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→Key Idea #
*Question Corner
*Question Corner
==Key Idea #==
==Key Idea # 2 - Book keeping is the keeping of (many) books==
What are the key ideas to be covered
What are the key ideas to be covered
Double entry Book keeping uses many 'books of accounts' to record transactions
The simplest form of book would be the Journal, in which every transaction is recorded. The accounts that are affected are entered, and the amounts - debit for some and credit for others are written with a brief explanation called 'narration'.
However,over a period of time, transactions were 'categorised' and for those which occurred often, special books were created, one per category, such as
# Purchases of goods (purchase day book)
# Sales of goods (sales day book)
# Purchase returns of goods (purchase returns day book)
# Sales returns of goods (sales returns day book)
# Cash and Bank Book (for cash and bank transactions)
# Journal
# Purchases Ledger
# Sales Ledger
# General Ledger
When books are manually written (by pen on paper), there is a big advantage in splitting the books since different sections in the accounts department can write their own book - sales section can write sales book and sales returns book etc.
===Learning objectives===
===Learning objectives===
Understand the different books of accounts and their purposes
===Notes for teachers===
===Notes for teachers===
===Activity No # ===
Nowadays mostly books of accounts are maintained in computerised systems. In this case, the transaction information is entered and stored in 'transaction tables'. Both the Journals as well as the ledgers can be simple reports from this database, so the splitting into different books etc is no more important.
However even in computerised systems, different transaction types will have different input screens since the data being input will differ.
===Activity No # 1 Study different books formats ===
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''[http://www.karnatakaeducation.org.in/?q=node/305 Click to Comment]''</div>
''[http://www.karnatakaeducation.org.in/?q=node/305 Click to Comment]''</div>
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*Estimated Time
Each book of account has its special / unique format. The differences in these formats and their reasons can be discussed.
*Materials/ Resources needed
[https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system Wikipedia page on double entry book keeping] has the formats of different books
*Estimated Time - two periods
*Materials/ Resources needed
- Formats of the different books of accounts
*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
*Process
*Process
Analyse the formats of the different books and discuss why they are different?
*What questions can you ask
*What questions can you ask
A cash book is said to be both a Journal and a Ledger. Why?
*Assessments - incorporating elements of CCE
*Assessments - incorporating elements of CCE
*Question Corner
*Question Corner
Are there books other than the books of accounts discussed, which a business / entity needs to maintain? Such as staff records (staff information), fixed assets information, inventory information etc?
==Key Idea #==
==Key Idea #==
