There are three types of accounts:

1. Personal account

2. Real account

3. Nominal accountR

1. Rule for personal account -  "debit the receiver and credit the giver."

2. Rule for real account is- "debit what comes in and credit what goes out"

3. Rule for nominal account is-"debit all expenses and losses and credit all incomes and gains"

Basic Terms:

1.Utility:It refers to want satisfying power of the commodity.It is measured in utiles.

2.Types of Utilities:

• Tototal Utility: It refers to sum total of utility that is received from all units of a commodity.
• Marginal utility: It refers to utility received from an additional unit of a commodity.

Relationship between TU AND MU:

1. When TU is increasing, MU is falling but positive.

2. When TU is maximum and constant, MU is zero 

3. When TU falls but positive, MU is falling and negative.

How to buy another house while owning a house at Brigade Komarla Heights?

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How to buy another house while owning a house at Brigade Komarla Heights?

www . brigadekomarlaheights . org . in

ॐ श्री सरस्वत्यै नमः

We all know this subject very well from our childhood. Remember those days of childhood when we share toffee and chocolates with your brother, sister and friends; we use to either keep more or give less, which means we hate to get less. Consider this less as LOSS. 

Then we grew up a little bit when parents started to give us pocket money, and our relatives gave us lifafa. Forget those lifafa as our parents use to keep those lifafas always. So what remains with us in only the pocket money provided by our parents and we use to give them "hisab". That where and how much we had spent. This hisab is the accounts which we use to write in a paper or a diary. 

In this subject, we will learn to keep the more FORMAL hisab with some fancy words or terms. That is all. Being honest with you friends, you don't need a tutor for this subject. You know this subject very well.

All the best for your brightest future friends!

History of Accounting : 

Before knowing the history of accounting, let us know about the history of money which is the basis of the accounting process.

Money : 

Item or verifiable record accepted for payment of goods and services, repayment of debts, taxes etc.,

No one sure about the information regards money, but METAL is used as money in early 5000 B.C.

Barter system : 

In Ancient times Mediaeval European used tally sticks as evidence for remembering debts.

The barter system is an exchange of goods directly for goods and services.

The barter system is not delayed in time.

• Bilateral basis ( 2 Members)
• Multilateral basis( 2 or More members including 3rd party).

Bilateral basis : 

Eg. Alice exchange apple 🍎 to John exchange 🍊 orange.

Multilateral basis : 

Eg.Alice exchange apple 🍎 to John exchange orange 🍊 to Charles exchange 🍐 pear to Alice.

 Later in the year 600 to 650 B.C. 

LYDIAN KINGDOM of Western Asian culture is known to be the IRON AGE KINGDOM are the first to make coins.

They are originators of GOLD and SILVER COINS. Other countries to start their specified value coins.

MONEY ORIGIN 💰:

In the year of 1000 B.C - 400 A.D. standardised coins had been established in 7 th century.

Later in 11th century, some empires and dynasty's period silver coins are used for the transaction held.

Indian sub-continent - SHER SHAH SURI (1540 - 1545).

During this empire, period introduced silver coins called RUPIAH weighing 178 gms, and it is used and continued in MUGHAL EMPIRE 13 th century

Paper money is well known in Europe through Accounting traveller's as MORCOPOLO and WILLIAM OF RUBRUCK ( Explorers) from middle east and central Asia.

For a large sum of money used for long-distance of transporting transaction. Money traders start using promissory notes, which is the basis for traders to start using banknotes. Promissory notes predecessor to regular Banknotes.

During 18th and a quarter of 19th century Bills of exchange is used and essential before the raising of Banknotes.

• Demand deposits
• Documents
• Paper notes
• Digital currency.

Account:

In 1300 " Counting", " reckoning", of money transaction (action of process of calculating or estimating something).

Calculation in Latin word as Computer means to count or sum up.

Father of Modern Accounting :

LUCA PACIOLI - 1494

History of Accounting and Accountancy can be traced 1000 years old in ancient civilizations.

Early development of Accounting dates back in Mesopotamian age closely related to developments in writing or counting or money to access the detail report of financial information.

Many parts of the world Accounting can be used widely for the recording of goods and services related activities are evidence seen in the Egyptians and Babylonians period.

Mesopotamian used primitive accounting methods for keeping records that detailed transaction involving domesticated agriculture setting (Animal's, livestock, crops commodities such as MEAT, FUR, MILK, EGGS,  LEATHER and WOOL).

In India, philosopher and economist CHANAKYA wrote ARTHSHASTRA BOOK in 2nd century B.C. It contains details and advice on how to maintain record books of accounts.

Origin of Accounting: 

• Accounting is an act of keeping lists of all debits and all credits.
• It is a language of business of all finance.
• It can translate the complexities of finance into information where the public can understand.
• It roots from ancient civilizations.

Bookkeepers : 

They emerged during the period of the Barter system. They classified the records under CASH ECONOMY and COMMERCE ECONOMY.

They kept transaction in Individual ledgers for the proof if dispute raises, a matter brought before a magistrate.

New and improved ledgers :

During currencies became very important and available TRADESMEN and MERCHANTS began bookkeeping for build material and wealth. Also, to know what they owed and who owed debts to them.

In Until 1400s single column information has been maintained.

Eg. Sale of three chickens Rs.48/-

       Sale of seeds Rs.900/-

       Bought goods Rs.200/-

It will be time-consuming and inefficient in tallying method.

The Mathematical Monk :

During 15th century Italian monk LUCA PACIOLI structured and laid the groundwork of modern accounting. He Published the book     " SUMMA DE ARTHIMERTICA" in 1494, shows benefits of Double entry system. It is the simplest form of maintaining separate debits and credits providing a clear picture of the company and overall strength. The general public has no access to such records.

Eg. Sale of three chickens Rs.48/-

              Debit cash Rs.48/-

               Credit chicken Rs.48/-

Sale of seeds Rs.900/-

            Debit cash Rs.900 /-

            Credit seeds Rs.900/-

It gives awareness of the financial health of the company.

Financial statements :

Prepared to attract INVESTORS, CORPORATIONS, SHAREHOLDERS.

Income statement and cash flow statement documents were proof of companies profit-making abilities.

It stimulating operations and profits for making a complete study of trusting and it's management.

Birth of Accounting profession : 

Accountants are made essential for attracting investors to maintaining investors confidence. Hence, the Accounting profession was recognised in 1896 and title established of CPA ( certified public accountant).

Accounting today : 

Using a large number of tools for calculating receipts and payments for quickly reconciling books and technology has brought Accounting software as quick books show job faster and more accurate information with less time-consuming.

I am a Commerce student and have heard about a lot of scope in Data Science like Python, SAS etc. Is this good for a commerce student? What all opportunities will be available in the future?