All Important Differences in Accountancy Class 11 | CG Board Notes
These short and easy tables are very helpful for exams, revision, and quick learning.
1. Difference between Book Keeping and Accounting
| Basis | Book Keeping | Accounting |
|---|
| Meaning | Recording of financial transactions | Summarizing & interpreting data |
| Nature | Clerical work | Analytical work |
| Scope | Limited | Wide |
| Stage | First stage | Second stage |
| Objective | Maintain records | Provide useful information |
2. Difference between Trade Discount and Cash Discount
| Basis | Trade Discount | Cash Discount |
|---|
| Meaning | Discount on list price | Discount on prompt payment |
| Time | At time of purchase | At time of payment |
| Recorded | Not recorded in books | Recorded in books |
| Purpose | Increase sales | Encourage early payment |
3. Difference between Debtors and Creditors
| Basis | Debtors | Creditors |
|---|
| Meaning | Persons who owe money to business | Persons to whom business owes money |
| Nature | Asset | Liability |
| Example | Credit customers | Credit suppliers |
4. Difference between Capital and Revenue Expenditure
| Basis | Capital Expenditure | Revenue Expenditure |
|---|
| Meaning | Expense for long-term benefit | Expense for short-term benefit |
| Nature | Asset creation | Day-to-day expense |
| Effect | Increases earning capacity | Maintains earning capacity |
| Example | Purchase of machinery | Salary, rent |
5. Difference between Capital Receipt and Revenue Receipt
| Basis | Capital Receipt | Revenue Receipt |
|---|
| Meaning | Non-recurring receipt | Regular receipt |
| Nature | Capital in nature | Income in nature |
| Effect | Affects balance sheet | Affects P&L A/c |
| Example | Loan, capital introduced | Sales, commission |
6. Difference between Assets and Liabilities
| Assets | Liabilities |
|---|
| What business owns | What business owes |
| Provide benefit | Obligation |
| Debit balance | Credit balance |
| Example: Cash, Building | Loan, Creditors |
7. Difference between Fixed Assets and Current Assets
| Fixed Assets | Current Assets |
|---|
| Long-term use | Short-term use |
| Not for resale | Easily convertible into cash |
| Used in business | Circulating assets |
| Example: Machinery | Cash, Stock |
8. Difference between Tangible and Intangible Assets
| Tangible Assets | Intangible Assets |
|---|
| Physical form | No physical form |
| Can be seen & touched | Cannot be touched |
| Example: Building | Goodwill, Patent |
9. Difference between Drawings and Capital
| Drawings | Capital |
|---|
| Withdrawal by owner | Investment by owner |
| Decreases capital | Increases capital |
| Personal use | Business purpose |
10. Difference between Cash Book and Pass Book
| Cash Book | Pass Book |
|---|
| Prepared by business | Prepared by bank |
| Shows cash & bank transactions | Shows bank transactions |
| Debit = deposit | Credit = deposit |
11. Difference between Journal and Ledger
| Journal | Ledger |
|---|
| Book of original entry | Book of final entry |
| Chronological order | Classified accounts |
| First record | Second record |
12. Difference between Trial Balance and Balance Sheet
| Trial Balance | Balance Sheet |
|---|
| Checks accuracy | Shows financial position |
| Prepared before final accounts | Prepared after final accounts |
| Debit = Credit | Assets = Liabilities |