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→Key Idea #
'''Please describe the key ideas to be conveyed in this section. Also broken down in details by each idea'''
'''Please describe the key ideas to be conveyed in this section. Also broken down in details by each idea'''
==Key Idea #==
==Key Idea # 1 - Introduction to Book Keeping - Double Entry System ==
What are the key ideas to be covered
What are the key ideas to be covered
Double Entry Book keeping is a scientific way to maintain financial records. In this system, every transaction will have two aspects- debit and credit. The sum of the debit will always = sum of credits.
===Learning objectives===
===Learning objectives===
Understand double entry book keeping system
===Notes for teachers===
===Notes for teachers===
===Activity No # ===
It is a bit difficult to understand double entry - most common doubt is that "if debit always = credit, then how will business make a profit, since one must be more than the other.
The key point is that Book Keeping keeps records for the business and treats the owner(s) as distinct/different from the business.Hence any profit made will be treated by the business as a 'liability' to the owner. Hence while profit (or loss) will be recorded, it will still be on a basis of debit = credit. Simple example provided below
Business 'Biscuit Mane' purchased 10 biscuit packets for Rs 100 on credit from 'A' and sold it for Rs 120 on credit to 'B'. A profit of Rs 20 is made, though as shown in the entries below, debit =credit
1. Entry for - Purchase of 10 biscuit packets for Rs 100
Particulars Debit Credit
Biscuits Purchased A/c Dr 100
To A 100
2. Entry for - Sale of 10 biscuit packets for Rs 120
B A/c Dr 120
To Sales Account 120
The Trial Balance will show as follows
Particulars Debit Credit
A 100
B 120
Purchase 100
Sales 120
Total 220 220
On preparing the profit and loss account, we will have Profit of 20 (sales 120 less purchase 100) and in balance sheet we will have net asset of 20 (120 due from A less due to B 100) on Asset side and on liabilities side a 'suplus' of 20. Thus profit is treated by accounts as a liability to the owner.
===Activity No # 1 Solving NCERT Text Book examples ===
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|<div style="width:150px;border:none; border-radius:10px;box-shadow: 5px 5px 5px #888888; background:#f5f5f5; vertical-align:top; text-align:center; padding:5px;">
''[http://www.karnatakaeducation.org.in/?q=node/305 Click to Comment]''</div>
''[http://www.karnatakaeducation.org.in/?q=node/305 Click to Comment]''</div>
|}
|}
*Estimated Time
#[http://www.ncert.nic.in/ncerts/textbook/textbook.htm?keac1=3-8 Karnataka Text Book Class IX - Accounting in Business => NCERT Text Book - Class XI - Financial Accountancy 1-Chapter 3 - Recording of Transactions - I]
has 20 cases of preparing the journal entries and recording in Books of Accounts from page 80 to 90.
*Estimated Time - several periods
*Materials/ Resources needed
*Materials/ Resources needed
NCERT text book (soft copy), pen, paper
*Prerequisites/Instructions, if any
*Prerequisites/Instructions, if any
*Multimedia resources
*Multimedia resources
*Relevant local connections - people, places and materials
*Relevant local connections - people, places and materials
*Website interactives/ links
*Website interactives/ links
[http://www.ncert.nic.in/ncerts/textbook/textbook.htm?keac1=3-8 Karnataka Text Book Class IX - Accounting in Business => NCERT Text Book - Class XI - Financial Accountancy 1-Chapter 3 - Recording of Transactions - I]
*Process
*Process
*What questions can you ask
*What questions can you ask
*Assessments - incorporating elements of CCE
*Assessments - incorporating elements of CCE
If debit = credit, how can a business make a profit or a loss?
If we term debit as credit and credit as debit would it make any difference?
*Question Corner
*Question Corner
How do large organisations with thousands of transactions manage to maintain books of accounts?
===Activity No # ===
===Activity No # ===