Presentation – 1 Class-11 Commerce Subject – Book-keeping & Accountancy 2. Meaning and Fundamentals of Double Entry Book-Keeping Meaning and Definition of Double Entry Book-Keeping Methods of Recording accounting information Definition of Double Entry System Principles of Double Entry Book-keeping System: 2.3 Advantages of Double Entry Book-keeping System Table No. 1( In every business transaction there must be minimum two effects) Classification of Accounts(Traditional Approach): Table No. 2 Classification of Accounts(Traditional Approach): Table No. 2 Classification of Accounts(Traditional Approach): Golden Rules of Debit and Credit (Traditional Approach): Table No. 3 (Traditional Approach) Classification of Accounts (Modern approach) Rules of Debit and Credit (Modern approach) Table No. 3 (Modern approach)

1. Sunday, July 19, 2020 1
Presented by:- Mr.S.A.Musale.
WhatsApp. Mobile No.9763388734.
Subject – Book-keeping & Accountancy
Class-11 Commerce
Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of Double
Entry Book-Keeping

2. 
2. Meaning and Fundamentals of
Double Entry Book-Keeping
Meaning and Definition of Double Entry Book-Keeping
Double Entry Book-keeping System is the most scientific method of recording
all monetary transactions in the books of accounts. This system owes its origin to
Italian Merchant “LUCA D. BARGO PACIOLI” on 10th November 1494 and this day
is celebrated as International Accounting Day. This system of Bookkeeping is based
on the fact that there are two aspects of every business transactions. Every
business transaction involves two persons or accounts or parties where in one is
the receiver of the benefit and the other is the giver of the benefit. If something
comes into the business, something goes out from the business. Recording of two
aspects of monetary transactions in the Books of Account in terms of Debit (Dr.) and
Credit (Cr.) is called as "Double Entry“ System of Book-keeping.
According to modern approach, every business transaction is concerned
with Assets, Liabilities, Capital, Expenses and Income. Whenever there is an
increase in assets and expenses it is debited and decrease in assets and expenses
are credited.
Sunday, July 19, 2020 2Presented by:- Mr.S.A.Musale.

3. 
Sunday, July 19, 2020 3Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping
Methods of Recording accounting information:

4. 
Sunday, July 19, 2020
4
Presented by:- Mr.S.A.Musale.
1) Indian System:
Indian system maintains, records in Indian languages, such as Marathi, Hindi, Urdu,
Gujrati etc. It is called Mahajani Deshinama system. In this system transactions are recorded
or maintained in long books, known as Bahi-Khata and Kird. This system of accounting is
not based on Double Entry system of accounting. Thus, is not a scientific accounting system.
Even today this system is used in India for small business organization.
2) English System:
A) Single Entry System:
This system of accounting records only Cash book and Personal accounts. It is
unscientific method and also known as an incomplete recording system, because it changes
with the convenience of business for recording transactions. This system of accounting does
not provide accurate information about the financial position of business and it is suitable
for small business.
B) Double Entry System:
Double Entry System is the most scientific method of recording all business
transactions in the books of accounts. Under this system double or two fold effects of each
transaction is recorded. According to Double Entry Book-keeping System, one account is to
be debited and another account is to be credited with equal amount.
Methods of Recording accounting information:
2. Meaning and Fundamentals of
Double Entry Book-Keeping

5. Definition of Double Entry System
Sunday, July 19, 2020 5Presented by:- Mr.S.A.Musale.
Definition of Double Entry System is as follows-
“Every business transaction has a two fold effect and that it affects two accounts
in opposite directions and if a complete record is to be made of each such
transaction it would be necessary to debit one account and credit another
account. It is this recording of two fold effect of every transaction that has given
rise to the term Double Entry.” – J.R. Batliboi.
Principles of Double Entry Book-keeping System:
1) In every business transaction there must be minimum two effects i.e debit
and credit.
2) Two Accounts means one is the Receiver of the benefit and other is the Giver
of the benefit.
3) If one account is debited other account must be credited.
4) Every debit has a equal and corresponding credit of the same amount.
2. Meaning and Fundamentals of
Double Entry Book-Keeping

6. 2.3 Advantages of Double Entry Book-keeping System:
Sunday, July 19, 2020
6
Presented by:- Mr.S.A.Musale.
1) Complete Record: Under this system all business transactions are
recorded. This method is scientific and records both the aspects of each
transaction.
2) Accuracy: In this system both aspects are recorded in the books of
accounts so it gives complete accuracy in accounting work. It also checks
arithmetical accuracy.
3) Business Results: All expenses, losses, income, gains, liabilities, assets,
debtors and creditors all these transactions are recorded, therefore it
helps to find out accurate business results of particular accounting
period.
4) Common Acceptance: It is widely accepted since it follows universal
accounting principles. Double Entry System is accepted by financial
institutions, government authorities etc.
2. Meaning and Fundamentals of
Double Entry Book-Keeping

7. 
Sunday, July 19, 2020 7Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of Double Entry Book-Keeping
Table No. 1( In every business transaction there must be minimum two effects)
Sr.
No.
Transactions Two Aspects
1. Goods Purchase ₹ 10000. for cash Goods (Purchase A/c),
Cash A/c
2. Goods Sold ₹ 20000. for cash Goods (Sales A/c),
Cash A/c
3. Goods Purchase ₹ 15000. on Credit from Samir Traders Goods (Purchase A/c),
Samir Traders A/c
4. Goods Sold ₹ 8000. on Credit to Amar Goods (Sales A/c),
Amar A/c
5. Rent paid ₹ 5000. Cash A/c
Rent A/c
6. Commission Received ₹1000. Cash A/c
Commission A/c
7. Salary paid ₹ 8000. Cash A/c
Salary A/c
8. Purchase Furniture ₹ 10000. for cash Cash A/c
Furniture A/c
9. Purchase Furniture ₹ 10000. on Credit from Soni Furniture. Furniture A/c
Soni Furniture A/c
10. Cash paid to Samir Traders ₹ 5000 Cash A/c
Samir Traders A/c
11. Cash Received from Amar ₹ 5000 Cash A/c
Amar A/c
12. Cash paid to Soni Furniture ₹ 5000. Soni Furniture A/c
Cash A/c
13. sold old Furniture ₹2000 Cash A/c
Furniture A/c

8. 
Classification of Accounts
Sunday, July 19, 2020 8Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping
Meaning of Account:
An account is a summarized record of transactions relating to a particular
person, asset, liability, particular head of expense or income recorded at
one place. In day to day business activity large number of business
transactions takes place. It affects the several accounts. At the end of certain
period of time, it is necessary for the businessman to balance the accounts
to find out the information. like total capital, total liabilities and assets ,
total incomes and expenses etc. of the business.
Definition of Account:
“An account is summarized record of transactions affecting one person,
one kind of property or one class of gain or loss.” – G.R.Batliboi
“An account is a ledger record in a summarized form of all the transactions
that have taken place with the particular person or thing specified.” –
Carter

9. 
Sunday, July 19, 2020 9Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping
Classification of Accounts
Personal Impersonal
Real
Nominal
Classification of Accounts

10. 
Sunday, July 19, 2020 10Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping
Classification of Accounts
1) Personal Accounts:
This account represents a person and group of persons with
whom business deals.
All accounts of Person and Institutions are personal.
2) Real Accounts:
This account represents assets and properties owned by the
business.
All Assets and Properties are Real
3) Nominal Accounts:
The account of expenses, losses, income and gains are called as
Nominal accounts.

11. 
Sunday, July 19, 2020 11Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of Double Entry Book-Keeping
Sr.
No.
Transactions Two Aspects Classification
of Account
1. Goods Purchase ₹ 10000. for cash Goods (Purchase A/c),
Cash A/c
Real (Nominal )
Real
2. Goods Sold ₹ 20000. for cash Goods (Sales A/c),
Cash A/c
Real (Nominal )
Real
3. Goods Purchase ₹ 15000. on Credit from Samir Traders Goods (Purchase A/c),
Samir Traders A/c
Real (Nominal )
Personal
4. Goods Sold ₹ 8000. on Credit to Amar Goods (Sales A/c),
Amar A/c
Real (Nominal )
Personal
5. Rent paid ₹ 5000. Cash A/c
Rent A/c
Real
Nominal
6. Commission Received ₹1000. Cash A/c
Commission A/c
Real
Nominal
7. Salary paid ₹ 8000. Cash A/c
Salary A/c
Real
Nominal
8. Purchase Furniture ₹ 10000. for cash Cash A/c
Furniture A/c
Real
Real
9. Purchase Furniture ₹ 10000. on Credit from Soni Furniture. Furniture A/c
Soni Furniture A/c
Real
Personal
10. Cash paid to Samir Traders ₹ 5000 Cash A/c
Samir Traders A/c
Real
Personal
11. Cash Received from Amar ₹ 5000 Cash A/c
Amar A/c
Real
Personal
12. Cash paid to Soni Furniture ₹ 5000. Soni Furniture A/c
Cash A/c
Personal
Real
13. sold old Furniture ₹2000 Cash A/c
Furniture A/c
Real
Real
Table No. 2

12. 
Golden Rules of Debit and Credit (Traditional Approach):
Sunday, July 19, 2020 12Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping

13. 
Table No. 3 (Traditional Approach)
Sunday, July 19, 2020 13Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of Double Entry Book-Keeping
Sr.
No.
Transactions Two Aspects Classification
of Account
Debit /
Credit
Rules
1. Goods Purchase ₹ 10000. for cash Goods (Purchase A/c),
Cash A/c
Real (Nominal )
Real
Debit
Credit
Debit what comes in (all expenses)
Credit what goes out
2. Goods Sold ₹ 20000. for cash Goods (Sales A/c),
Cash A/c
Real (Nominal )
Real
Credit
Debit
Credit what goes out (all incomes)
Debit what comes in
3. Goods Purchase ₹ 15000. on Credit from
Samir Traders
Goods (Purchase A/c),
Samir Traders A/c
Real (Nominal )
Personal
Debit
Credit
Debit what comes in (all expenses)
Credit the giver
4. Goods Sold ₹ 8000. on Credit to Amar Goods (Sales A/c),
Amar A/c
Real (Nominal )
Personal
Credit
Debit
Credit what goes out (all incomes)
Debit the receiver
5. Rent paid ₹ 5000. Cash A/c
Rent A/c
Real
Nominal
Credit
Debit
Credit what goes out
Debit all expenses & losses
6. Commission Received ₹1000. Cash A/c
Commission A/c
Real
Nominal
Debit
Credit
Debit what comes in
Credit all incomes & gains
7. Salary paid ₹ 8000. Cash A/c
Salary A/c
Real
Nominal
Credit
Debit
Credit what goes out
Debit all expenses & losses
8. Purchase Furniture ₹ 10000. for cash Cash A/c
Furniture A/c
Real
Real
Credit
Debit
Credit what goes out
Debit what comes in
9. Purchase Furniture ₹ 10000. on Credit
from Soni Furniture.
Furniture A/c
Soni Furniture A/c
Real
Personal
Debit
Credit
Debit what comes in
Credit the giver
10. Cash paid to Samir Traders ₹ 5000 Cash A/c
Samir Traders A/c
Real
Personal
Credit
Debit
Credit what goes out
Debit the receiver
11. Cash Received from Amar ₹ 5000 Cash A/c
Amar A/c
Real
Personal
Debit
Credit
Debit what comes in
Credit the giver
12. Cash paid to Soni Furniture ₹ 5000. Soni Furniture A/c
Cash A/c
Personal
Real
Debit
Credit
Debit the receiver
Credit what goes out
13. sold old Furniture ₹2000 Cash A/c
Furniture A/c
Real
Real
Debit
Credit
Debit what comes in
Credit what goes out

14. 
Classification of Accounts (Modern approach)
Sunday, July 19, 2020 14Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of
Double Entry Book-Keeping

15. 
Two fundamental rules to be followed
to record the changes in these accounts:
Sunday, July 19, 2020 15Presented by:- Mr.S.A.Musale.
2. Meaning and Fundamentals of Double Entry Book-Keeping
1) For recording changes in Assets / Expenses / Losses.
I) Increase in asset is debited and decrease in asset is credited.
II) Increase in expenses/losses is debited and decrease in expenses/ losses
is credited.
2) For recording changes in liabilities and capital / revenues / Gains.
I) Increase in liabilities is credited and decrease in liabilities is debited.
II) Increase in capital is credited and decrease in capital is debited.
III) Increase in revenues/gains is credited and decrease is revenue/gains is
debited.

16. 
Sunday, July 19, 2020 Presented by:- Mr.S.A.Musale. 16
2. Meaning and Fundamentals of Double Entry Book-Keeping
•Debited Increase in Asset
•Credited Decrease in Asset
Assets
•Debited Decrease in liabilities
•Credited Increase in liabilities
liabilities
•Debited Decrease in capital
•Credited Increase in capital
Capital
• Debited Increase in expenses/losses
• Credited Decrease in expenses/ losses
Expenses / Losses
• Debited Decrease in Revenues (Income) /Gains
• Credited Increase in Revenues (Income) /Gains
Revenues (Income) / Gains
Rules of Debit and Credit (Modern approach)

17. 
Sr.
No.
Transactions Two Aspects Classification
of Account
Debit /
Credit
Rules
1. Goods Purchase ₹ 10000. for cash Goods
(Purchase A/c),
Cash A/c
Assets
(Expenses)
Assets
Debit
(Debit)
Credit
Debited Increase(+) in Asset
(Debited Increase in expenses/losses)
Credited Decrease (-)in Asset
2. Goods Sold ₹ 20000. for cash Goods
(Sales A/c),
Cash A/c
Assets
(Income)
Assets
Credit
(Credit)
Debit
Credited Decrease (-)in Asset
(Credited Increase in Income /Gains)
Debited Increase(+) in Asset
3. Goods Purchase ₹ 15000. on Credit from
Samir Traders
Goods
(Purchase A/c),
Samir Traders A/c (Creditor)
Assets
(Expenses)
Liabilities
Debit
(Debit)
Credit
Debited Increase(+) in Asset
(Debited Increase in expenses/losses)
Credited Increase in liabilities
4. Goods Sold ₹ 8000. on Credit to Amar Goods
(Sales A/c),
Amar A/c (Debtor)
Assets
(Income)
Assets
Credit
(Credit)
Debit
Credited Decrease (-)in Asset
(Credited Increase in Income /Gains)
Debited Increase(+) in Asset
5. Rent paid ₹ 5000. Cash A/c
Rent A/c
Assets
Expenses
Credit
Debit
Credited Decrease (-)in Asset
Debited Increase in expenses/losses
6. Commission Received ₹1000. Cash A/c
Commission A/c
Assets
Income
Debit
Credit
Debited Increase(+) in Asset
Credited Increase in Income /Gains
7. Salary paid ₹ 8000. Cash A/c
Salary A/c
Assets
Expenses
Credit
Debit
Credited Decrease (-)in Asset
Debited Increase in expenses/losses
8. Purchase Furniture ₹ 10000. for cash Cash A/c
Furniture A/c
Assets
Assets
Credit
Debit
Credited Decrease (-)in Asset
Debited Increase(+) in Asset
9. Purchase Furniture ₹ 10000. on Credit
from Soni Furniture.
Furniture A/c
Soni Furniture A/c(Creditor)
Assets
Liabilities
Debit
Credit
Debited Increase(+) in Asset
Credited Increase in liabilities
10. Cash paid to Samir Traders ₹ 5000 Cash A/c
Samir Traders A/c (Creditor)
Assets
Liabilities
Credit
Debit
Credited Decrease (-)in Asset
Debited Decrease in liabilities
11. Cash Received from Amar ₹ 5000 Cash A/c
Amar A/c (Debtor)
Assets
Assets
Debit
Credit
Debited Increase(+) in Asset
Credited Decrease (-)in Asset
12. Cash paid to Soni Furniture ₹ 5000. Soni Furniture A/c (Creditor)
Cash A/c
Liabilities
Assets
Debit
Credit
Debited Decrease in liabilities
Credited Decrease (-)in Asset
13. sold old Furniture ₹2000 Cash A/c Assets Debit Debited Increase(+) in Asset
17
Table No. 3 (Modern approach)
2. Meaning and Fundamentals of Double Entry Book-Keeping

18. Sunday, July 19, 2020 18Presented by:- Mr.S.A.Musale.