JKSSB ACCOUNTANCY & BOOK KEEPING STUDY MATERIAL
{Prepared by: Engineer Shariq}
IMPORTANT TERMS.
1. INTRODUCTION.
2. FINANCIAL ACCOUNTING.
3. ACCOUNT EQUATION, JOURNAL AND TYPES OF ACCOUNTS.
4. VOUCHER AND BANK RECONCILITION STATEMENT.
5. FINANCIAL MANAGEMENT/ STATEMENT
AND PARTNERSHIP ACCOUNT.
6. FINANCIAL AUDIT, SOCIAL
ACCOUNTING AND SOCIAL AUDIT.
7. LEDGER, CASH BOOK AND DOUBLE ENTRY BOOK KEEPING.
8. JOURNALIZING AND TRIAL BALANCE.
9. TRADING ACCOUNT, PROFIT LOSS ACCOUNT AND BALANCE SHEET.
10. SINGLE ENTRY SYSTEM OF ACCOUNTING.
11. PUBLIC FINANCIAL MANAGEMENT SYSTEM.
12. OBJECTIVE TYPE QUESTIONS.
IMPORTANT TERMS
- Credit: Money available for a client to borrow.
- Debit: An entry that removes an amount of money from a clients account.
- Cost: The amount of expenditure incurred on a specified article, product or activity.
- Expenses: A cot relating to the operations of an accounting period.
- Revenue: Total amount received from sales of goods/services.
- Income: Excess of revenue over expenses.
- Loss: Excess of expenses over revenue.
- Capital: Generally refers to the amount invested in an enterprise by its owner.
- Fund: An account usually of the nature of a reserve or provision which is represented by specifically Ear Market Assets.
- Gain: A monetary benefit, profit or advantage resulting from a transaction or group of transactions.
- Investment: Expenditure on assets held to earn interest, income, profit or other benefits.
- Liability: The financial obligation of an enterprise other than owners’ funds.
- Net Profit: The excess of revenue over expenses during a particular accounting period.
- Creditor: Amount owned by an enterprise on account of goods purchased or services received.
- Debtor: Persons from whom amounts are due for goods sold or services rendered.
- Reserve: The portion of earnings of an enterprise appropriated by the management for a general or specific purpose.
- Inventory: Tangible property held for sale in the ordinary course of business or in the process of production for such sale.
- Interim Report: The information provided with reference to a date before the close of the accounting period to owners or other interested persons concerning its operations/financial position. Depreciation: Decrease in the value of fixed assets.
- Balance Sheet: A statement of the financial position of an enterprise as at a given date.
- Capital: Generally refers to the amount invested in an enterprise by its owners.
- Bad Debt: Debt owned to an enterprise which is considered to be irrecoverable.
- Capital: It refers to the interest of owners in the assets of an enterprise.
- Trade Discount: Reduction on print prices of goods.
- Cash Discount: A reduction granted by a supplier from the invoiced price in consideration of payment with in a stipulated period.
- Assets: Tangible objects or intangible rights owned by an enterprise and carrying probable future benefits.
- Profits & Loss Account: A financial statement which represents the revenues and expenses of an enterprise and shows the excess of revenues over expenses or vice-versa.
- Balance Sheet: A statement of the financial position of an enterprise as at a given date.
- Bill of Exchange: An instrument in writing containing an unconditional order, signed by the maker, directing a certain person
- to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
- Journal: Journal is a primary book for recording the day to day transactions in a chronological order.
- Goods: The items in which enterprise deals in.
- Contra Entry: Entries related to cash and banks are known as contra entries.
- Debit Balance: Total of debit side is greater than credit side.
- Outstanding Expenses: An expense which has been incurred in an accounting period but for which no enforceable claim has became in that period.
- Prepaid Expenses: Expenses which has not incurred but paid in advance.
- Amortization: The gradual and systematic writing off of an asset or an account over an appropriate period.
- Assets: Tangible objects or intangible rights owned by an enterprise.
- Balance Sheet: A statement of the financial position of an enterprise as at a given date.
- Contingent Liability: An obligation relating to an existing condition which may arise or not.
- Reserve: The portion of earnings appropriated by the management for a general or specific purpose.
- Trial Balance: A statement which is prepared to check the arithmetical mistakes in the accounting system.
- Rectifying Entry: A journal entry which is passed to remove the effect of errors.
- Two-sided Errors: Errors which affects two accounts simultaneously.
- Pass Book: Copy of firm’s account with bank.
- Overdraft: With drawls in excess of bank deposits.
- Favorable Balance: Debit balance of cash book.
- Reconciliation: Agreement of cash bank and pass book.
- Cost: The amount of expenditure incurred on or attributable to a specified article, product or activity.
- Current Asset: Cash and other assets that are expected to be converted into cash or consumed in the production of goods or services.
- First in First Out (FIFO): Computation of the cost of items sold or consumed during a period as though they were sold or consumed in order of their acquisition.
- Last in First Out (LIFO): Computation of cost of items sold or consumed during a period on the basis that the items last acquired were sold first.
- Revenue Expenditure: A cost relating to the operations of an accounting period or benefits of which do not extend beyond that period.
- Social Cost: The cost or loss to society resulting from the operations of an enterprise.
- Social Benefit: The benefits or income of society resulting from the operations of an enterprise.
- Legacy: Refers to the amount which one gets on account of a will.
- Endowment Fund: The fund arising from a bequest or gift is known as endowment fund. The endowment fund is a capital receipt.
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