Download PDF introduction to accounting class 11 notes

 A business can be successful only when it works according to all the rules of the business world. For this, the businessman should know every single link of accounting. In today's post, you will know what is accounting, its concept, stages, features, and purpose.

What is Accounting?

Accounting is made up of two words – 'Accounting' and 'Noting'. Where article means "to write" and notation means "number". In this way, writing all the transactions that take place in the business in the form of a book is called "Accounting". Accounting is the language of business. Accounting is also known as accounting.

 

concept of accounting

Accounting is a discipline that is mainly concerned with the recording, classification, and analysis of transactions and events of financial nature. Whether it is business or any work, wherever transactions related to money are done, then there is a need for accounting. 

The work of business is considered incomplete without accounting. Today accounting is being used in all types of business – such as business entities, non-business entities, company and partnership businesses, etc.

The main objective of any business is to earn maximum profit. For this, the trader has to buy goods many times and also have to sell the goods. 

The trader also incurs expenses and also receives income from the business, the businessman wants to know how much money he has invested in the business and how much income is received from it. From whom to take the money and to whom - to whom money is to be given. 

All these things cannot be remembered so all the transactions are recorded in a ledger, date-wise, sequential manner. This writing process in business is called "accounting".

Steps Involved in the Preparatory Activities of Accounting

The following steps are included in the initial activities of accounting-

Recording: Whatever transactions happen in the business, they are written for the first time, it is called 'Recording'. The act of writing this is the journal which is called Journal in English.

Classification: All the transactions written in the journal are to be written by dividing them into different parts, it is called 'classification' because there are no same types of transactions in the business. For example, cash, credit, cash back, credit return, purchase of goods, sale, sale return, etc.

Summarising: The classified transactions are to be written in one place, 'Summarising' is also known as Trial Balance. which performs the test.

 

What are the features of accounting?

The characteristics of accounting are to identify business transactions and record them in the books of accounts in a regular and systematic manner.

• Only those transactions are recorded in the books of account which can be expressed in money.

• Events and transactions that cannot be expressed in money are not accounted for.

• Features of accounting are the presentation of financial transactions and events in such a way that the transactions are easily analyzed and interpreted.

• Accounting is the art of business transactions.

• Transactions are summarized under accounting. Features of Accounting Provide all the parties with the information desired by them.

objectives of accounting class 11

Accounting objectives are essential for every business. The following are the objectives of accounting. Which are given below as follows –

• Regular and systematic accounting - The first objective of accounting is to account for all the transactions in a regular and systematic manner. Due to systematic accounting, there is no possibility of mistakes and the result is correct.

• Determination of Net Profit and Loss – This is the second objective of accounting. To find profit and loss for a certain period. To find out the profit and loss, by which organization the Trading Account, Profit & Loss Account, and Balance Sheet are prepared.

• Legal Requirement – ​​Fulfilling the legal requirement is an important objective of accounting. Accounting presents the best basis for filing returns for direct and indirect taxes.

• Information to the Parties – The important objective of accounting is to provide information to the parties interested in the business. There are interests of many parties in business such as – Proprietor, Creditor, Investor, etc.

• Financial Position – An important purpose of accounting is to obtain information regarding the financial position of the organization. For this purpose, a Balance Sheet is prepared. Assets are displayed on the right and Capital and Liabilities are on the left.

Conclsuion

Here in this post, we discuss the introduction of Accounting Class 11 Notes, so if you are also a student of Class 11 then you should download the notes from these posts.