Ledger is a book where all accounts are maintained and classified.
