# Textbook

## How the topic is discussed in NCERT Books

NCERT Class XI has 'Financial Accounting - I' text book, which gives much more detailed explanation of Accounting. Chapter 1 provides an introduction to accountancy and chapter 2 discusses basic accounting concepts which is very much required to understand the subject.

Class XI - Financial Accounting - Chapter 3 and Class XI - Financial Accounting - Chapter 4 deals with recording of transactions, in much more detail. It provides images of vouchers, books which can help get a better understanding of book keeping. Chapter 3 also has 20 sums for recording Journal transactions

Chapter 6 discusses preparation of Trial Balance. Teachers will find reading the NCERT text book useful since it is discussed in far more detail with many examples for easier understanding

## Useful websites

Wikipedia page on double entry book keeping gives a detailed explanation for this method. It includes solved examples of recording transactions using double entry method and preparation of the financial statements.

http://www.samarak.com/bookkeeping-center/bookkeeping-dictionary.html has a brief explanation for terms used in book keeping.

## Reference Books

Tamil Nadu text book for Class XII gives a very good and detailed explanation about Book Keeping and Accounting.

Other popular authors in this topic include 1. T.S.Grewal – Double Entry Book Keeping. 2. R.L. Gupta – Principles and Practice of Accountancy 3. T.S.Grewal – Introduction to Accountancy

# Teaching Outlines

Please describe the key ideas to be conveyed in this section. Also broken down in details by each idea

## Key Idea # 1 - Introduction to Book Keeping - Double Entry System

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

Understand double entry book keeping system

### Notes for teachers

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

1. 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

NCERT text book (soft copy), pen, paper

• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• 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

How do large organisations with thousands of transactions manage to maintain books of accounts?

### Activity No #

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

## Key Idea #

What are the key ideas to be covered

### Activity No #

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

### Activity No #

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

## Key Idea #

What are the key ideas to be covered

### Activity No #

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

### Activity No #

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

# Project Ideas

If a local business will accept then students can go for brief internship to write the books of accounts. To start with, they can just analyse and study the originating documents like cash bills, invoices, checks etc. Later they can pass / write the journal entries in their own books. this will give them hands-on experience.

# Community Based Project

Usage

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