RBSE Solutions Class 9 Social Science Chapter 19 Book-Keeping Accountancy

Textbook Questions Solved

Multiple Choice Questions (MCQs)

 

Question 1. The most scientific method of book-keeping and accounting is
(a) Single Entry System
(b) Cash Book System
(c) Mahajani System of Accounting
(d) Double Entry System
Answer: (d) Double Entry System
In simple words: The Double Entry System is considered the most organized and accurate way to manage financial records and accounts.

🎯 Exam Tip: Remember that the Double Entry System is widely accepted as the foundation of modern accounting due to its comprehensive nature.

 

Question 2. Double entry means transaction of
(a) doing entry on both sides of an account
(b) doing entry in personal account of both
(c) doing entry in depositing of two accounts
(d) doing entry in one's personal account and doing entry in favour of deposit of other side
Answer: (d) doing entry in one's personal account and doing entry in favour of deposit of other side
In simple words: Double entry means that for every money action, you record it in two places. For example, you make a note in your personal account and another note for the account where the money is deposited.

🎯 Exam Tip: Understanding how each transaction affects two accounts is crucial for balancing ledgers and ensuring accuracy.

 

Question 3. At which stage in double entry system from the financial position of business is known?
(a) Classification
(b) Summary
(c) Original record
(d) Ledger posting
Answer: (d) Ledger posting
In simple words: Ledger posting is the step where you transfer all entries from the journal into different accounts in the ledger. This process helps organize the information needed to eventually understand the business's financial situation.

🎯 Exam Tip: While ledger posting organizes data, the full financial position is usually determined after preparing a trial balance and final accounts, which build upon the ledger data.

 

Question 5. The Mahajani system of accountancy (Indian entry method) is based on:
(a) Single Entry System
(b) Cash System
(c) Double Entry System
(d) None of the options
Answer: (c) Double Entry System
In simple words: The Mahajani way of keeping accounts, an old Indian method, follows the core principles of the Double Entry System.

🎯 Exam Tip: Recognize that while Mahajani is an Indian system, its underlying principles align with the globally accepted Double Entry System.

Very Short Answer Type Questions

 

Question 1. How many sals (folds) are there in Mahajani Book keeping system?
Answer: In the Mahajani book-keeping system, the accounting books can have 6, 8, 12, or 16 'sals' (folds). The number of folds determines the structure of the book's pages.
In simple words: The special books used in the Mahajani system can have 6, 8, 12, or 16 folds.

🎯 Exam Tip: Note that 'sals' refer to the way the paper is folded to create sections in the Mahajani books, not distinct physical pages.

 

Question 2. Pakki Rokar Bahis are made from which book?
Answer: Pakki Rokar Bahis are created using information that is transferred from the Kachchi Rokar Bahi. The Kachchi Rokar Bahi serves as a preliminary record for these more formal books.
In simple words: The official 'Pakki Rokar Bahis' are made from the 'Kachchi Rokar Bahi', which is like a rough draft or initial record.

🎯 Exam Tip: Understand the progression from 'Kachchi' (rough) to 'Pakki' (final) records in traditional Indian accounting systems.

 

Question 3. What is entry in account book called?
Answer: When a transaction is recorded in an account book, it is called either a debit or a credit. These terms indicate whether money is coming into or going out of an account, or if an account is increasing or decreasing.
In simple words: Putting a record into an account book is called making a 'debit' or a 'credit' entry.

🎯 Exam Tip: Remember that 'debit' and 'credit' are fundamental terms in accounting, representing the two sides of every transaction.

Short Answer Type Questions

 

Question 1. Write the three merits and two demerits of Double Entry System of Book Keeping.
Answer:
Merits:
3. Information of Profit and Loss: This system provides clear details about the profit or loss a business has made.
Demerits:
1. Difficult to find wrong entries: If mistakes are made, they can be hard to spot in the initial journal entries, as the system itself won't always catch them if both sides are recorded incorrectly.
2. Costly method: Implementing and maintaining this system can be expensive, requiring skilled personnel and resources.
In simple words: One good thing about this system is it tells you about profits and losses. But, it's hard to find mistakes, and it can be expensive to use.

🎯 Exam Tip: When listing merits and demerits, ensure you provide distinct points for each category and focus on the practical implications of the system.

 

Question 2. Write the names of books of the first stage of the Double Entry System of book keeping.
Answer: The books used in the first stage of the Double Entry System of bookkeeping include the Purchase book, Sales book, Purchase return book, Sales Return book, Bills receivable books, Cash book, and the main journals. These initial books capture the original records of all business transactions.
In simple words: At the start of the Double Entry System, you use books like a Purchase book for buying, a Sales book for selling, and a Cash book for money in and out. You also use main journals to write down all the first records.

🎯 Exam Tip: Listing specific examples of subsidiary books is important, as they form the foundation of the Double Entry System's initial recording stage.

 

Question 3. Give the definition of accounting.
Answer: According to R.N. Anthony, an accounting system is a tool or source that gathers information related to a business in monetary terms. It then summarizes this information and provides relevant details about the business's financial activities. This process helps to understand the financial story of an organization.
In simple words: Accounting is like a tool that collects all money-related information about a business, then puts it together neatly, and shares what it found. This helps people understand how the business is doing financially.

🎯 Exam Tip: When defining accounting, emphasize that it's about collecting, summarizing, and communicating financial information, always in monetary terms.

 

Question 4. Give any three objectives of accountancy.
Answer: The three main goals of accountancy are:
1. To write the monetary transactions of all business dealings financially: It ensures every financial transaction is recorded accurately.
2. Classification of transactions and presenting them in a summarised way: This helps to sort and organize all financial activities into understandable summaries.
3. To analyse and decide profit and loss: It helps businesses determine if they are making money or losing it, and why.
In simple words: Accountancy aims to record all money matters, organize them clearly, and then show if the business made a profit or a loss.

🎯 Exam Tip: Focus on the keywords: recording, classifying/summarizing, and analyzing profit/loss when listing the objectives of accountancy.

 

Question 5. Give the definition of principle of accounting.
Answer: The core principle of accounting states that in every transaction, two sides are involved: one side gives, and the other side takes. Therefore, at the time of accounting, both sides are affected and must be recorded. This dual aspect is fundamental to the balancing of financial records.
In simple words: The main rule of accounting is that every money action has two parts. One part gives, and the other part takes. So, you always record both sides when you do accounting.

🎯 Exam Tip: The principle of accounting is essentially the concept of dual-aspect, where every transaction has a two-fold effect (debit and credit).

Accounting is the skill of recording, sorting, and summarizing financial transactions and events in a meaningful way, ultimately helping to understand the business's results.

It starts after bookkeeping is done. In accounting, business deals are recorded, looked at closely, and explained. It helps to figure out how profitable a company is and its financial health.

The goals of accounting are as follows:
1. To maintain the systematic record of business transactions.
2. To calculate net profit/loss of the business.
3. To as certain the financial position of the business.
4. To make available business information to various interest groups.
5. To facilitate planning and quick decision-making.

 

Question 2. According to the principles of Double Entry system one is debited and the other is credited for same amount. Explain the statement and describe various stages.
Answer: The Double Entry system is based on the idea that every financial transaction has two parties: one that gives something, and the other that receives. Because of this, every business deal is recorded in two accounts. One record goes on the debit side, and the other on the credit side, which is why it's called the Double Entry System. This fundamental concept helps maintain balance in financial records.
Its various stages are:
(a) Original Records: This is the first step where transactions are recorded right after they happen. The books used for these initial entries are called original books of records. A small business owner might use a single 'Journal' book for all dealings, while larger businesses use many 'subsidiary books' like a purchase book, sales book, purchase return book, sales return book, bills receivable books, bills payable book, a cash book, and the main journal.
(b) Classification and Ledger Posting: Original records are mainly for quickly noting down business transactions for memory. They don't immediately show how much money is owed or received from specific individuals, or how much was spent or earned on particular items. This is because original entries are made by date, not by type of transaction or party. To sort this, all entries from the main entry book are transferred to different accounts, which is called ledger posting.
(c) Summary or Preparation of Final Accounts: The Ledger contains many accounts, but it doesn't directly show the total profit or loss made or the business's overall financial health. To find this out, a 'trial balance' is prepared by combining the balances from all ledger accounts. Using this trial balance, 'Trading accounts', 'Profit and Loss accounts', and a 'Balance sheet' are created. These are known as the final accounts and provide a complete financial picture.
In simple words: The Double Entry system works on a simple rule: every money action affects two accounts. One account gets a 'debit', and the other gets a 'credit' for the same amount. First, you write down all deals in special books like a Journal. Then, you sort these entries into different accounts in a 'Ledger' to see totals for each person or item. Finally, you create summary reports like profit/loss statements and balance sheets to understand the business's overall financial health.

🎯 Exam Tip: Clearly distinguish between the three main stages: original recording (journal), classification (ledger posting), and summarization (final accounts), explaining the purpose of each.

 

Question 3. Describe the merits and demerits of Double Entry System of Accountancy.
Answer: Here are the advantages and disadvantages of the Double Entry System of Accountancy:
Merits:
1. Complete and Scientific: This method is based on clear rules and principles, making it scientific. Since every transaction is entered twice, there is less chance of errors, and any mistakes that do occur are easily found. This structured approach helps ensure accuracy and completeness.
2. Basis of Account is Reliable: It is fully trustworthy because every entry is made twice in two different books—once as a debit and once as a credit. This dual recording ensures reliability and helps in cross-verification.
3. It gives the information of profit and loss: Separate ledger accounts are kept for each type of transaction. This means a business owner can always know the exact profit or loss for any specific period by examining these accounts.
4. Easy in providing informations: Since different accounts are kept for sales, purchases, payments, and receipts, it is easy to calculate and get all necessary information quickly for various business decisions.
5. Less possibility of cheating and fraud: If someone tries to commit fraud, they can be easily caught because of the detailed dual entries, making it harder to manipulate records undetected.
6. Comparative study: At the end of each financial year, a final ledger is prepared. This can be compared with ledgers from previous years to see how the business is growing or changing, allowing for performance analysis.
7. Legal Authenticity: This system is officially recognized by laws like the Company Act and used by banks, insurance companies, and large multinational corporations (MNCs). Therefore, all big companies are required to keep their accounts using this method, which adds to its credibility and legal acceptance.
Demerits:
1. If any entry is left in journal, it could not be found: If a transaction is missed during the initial journal entry, it will not be caught by a balance check because both debit and credit sides would be equally off. This makes such errors hard to detect.
2. Specially trained and skilled people are required to maintain such records: This system needs accountants with specific training and advanced skills to manage the complex records accurately, which can be an additional cost for businesses.
In simple words: The Double Entry System is good because it's very accurate, reliable, and helps you clearly see profits and losses. It also makes it harder for fraud to happen and lets you compare your business over time. But, it can be hard to find missed entries, and you need special, skilled people to do the accounting work.

🎯 Exam Tip: When discussing merits and demerits, ensure you provide clear, concise points for each, highlighting how the system's features lead to specific advantages or disadvantages.

 

Question 4. What do you understand by book keeping and accounting? Differentiate between them.
Answer: Book-Keeping is the process of regularly and systematically maintaining records of all income and expenses. It is both a science and an art that involves recording all financial business transactions. Book-keeping provides up-to-date information about income, expenses, and the business's financial position. It is a fundamental part of accounting.
Accounting involves collecting, classifying, summarizing, analyzing, and reporting business information in money terms. It focuses only on transactions and events that can be expressed in monetary value. There are mainly three widely used systems for bookkeeping. Accounting goes beyond mere recording to interpret the financial health.
Distinction between Book-keeping and Accounting

In simple words: Book-keeping means keeping a careful, organized record of all money going in and out of a business. Accounting is a bigger process that uses these records to sort, analyze, and report all financial details. Book-keeping is an important step within accounting, and it generally requires more basic skills compared to the higher-level knowledge needed for accounting itself.

🎯 Exam Tip: For differentiation questions, clearly define each term first, then use a table format to highlight contrasting aspects like scope, nature of work, and required skills.

 

Question 5. Discuss the functions of accounting in detail.
Answer: Trade, commerce, and business have always been a part of human life. As people became more advanced, these activities also grew. With transactions now crossing borders through export and import, it became necessary to record them, as it was impossible to remember so many dealings. Accounting performs several important functions:
1. Shows business relations: It helps to record business connections with others and to list properties for making and receiving payments.
2. High demand: Accounting is highly needed because of growth in production, increased competition, market expansion, and technical improvements, which all require careful financial tracking.
3. Continuous process: It is an ongoing process that allows for the clear presentation of transactions that involve money, providing a consistent financial picture.
4. Provides financial information: It is helpful in giving important financial details that support decision-making for various stakeholders.
In simple words: Accounting is important because businesses grew too big to remember all money dealings. It helps show who a business deals with, records properties, and tracks payments. It's needed for growth and provides ongoing financial information clearly.

🎯 Exam Tip: When discussing functions, provide a brief introduction explaining the necessity of accounting, then detail each function with a clear, concise explanation.

 

Question 6. What is Mahajani method (Indian method) of Accounting? Write its characteristics.
Answer: The Mahajani method is an ancient Indian way of accounting, thousands of years old. Old businessmen in India still use this system to keep their accounts. It is considered one of the oldest accounting systems globally. Accounts are maintained in large, folded books bound with red cloth. This traditional approach reflects a long history of financial record-keeping.
Its main characteristics are:
1. It is a complete and scientific method: This system is thorough and follows a logical approach, ensuring all necessary financial data is captured.
2. Follows Double Entry system principles: The ideas of the Double Entry System, where every transaction affects two accounts, are used in this method.
3. Uses Bahis for accounts: Special large, folded books called 'Bahis' are used to keep records. These books are often bound in thin red cloth and have a strong string at one end to keep them together.
4. Folded leaves, not sketched lines: Instead of lines drawn like in registers, the pages of Bahis are folded to divide them into sections for entries.
5. Entries in black ink: Most entries are made using black ink for clarity and longevity of records.
6. Multilingual records: Accounts can be written in Hindi and other Indian languages such as Gujarati, Marathi, Sindhi, Urdu, and Gurumukhi, making it accessible to a wider local population.
In simple words: The Mahajani method is an old Indian way of keeping accounts, using big, folded red books called 'Bahis'. It's a full and scientific system, similar to Double Entry. Key features include folding pages instead of lines, using black ink, and allowing records in local Indian languages.

🎯 Exam Tip: Explain that the Mahajani system is traditional but still follows key accounting principles. Highlight its unique features like the 'Bahis' and use of local languages.

 

Question 7. "Mahajani system of accounting is a completely scientific method”. Give your views on it.
Answer: The Mahajani system of accounting is an ancient Indian method and one of the oldest accounting systems in the world. Similar to the modern ledger method, it also uses double entry for each transaction, making it a scientific method for the following reasons:
1. Initial detail entry: At the very beginning, detailed entries are made date-wise for record-keeping, ensuring a systematic capture of information.
2. Accounts division and posting: Second, accounts are divided, and entries are made in sequence, which is known as posting. This helps in organizing transactions by type.
3. Modern ledger method similarities: Like the modern ledger method, it creates three types of accounts: Personal account, Material cost accounts, and Profit/Loss accounts. These are used to determine profit/loss and financial status, leading to the preparation of final accounts.
4. Trial balance preparation: By preparing a trial balance, the mathematical accuracy of accounts can be checked. If any incorrect amount is entered, it can be identified and corrected, ensuring precision.
5. Rules of deposition: Similar to modern ledgers, the rules for depositing funds are the same in this system. This consistency further supports the idea that the Mahajani system of accounting is a fully scientific method, providing a robust framework for financial management.
In simple words: The Mahajani system is a very old Indian accounting method that works scientifically, much like modern accounting. It keeps detailed records by date, sorts entries, uses personal and profit accounts, and helps check for errors. This careful approach makes it a reliable and scientific way to manage finances.

🎯 Exam Tip: To argue for its scientific nature, focus on how it incorporates systematic recording, classification, error checking, and final account preparation, mirroring modern principles.

Additional Questions Solved

Multiple Choice Questions (MCQs)

 

Question 3. The rule 'Debit the receiver and credit the giver' relates to
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the options
Answer: (c) Personal Account
In simple words: The rule 'Debit the receiver and credit the giver' is a fundamental principle used specifically for Personal Accounts in accounting. It tells you how to record transactions involving people or organizations.

🎯 Exam Tip: Clearly differentiate the golden rules of accounting for Personal, Real, and Nominal accounts, as this is a common area of confusion.

 

Question 4. In Double entry system every transaction involves
(a) Single party
(b) Two parties
(c) More than two parties
(d) More than one party
Answer: (b) Two parties
In simple words: In the Double Entry system, every financial transaction always involves two different sides or accounts that are affected.

🎯 Exam Tip: The core of the double entry system is that every financial event has two effects, one debit and one credit, ensuring balance.

 

Question 5. Incomplete Entry is another name for
(a) Double Entry System
(b) Single Entry System
(c) Cash System
(d) Mahajani System
Answer: (b) Single Entry System
In simple words: The Single Entry System is sometimes called 'Incomplete Entry' because it does not fully record both sides of every transaction, unlike the Double Entry System.

🎯 Exam Tip: Remember that 'incomplete' accurately describes the Single Entry System because it lacks the dual-aspect recording of every transaction.

 

Question 7. Which is not one of the Nakal Bahis?
(a) Petty Nakal Bahi
(b) Pakki Cash Bahi
(c) Debit Nakal Bahi
(d) Credit Nakal Bahi
Answer: (b) Pakki Cash Bahi
In simple words: Among the different types of Nakal Bahis, the 'Pakki Cash Bahi' is not considered one of them. Nakal Bahis are typically for specific types of initial entries, not usually for final cash records.

🎯 Exam Tip: Familiarize yourself with the common types of 'Nakal Bahis' and their specific purposes in traditional accounting systems.

Very Short Answer Type Questions

 

Question 1. Which are the final accounts in the Double Entry System?
Answer: In the Double Entry System, the final accounts prepared are the Trading account, Profit and Loss accounts, and the Balance sheet. These accounts collectively show the overall financial performance and position of a business at the end of an accounting period.
In simple words: The main final reports in the Double Entry System are the Trading account, the Profit and Loss account, and the Balance sheet.

🎯 Exam Tip: Always remember the three core final accounts as they are essential for understanding a business's financial health.

 

Question 2. To which sides are the entries of Debit and Credit made in accountancy?
Answer: In accountancy, Debit entries (Dr) are always made on the left side of an account, and Credit entries (Cr) are always made on the right side. This consistent placement is a fundamental rule that helps in organizing and balancing financial records.
In simple words: In accounting, Debits go on the left side, and Credits go on the right side of an account.

🎯 Exam Tip: Memorize the standard positions of debits (left) and credits (right) in an account, as this is a basic principle.

 

Question 3. By which method of book-keeping can the exact financial position not be known?
Answer: The exact financial position of a business cannot be accurately determined when using the Single Entry System of book-keeping. This is because it doesn't record both sides of every transaction, leading to incomplete financial information and making it difficult to prepare comprehensive financial statements.
In simple words: You cannot know the exact financial health of a business if you use the Single Entry System, as it doesn't keep full records.

🎯 Exam Tip: Understand that the incompleteness of the Single Entry System is its main drawback, preventing a true picture of financial health.

 

Question 4. Who does the work of book-keeping in the initial stages?
Answer: In the beginning stages, the task of book-keeping is mainly carried out by a clerk, who is commonly known as the Book-keeper. This person is responsible for the initial recording of transactions and maintaining primary financial records.
In simple words: A clerk, often called a Book-keeper, does the first part of book-keeping work.

🎯 Exam Tip: Differentiate between a Book-keeper (initial recording) and an Accountant (analysis and interpretation) in terms of roles and responsibilities.

Science is an organized way of studying knowledge based on rules. Book-keeping follows clear rules, universal ideas, and concepts, so it can be considered a science. It helps to ensure that financial records are kept in a structured and logical manner.

 

Question 2. How is book-keeping an 'art'?
Answer: Art refers to the proper way of doing something. In book-keeping, a book-keeper uses their knowledge, abilities, and skills to apply specific rules and principles correctly. Therefore, book-keeping is also considered an art, as it requires practical application, judgment, and careful execution of tasks, not just rote adherence to rules.
In simple words: Book-keeping is an art because a book-keeper needs skill and talent to use the rules and principles correctly while recording financial information.

🎯 Exam Tip: Explain that book-keeping is an 'art' because it requires skill, judgment, and application of rules, not just theoretical knowledge.

 

Question 3. Why could the Mahajani system of accounting not make much headway?
Answer: The Mahajani system of accounting struggled to become widely adopted due to several reasons:
1. Lack of its literature and research: There was not enough written material or studies about this system to support its growth and wider acceptance.
2. Failure to match English system's status: It could not compete with the popularity and established acceptance of the English accounting system, which was globally more recognized.
3. Shortage of good books: There were not enough quality books or educational resources available to teach businessmen about this accounting system, making it hard to learn and spread effectively.
In simple words: The Mahajani accounting system did not become very popular because it lacked books and research, couldn't match the English system's fame, and there weren't enough good teaching materials available.

🎯 Exam Tip: Focus on reasons related to documentation, competition, and education when explaining why a system might not gain widespread adoption.

 

Question 4. Write three weaknesses of Single Entry System of book-keeping.
Answer: Here are three disadvantages of the Single Entry System of book-keeping:
1. No certain rules and principles: It lacks fixed rules and principles, meaning the methods can differ among various organizations based on their individual needs, leading to inconsistencies.
2. Exact financial position cannot be known: This system does not allow for a precise understanding of the business's true financial situation, as it provides incomplete records.
3. No trial balance for mathematical accuracy: A trial balance cannot be prepared using this system, which means the mathematical correctness of entries cannot be checked easily, increasing the risk of undetected errors.
In simple words: The Single Entry System is weak because it doesn't have clear rules, cannot show the true financial health of a business, and doesn't allow for checking mathematical mistakes easily.

🎯 Exam Tip: Highlight the lack of standardization, incomplete financial picture, and inability to verify accuracy as key weaknesses of the Single Entry System.

Long Answer Type Questions

 

Question 1. Give the limitation of accounting.
Answer: The limitations of accounting are:
6. Based on rigid concepts and conventions: Accounting relies on fixed ideas and traditional practices, which might not always reflect the true economic reality or current business conditions.
7. May be influenced by personal judgment: The way financial information is presented can sometimes be affected by the personal opinions or decisions of the accountant, leading to subjectivity.
8. Requires knowledge of English language: Many accounting standards, terms, and practices are based on English, making it necessary for practitioners to have English language skills, which can be a barrier.
9. Needs specific training, knowledge, and skill: To maintain accounts correctly, special training, in-depth knowledge, and expertise are essential, making it a specialized field.
10. Layman cannot understand accounting system: The accounting system can be complex and technical, making it difficult for someone without specialized knowledge to understand it easily.
In simple words: Accounting has limits because it uses strict rules, can be affected by personal opinions, often needs English knowledge, requires special training, and is hard for common people to understand.

🎯 Exam Tip: When listing limitations, focus on aspects like subjectivity, complexity, reliance on conventions, and the need for specialized skills or language proficiency.

 

Question 2. Write the main characteristics of single entry system.
Answer: The key features of the Single Entry System are:
1. No fixed rules and principles: This system does not have strict, uniform rules, so its methods can vary from one institution to another based on their specific needs.
2. Only cash book is kept: Only a cash book is maintained, which records both personal and business cash transactions, but not necessarily all non-cash dealings.
3. Only personal accounts are opened: Only accounts related to individuals or entities (personal accounts) are typically kept, neglecting real and nominal accounts.
4. Dependence on original documents: One must rely heavily on original documents to get information for various dealings, as comprehensive ledgers are often not maintained.
5. No trial balance for mathematical accuracy: A trial balance cannot be prepared, making it impossible to check the mathematical accuracy of entries, increasing the chance of undetected errors.
6. Incomplete accounts lead to inaccurate profit/loss: Because the accounts are incomplete, the estimated profit or loss may not be truly accurate, providing a less reliable financial picture.
7. Exact financial position cannot be known: This system does not provide a precise view of the business's financial health due to the partial nature of its records.
8. Incomplete and not authentic proof: Since it's incomplete, it cannot be used as reliable or authentic proof in a court of law or for official purposes.
9. Suitable for smaller businessmen: It is best suited for small business owners because it is a simpler, single-entry system that is less complex and saves time in maintaining records.
In simple words: The Single Entry System has no strict rules and only keeps a cash book and personal accounts. It relies on original papers and cannot check for math errors. It gives an unclear picture of profit and loss, so the real financial position isn't known, and it's not good as legal proof. It's mostly useful for small businesses as it saves time.

🎯 Exam Tip: When describing characteristics, emphasize the system's simplicity, its limitations regarding completeness and accuracy, and its suitability for small-scale operations.

 

Question 3. What are the terminologies used in Mahajani Bahi khata system? Exmpain them.
Answer: The specialized terms used in the Mahajani Bahi Khata system are explained below:
(a) Bhaians: In the Indian accounting system, the books in which entries are recorded are called 'Bhaia'. These 'Bhaia' books are different in their structure and style from the registered English Accountancy System books.
(b) Jama and Naam: In the Indian accounting system, the pages of 'Rokar Bahi' and 'Khata Bahi' are divided into two equal parts. The left-hand part, which has four 'sals' (folds), is known as 'Jama Paksh', while the right-hand part, also with four 'sals', is called 'Naam Paksh'. This method of division is quite different from the English accounting system.
(d) Sal Fold: In the Indian accounting system, business 'bahis' (books) are made from smooth, white, and yellow paper. These papers are folded as needed, and these folds are called 'Sals'. There are usually six, eight, twelve, or sixteen 'sals', which are used to write down transaction amounts and their details. The number of folds indicates the structure of the record.
(e) Entry of Sira: The column where the 'Sira' amount is written, and the act of writing it, is called 'entry'. This is the specific action of recording a transaction in the designated column.
(f) Deposit and Spend: This refers to the act of writing business transactions into the 'Bahis' according to established rules. It's how financial activities are formally noted for deposits and expenditures.
(g) Satedi: This is a special symbol which is used between rupees and paisa, similar to a decimal point. It clearly separates the main currency unit from its fractional part in monetary values.
(h) Widh Milana: Every day, a businessman records cash-related transactions in the 'Rokar Bahi'. In the evening, they reconcile the total amount of deposit and the cash in the cash box. This process of balancing and verifying is called 'widh milana'.
(i) Dyodha Kama: In a cash 'bahi', both accounts are totaled and then closed or moved to the final accounts. This action of finalizing cash accounts is called 'Dyodha Kama'.
(j) Rokar Pote Baki: At the end of each day, when the shop closes, whatever cash is left in the cash box is called 'Rokar Pote'. This term represents the closing cash balance or the cash on hand.
(k) Valta: A transaction that is entered on both sides of the accounts is called 'Valta'. In the English system, this dual entry is simply called an 'entry', emphasizing the fundamental double-entry principle.
In simple words: The Mahajani accounting system uses special words. 'Bhaians' are the unique Indian record books. 'Jama Paksh' is the left side of a page for entries, and 'Naam Paksh' is the right side. 'Sal Fold' describes how the paper in accounting books is folded to create sections. 'Entry of Sira' is when you write a specific amount. 'Deposit and Spend' is recording all business deals. 'Satedi' is a symbol like a decimal point for money. 'Widh Milana' is checking daily cash balance. 'Dyodha Kama' is closing cash accounts. 'Rokar Pote Baki' is the cash left at day's end. 'Valta' means a transaction entered on both sides.

🎯 Exam Tip: When explaining terminologies, define each term clearly and concisely, highlighting its role or meaning within the Mahajani system.

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