Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board.
Chapter 1 - Introduction to Partnership and Partnership Final Accounts [Latest edition]
Difficult Words & Meanings
Accountancy:
The job or field of keeping and checking financial records.
Adjustments:
Changes made to accounts at the end of an accounting period to accurately show income and expenses.
Book-keeping:
The process of recording daily financial transactions of a business.
Capital (in business):
Money or other assets owned by a business or its owners for starting or running the business.
Constant:
Remaining the same or unchanged.
Credit Balance:
When the total credits in an account are more than the total debits. Often means money is owed to you or you have a surplus.
Current Account (in Partnership):
A partner's account where all adjustments like interest on capital, drawings, salary, and share of profit/loss are recorded when the Fixed Capital Method is used.
Current Assets (or Liquid Assets):
Things a business owns that can be easily turned into cash within a short time, usually one year.
Debit Balance:
When the total debits in an account are more than the total credits. Often means you owe money or have an expense.
Drawings (in Accountancy):
Cash or goods taken by the owner or partners from the business for personal use.
Due (expenses):
An expense that is owed or needs to be paid by a certain time.
Final Accounts:
Financial statements prepared at the end of an accounting period to show a business's financial performance (like profit/loss) and position (assets/liabilities).
Fixed Capital Method:
A way of maintaining partners' capital accounts where the initial capital invested remains unchanged unless more capital is added or withdrawn permanently.
Fluctuating Capital Method:
A way of maintaining partners' capital accounts where all adjustments (interest, drawings, profits, etc.) are made directly in the capital accounts, causing them to change often.
Gross Loss:
When the cost of goods sold is more than the revenue from sales. It's the loss from basic trading activities before other expenses are considered.
HSC:
Higher Secondary Certificate, an examination taken by students in India after completing 12th grade.
Indian Partnership Act, 1932:
The law in India that governs and regulates partnership businesses.
Net Profit:
The profit a business makes after all operating expenses, taxes, and interest are subtracted from its total revenues.
Order of Liquidation (Balance Sheet context):
As per the text, the order of listing assets on a Balance Sheet, starting with fixed assets. (More commonly, "Order of Permanence" for fixed assets first, or "Order of Liquidity" for current assets first).
Partnership Deed:
A written legal agreement between partners that outlines the terms and conditions of the partnership, like roles, responsibilities, and profit/loss sharing.
Partnership Firm:
A business structure where two or more individuals (partners) agree to share in the profits or losses of a business they jointly own and operate.
Prepaid Expenses:
Expenses that are paid for in advance, before the actual benefit or service is received. They are considered assets until used up.
Profit and Loss Account:
A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, to show the net profit or net loss.
Profit Sharing Ratio:
The agreed-upon proportion in which partners will share the profits or bear the losses of the partnership firm.
Proportion:
A part or share in relation to the whole.
Regulated:
Controlled or managed according to rules or laws.
Registrar:
An official whose job is to keep official records or registers (e.g., Registrar of Firms).
Registration:
The official process of recording information, like the name and details of a partnership firm, with a recognized authority.
Substitute:
To use or put something in place of another.
Trading Account:
A financial statement prepared to find out the gross profit or gross loss of a business from its main trading activities (buying and selling goods).