www.tntextbooks.in
GOVERNMENT OF TAMILNADU
ACCOUNTANCY
VOLUME - I
HIGHER SECONDARY FIRST YEAR
Untouchability is Inhuman and a Crime
A publication under Free Textbook Programme of Government of Tamil Nadu
Department of School Education
, www.tntextbooks.in
Government of Tamil Nadu
First Edition - 2018
NOT FOR SALE
Content Creation
The wise
possess all
State Council of Educational
Research and Training
© SCERT 2018
Printing & Publishing
Tamil NaduTextbook and Educational
Services Corporation
www.textbooksonline.tn.nic.in
II
, www.tntextbooks.in
CONTENTS
Accountancy
UNIT 1 INTRODUCTION TO ACCOUNTING 1
1.1 Introduction to Accounting
1.2 Evolution of Accounting
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1.4 Accounting cycle
1.5 Objectives of Accounting
1.6 Functions of Accounting
1.7 Importance of Accounting
1.8 Basic Accounting terminologies
1.9 Branches of Accounting
1.10 Bases of Accounting
1.11 Users of Accounting information
1.12 Role of an accountant
UNIT 2 CONCEPTUAL FRAMEWORK OF ACCOUNTING 18
2.1 Book-keeping – An introduction
2.2 Book- keeping Vs. Accounting
2.3 Relationship among Book-keeping, Accounting and Accountancy
2.4 Accounting Principles
2.5 Accounting Standards (AS)
2.6 International Financial Reporting Standards (IFRS)
2.7 Accounting Standards in India
UNIT 3 BOOKS OF PRIME ENTRY 31
3.1 Introduction
3.2 Source documents
3.3 Double entry system
3.4 Transaction
3.5 Account
3.6 Approaches of recording transactions
3.7 Accounting rules
3.8 Journal entries
III
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UNIT 4 LEDGER 81
4.1 Introduction
4.2 Utilities of ledger
4.3 Format of ledger account
4.4 Distinction between journal and ledger
4.5 Procedure for posting
4.6 Balancing of ledger accounts
UNIT 5 TRIAL BALANCE 107
5.1 Introduction to trial balance
5.2 Need for preparing trial balance
5.3 Definition of trial balance
5.4 Features of trial balance
5.5 Objectives of preparing trial balance
5.6 Limitations of trial balance
5.7 Methods of preparing trial balance
5.8 Suspense account
UNIT 6 SUBSIDIARY BOOKS - I 133
6.1 Introduction
6.2 Meaning of subsidiary books
6.3 Types of subsidiary books
6.4 Advantages of subsidiary books
6.5 Purchases book
6.6 Purchases returns book
6.7 Sales book
6.8 Sales returns book
6.9 Bills of exchange
6.10 Bills receivable book
6.11 Bills payable book
6.12 Journal proper
UNIT 7 SUBSIDIARY BOOKS - II 170
7.1 Introduction
7.2 Meaning of cash book
7.3 Cash book – A subsidiary book and principal book of accounts
7.4 Importance of cash book
7.5 Types of cash book
7.6 Single column cash book
IV
GOVERNMENT OF TAMILNADU
ACCOUNTANCY
VOLUME - I
HIGHER SECONDARY FIRST YEAR
Untouchability is Inhuman and a Crime
A publication under Free Textbook Programme of Government of Tamil Nadu
Department of School Education
, www.tntextbooks.in
Government of Tamil Nadu
First Edition - 2018
NOT FOR SALE
Content Creation
The wise
possess all
State Council of Educational
Research and Training
© SCERT 2018
Printing & Publishing
Tamil NaduTextbook and Educational
Services Corporation
www.textbooksonline.tn.nic.in
II
, www.tntextbooks.in
CONTENTS
Accountancy
UNIT 1 INTRODUCTION TO ACCOUNTING 1
1.1 Introduction to Accounting
1.2 Evolution of Accounting
0HDQLQJDQG'H¿QLWLRQRI$FFRXQWLQJ
1.4 Accounting cycle
1.5 Objectives of Accounting
1.6 Functions of Accounting
1.7 Importance of Accounting
1.8 Basic Accounting terminologies
1.9 Branches of Accounting
1.10 Bases of Accounting
1.11 Users of Accounting information
1.12 Role of an accountant
UNIT 2 CONCEPTUAL FRAMEWORK OF ACCOUNTING 18
2.1 Book-keeping – An introduction
2.2 Book- keeping Vs. Accounting
2.3 Relationship among Book-keeping, Accounting and Accountancy
2.4 Accounting Principles
2.5 Accounting Standards (AS)
2.6 International Financial Reporting Standards (IFRS)
2.7 Accounting Standards in India
UNIT 3 BOOKS OF PRIME ENTRY 31
3.1 Introduction
3.2 Source documents
3.3 Double entry system
3.4 Transaction
3.5 Account
3.6 Approaches of recording transactions
3.7 Accounting rules
3.8 Journal entries
III
, www.tntextbooks.in
UNIT 4 LEDGER 81
4.1 Introduction
4.2 Utilities of ledger
4.3 Format of ledger account
4.4 Distinction between journal and ledger
4.5 Procedure for posting
4.6 Balancing of ledger accounts
UNIT 5 TRIAL BALANCE 107
5.1 Introduction to trial balance
5.2 Need for preparing trial balance
5.3 Definition of trial balance
5.4 Features of trial balance
5.5 Objectives of preparing trial balance
5.6 Limitations of trial balance
5.7 Methods of preparing trial balance
5.8 Suspense account
UNIT 6 SUBSIDIARY BOOKS - I 133
6.1 Introduction
6.2 Meaning of subsidiary books
6.3 Types of subsidiary books
6.4 Advantages of subsidiary books
6.5 Purchases book
6.6 Purchases returns book
6.7 Sales book
6.8 Sales returns book
6.9 Bills of exchange
6.10 Bills receivable book
6.11 Bills payable book
6.12 Journal proper
UNIT 7 SUBSIDIARY BOOKS - II 170
7.1 Introduction
7.2 Meaning of cash book
7.3 Cash book – A subsidiary book and principal book of accounts
7.4 Importance of cash book
7.5 Types of cash book
7.6 Single column cash book
IV
