## Some Basic Concepts of Chemistry Class 11 Notes Chemistry Chapter 1

By going through these CBSE Class 11 Chemistry Notes Chapter 1 Some Basic Concepts of Chemistry, students can recall all the concepts quickly.

## Some Basic Concepts of Chemistry Notes Class 11 Chemistry Chapter 1

Importance of Chemistry: Chemistry plays a central role in science and is often intertwined with branches of science like Physics, Biology, Geology, etc. Chemistry also plays an important role in meeting human needs for food, health care products, etc.

→ Chemistry deals with the composition, structure, and properties of matter. To understand Chemistry, we have to study the basic constituents of matter Atoms & Molecules and their relationship with mass. Chemistry is basically, about chemical transformations.

→ Different manifestations of Chemistry include fertilizers, alkalies, acids, salts, dyes, polymers, drugs, soaps, detergents, metals, alloys, and other inorganic and organic chemicals. Daily new drugs, dyes, polymers, etc. are finding their way from the laboratory to industry. Many life-saving drugs like Cisplatin and Taxol are proving effective in cancer therapy and AZT [Azidothymidine] in helping Aids victims.

Nature of Matter: Anything which has mass and occupies space is called matter. Matter can exist in three physical states-solids, liquids, and gases.

→ Solids: Solids have definite volume and definite shape.

→ Liquids: Liquids have a definite volume, but no definite shape. They take the shape of the container in which they are put.

→ Gases: Gases have neither definite volume nor definite shape. These three forms are interconvertible.

Matter can be classified as mixtures and pure substances. Mixtures can be both homogeneous as well as heterogeneous. Milk, air are examples of homogeneous mixtures. They are uniform throughout. If they are not having a uniform composition, they are a heterogeneous mixture. Iron and sand is an example of a heterogeneous mixture.

Elements like Cu, Ag, and compounds like Nad, AgNO, constitute pure substances. Elements consist of only one type of particle. When two or more elements combine, they form compounds. The smallest part of an element is an Atom whereas the smallest particle of a compound is a Molecule. Thus, copper is an element composed of Cu atoms whereas sodium chloride is a compound composed of Na+Cl molecules.

Properties of Matter and their Measurement: Properties can be classified into two categories:

1. Physical properties and
2. Chemical properties.

→ Physical properties: Physical properties are those which can be observed or measured without changing the identity or composition of the substance. Some examples of physical properties are color, odor, melting point, boiling point density, etc.

The measurement or observation of chemical properties requires a chemical change to occur. Examples of chemical properties are aridity, basicity, combustibility.

The molar mass calculator with steps uses the chemical formula to determine the number of atoms of each element in the compound.

Base Physical Quantities and their Units:

Definitions of SI Base Units:

In SI, large and small quantities are expressed by using an appropriate prefix with the base units.

S.I. Prefixes:

Mass of a substance is the amount of matter present in it while weight is the force exerted by gravity on an object. The mass of a substance is constant whereas its weight may vary from one place to another due to change in gravity.
The SI unit of mass is a kilogram However, its fraction gram (1 kg = 1000 g), is used in laboratories due to the smaller amounts of chemicals used in chemical reactions.

Volume has the units of (length)3. So in the SI system, the volume has units of m3. But again, in Chemistry laboratories, the smallest volumes are used. Hence volume is often denoted by cm3 or dm3 units. A common unit, liter (L) which is not a SI unit, is used for the measurement of the volume of liquids.
1 L = 1000 mL, 1000 cm3 = 1 dm3

→ Density: Density of a substance is its amount of mass per unit volume.
∴ SI unit of density = $$\frac{\text { SI unit of mass }}{\text { SI unit of volume }}$$
= $$\frac{\mathrm{kg}}{\mathrm{m}^{3}}$$ = kg m-3
This unit is very large.

∴ Density is usually expressed is g cm-3.

→ Temperature: SI unit of temperature is kelvin (K)
K = °C + 273.15
where °C is degree Celsius.

It is interesting to note that temperatures below 0°C (i.e., negative values) are possible on the Celsius scale but, in the Kelvin scale, the negative temperature is not possible.

In addition to Kelvin (K – SI unit), there are two more scales to measure temperature.

1. Celsius scale (°C)
2. Fahrenheit scale (°F)
°F = $$\frac{9}{5}$$(°C) + 32

Uncertainty in Measurement: Many a time in the study of Chemistry, one has to deal with experimental data as well as theoretical calculations. There are meaningful ways to handle the numbers conveniently and present the data in a realistic way with certainly to the extent possible.

→ Scientific Notation: We can write 232.508 as 2.32508 × 102 in scientific notation. Similarly, 0.00016 can be written as 1.6 × 10-4.

→ Multiplication and Division
Multiplication: (5.6 × 105) × (6.9 × 108) = (5.6 × 6.9)(105 + 8)
= 5.6 × 6.9 × 1013
= 38.64 × 1013

Division:
$$\frac{2.7 \times 10^{-3}}{5.5 \times 10^{4}}$$ = (2.7 ÷ 5.5)(10-3-4)
= 0.4909 × 10-7

Addition: 6.65 × 104 + 8.95 × 103
= 6.65 × 104 + 0.895 × 104
= (6.65 + 0.895) × 104
= 7.545 × 104

Subtraction:2.5 × 10-2 – 4.8 × 10-3
= 2.5 × 10-2 – 0.48 × 10-2
= (2.5-0.48)10-2
= 2.02 × 10-2

→ Significant Figures: All experimental measurements have some degree of uncertainty associated with them. Precision and accuracy are often referred to while we talk about measurement.

→ Precision: Precision refers to the closeness of various measurements for the same quantity. However, accuracy is the agreement of a particular value to the true value of the result.

→ Significant figures: Significant figures are meaningful digits that are known with certainty.

→ Dimensional Analysis: Often in calculations, We have to convert units from one system to another. The method used to accomplish this is called the factor label method or unit factor method or dimensional analysis.

→ Laws of Chemical Combination: The combination of elements to form compounds is governed by the following five basic laws.

1. Law of Conservation of Mass
2. Law of Definite Proportions
3. Law of Multiple Proportions
4. Gay Lussac’s Law of Gaseous Volumes

1. Law of conservation of mass: In all physical and chemical changes, the total mass of the reactants is equal to that of the products.
Or
Matter can neither be created nor destroyed.

2. Law of definite proportions or Law of constant composition: The law states “A chemical compound always consists of the same elements combined together in the same fixed proportion by weight”.

3. Law of multiple proportions: When two elements combine to form two or more than two compounds, then the weights of the elements which combine with the fixed weight of the other, bear a simple ratio to one another.

4. Gay-Lussac’s Law of Gaseous Volumes: It states “When gases react together, they always do so in volumes which bear a simple ratio to one another and to the volumes of the products if gaseous, provided all measurements of volumes are done under similar conditions of temperature and pressure”.

5. Avogadro’s Hypothesis Or Law: Instates, “Equal volumes of all gases under similar conditions of temperature and pressure contain an equal number of molecules”.

Dalton’s Atomic Theory: The main postulates of this theory are:

1. Matter consists of indivisible atoms.
2. All the atoms of a given element have identical properties including identical mass. Atoms of different elements differ in mass.
3. Compounds are formed when atoms of different elements combine in a fixed ratio.
4. Chemical reactions involve the reorganization of atoms. These are neither created nor destroyed in a chemical reaction.

The main advantage of Dalton’s theory was that it could explain the laws of chemical combination.

Atomic and Molecular Masses:
1. Atomic Mass: The atomic mass of an element is the number of times an atom of that element is heavier than an atom of carbon taken as 12.

→ Atomic Mass Unit,(AMU) or u: One atomic mass unit (AMU) or u is equal to $$\frac{1}{12}$$th the mass of an atom of carbon – 12 isotopes.

1 amu = 1.66056 × 10-24 g
Mass of an atom of hydrogen = 1.6736 × 10-24 g

Thus, in terms of amu,
the mass of hydrogen atom = $$\frac{1.6736 \times 10^{-24} \mathrm{~g}}{1.66056 \times 10^{-24} \mathrm{~g}}$$
= 1.0078 amu = 1.0080 amu

Similarly, the mass of oxygen – 16(16O) atom would be 15.995 amu

Today, ‘amu’ has been replaced by u which is known as unified mass.

→ Average Atomic Mass: From different isotopes of an element based on their relative abundance, the average atomic mass of an element can be calculated.

For example, there are three isotopes of C – (12C, 13C, 14C) with their relative abundance (%) – 98.892, 1.108, and 2 × 10-10 with their atomic mass (AMU) as 12, 13.00335, and 14.00317 respectively.
The average atomic mass of carbon will be
=.(0.98892)(12 u) + (0.01108)(13.00335 u) + (2 × 10-12)(14.00317 u)
= 12.011 u.

→ Molecular Mass: Molecular mass is the sum of atomic masses of the elements present in a molecule.

Molecular mass of water (H2O)
= 2 × atomic mass of hydrogen + 1 × atomic mass of oxygen = 2(1.008 u) + 16.00 u = 18.02 u,

Molecular mass of ethane (C2H6) will be = 2 × (12,011 u) + 6 × (1 008 u)
= 24.022 u + 6.048 u = 30 070 u

→ Formula Mass: The formula mass of NaCl which is composed of Na+ and Cl ions in a three-dimensional structure can be calculated
= Atomic mass of sodium + Atomic mass of chlorine
= 23.00 u + 35.5 u = 56.5 u.

Mole Concept and Molar Masses: In the SI system, mole (symbol, mol) was introduced as the base quantity for the amount of a substance.

→ Substance One Mole is the amount of a substance that contains as many particles or entities as there are atoms in exactly 12 g (or 0. 012 kg) of the 12C Isotope.

1 Mole = 6.0221367 × 1023 atoms
The number of entities in 1 mol is also called Avogadro Constant and denoted by NA.

Therefore, 6:022 × 1023 entities (atoms, molecules, or any other particles) constitute one mole of that particular substance.
∴ 1 Mol of oxygen atoms = 6.022 × 1023 atoms of oxygen.

Similarly, 1 Mol of ammonia molecules
= 6.022 × 1023 molecules of ammonia
where n maybe 1, 2, 3,…..

In the SI system, Mole (symbol, mol) was introduced as the seventh base quantity for the amount of a substance.

One mole is the amount of a substance that contains as many particles or entities as there are atoms in exactly 12g (or 0.012 kg) of the UC isotope.

Stoichiometry and Stoichiometric Calculations: Stoichiometry deals with the calculation of masses and volumes of the reactants and products involved in a chemical reaction.

Let us consider the information available for the combustion of methane from its balanced chemical equation
CH4(g) + 2O2(g) → CO2(g) + 2H2O(g)

Here methane and dioxygen are called reactants and carbon dioxide and water are called products. The letter (g) stands for gases. The coefficient 2 for O2 and H2O are called stoichiometric coefficients. Similarly, the coefficient for CH4 and CO2 is one in each case.

They represent the number of molecules (and moles as well taking part in the reaction or formed in the reaction).
(a) One mole of CH4(g) reacts with two moles of O2(g) to give one mole of CO2(g) and two moles of H2O(g).
(b) One molecule of CH4(g) reacts with 2 molecules of O2(g) to give one molecule of CO2(g) and 2 molecules of H2O(g).
(c) 22.4 L of CH4(g) reacts with 44.8 L of O2(g) at STP to give 22.4 L of CO2(g) and 44,8 L of H2O (g).
(d) 16 g of CH4(g) reacts with 64 g of O2(g) to give 44 g of CO2(g) and 36 g of H2O(g)

From above
mass ⇌ moles ⇌ no. of molecules
$$\frac{\text { Mass }}{\text { Volume }}$$ = Density

→ Limiting Reagent: The reacting substance which gets used up first in the reaction is called the limiting reagent. This is because the amount of limiting reagent limits the amount of the product formed. A part of the other reactants which are present in amounts greater than the stoichiometric amounts is left behind as unconsumed reagents.

→ Reactions in Solutions: The concentration of a solution or the amount of substance present in its given volume can be expressed in any of the following ways:

1. Mass percent or weight percent (w/w%)
2. Mole fraction
3. Molarity
4. Molality

Stoichiometry of Reactions in Solutions:
1. Mass percentage or percent by mass: It is defined as the mass of solute in gram per 100 g of the solution. For example, a 10% solution of sodium chloride means that 10 g of NaCl is present in 100 g of the solution.

Mass % of the solute = $$\frac{\text { Mass of solute }}{\text { Mass of solution }}$$ × 100
Both, the mass of the solute and that of the solution must be expressed in the same mass units. viz, both in grams or both in
kilograms, etc.

2. Mole Fraction (X): The mole fraction of any component of a solution is defined as the ratio of the number of moles of that component to the total number of moles of all the components of the solution. Thus if a solution contains A moles of A and n5 moles of B, then.

If the mole fraction of one component in a binary solution is known, that of the other can be determined.
i.e. XB = 1 – XA.

3. Molarity (M): The molarity of a solution is defined as the number of moles of solute dissolved per dm3 (or liter, L) of the solution. Molarity of any solution depends upon temperature. So, the molarity of any solution is specified for a given temperature.

Mathematically, molarity is defined as
Molarity of solution = $$\frac{\text { No. of moles of the solute }}{\text { Volume of the solution in litres (or in } \mathrm{dm}^{3} \text { ) }}=\frac{n \mathrm{~mol}}{\mathrm{VL}}$$

where n is the number of moles of the solute.
V is the volume of the solution in liters (or dm3).

Since, the number of moles of any substance is related to its mass and the molar mass,
No. of moles of solute = $$\frac{\text { Mass of the solute }}{\text { Molar mass of the solute }}$$

The molarity of a solution then can also be expressed as:
Molarity of the solution = $$\frac{\text { Mass of the solute }}{\text { Molar mass of the solute } \times \text { Volume of the solution in litres }}$$

So, W grams of a substance having molar mass M, dissolved in sufficient solvent, so as to make the total volume of V liter of the substance, the molarity (M) of the solution is given by
Molarity = $$\frac{\mathrm{Wg}}{\mathrm{Mg} \mathrm{mol}^{-1} \times \mathrm{V} \text { litre }}=\frac{\mathrm{W}}{\mathrm{M} \times \mathrm{V}}$$ mol/L

4. MoLdity (m): The molality of a solution is defined as the number of moles of solute per kg of the solvent. If a solution is prepared by dissolving n moles of a solute in W kg of the solvent, then.
Molality, (m) = $$\frac{\text { No. of moles of solute }}{\text { Mass of the solvent in } \mathrm{kg} \mathrm{mol}^{-1}}$$

= $$\frac{n_{\text {solute }}}{W_{\text {solvent }} \text { kg }}=\frac{n_{\text {solute }}}{W_{\text {solvent }}}$$mol kg-1
where nsolute = $$\frac{\text { Mass of the solute }}{\text { Molar mass of the solute }}$$

It is to be noted that molality of a solution does not change with temperature since mass remains unaffected with temperature.

→ Element: It consists of only one type of particles. These particles may be atoms or molecules. Sodium, copper, silver, hydrogen, oxygen etc. are some examples of elements.

→ Compound: When two or more atoms of different elements combine in a fixed proportion, the molecules of a compound is obtained.

→ Atomic mass unit (amu): It is defined as a mass exactly equal to one twelfth the mass of one carbon-12.
1 amu = 1.66056 × 10-24 g
Nowadays’ amu’ has been replaced by u which is known as unified mass.

→ Mole: One mole is the amount of a substance that contains as many particles or entities as there are atoms in exactly 12 g {or 0.012 kg) of the 12C isotope.

→ Avogadro constant: The number of entities in 1 mol is called the Avogadro constant. It is denoted by NA and is = 6.022 × 1023.

→ Molar mass: The mass of one mole of a substance in grams is called its molar mass.

→ Empirical Formula represents the simplest whole-number ratio of various atoms present in a compound.

→ Molecular Formula: It shows the exact number of different types of atoms present in a molecule of a compound.

→ Mass percent:
Mass per cent = $$\frac{\text { Mass of solute }}{\text { Mass of solution }}$$ × 100

→ Mole Fraction:
Mole fraction of a component = $$\frac{\text { No. of moles of the component }}{\text { Total no. of moles of solution }}$$

→ Molarity:
Molarity(M) = $$\frac{\text { No. of moles of the solute }}{\text { Volume of solution in litres }}$$

→ Molality
Molality (m) = $$\frac{\text { No. of moles of solute }}{\text { Mass of solvent in } \mathrm{kg}}$$

→ There are different laws which govern the combination of elements to form compounds.
They are mentioned below:

1. Law of conservation of mass.
2. Law of Definite Proportions.
3. Law of multiple proportions.
4. Gay Lussac’s Law of gaseous Volumes.

Note: These laws have been defined earlier in the book.
These Laws led to Dalton’s Atomic Theory which states that atoms are building blocks of matter.

## Equilibrium Class 11 Notes Chemistry Chapter 7

By going through these CBSE Class 11 Chemistry Notes Chapter 7 Equilibrium, students can recall all the concepts quickly.

## Equilibrium Notes Class 11 Chemistry Chapter 7

Chemical equilibria are important in numerous biological and environmental processes. For example, equilibria involving O2 molecules and the protein hemoglobin play a crucial role in the transport and delivery of O2 from our lungs to our muscles. Similarly, equilibria involving CO molecules and hemoglobin account for the toxicity of CO.

In the case of evaporation of water in a closed vessel, the no, of molecules leaving the surface of water equals the no. of molecules of H2O returning to liquid state from the vapor state. This is an equilibrium state. However, this equilibrium state is not static. It is Dynamic equilibrium. Thus at equilibrium, the rate of evaporation is equal to the rate of condensation. It may be represented by
H2O (l) ⇌ H2O (vap)

The mixture of reactants and products in the equilibrium state is called an equilibrium mixture.

The state of chemical equilibrium in a chemical reaction may be classified into three groups characterized by the extent to which the reactions proceed.

1. The reactions proceed nearly to completion and only negligible concentrations of the reactants are left.
2. The reactions in which only some amount of products are formed and most of the reactants remain unchanged at equilibrium stage.
3. The reactions in which concentrations of the reactants and products are comparable when the system is at equilibrium.

Equilibrium in Physical processes
1. Solid-Liquid Equilibrium: For example
ice ⇌ water
i.e. H2O(s) ⇌ H2O(l)
At equilibrium, rate of melting = rate of freezing.

The temperature at which the solid and liquid forms of any substance coexist is called the melting point.
2. Liquid-Vapour Equilibrium: For example
H2O(l) ⇌ H2O(g)
At equilibrium: rate of evaporation = rate of condensation.

3. Equilibrium involving dissolution of solids of gases in liquids: Different solids dissolve in any solvent to different extents. Certain solids dissolve more, while many others dissolve less.

The maximum mass (in grams) of a solute which can be dissolved in 100 g of a solvent at any temperature and pressure is called its solubility at that temperature and pressure,
(a) Solids in liquids: When a small quantity of sugar is added to some water (say 100 mL) it gets dissolved. When a little more sugar is added, it also gets dissolved. If the addition of sugar is continued, then a stage comes when no more sugar dissolves, and the added sugar settles down.

The solution at this stage contains the maximum amount of sugar the solution can have at that temperature. This solution is called a saturated solution of sugar. In a saturated solution
Sugar (s) N ⇌ Sugar (aq)
of sugar in contact with solid sugar, a dynamic equilibrium is established. At the equilibrium state, the number of sugar molecules going into the solution from the solid sugar is equal to the number of molecules precipitating out from the solution at a given temperature. Thus at equilibrium.

Rate of dissolution of solid sugar = Rate of precipitation of sugar from the solution.

(b) Gases in Liquids: Gases dissolve in liquids. The solubility of a gas in any liquid depends upon.

• nature of the gas and that of the liquid.
• the temperature of the liquid
• pressure of the gas over the surface of the solution.

The effect of pressure on the solubility of a gas in a liquid is described by Henry’s Law.

Henry law states that,
“At a certain temperature, the mass of a gas which dissolves in a definite volume of a liquid is proportional to the pressure of the gas over the solution.”

If p is the pressure of the gas over the solution, m is the mass of the gas dissolved in one unit volume of the liquid.
Then, according to Henry’s law
m ∝ p
or
m = kp
where k is the proportionality- constantly called Henry’s Law constant.

equilibrium concentration calculator quantity for each species from the initial quantity and the change.

4. General Characteristics of Equilibria involving Physical Processes:
It has been noted that
(a) for liquid-vapor equilibrium, the vapor pressure is constant at t given temperature.
(b) for solid-liquid equilibrium, there is only one temperature (melting point) at 1 atm at which the two phases can coexist. If there is no exchange of heat with the surroundings, the mass of the two phases remains constant.
(c) for dissolution of solids in liquids the solubility is constant at a given temperature.
(d) for dissolution of gases in liquids, the concentration of a gas in a liquid is proportional to the pressure (concentration)! of the gas over the liquid.

Table: Some Features of Physical Equilibria

 Process Conclusion Liquid ⇌ Vapour H2O (l)   ⇌ H2O (g) PH2O constant at a given temperature. Solid ⇌ Liquid H2O (s)  ⇌ H2O (l) The melting point is fixed at constant pressure. Solute (s) ⇌ Solute solution) Sugar (s) ⇌ Sugar (solution) The concentration of solute in a solution is constant at a given temperature. Gas (g) ⇌ gas (aq) For’example, CO2 (g) ⇌ CO2 (acl) [gas (aq)]/[gas (g)] is constant at a given temperature. [CO2 (aq)] /[CO2 (g)] is constant at a given temperature.

For the physical processes discussed above following characteristics are common to the system of equilibrium.

1. Equilibrium is possible only in a closed system at a given temperature.
2. Both the opposing processes occur at the same rate and there is a dynamic but stable condition. ,
3. All measurable properties of the system remain constant.
4. When equilibrium is attained for a physical process, it is characterized by the constant value of one of its parameters at a given temperature.
5. The magnitude of such quantities at any stage indicates the extent to which the physical process has proceeded before reaching equilibrium.

Equilibrium in Chemical Processes-Dynamic Equilibrium
Similar to physical systems, chemical reactions also attain a state of equilibrium. These reactions can proceed both in the forward direction as well as backward direction. When rates in both directions become equal, the concentrations of reactants and products remain constant. This is the stage of chemical equilibrium.

Let there be a reversible reaction
A + B ⇌ C + D
With time, concentrations of A and B decrease, and those of C and D increase. This leads to a decrease in the rate of forwarding direction and increases in the rate of backward direction. When both the rates become equal, the system reaches a state of equilibrium.

Characteristic of Chemical Equilibrium:

1. The equilibrium state is reached only if the process is carried out in a closed vessel.
2. It is dynamic equilibrium, i.e., at this stage the reaction, although appears to be stopped, actually takes place in both directions with the same speed.
3. An equilibrium state can be approached from both sides.
4. At equilibrium state/composition of the reactants and products remain constant.

3. Law of Chemical Equilibrium and Equilibrium Constant: Goldberg and Waage proposed that for a general reversible reaction
A + B ⇌ C + D

the following Equilibrium equation holds:
KC = $$\frac{[\mathrm{C}] \times[\mathrm{D}]}{[\mathrm{A}] \times[\mathrm{B}]}$$
where Kc is called equilibrium constant and the expression on the right side is called equilibrium constant expression.

The above equation is also called the Law of Mass Action because concentration was earlier referred to as active mass.

→ Law of mass action: It states that under a given set of conditions, the rate of a chemical reaction is directly proportional to the product of the concentration (active mass) of the reacting substances.
Active mass (Molar concentration) = $$\frac{\text { No. of moles }}{\text { Vol. in litres }}$$

The active mass of a gas or liquid means its molar concentration, while the active mass of a solid is always taken as unity, irrespective of the quantity.

The Law of mass action is applicable only to reversible reactions.
Let us consider a general reversible reaction
aA + bB ⇌ cC + dD
The rate of forwarding reaction = Kf [A]a[B]b
Similarly, the rate of backward reaction = Kf [C]c[D]d
where and Kf and Kb be the respective rate constants.

Since at equilibrium, the rate of both reactions are equal
Kf[A]a[B]b = Kf[C]c[D]d
$$\frac{\mathrm{K}_{f}}{\mathrm{~K}_{b}}=\frac{\left[\mathrm { C } \left[^{c}[\mathrm{D}]^{d}\right.\right.}{[\mathrm{A}]^{a}[\mathrm{~B}]^{b}}$$
or
K = $$\frac{[\mathrm{C}]^{\mathrm{c}}[\mathrm{D}]^{d}}{[\mathrm{~A}]^{a}[\mathrm{~B}]^{b}}$$
where K is.called equilibrium constant.

Characteristics of the equilibrium constant:
1. Its value is independent
(a) of the original concentration of the reactants.
(b) of volume.
(c) of the presence of inert materials.
(e) of the direction from which equilibrium is attained.
(f) of the nature and number of steps in the reaction as long as stoichiometry is not changed.

2. It has a definite value at a given temperature and changes with temperature.

For a reversible reaction at equilibrium; the ratio of the product of concentrations of the products to the product of concentrations of the reactants when each concentration term is raised to a power equal to the corresponding stoichiometric coefficient in the balanced chemical equation at a constant temperature is constant. This constant is called the Equilibrium Constant.

For a homogeneous chemical reaction aA + bB ⇌ cD + dD
when concentrations of reactants and products are expressed in moles per liter units represented by [ A], |B], [Cl, [D] (their active masses), the equilibrium constant is written as KC and is given by
KC = $$\frac{[C]^{c} \times[D]^{d}}{[A]^{a} \times[B]^{b}}$$

Further, if the reaction is a homogeneous gas-phase reaction then the molar concentration of a substance is directly proportional to Kp
Kp = Kc × (RT)Δn
If Δn = 1,then Kp = Kc × RT

(c) If Δn < 0, i.e. when the no. of moles of reactants is more than that of products or when the reaction proceeds with a decrease in the no. of moles

→ Units of Equilibrium Constant: The unit of K depends upon the number of moles of reactants and products involved in the reaction.
1. When a total number of moles of products is equal to the number of moles of reactants, K has no units. For example.
N2 (g) + O2 (g) ⇌ 2NO (g)
K = $$\frac{[\mathrm{NO}(\mathrm{g})]^{2}}{\left[\mathrm{~N}_{2}(\mathrm{~g})\right]\left[\mathrm{O}_{2}(\mathrm{~g})\right]}$$

= $$\frac{[\mathrm{mol} / \mathrm{L}]^{2}}{[\mathrm{~mol} / \mathrm{L}][\mathrm{mol} / \mathrm{L}]}$$ = no units.

2. When/ the total number of moles of products is different than the total number of moles of reactants. In such reactions, K has units. For example,
N2 (g) + 3H2 (g) ⇌ 2NH3 (g)

Value of Kp for Some reactions

→ Homogeneous Equilibrium: A reversible reaction in which all the reactants and products at equilibrium are in the same phase is called a homogeneous equilibrium.
(a) In the gas phase

(b) In the liquid phase: Here, all the reactants and products are liquids that are miscible in one another. They may take place in an open or closed vessel.
CH3COOH (l) + C2H5OH (l) ⇌ CH3COOC2H5 (l) + H2O (l)
KC = $$\frac{\left[\mathrm{CH}_{3} \mathrm{COOC}_{2} \mathrm{H}_{5}\right]\left[\mathrm{H}_{2} \mathrm{O}\right]}{\left[\mathrm{CH}_{3} \mathrm{COOH}(\mathrm{l})\right]\left[\mathrm{C}_{2} \mathrm{H}_{5} \mathrm{OH}(1)\right]}$$

(c) In the solution phase: Here the reactants and products are present in a solution. The choice of the solvent depends upon the nature of the reaction.
I2 (aq) + r (aq) ⇌ I3 (aq)
iodine iodine ion tri iodide ion
2H2O (l) ⇌ H3+O (aq) + OH (aq)
Fe3+ (aq) + SCN (aq) ⇌ [Fe(SCN)]2+ (aq)

Heterogeneous Equilibrium: A reversible reaction involving equilibrium between various chemical species present in two or more phases is said to be a heterogeneous chemical equilibrium. It may be noted here that all solids constitute separate phases.
Examples:

and [CaO] are both constants.

Here CaCO3 and CaO are in solid phases and CO2 is in the gaseous phase; [CaCO3] = 1 and [CaO] = 1
(b) 3Fe (s) + 4H2O (g) ⇌ Fe3O4 (s) + 4H2 (g)

where PH2 and PH2O are the partial pressures of H2 (g) and H2O (g) at eqbm.

(c) Pb2+ (aq) + CrO24- (aq) ⇌ PbCrO4 (s)

(d) 2Hg (s)+ O2 (g) ⇌ 2HgO (s)

(e) for the reaction
Ni (s) + 4CO (g) ⇌ Ni(CO)4 (g)
KC = $$\frac{\left[\mathrm{Ni}(\mathrm{CO})_{4}\right]}{[\mathrm{CO}]^{4}}$$

(f) Ag2O (s) + 2HNO3 (aq) ⇌ 2AgNO3 (aq) + H2O (l)
KC = $$\frac{\left[\mathrm{Ag} \mathrm{NO}_{3}\right]^{2}}{\left[\mathrm{H} \mathrm{NO}_{3}\right]^{2}}$$

Applications of Equilibrium constants:
1. Predicting the direction and extent of reaction from the magnitude of the equilibrium constant: The magnitude of the equilibrium constant K of a reaction indicates how far a reaction can go and in which direction.

For example aA + bB ⇌ cC + dD is given by
K = [C]c × [D]d /[A]a[B]b
where all concentrations are at equilibrium. It is dear that the larger the value of K, the greater will be the equilibrium concentration of- the components on the R.H.S. of the reaction (products) relative to those on the L.H.S. (reactants).

Thus the value of K provides information about the extent and direction of the reaction.
(a) When K > > 1: When the value of K is very high such as; 107 – 1015 or more, the reactions proceed to almost completion. In such reactions, almost the whole of the reacting substances gets converted into products.

(b) When K > 1: When the value of K is greater than one (but not too large), the reaction in the forward direction is favored more than the reaction in the backward direction. In such cases, the equilibrium concentration of products is higher than that of the reactants.

(c) When K = 1: When the value of K is equal to one, both the direction of the reaction are almost equally favored. In such cases the equilibrium concentrations of reactants and products are comparable.

(d) When K < 1: When the value of K is smaller than one, the reaction in the backward direction is favored. In such cases, the equilibrium concentrations of reactants will be much higher than the concentration of the products.

2. Calculating Equilibrium Concentrations: Once the value of the equilibrium constant for a reaction is known, we can use it to calculate the concentration of a substance (reactant or product) in the equilibrium mixture.

Relationship between Equilibrium Constant K, Reaction Quotient Q, and Gibbs Energy G

The value of KC for a reaction does not depend upon the rate of the reaction. It is directly related to the thermodynamics of the reaction and in particular to the change in Gibbs energy, ΔG. If,

1. ΔG is negative, the reaction is spontaneous and proceeds in the forwarding direction. ’
2. ΔG is positive, the reaction is non-spontaneous. Instead, the products of the forward reaction shall be converted to the reactants, as ΔG will have a negative value for the reverse direction.
3. ΔG is 0, the reaction has achieved equilibrium, at this point, there is no longer any free energy left to drive the reaction.

Mathematically
ΔG = ΔG° + RT InQ, where G° is standard Gibbs energy
At equilibrium, when ΔG = 0 and Q = KC, the above equation becomes
ΔG = ΔG° + RT InK = 0
or ΔG° = – RT InK.
InK = – ΔG°/RT

Taking antilog
K = e-ΔG°/RT … (1)

Hence using the equation (1), the reaction spontaneity can be interpreted in terms of the value of ΔG°
1. If ΔG° < 0, then – ΔG/RT is positive and e-ΔG°/RT > 1 making K > 1. It implies a reaction in the forward direction or a spontaneous reaction.

2. If ΔG° > 0, then – ΔG°/RT is negative and e-ΔG°/RT < 1, that is K < 1 which implies a non-spontaneous reaction or a reaction which proceeds in the forward direction to such a small degree that only a very minute quantity of product is formed.

Factors affecting Equilibria:
1. Let Chatelier’s principle: “Whenever a system in equilibrium is subjected to a change in temperature,, pressure or composition, the equilibrium shifts in a direction so as to undo the effect of the change applied”.

2. Effect of concentration change: If a system is at equilibrium and the concentration of one of the species involved in the reaction is increased then the system will readjust so as decrease the concentration of that species. Thus/if the concentration of substance involved in the equilibrium is increased, the increased concentration, Similarly, if the concentration of some substances is decreased, the reaction will proceed so as to make up the loss in the concentration.

Let us consider the-reaction
aA + bB ⇌ cC + dD

At equilibrium, the concentration of A, B, C, and D are constant. If to this reaction at equilibrium, a small amount of the substance A is added, then according to Le Chatelier’s principle, the equilibrium shifts in a direction so as to undo the effect of the increased concentration of A. That is, the reaction proceeds in the d.rection so as to decrease the concentration of A.

This can be done only by making more A react with B to form more products. That is, an increase in the concentration of A (or any reactant) will shift the equilibrium towards the right, (products side). On the other hand, when the concentration of C (or any other product) is increased, the reaction will shift towards the left (reactant side).

Thus, in general, an increase in the concentration of any of the substances on one side of the equilibrium shifts the equilibrium to produce more of the substances on the other side of it.

3. Effect of Pressure Change: Change of pressure has no significant effect on the following equilibria:
(a) The equilibria involving only solids are not affected by a change of pressure because there is virtually no change in volume due to a change in pressure.

(b) The equilibria involving liquids and/or gases where the number of moles before and after the attainment of equilibrium remains the same, i.e., when Δn = 0, also are not affected by a change of pressure. When the pressure on a reaction involving gases (where Δn ≠ 0) is changed, the equilibrium will shift in a direction so as to undo the effect of change in pressure. For example, an increase in pressure will cause a decrease in volume.

So, an increase of pressure on a gaseous system will shift the equilibrium in a direction of a decrease in volume, and vice versa. Therefore, in a reaction which proceeds with a decrease in volume (Δn = -ve), the equilibrium will shift in the forward direction by increasing pressure.

On the other, hand, in a reaction which proceeds with an increase – in volume (Δn = +ve), the equilibrium will shift towards the right by decreasing the pressure.

4. Effect of Temperature Change: According to the Le Chatelier principle when the temperature of a system at equilibrium is increased, i.e., the heat is supplied to the system, the system should move in a direction so that the added heat is absorbed. So, an increase in the temperature of a chemical system at equilibrium favors the reaction that proceeds with the absorption of heat, i.e., an endothermic reaction is favored.

On the other hand, if the temperature of the system is decreased under constant pressure and volume conditions, the equilibrium – will shift in such a way so as to produce some heat. Thus, a decrease in the temperature of a system at equilibrium favors the reaction which proceeds with the evolution of heat, i.e., an exothermic reaction is favored.

For example, the reaction
N2 (g) + 3H2 (g) ⇌ 2NH3 (g); ΔH = – 93.6 kj is exothermic in the forward direction and endothermic in the backward direction.

Let the temperature of the system at equilibrium be increased. Then, according to Le Chatelier’s principle, the equilibrium will shift in a direction heat is absorbed, i.e., in the endothermic direction. Therefore, on increasing temperature, the reaction will shift towards the left (reactant side). Thus, an increase in the temperature of this reaction will result in the formation of a lesser amount of ammonia.

On the other hand, a decrease in the temperature of this system will favor the endothermic direction of the equilibrium. Thus, when the temperature of this system is lowered, the equilibrium will shift in the forward direction, i.e., more ammonia will be produced.

5. Effect of a Catalyst: Catalyst has no effect on the equilibrium concentrations of the reactants and products. In fact, a catalyst accelerates the forward and the backward reactions to the same extent and therefore, simply helps’1 in the. attainment of the equilibrium state faster.

Inert gas added keeping the pressure of the system constant: In this gas, the addition of an inert gas increases the volume of the system, which in turn, causes the equilibrium position of the system to move in the direction of a large number of gaseous molecules. Thus, we will have

→ Inert gas added keeping the volume of the system constant: Addition of inert gas into a system at equilibrium under constant volume causes

1. an increase in the pressure of the system
2. an increase in the total number of moles in the system.

The total pressure of a system is therefore given by
Ptotal V = ntotal RT
or
$$\frac{n_{\text {total }}}{P_{\text {total }}}=\frac{V}{R T}$$

Under constant-volume at any temperature, the ratio total/Ptotal remains constant even on the addition of inert gas. As a result, there is no change in any of the variables and the amounts of the substances at equilibrium remain unaffected by the addition of inert gas, i.e., the equilibrium position of the reaction remains unaffected.

Concentration Quotient or Reaction Quotient and predicting the direction of reaction:
For the reaction aA + bB ⇌ cC + dD at any stage of the reaction, other than the stage of chemical equilibrium, concentration ratio [C]c[D]d / [A]a[B]b is called concentration quotient or reaction quotient.

It is usually represented by Qc or Q. Thus concentration quotient Qc = [C]c × [D]d/[A]a[B]b

1. If Q = K, the reaction is in equilibrium.
2. If Q > K, Q will tend to decrease so as to become equal to K. As a result the reaction will proceed in the Backward direction.
3. If Q < K, Q will tend to increase. As a result, the reaction will proceed in the forward direction.

Consider the gaseous reaction of H2 and I2,
H2 (g) + I2 (g) ⇌ 2HI (g) Kc = 57.0 at 700 K.

Suppose we have molar concentrations
[H2]t = 0.10 M, [I2]t = 0.2 M and [HI]t = 0.40 M.
(the subscript t on the concentration symbols means that the concentrations were measured at some arbitrary time t, not necessarily at equilibrium).

Thus, the reaction quotient; Qt at this stage of the reaction is given by,
Qt = [HI]t2/|H2]t[I2]t = (0.40)2/(0.10) × (0.20) = 8.0.

Now, in this case, Qc(8.0), does not equal Kc (57.0), so the mixture of H2 (g), I2 (g), and HI (g) is most at equilibrium; that is, more H2 (g) and I2 (g) will react to form more HI (g) and their concentrations will decrease till Qc = Kc.

Predicting the direction of the reaction

The reaction quotient, Qf is useful, we can predict the direction of reaction by comparing the values of Qc and Kc
Thus, we can make the following generalizations concerning the direction of the reaction:

• If Qr < Kt. net reaction goes from left to right.
• If Qr > Kc, the net reaction goes from right to left.
• If Qr = Kf, no net reaction occurs.

Problem (1)
The value of ΔG° for the phosphorylation of glucose in glycolysis is 13.8 kJ/mol. Find the value of at 298 K?
Solution: ΔG° = 13.8 kJ/mol = 13.8 × 103 J/mol
Also, ΔG° = – RT InKc.

Hence, InKc = – 13.8 × 103 J/mol/8.31 Jmol-1 × 298 K
InKc = – 5.569
Kc = e – 5.569
Kc = 3.81 × 10-3

Problem (2)
Hydrolysis of sucrose gives,
Sucrose + H2O ⇌ Glucose + Fructose
Equilibrium constant Kc for the reaction is 2 × 1013 at 300 K. Calculate ΔG° at 300 K?
ΔG° = – RT ln Kf
ΔG° = – 8.314 J mol-1 K-1 × 300 K × In (2 × 1013)
ΔG° = – 7.64 × 104 J mol-1

→ Ionic Equilibrium: There are substances that conduct electricity in their molten states or in the form of their aqueous solutions. These are called electrolytes. On the other hand, there are substances that do not conduct electricity in the molten states or in the form of their aqueous solutions and these are called non-electrolytes.

→ Strong and Weak Electrolytes: Depending upon the extent of ionization, the electrolytes may be divided into two classes: strong electrolytes and weak electrolytes.
1. Strong electrolytes: The substance which ionizes almost completely into ions in an aqueous solution are called strong electrolytes.

For example, HCl, H2SO4 HNO3 NaOH, KOH, NaCl, KNO3, etc. are strong electrolytes.
HCl + H2O → H3O+ + Cl
HNO3 + H2O → H3O+ + NO3

(ii) Weak electrolytes: The substances which ionize to a small extent in an aqueous solution are called weak electrolytes. For example, CH3COOH, NH4OH, (NH4)2 CO3, HCN, etc. are weak electrolytes.
CH3COOH + H2O ⇌ H3O+ + CH3COO
NH3 + H2O ⇌ NH4+ + OH

Ionization of weak electrolytes: Weak electrolytes are only partially ionized and a dynamic equilibrium is established between the ions and the unionized molecules. The equilibrium which is established between the unionized molecules and the ions in the solution of weak electrolytes is called ionic equilibrium,

The fraction of the total number of molecules of an electrolyte which \ ionizes into ions is called the degree of ionization or degree of dissociation.

It is denoted by the symbol an (alpha).
Degree of ionisation,
α = $$\frac{\text { Number of molecules of the electrolyte which ionise }}{\text { Total number of molecules of the electrolyte }}$$

Dissociation or Ionisation Constant for Weak Electrolytes: Consider a weak electrolyte CH3COOH in equilibrium with its ions when dissolved in water as
CH3COOH (aq) + H2O (l) ⇌ CH3COO (aq) + H3O+ (aq)

The equilibrium constant K, is
Ka = $$\frac{c \alpha^{2}}{1-\alpha}$$

Since the degree of dissociation of a weak acid is very small as compared to 1, then 1 – α may be taken approximately equal to 1.
K = cα2
α = \sqrt{\frac{\mathrm{K}_{a}}{c}} ∴ [H3O+] = ca = $$\sqrt{\mathrm{K}_{a} c}$$

Thus, knowing the ionisation the ionisation constant Ka, degree of ionisation can be calculated.

Similarly, for a weak base, if the ionisation constant is Kb, c is the concentration and α is the degree of ionisation, then
Kb = $$\frac{c \alpha^{2}}{1-\alpha}$$
or
α = $$\sqrt{\frac{K_{b}}{c}}$$(1 – α) ≈ 1

Acids, Eases and Salts:
1. Arrhenius Acids and Bases: Arrhenius defined acids as substances that produce hydrogen ions in water and bases that produce hydroxyl ions. Thus, according to the Arrhenius concept, hydrogen chloride, acetic acid, and sulphuric acid, are acids because all these compounds give free H+ ions in an aqueous solution.
HCl (g) + H2O (excess) ⇌ H+ (aq) + Cl (aq)
H2SO4 + H2O (excess) ⇌ 2H+ (aq) + SO2-4 (aq)
CH3COOH + H2O (excess) ⇌ H+ (aq) + CH3COO (aq)

The compounds such as NaOH and NH4OH are bases because these compounds give free OH- ions in aqueous solutions.
NaOH + H2O (excess) ⇌ Na+ (aq) + OH (aq)
NH4OH + H2O (excess) ⇌ NH4+ (aq) + OH (aq)

Ionization of Acids and Bases
→ The Bronsted-Lowry Acids and Bases: Any hydrogen-containing species (a molecule, a cation, or an anion) which is capable of donating one or more protons to any other substance is called an acid.

Any species (molecule, cation, or anion) which is capable of accepting one or more protons from acid is called a base.
Thus, according to the Bronsted-Lowry concept, an acid is a proton donor, and. a base is a proton acceptor.

Let us consider the dissolution of hydrogen chloride (HCl) in water described by the reaction
HCl (aq) + H2O (1) ⇌ H3O+ (aq) + Cl (aq)

In this reaction, HCl donates its one proton to become Cl and H2O accepts one proton to become H3O+. Thus, HCl is a Bronsted acid and H2O is a Bronsted base.

Every acid must form a base on donating its proton and every base must form an acid on accepting a proton.

Conjugate Acid-Base Pairs: Consider the reaction between an acid and a base

In this reaction, HCl donates a proton (acts as an acid) and forms Cl ion which has a tendency to accept a proton (can act as a base). Similarly, NH3 accepts a proton and acts as a base but it forms an NH4+ ion which has a tendency to behave as an acid. In other words, an acid donates a proton .and becomes a base and a base accepts a proton and becomes an acid.

The base formed from acid is referred to as the conjugate base of the acid. Similarly’ the acid formed from a base is called the conjugate acid of the base. Thus, in the above example, Cl is the conjugate base of acid HCl arid NH4+ is the conjugate acid of the base NH3.

The pairs of acids and bases are formed from each other by the gain or loss of a proton are called conjugate acid-base pairs.

Thus, each acid-base reaction involves two pairs of conjugate acids and bases. These are labeled as 1 and 2 as shown below:

It may be noted that the conjugate base of a strong acid is a weak base and the conjugate base of a weak acid is a strong base. Strong acids like HCl, HNO3 have weak bases like Cl and NO3 and vice versa.

Lewis’s concept of Acids and Bases: G.N. Lewis (1923) proposed a more general and broader concept of acids and bases. According to this concept, an acid is a substance (molecule or ion) that can accept a pair of electrons while a base is a substance (molecule or ion) that can donate a pair of electrons. Some examples of Lewis acids and bases are

Lewis bases

1. Neutral species having at least one lone pair of electrons, e.g. NH3, -NH2, ROH
2. Negatively charged ions e.g., CN, Cl, OH.

Lewis acids

1. Molecules in which the central atom has incomplete octet e.g., AlCl3, BF3, FeCl3, etc,
2. Simple cations act as Lewis acids, e.g., Ag+, H+, etc.
3. Molecules having empty d-orbitals in the central atom, e.g., SiF4, SnCl4, PF5.
4. Molecules in which atoms of dissimilar electronegativities are joined by multiple bonds, e.g., CO2, SO2, etc.

The acid-base reaction may be written as:

Problem. Classify the following species into Lewis acids and Lewis bases and show how these act as such:

This ion acts as a Lewis base as it can donate any one of its four electron pairs.

(b) OH
OH is a lewis base as it can donate an electron lone pair.

(c) H+
H+ A proton is a lewis acid as it can accept a lone pair of electrons from bases like OH and F ions.

(d) BCl3
BCl3 acts as a lewis acid as it can accept a lone pair from species like ammonia or amine molecules.

Ionization of water-ionic product of water
Water is a weak electrolyte and it undergoes self ionization as
H2O + H2O ⇌ H3O+ + OH

Applying the law of chemical equilibrium
K = $$\frac{\left[\mathrm{H}_{3} \mathrm{O}^{+}\right]\left[\mathrm{OH}^{-}\right]}{\left[\mathrm{H}_{2} \mathrm{O}\right]^{2}}$$

Since the dissociation of water takes place to a small extent, the concentration of the undissociated water is nearly constant. Therefore,
K = $$\frac{\left[\mathrm{H}_{3} \mathrm{O}^{+}\right]\left[\mathrm{OH}^{-}\right]}{\text {Constant }}$$
K × Constant = [H3O+][OH]
or
Kw = [H3O+][OH]

where is a constant and is known as ionic product of water. Its value is constant at a particular temperature. At 298 K, the value of Kw is 1.008 × 10-14mol2 L-2. That is,
Kw = [H3O+][OH-] = 1.008 × 10-14 at 298 K

It is quite evident that the concentrations of H3O+ and OH- ions are equal in pure water so that
[H3O+] = [OH] = 1.0 × 10-7 mol L-1

It may be remembered that
if [H3O+] = [OH]: the solution is neutral
[H3O+] > [OH]: the solution is acidic
[H3O+] < [OH]: the solution is basic.

In a basic or acidic solution, the concentration of H3O+ or OH- may be calculated as
[H3O+] = $$\frac{\mathrm{K}_{w}}{\left[\mathrm{OH}^{-}\right]}$$[OH~] = $$\frac{\mathrm{K}_{w}}{\left[\mathrm{H}_{3} \mathrm{O}^{+}\right]}$$

pH scale
The pH of a solution may be defined as the negative logarithm of the H3O+ ion concentration in moles per liter. Mathematically, it may be expressed as
pH = – log [H3O+]
or
log [H3O+]

For neutral solution, pH = – log [1.0 × 10-7] = 7
In a similar way, by substituting different values of [H3O+] in the above relation, it can be seen that

• For acidic solution pH <7
• For basic solution pH >7
• For neutral solution pH = 7

To express the acidic or basic character of a solution, a scale has been proposed from pH 1 to 14. This scale is known as the pH scale.

It may be noted that solutions having pH between 0 to 2 are strongly acidic, those with pH between 2 to 4 are moderately acidic while the others having pH between 4 to 7 are weakly acidic. Similarly, the solutions having pH values between 7 to 10 are weakly basic, those having pH 10 to 12 are moderately basic whereas the others which haying a pH range between 12 to 14 are strongly basic.

pOH scale Like pH, pOH may be defined as
pOH = – log [OH]

At 298K pH + pOH = pK° = – logKw = – log 10-14
∴ pH + pOH= 14

At 298 K, Ionic product of water =1.0 × 10-14
[precisely = 1.08 × 10-14 mol2 L-2]

The value of Kw goes on increasing as the temperature increases.

It is because with the increase in temperature, the degree of ionization of water into H+ ions and OH ions increases.
But since pH = – log [H+]
∴ the pH of water decreases with an increase in temperature.

The ionization of Bases
The bases in their aqueous solutions furnish OH (hydroxyl) ions.
For example
NaOH + H2O (excess) → Na+ (aq) + OH (aq)
NH3 + H2O (excess) ⇌ NH4OH (aq) ⇌ NH4+ (aq) + OH (aq)

Strong bases like NaOH and KOH are completely dissociated into their constituent ions in dilute solutions.

Weak Bases like NH4OH, AgOH are ionized in an aqueous solution to a small extent only. The ionization of a base is characterized by an equilibrium constant called base dissociation constant (Kb), for example for a base like MOH
MOH + H2O (excess) ⇌ M+ (aq) + OH (aq)
Kb = $$\frac{\left[\mathrm{M}^{+}(\mathrm{aq})\right] \times\left[\mathrm{OH}^{-}(\mathrm{aq})\right]}{[\mathrm{M}(\mathrm{OH})]}$$

If n moles of a base is dissolved in V liters of the solution and a is the degree of dissociation of the base, then the amounts of various species at equilibrium present are

• No. of moles of MOH = n(1 – α)
• No. of moles of OH = nα
• No. of moles of M+ = nα

The corresponding concentrations in moles per litre are
[MOH] = n(1 – α)/V mol L-1 = C(1 – α) mol L-1
[OH] = nα/V mol L-1 = Cα mol L-1
[M+] = na/V mol-1 = Cα mol L-1.

Thus, the ionisation constant of the base is given by
Kb = $$\frac{\left[\mathrm{M}^{+}\right]\left[\mathrm{OH}^{-}\right]}{[\mathrm{MOH}]}=\frac{\mathrm{C} \alpha \cdot \mathrm{C} \alpha}{\mathrm{C}(1-\alpha)}=\frac{\mathrm{C} \alpha^{2}}{(1-\alpha)}$$

where C is the molar concentration of the base in solution.
If α is small (i.e., the base is fairly weak) then a can be ignored in comparison to 1. Then
Kb = Cα2
or
α = $$\sqrt{\frac{\mathrm{K}_{b}}{\mathrm{C}}}=\sqrt{\mathrm{K}_{b} \mathrm{~V}}$$ ……..(1)

where V is the volume of the solution in liters containing one mole of the base MOH. From equation (1), it is apparent that the degree of ionization of the base increases with dilution.

The hydroxide ion concentration in the solution is given by,
[OH] = Cα = C × $$\sqrt{\frac{\mathrm{K}_{b}}{\mathrm{C}}}=\sqrt{\mathrm{K}_{b} \mathrm{C}}$$.

→ Di and Polybasic Acids and Di-and Polyacidic Bases: Some of the acids like oxalic acid, sulphuric acid, and phosphoric acids have more than one ionizable proton per molecule of the acid. Such acids are known as polybasic or polyprotic acids. The ionization reactions for example of a dibasic acid H2X, are represented by the equations:
H2X (aq) ⇌ H+ (aq) + HX (aq)
HX(aq) ⇌ H+(aq) + X2(aq)

And the corresponding equilibrium constants are given below:
Ka1 = $$\frac{\left[\mathrm{H}^{+}\right]\left[\mathrm{HX}^{-}\right]}{\left[\mathrm{H}_{2} \mathrm{X}\right]}$$ and
Ka2 = $$\frac{\left[\mathrm{H}^{+}\right]\left[\mathrm{X}^{2-}\right]}{\left[\mathrm{HX}^{-}\right]}$$

Here Ka1 and Ka2 are called the first and second ionization constants respectively of the acid H2X. Similarly for tribasic acid like H3PO4 we have three ionization constants.

Similarly, expressions can be written for di and poly acidic bases

Table: The ionization constants of some common polyprotic acids (298 K)

→ Common ion effect in the ionization of Acids and Bases: The products of ionization of acid are hydrogen ions and the corresponding anion. If any one of the products is added to the acid solution then the acid is ionized to a lesser extent in agreement with Le Chatelier’s principle. Let us consider the example of acetic acid whose dissociation may be represented by its dissociation equilibria.
HAc (aq) ⇌ H+ (aq) + Ac (Aq) .
Ka = $$\frac{\left[\mathrm{H}^{+}\right]\left[\mathrm{A} c^{-}\right]}{[\mathrm{HAc}]}$$

If hydrogen ion is provided from any other source, it will combine with the acetate ion and reduce the degree of ionization of acetic acid. Similar will be the effect when the anion is added to the equilibrium mixture from an external source.

Hydrolysis of salts and the pH of their solutions: Salt hydrolysis describes the interaction of water and the cation/anion or both of a salt. The pH of the solution gets affected by this interaction. The cations (e.g., Na+, Rb+, Ca2+, Ba2+, etc.) of the strong Bases and, Anions (e.e. Cl, Br, I, NO3 etc.) of strong acids do not hydrolyze and therefore the solutions of salts formed by strong acids and bases are neutral i.e., their pH is 7. On the other hand, the solutions of salts formed from strong bases and weak acids are alkaline i.e., their pH is greater than 7. While the solutions of strong acids and weak bases are acidic i.e., their pH is less than 7.

→ The salts of strong bases and weak acids: Consider the solution of salts like MX formed by a strong base MOH and a weak acid HX. The salt is a strong electrolyte and is completely dissociated into M+ and X ions.
MX (s) + H2O (l) → M+ (aq) + X (aq)

If the concentration of the salt is ‘C, then the concentration of M+ and X is also C. M+ is the cation of a strong base and therefore it remains as such but the anion X reacts with a water molecule to give unionized acid. This process is known as hydrolysis.
X (aq) + H2O (l) ⇌ HX (aq) + OH (aq)

If ‘h’ is the degree of hydrolysis indicating the extent to which the anion is hydrolyzed and C is the concentration of MX or X, and further assuming that the concentration of water remains constant, the equilibrium constant for the reaction called the hydrolysis constant, Kh is given by the equation
Kh = $$\frac{[\mathrm{HX}]\left[\mathrm{OH}^{-}\right]}{\left[\mathrm{X}^{-}\right]}$$

Multiplying the numerator and the denominator of the right-hand side of the above equation by [H+], we obtain
Kh = $$\frac{[\mathrm{HX}]\left[\mathrm{OH}^{-}\right]\left[\mathrm{H}^{+}\right]}{\left[\mathrm{X}^{-}\right]\left[\mathrm{H}^{+}\right]}=\frac{\mathrm{K}_{w}}{\mathrm{~K}_{a}}$$

If ‘C’ is the concentration of the salt in the solution and ‘h’ is the degree of hydrolysis, then after the equilibrium is established the concentration of various species in the solutions are given by the equations:
[X] = C(1 -h) and [OH] = [HX] = Ch

We then have the quadratic equation

→ The salts of strong acids and weak bases: The salt MX formed by a strong acid HX and a weak base MOH when dissolved in water dissociated into cations M+ and anions X. The cation undergoes hydrolysis represented by the reaction

If ‘C is the concentration of the salt in the solution, h is its degree of hydrolysis, then equilibrium concentrations of various species are given by the equation.
[MOH] = [H+] = Ch and [M+] = C(1 – h)
Kh = Hydrolysis constt. = $$\frac{\mathrm{K}_{w}}{\mathrm{~K}_{b}}$$
= $$\frac{(C h)^{2}}{C(1-h)}=\frac{C h^{2}}{1-h}$$

If h = degree of hydrolysis is small
1 -h ≈ 1
∴ Kh = Ch2

pH = $$\frac{1}{2}$$[pKw – pKb – log C]

At 298 K, the equation becomes
pH = 7 – $$\frac{1}{2}$$[pKb + logC]

→ The salts of weak bases and weak acids: Consider a salt MX formed by the weak base MOH and the weak acid MX. The salt in the aqueous solution is completely dissociated into the ions and both of these now ionize in water by the reaction
M+ (aq) + X (aq) + H2O (l) ⇌ MOH (aq) + HX (aq)

Assuming that in dilute solution the concentration of water remains constant, the hydrolysis constant is given by the equation:
Kh = $$\frac{[\mathrm{MOH}][\mathrm{HX}]}{\left[\mathrm{M}^{+}\right]\left[\mathrm{X}^{-}\right]}$$

Multiplying the right hand side both in the numerator and the denominator by [H+][OH_], we get
Kh = $$\frac{[\mathrm{MOH}][\mathrm{HX}]}{\left[\mathrm{M}^{+}\right]\left[\mathrm{OH}^{-}\right]} \cdot \frac{[\mathrm{HX}]}{\left[\mathrm{H}^{+}\right]\left[\mathrm{X}^{-}\right]}$$ × [H+][OH-]

= $$\frac{K_{a}}{\left(K_{b} \times K_{a}\right)}$$

If ‘C’ the concentration of the salt and ‘h’ the degree of hydrolysis, then at equilibrium, the concentrations of various species are given by the relations
[MOH] = [HX] = Ch and [M+] = [X-] = C(1 – h) and
we have now
Kb = $$\frac{(\mathrm{C}) n^{2}}{\left[\mathrm{C}(1-h)^{2}\right]}=\frac{h}{(1-h)^{2}}$$
or
$$\frac{h}{1-h}$$ = (Kh)1/2

The concentration of the hydrogen ion can be calculated using the equation for the ionization constant of the acid, HX
Ka = $$\frac{\left[\mathrm{H}^{+}\right]\left[\mathrm{X}^{-}\right]}{[\mathrm{HX}]}$$

If Kh is small then ‘h’ is also small and we have h = K1/2 and (1 – h) = 1 and we have
pH = pKa – log (h) = pKa – [(log (Kb)1/2]
= $$\frac{1}{2}$$[pKw + pKa – pKb]
and at 298 K, we have pH = 7 + $$\frac{1}{2}$$(pKa – pKb).

→ Problem: The pKa of acetic acid and pKb of ammonium hydroxide are respectively 4.76 and 4.75. Calculate the pH of ammonium acetate solution.
pH = 7 + $$\frac{1}{2}$$(pKa – pKb) = 7 + $$\frac{1}{2}$$(7.46 – 4.75)
= 7 + $$\frac{1}{2}$$(0.01) = 7.005.

→ Buffer Solutions: Many-body fluids e.g. blood and urine have definite pH and any deviation in their pH indicates malfunctioning of the body. The control of pH is very important in chemical and biochemical processes.

The solutions which resist change in their pH on dilution or on the addition of a small amount of acid or base are called buffer solutions.

Solubility Equilibria of Sparingly Soluble Salts The solubility of a substance depends on a number of factors. They are the lattice enthalpy of the salt and the solvation enthalpy of the ion. For salt to dissolve in a solvent the strong forces of attraction between the ions (lattice energy) must be overcome by the ion solvent its solvation enthalpy must be greater than its lattice enthalpy. On the basis of their solubility, the salts can be classified into 3 categories.

 Category I: Soluble Solubility > 0.1 M Category II: Slightly soluble 0.01 < solubility < 0.1 M Category III: Sparingly soluble Solubility < 0.01 M.

Solubility Product Constant
Whenever a sparingly soluble ionic substance like AgCl, AgBr, Agl, BaSO4, PbCrO4, etc. is placed in a polar solvent like water, it dissolves to a very limited extent to produce ions in the solution. After a little while, an equilibrium between the solid phase and the ions in the solution is established. For example, for an ionic substance AB, the equilibrium is

Since the concentration of the solid substances, AB at any temperature is constant, hence the above equilibrium (between ions and solid substance) can be described by a new constant K.
Ksp = [A+(aq)][B(aq)]

Ksp is called the solubility product constant or simply as solubility product of the salt concerned

Ksp for a salt of the type AB2: For a sparingly soluble ionic salt of type AB2, the dissolution leads to the equilibrium AB2 (S) + H2O (excess) ⇌ [A2+ (aq) + 2B (aq)]
Ksp = [A2+ (aq)][B (aq)]2

→ Ksp for a salt of the type AmBn: For a salt of the type AmBn (s), dissolution leads to dissociation according to the reaction.
AmBn (s) + H2O (excess) ⇌ mAp+ (aq) + nBq- (aq)
where mp+ = nq-

The solubility product constant for the salt AmBn is then expressed as ‘
Ksp = [Ap+ (aq)]m [Bq- (aq)]n

Thus, the solubility product constant (Ksp) of a sparingly soluble salt is defined as the product of the molar concentrations of the ions in its saturated solution each raised to the power equal to the stoichiometric coefficient of the species in the balanced chemical equation.

Common ion effect on the solubility of ionic salts: A shift in the position of the equilibrium involving molecular and ionic forms of an electrolyte, by adding a strong electrolyte having one ion common to it is called common ion effect.

The solubility of a sparingly soluble salt decreases when a highly soluble salt having one ion common to the sparingly soluble salt is added to the solution due to the common ion effect. For example,

The solubility of AgCl (sparingly soluble salt) in water decreases when a small amount of KCl or NaCl is added to the solution. This is because KCl or NaCl dissociate completely in solution to produce more Cl ions.
KCl → K+ + Cl

This increase in the concentration of Cl ion shifts the equilibrium.
AgCl (s) ⇌ Ag+(aq) + Cl(aq)

towards left. This causes more precipitation of AgCl (s). As a result, the solubility of AgCl in the solution decreases.

Table: The solubility product constants, Ksp of some common ionic salts at 298 K

→ Equilibrium: It represents the state of a process in which the properties like the temperature, pressure, and concentration of the system do not show any change with the passage of time.

→ Equilibrium Mixture: The mixture of reactants and products in the equilibrium state is called an Equilibrium mixture.

Henry’s Law: The mass of a gas dissolved in a given mass of a solvent at any temperature is directly proportional to the pressure of the gas above the solvent.
i.e., m ∝ p
or
m = kp
where k is a constant of proportionality and is called Henry’s Constant. Its value depends upon the nature of the gas, the nature of the liquid, and the temperature.

Dynamic Equilibrium in Chemical Reactions The chemical reactions reach a state of dynamic equilibrium in which the rates of forward and reverse reactions are equal and there is no net change in composition.

Law of Chemical Equilibrium and Equilibrium Constant At a given temperature, the product of concentrations of the reaction products raised to the respective stoichiometric coefficient in the balanced chemical equation divided by the product of concentrations of the reactants raised to their individual stoichiometric coefficients has a constant value. This constant value is called the Equilibrium Constant.

The equilibrium constant for a general reaction
a A + bB ⇌ cD + dD
is expressed by KC = $$\frac{[\mathrm{C}]^{c} \times[\mathrm{D}]^{d}}{[\mathrm{~A}]^{a} \times[\mathrm{B}]^{b}}$$.
where [A], [B], [C], [D] are the equilibrium concentrations of the reactants and products.

If the equilibrium constant for the reaction
H2 (g) + I2 (g) ⇌ 2HI (g) is Kc = [HI]2/[H2][I2]

the equilibrium constant for the reverse reaction
2HI (g) ⇌ H2 (g) + I2 (g) at the same temp, is
Kc = [H2][I2]/[HI]2 = $$\frac{1}{x}=\frac{1}{\mathrm{~K}_{\mathrm{C}}}$$

Thus KC = $$\frac{1}{\mathrm{~K}_{\mathrm{C}}}$$

→ Homogeneous Equilibrium: When the reactants and products of a chemical reaction are in the same state, the system is said to have a homogeneous equilibrium.

→ Heterogeneous Equilibrium: Equilibrium in a system having more than one phase is called heterogeneous equilibrium.

Predicting the direction of the reaction For a general reaction
aA + bB ⇌ cD + dD
Qc = [C]c × [D]d/[A]a × [B]b then

• If Qc > Kc, the reaction will proceed in the direction of reactants (reverse reaction).
• If Qc < Kc, the reaction will proceed in the direction of the products (forward reaction).
• If Qc = Kc, the reaction mixture is already in equilibrium.

That is, no net reaction occurs.
Relationship between Equilibrium Constant K, Reaction Quotient Q, and Gibbs Energy G

• If ΔG is negative, the reaction is spontaneous and proceeds in the forward direction.
• If ΔG is positive, the reaction is non-spontaneous.
• If ΔG = 0, the reaction has achieved equilibrium.

Mathematically,
ΔG – ΔG° + RT InQ.
where G° is standard Gibbs energy.
At equilibrium, when ΔG = 0 and Q = Kc

The above equation becomes
ΔG = ΔG° + RT InK .
ΔG° = – RT InK.
InK = – ΔG°/RT

Taking antilogs
K = e-ΔG /RT

Thus if ΔG° < 0 then – ΔG°/RT is positive and e-ΔG /RT > 1 making K > 1 which implies a spontaneous reaction.

If ΔG° > 0; then – ΔG°/RT is negative and e-ΔG /RT < 1, that is Kc < 1, which implies a non-spontaneous reaction.

For a general reaction
aA + bB ⇌ cD + dD

If pA, pB pC and pD indicate their partial pressures and [A], [B], [C] and [D] indicate their molar concentrations,

where Δn = (number of moles of gaseous products) – (number of moles of gaseous reactants) in the balanced chemical equation.

→ Le-Chatelier’s Principle: When a system in equilibrium is subjected to a change of temperature, pressure, or concentration the equilibrium shifts in a direction so as to undo the effect of the change applied.

This is applicable to all chemical and physical equilibria.

Arrhenius Concept of Acids and Bases.
→ Acids: are hydrogen-containing substances that dissociate in water to give hydrogen ions H+ (aq).

→ Bases: Bases are substances that produce hydroxyl ions OH (aq) on dissociation in water.

Bronsted-Lowry Concept of Acids and Bases
→ Acid: Acid is a substance that is capable of donating a hydrogen – ion H+. It is a Proton-donor.

→ Base: It is a substance that is capable of accepting a hydrogen ion H+. It is a Proton-acceptor.

Conjugate Acid-base Pair: The acid-base pair which differs only by one proton is called a conjugate acid-base pair.
HCl is an acid whose conjugate base is Cl.
NH3 is a base whose conjugate acid is NH4+.
OH is called the conjugate base of an acid H2O.

If Bronsted acid is a strong acid, then its conjugate base is a weak base and vice-versa,

Lewis Concept of Acids and Bases
→ Acid: It is species which accepts electron pair.

→ Base: It is a species that donates an electron pair.

Thus in the reaction
BF3 + :NH3 ⇌ BF3 :NH3
BF3 is an acid and: NH3 is a base.

The Ionisation Constant of Water and its Ionic Product
Kw which is = [H+] × [OH] is called an Ionic product of water

At 298 K, concentration to H+ = 1.0 × 10-7 M
∴ Concentration of [OH-] is also = 1.0 × 10-7 M
Kw = [H+] × [OH] = [H3O+] × [OH-]
= 1.0 × 10-14M2

The value of Ka is temperature-dependent.
Acidic substance [H3O+] > [OH]
Neutral substance [H3O+] = [OH]
Basic substance [H3P+] < [OH]

The pH scale
PH = – log aH+
where aH+ is hydrogen ion activity

Hence pH of pure water = – log [10-7] = 7.
Acidic solution has pH < 7.
Basic solution has pH > 7
Pure water or Neutral solution has pH = 7
Kw = [H3O+] × [OH] – 10-14
– log Kw = – log {[H3O+] × OH]} = – log 10-14
– log Kw = – log [H3O+] – log [OH] = – log 10-14
or
pKw = pH + pOH = 14

→ pH meter: It is a device that measures the pH-dependent electrical potential of the test solution within 0.001 precission

Ionization constants of weak acids
For a weak acid HX

HX (aq) + H2O (I) ⇌ H3O+ (aq) + X (aq)
Ka = [H3O+][X]/[HX]
where Ka is called the dissociation or ionization constant of acid HX.

At a given temperature, the value of Ka is a measure of the strength of the acid HX. Ka is a dimensionless quantity.
Ionization of weak bases:
For a weak base MOH
MOH (aq) ⇌ M+ (aq) + OH(aq)
Kb = [M+] × [OH]/[MOH] is called base ionisation constant.

The value of Kb is a measure of the strength of a base.
Ka + Kb = Kw for a conjugate acid-base pair
or
pKa + pKb = pKw = 14 at 298 K

Note 1. For a polybasic acid, if Ka1, Ka2… are successive dissociation constants, then
Ka1 > Ka2 >Ka3

Similarly, H2 S is a stronger acid than H2O.

Note 3. In HA, H-A bond polarity becomes the deciding factor for determining the acid strength. As the electronegativity of A increases, the strength of the acid also increases.

→ Common-Ion Effect: The suppression of the degree of dissociation of a weak acid or a weak base on the addition of a common ion is called Common-Ion Effect.

Thus the degree of dissociation of a weak base NH4OH is suppressed on the addition of common ion NH4+ by adding NH4Cl which is a strong base.

Hydrolysis of Salts

1. Salts of strong acids and strong bases like NaCl, KCl, NaNO3 KNO3/ K2SO4, Na2SO4 do not undergo hydrolysis. Their solutions in water are neutral.
2. Salts of strong acids and weak bases like NH4Cl, CuSO4 yield acidic solutions in water.
3. Salts of weak acids and strong bases on hydrolysis like CH3COONa, Na2CO3 yield basic solutions in water.
4. Salts of weak acids and weak bases undergo hydrolysis.
e.g. CH3COONH4. Their acidic or basic nature depends upon the comparative strength of the acid/base.

Buffer Solutions: The solution which resists a change in pH value on dilution or with the addition of small amounts of acid or alkali is called Buffer solutions.

## Online Education for Reconstitution of Partnership Firm: Retirement/Death of a Partner Class 12 Notes Accountancy Chapter 4

By going through these CBSE Online Education Class 12 Accountancy Notes Chapter 4 Reconstitution of Partnership Firm: Retirement/Death of a Partner, students can recall all the concepts quickly.

## Online Education for Reconstitution of Partnership Firm: Retirement/Death of a Partner Notes Class 12 Accountancy Chapter 4

As we already knew that reconstitution of the partnership firm can also take place on the retirement of the partner or death of the partner. Here, the existing partnership deed comes to an end, and in its place, a new partnership deed comes into existence where remaining partners shall continue to do the business but on different terms and conditions. In both cases, i.e. on retirement or death of a partner, we are required to determine the sum due to the retiring partner or to the legal representatives of the deceased partner.

Retirement of a Partner:
A partner may retire from the partnership firm:

1. with the consent of all other partners;
or
2. in case of retirement at will i.e. (partnership at will);
or
3. by giving notice in writing to all other partners by the retiring partner.

On retirement, the old partnership comes to an end arid a new one between the remaining partner1 comes into existence. However the partnership firm as such continues.

Amount due to Retiring Partner:

1. Credit Balance of his Capital Account;
2. Credit Balance of his Current Account (if any);
3. His share of goodwill, accumulated profits, reserves etc.;
4. His share in the profit on revaluation of assets and liabilities;
5. His share of profit, interest on capital up to the date of retirement;
6. Any salary/commission due to him.

The following deductions (if any) made from his share:

1. Debit balance of the his-current account (if any);
2. His share of Goodwill to be written off, accumulated losses;
3. His share of loss on revaluation of assets and liabilities;
4. His share of loss, drawing and interest on drawings up to the date of retirement.

The various accounting aspects involved in retirement or death are as follows:

1. New profit sharing ratio
2. Gaining ratio
3. Goodwill Treatment
4. Accumulated profit and losses -Distribution
5. Profit and Loss till the date of retirement or death
7. Settlement of the amount due to retired /deceased partner.

New Profit Sharing Ratio:
The new profit sharing ratio is the ratio in which the remaining partners will share future profits after the retirement or death of any partners. In other words, the new profit sharing ratio of each remaining partner will be the sum total of his old share of profits in the firm and the portion of the retiring partner’s share of the profit acquired.

New Share of Partner = Old share + Acquired share from retiring/deceased partner.

(a) Nothing is mention about the new profit sharing ratio at the time of retirement:
If nothing is stated about the future ratio of the remaining partner, then their old ratio is considered as their new ratio. In other words, in the absence of any information regarding the profit-sharing ratio in which the remaining partner acquire the share of the retiring/deceased partner, then it is assumed that they will acquire it in the old profit sharing ratio and so the share the future profits in their old ratio.

For example, Kapil, Anu and Priti are partners in firm sharing profits and losses in the ratio 5: 3: 2. If Anu retires, then the new profit sharing ratio of Kapil and Priti will be 5: 2.

(b) Remaining partners acquire the share of retiring/deceased partner in the specified ratio:
If the remaining partners acquire the share of retiring/deceased partner in a specified ratio, other than their old ratio, then there is a need to compute a new profit sharing ratio among them. The new profit sharing ratio is equal to the sum total of their old ratio and the share acquired from the retiring/deceased partner.

For example, Kapil, Anu and Priti are partners in firm sharing profits and losses in the ratio 5: 3: 2. If Anu retires from the firm and her share was acquired by Kapil and Priti in the ratio 2: 1. In that case, the new share of profit will be calculated as follows:

New share of remaining partner = Old share + Acquired share from the outgoing partner.

(c) Remaining partners may agree on a particular new profit sharing ratio:
If the remaining partners decide a particular profit sharing ratio to share the future profits of the firm, in such a case the ratio so specified will be the new profit sharing ratio.

Gaining Ratio:
The ratio in which the continuing partners acquire the share of the retiring /deceased partner is called the gaining ratio.
(a) If nothing is mention in agreement:
If nothing is mention in the agreement about the gaining ratio, then it is assumed that the remaining partners acquire the share of the retiring/deceased partner in their old profit sharing ratio. In that case, the gaining ratio of the remaining partners will be the same as their old profit sharing ratio and there is no need to compute the gaining ratio.

(b) If a new profit sharing ratio is given:
If the new profit sharing ratio is given of the remaining partners then we have to compute the gaining ratio. In this case, the gaining ratio is calculated by deducting the old ratio from the new ratio.
Gaining ratio = New ratio – Old ratio

For example X, Y and Z are partners in a firm, sharing profits and losses in ratio 5:3:2. Y retires from the firm and X and Z decide to share future profits and losses in the ratio 7: 3. The gaining ratio will be calculated as follows:

Treatment of Goodwill:
The outgoing partner is entitled to his share of goodwill at the time of retirement/death because the goodwill has been earned by the firm with the efforts of all the existing partners. Therefore, goodwill is valued as per the agreement, at the time of retirement/death.

Due to the retirement/death of any partner, the continuing partners make again because the future profit will be shared only between the continuing partners. Therefore, the continuing partners should compensate the retiring/deceased partner for his share of goodwill in the gaining ratio.

The accounting treatment for goodwill depends upon whether the goodwill already appears in the books of the firm or not.

When Goodwill does not Appear in the Books:
When Goodwill does not appear in the books of the firm, there are four following ways to compensate the retiring partner for his share of goodwill:
(a) Goodwill is raised at its full value and retained in the books:
Goodwill A/c Dr.
To All Partner’s Capital AJc’s
(including retiring/deceased partner)
(For the goodwill raised at its full value and credited to capital A/c’s of a ’1 partners in their old profit sharing ratio)
The full value of goodwill will appear in the new balance sheet.

(b) Goodwill is raised at its full value and written off immediately:
If it is decided that the goodwill will not appear in the balance sheet of the reconstituted firm, then the following journal entries are required:
1. Goodwill A/c Dr.
To All Partner’s Capital A/c’s (For raising of Goodwill and credited to all partners capital A/c’s in their old profit sharing ratio)

2. Continuing Partner’s Capital A/c’s Dr.
To Goodwill A/c
(For written off goodwill between continuing partners in their new profit sharing ratio)

(c) Goodwill is raised to the extent of retired/deceased partner’s share and written off immediately:
1. Goodwill A/c Dr.
To Retiring/Deceased Partner’s Capital A/c (For the goodwill raised by share of outgoing partner)

2. Continuing Partner’s Capital AJc’s Dr.
To Goodwill A/c
(For the goodwill written off between the continuing partners in their gaining ratio)

(d) No Goodwill account is raised at all in the firm’s books:
If the outgoing partner’s share of goodwill is adjusted in the capital accounts of the continuing partners without opening a goodwill account, the following entry will be required:

Continuing Partner’s Capital A/c’s Dr.
To Outgoing Partner’s Capital A/c (For the share of outgoing partner in the goodwill adjusted through capital accounts in the gaining ratio)

The following example clears the above accounting treatment of Goodwill at the time of retirement/death:
Ram, Shyam and Mohan are partners in firm sharing profits and losses in the ratio of 5: 3: 2. Shyam retires. The goodwill of the firm is valued at Rs. 1,40,000 and the remaining partner’s Ram and Mohan continue to share profits in the ratio of 5:2. The following journal entries passed under various alternatives shall be as follows:

If goodwill is raised at full value and retained in books:

If goodwill is raised at full value and written off immediately:

If goodwill is raised to the extent of retiring partner’s share and written off immediately:

No goodwill account is raised at all in the firm’s books:

When Goodwill is already appearing in the books:
(a) If the value of goodwill appearing is equal to the current value of goodwill of the firm:
Normally, no adjustment is required if both the amounts are the same. Because goodwill stands credited in the accounts of all the partners including the retiring one.

(b) If the book value of goodwill is lower than its present value:
If the book value is less than the present value, the difference will be debited to the goodwill account and credited to the old partner’s capital accounts in their old profit sharing ratio.
Goodwill A/c Dr.
To All Partner’s Capital A/c’s (individually)
(For goodwill raised to its present value)

(c) If the book value of goodwill is more than the agreed or present value:
If the book value of goodwill is more than the present value, the difference will be debited to All partner’s capital accounts in their old profit sharing ratio and credited to the goodwill account.
All Partner’s Capital A/c’s (individually) Dr.
To Goodwill A/c
(For goodwill brought down to its present value)

Alternatively,
1. First, write off the existing goodwill that appears in the books:
All Partner’s Capital A/c’s (individually) Dr.
To Goodwill A/c
(For write off goodwill to all partners in old profit sharing ratio)

2. Adjust retiring partner’s share of goodwill through capital A/c’s
Remaining Partner’s Capital A/c’s Dr.
To Retiring/deceased Partner’s Capital A/c
(For goodwill share of retiring/deceased partner adjusted to remaining partner’s Capital A/c’s in their gaining ratio)

Hidden Goodwill:
If the firm has agreed to settle the retiring/deceased partner by paying him a lump sum, then the amount paid to him in excess of what is due to him based on the capital accounts balance after making all adjustments like accumulated profits and losses and revaluation profit or loss etc. shall be treated as his share of goodwill known as hidden goodwill.

Revaluation of Assets and Liabilities:
The retiring /deceased partner must be given a share of all profits that have arisen till his retirement/death and is made to bear his share of losses that have occurred till that period. This necessitates the revaluation of assets and liabilities. At the time of retirement/death of a partner, there may be some assets and liabilities which may not have been shown at their present values.

Not only that, there may be some unrecorded assets and liabilities which need to be brought into books. For this purpose, a revaluation account is opened, for the revaluation of assets and liabilities on the date of retirement/death of the partner. The journal entries to be passed for this purpose are as follows:

1. For increase in the value of assets:
Asset(s) AIc (individually) Dr.
To Revaluation A/c (For increase in the value of assets)

2. For decrease in the value of assets:
Revaluation A/c Dr.
To Assets A/c’s (individually)
(For decrease in the value of assets)

3. For increase in the number of liabilities:
Revaluation A/c Dr.
To Liabilities A/c’s (individually)
(for an increase in liabilities)

4. For decrease in the number of liabilities:
Liabilities A/c’s (individually) Dr.
To Revaluation A/c (For decrease in the liabilities)

5. For an unrecorded asset:
Assets A/c Dr.
To Revaluation A/c
(For unrecorded assets brought into books)

6. For an unrecorded liability:
Revaluation A/c Dr.
To Liability A/c
(For an unrecorded liability brought into books)

7. For the sale of an unrecorded asset:
Cash A/c Dr.
To Revaluation A/c (For the sale of unrecorded assets)

8. For payment of an unrecorded liability:
Revaluation A/c Dr.
To Cash A/c
(For the payment of an unrecorded*liability)

9. For-profit on revaluation:
Revaluation A/c Dr.
To All Partner’s Capital A/c’s (individually)
(For the distribution of profit on revaluation to all partners in their old profit sharing ratio)
Or

10. For Loss on revaluation:
All Partner’s Capital A/c’s (individually) Dr.
To Revaluation A/c
(For the distribution of losses on revaluation to all partners in their old profit sharing ratio)

Reserves and Accumulated Profits and Losses:
The retiring/deceased partner is also entitled to his/her share in the accumulated profits, general reserve, workmen compensation fund 1 etc. and is also liable to share the accumulated losses.

For this purpose the following journal entries are required:
1. For Transferring accumulated profits, General Reserves etc.
To All Partner’s Capital A/c’s (individually)
(For accumulated profits are transferred to all partner’s Capital A/c’s in their old profit sharing ratio)

2. For transfer of accumulated losses:
All Partner’s Capital A/c’s (individually) Dr.
To Profit and Loss A/c To Any Accumulated Loss A/c (For accumulated losses transferred to all partner’s Capital A/c’s in their old profit sharing ratio)

Settlement of Amount Due to Retiring Partner:
The retiring partner is entitled to the amount due to him. It is settled as per the terms of the partnership deed i.e. in lump sum immediately or in various instalments with or without interest as agreed or partly in cash immediately and partly in instalments.

In absence of any agreement, Section 37 of the Indian Partnership Act, 1932 is applicable, according to this, the retiring partner has an option to receive either interest 6% p.a. till the payment of his/her amount due or such share of profits which has been earned with his/her money i.e. based on the capital ratio. The necessary journal entries are as follows:
1. If payment (full) is made in cash:
Retiring Partner’s Capital A/c Dr.
To Cash/Bank A/c
(For the amount paid to retire partner)

2. If the amount due to retiring partner’s treated as loan:
Retiring Partner’s Capital A/c Dr.
To Retiring Partner’s Loan A/c (For the amount due to retiring partner transferred to his loan account)

3. When the amount due to retiring partner is partly paid in cash and the remaining amount treated as loan:
Retiring Partner’s Capital A/c Dr. (Total Amount Due)
To Cash/Bank A/c. (Amount paid)
To Retiring Partner’s Loaij A/c (Amount of loan) (For the amount due to retiring, partner; partly paid in cash and remaining transferred to his loan account)

4. When loan account is settled by paying in instalment includes principal and interest:
(a) For interest due on loan:
Interest on Loan A/c Dr.
To Retiring Partner’s Loan A/c
(For the interest due on the loan of retiring partner)

(b) For payment of instalment of the loan with interest:
Retiring Partner’s Loan A/c Dr.
To Cash/Bank A/c
(For the amount paid (Instalment + Interest) to retiring
partner)
These entries i.e. (a) and (b) repeated till the loan is paid off.

At the time of retirement or death of a partner, the remaining partners may decide to adjust their capital contribution in their new profit sharing ratio. The adjustment of the remaining partner’s capitals may involve any one of the following cases:
1. When the total capital of a new firm is specified.
Steps:
(a) Compute the new capitals of the remaining partners by dividing total capital in their new profit sharing ratio.

(b) Calculate the amount of adjusted old capital of the remaining partners after all adjustments regarding goodwill, accumulated profit and losses, profit or loss on revaluation etc.

(c) Find out the surplus or deficiency, as the case may be, in each
of the remaining partner’s capital account by comparing the new capital and the adjusted capital. ‘

(d) Adjust the surplus by paying cash to the concerned partner or by crediting his Current Account as agreed. Adjust the deficiency by asking the concerned partner to pay cash or by debiting his current account.

Journal Entries:
For excess capital withdrawn by the remaining partners:
Partner’s Capital A/c’s (individually) Dr.
To Cash/Bank A/c.

For the amount of capital to be brought in by the partners:
Cash/Bank A/c Dr.
To Partner’s Capital AJc’s (individually)

For excess capital:
Partner’s Capital A/c’s (individually) Dr.
To Partner’s Current A/c’s (individually)

For short capital:
Partner’s Current A/c’s /individually) Dr.
To Partner’s Capital A/c’s (individually)

2. When the total capital of the new firm is not specified:
Calculate the total capital of the new firm which will be equal to the aggregate of the adjusted old capitals of the continuing partners after all adjustments like goodwill, accumulated profits and losses, profit and losses on revaluation etc.
After calculating the total capital of the new firm, follow the same steps as discussed in case 1.

3. When the amount payable to retiring partner will be contributed by continuing partners in such a way that their capitals are adjusted proportionately to their new profit sharing ratio:

Calculate the total capital of the reconstituted firm by adding the adjusted old capitals of remaining partners and the cash to be brought in by continuing partners in order to make payment to the retiring/ deceased partner.
Then follow the same step we discussed in case 1.

Death of a Partner:
The accounting treatment in the event of the death of a partner is the same as that in the case of the retirement of a partner. Here, his claim is transferred to his executor’s account and settled in the same manner as that of the retired partner.

The only major difference between the retirement and death of a partner is that retirement normally takes place at the end of the accounting period whereas death may occur on any day. Therefore, in case of death, his claim shall also include his share of profit or loss, interest on capital, interest on drawings (if any), from the beginning of the year to the date of death.

Calculation of profit for the intervening period:
Share of profit of a deceased partner

Share of deceased partner = Profit of the firm till the date of death × Deceased partner share

Accounting Treatment of Outgoing Partner’s Share in Profit:
1. Through Profit and Loss Suspense Account
In case of Profit:
Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c (Share of profit for the intervening period)

In case of Loss:
Deceased Partner’s Capital A/c Dr.
To Profit and Loss Suspense A/c (Share of loss for the intervening period)

2. Through Capital Transfer In case of Profit:
Remaining Partner’s Capital A/c’s Dr.
To Deceased Partner’s Capital A/c In case of Loss:
Deceased Partner’s Capital A/c Dr.

To Remaining Partner’s Capital A/c’s The executors of deceased partner are entitled to the following:

1. The credit balance of deceased partner’s capital account;
2. His share of goodwill;
3. His share of profit till the date of death;
4. His share of profit on revaluation of assets and liabilities;
5. His share of accumulated profits and reserves;
6. His interest on capital if partnership deed provides till the date of death;
7. His share of Joint Life Policy (if any);
8. His salary and commission due (if any);

The following deduction has to made from above.

1. His drawings, interest in drawings till the date of death;
2. His share of loss till the date of death;
3. His share of loss on revaluation of assets and liabilities. ,
4. His share of the reduction in the value of goodwill (if any).

Payment to the executors:
1. When payment is made in full Executor’s A/c Dr.
To Bank A/c.

2. When payment is made in instalment The executor’s are entitled to interest when the payment is made in instalment. If the deed is silent about this, then 6% p.a. should be given as per Section 37 of the Indian Partnership Act, 1932.

When interest is due
Interest A/c Dr.
To Executor’s A/c

When instalment paid along with interest
Executor’s A/c Dr.
To Cash/Bank A/c

## CBSE Class 12th Hindi Notes Summary of All Chapters | Aroh Vitan Class 12 Hindi Chapters Summary

Studying from Online Education for CBSE Class 12th Hindi Core Aroh Vitan Notes Summary of All Chapters Pdf Download helps students to prepare for the exam in a well-structured and organised way. Making Class 12 Hindi Aroh Vitan Chapters Summary saves students time during revision as they don’t have to go through the entire textbook. In CBSE Notes, students find the summary of the complete chapters in a short and concise way. Students can refer to the NCERT Solutions for Class 12 Hindi, to get the answers to the exercise questions.

## Online Education for Class 12th Hindi Notes | Class 12 Hindi Chapters Summary Aroh Vitan

Notes and Summary of Hindi Class 12

### Class 12 Hindi Vitan Chapters Summary

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## Online Education for Trial Balance and Rectification of Errors Class 11 Notes Accountancy Chapter 6

By going through these CBSE Online Education Class 11 Accountancy Notes Chapter 6 Trial Balance and Rectification of Errors, students can recall all the concepts quickly.

## Online Education for Trial Balance and Rectification of Errors Notes Class 11 Accountancy Chapter 6

Meaning of Trial Balance
A trial balance is a statement showing the balances, or total of debits and credits, of all the accounts in the ledger with a view to verify the arithmetical accuracy of posting into the ledger accounts.

“The statement prepared with the help of ledger balances, at the end of the financial year (or at any other date) to find out whether debt total agrees with credit total is called Trial Balance.” – William Pickles

Objectives of Preparing the Trial Balance
The trial balance is prepared to fulfil the following objectives:

1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in locating errors.
3. To help in the preparation of the financial statements.

Preparation of Trial Balance:
1. Totals Method: Under this method, the total amount of debit side of each ledger account is put on the debit side of the trial balance and the total amount of credit side of each ledger account is put on the credit side of a trial balance.

2. Balances Method: Under this method, the trial balance is prepared by showing the balances of all ledger accounts and then totalling up the debit and credit columns of the trial balances to assure their correctness.

3. Totals-cum-balance Method: This method is a combination of the totals method and the balances method. Under this method, four columns for amount are prepared. Two columns for writing the debit and credit totals of various ‘ accounts and two columns for writing the debit and credit balances of these accounts.

Significance of Agreement of Trial Balance
Normally, a tallied ‘Trial Balance’ stands that debit and credit entries have been made correctly for each transaction. However, the agreement of ‘Trial Balance’ only proves, to a certain extent, that the posting is arithmetically correct, but it does not guarantee that there is no error compelled in the accounting records.

Classification of Errors:
1. Errors of Commission: Errors caused due to wrong recording of a transaction, wrong totalling, wrong casting, wrong balancing etc.

2. Errors of Omission: The errors of omission may be committed at the time of recording the transactions in the books of original entry or while posting to the ledger. It is caused due to omission of recording a transaction entirely or partly in the books of accounts.

3. Errors of Principle: Errors arising due to the wrong classification of receipts and payments between revenue and capital receipts and revenue and capital expenditure.

4. Compensating Errors: Two or more errors committed in such a way that nullifies the effect of each other on the debits and credits.

Searching of Errors:
If the trial balance does not tally, it is a clear indication that at least one error has occurred. The error or errors needs to be located and corrected before preparing the financial statements.

Rectification of Errors:
From the point of view of rectification, the errors may be classified into the following two categories:
(a) Errors that do not affect the trial balance.
(b) Errors that affect the trial balance.

This distinction is relevant because the errors which do not affect the trial balance usually take place in two accounts in such a manner that it can be easily rectified through a journal entry whereas the errors which affect the trial balance usually affect one account and a journal entry is not possible for rectification unless a suspense account has been opened.

Suspense Account:
Sometimes, in spite of best efforts, all the errors are not located and the trial balance does not tally. In such a situation, to avoid the delay in the preparation of final accounts, the difference in the Trial Balance is placed to a newly opened account known as ‘Suspense Account’ and the trial balance tallies.

When all the errors are located and rectified the suspense account stands disposed of.

## Accounting for Not-for-Profit Organisation Class 11 Notes Accountancy Chapter 16

By going through these CBSE Class 11 Accountancy Notes Chapter 16 Accounting for Not-for-Profit Organisation, students can recall all the concepts quickly.

## Accounting for Not-for-Profit Organisation Notes Class 11 Accountancy Chapter 16

There are certain institution or organization which are set-up not to earn a profit, but for providing service to its members and the public in general. The main aim of these institutions or organizations is rendering service to their members and public, but not the profit as in the case of business. Such organization includes schools, hospitals, clubs, charitable institutions, religious organizations, trade unions, welfare societies, consumer-cooperatives, literary societies, etc.

These organizations or institutions are managed by a group of people known as trustees who are fully accountable to their members and the society for the utilization of funds and the objectives of the organization. So, you have to maintain proper accounts and financial statements in the form of the Receipt and Payment Account, Income and Expenditure Account, and the Balance Sheet. These financial statements help them to keep track of their income and expenditure as well as fulfill the legal requirements for maintaining records.

Meaning of Not-For-Profit Organisation:
All trading and business organizations are profit organizations since their main objective is to earn profit. Not-For-Profit Organisations are those organizations whose main aim/objective is to rendering service to their members or the society at large and not the earning of profits.

These organizations refer to the organizations that are set up for the welfare of the society, as a charitable institution, which runs without profit motive. Its main aim is to provide services to its members. The main source of their income usually is subscriptions from their members, donations, grants, income from investment, etc. These organizations keep the accounting records to meet the statutory requirements and controlling the utilization of their funds. They usually prepare them at the end of the financial year to ascertain their income and expenditure and the financial position of the organization and submit them to the statutory authority i.e. Registrar of Societies.

Characteristics of Not-For-Profit Organisation:
1. Service Motive: The main motive of these organizations is service motive. They provide service either free of cost or at a nominal cost and not to earn profit. These are formed for rendering service to a specific group or society at large such as education, health care, recreation, sports, and so on without any consideration of caste, creed, and color.

2. Organisation: Not-For-Profit Organisations are organized as charitable trusts or societies. The subscribers to such trust or societies are called its members.

3. Management: The affairs of Not-For-Profit Organisations are normally managed by a managing committee or executive committee. These committees are elected by their members or subscribers.

4. Source of Income: The main source of income of these organizations are:

1. Subscriptions from members
2. Life-membership fees
3. Endowment fund
4. Donations
5. Legacies
6. Grant-in-aid
7. Income from investments etc.

5. Capital Fund or General Fund: The funds raised by Not-For-Profit Organisations through various sources are credited to capital funds or general funds.

6. Surplus Added to Capital Fund: The surplus generated in the form of excess income over expenditure is simply added to the capital fund or general fund. It is not distributed amongst the members as in trading or business organization.

7. Goodwill: The Not-For-Profit Organisation earn their reputation or goodwill on the basis of their contribution to the welfare of the society rather than on the customers’ satisfaction or owner’s satisfaction.

8. Accounting Records: The accounting records of these organizations are totally different from the trading or business organization. They are not prepared financial statements like Trading Account and Profit & Loss Account, instead, they prepare Receipts and Payment Account and Income and Expenditure Account. The preparation of the Balance Sheet is the same in both organizations.

9. Statutory Requirement: The accounting information provided by such organizations is meant for the present and potential contributors to meet the statutory requirements.

Accounting Records of Not-For-Profit Organisations:
As we know that Not-For-Profit Organisations are not engaged in any trading or business activity normally. Their main source of income are subscriptions, donations, financial assistance or grant from the government, etc. Most of their transactions are in form of cash or through the bank. These organizations are required by law to keep proper accounting records and keep proper control over the utilization of their funds.

For maintaining accounting records these organizations usually keep a cash book to record all receipts and payments and maintain ledger accounts of all income, expenses, assets, and liabilities. In addition, they maintain a stock register to keep records of all fixed assets and consumables.

In place of the capital account, they maintain a capital fund or general fund that goes on the increase due to surpluses, life membership fees, donations, legacies, etc. received from year to year.

Final Accounts or Financial Statements of Not-For-Profit Organisation:
As they are non-profit making entities, so they are not required to make Trading and Profit & Loss Account but instead of these accounts to know whether the income during the year was enough to meet the expenses or not they prepare

1. Receipts and Payment Account,
2. Income and Expenditure Account, and
3. Balance Sheet.

For the preparation of these financial statements, the general principles of accounting are fully applicable. The statements provide the necessary financial information to members, donors, and to the Registrar of Societies.

Along with all these, Not-For-Profit organizations also prepare a trial balance for checking the accuracy of ledger accounts. The trial balance also facilitates the preparation of accurate Receipts and Payment Account as well as the Income and Expenditure Account and the Balance Sheet.

Receipts and Payment Account:
A Receipts and Payment Account is a summary of cash transactions. It is prepared at the end of the accounting period from the cash receipts journal and cash payment journals.

“Receipts and Payment Account is nothing more than a summary of the cash book (Cash and Bank transactions) over a certain period, analyzed and classified under the suitable heading. It is the form of account most commonly adopted by the treasurers of societies, clubs, associations, etc. when preparing the results of the year’s working.” – William Pickles

In other words, Receipts and Payment Account simply is a summary’ of cash and bank transactions under various heads. On the debit side, it begins with an opening balance of cash and bank and records all the items of receipts irrespective of whether they are of capital or revenue nature or whether they pertain to the current or past or future accounting periods.

The payments are recorded on the credit side without making any distinction between items of revenue and capital nature and whether they belong to the current or past or future accounting period(s). It may be noted that this account does not show any non-cash item like depreciation. At the end of the period, this account is balanced to ascertain the balance of cash in hand or cash at the bank. The annual totals of various items of receipts and payments are found from their respective accounts in the ledger or from the cash book and are then entered in the Receipts and Payment Account.

Salient Features of Receipts and Payment Account:
1. Real Account-It is a real account, so the rule of real account. e. ‘Debit what comes in and credit what goes out is followed. Thus receipts are recorded on the Debit side and the payments are recorded on the Credit side.

2. Summary of the Cash Book: It is a summary of the cash book. Its form is similar to cash book (without discount and bank column) with debit and credit sides.

3. Shows amount irrespective of period: It shows the total amount of all receipts and payments irrespective of the period to which they pertain.

4. No distinction between nature (Capital or Revenue nature): It includes all receipts and payments whether they are of capital nature or of revenue nature.

5. No distinction between the mode of the transaction (Cash or Bank): No distinction is made in receipts/payments make cash or through the bank. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account.

6. Do not show non-cash items: Non-cash items like depreciation, outstanding expenses, accrued income, etc. are not shown in this account.

7. Opening and closing balances: The opening and closing balances in it respectively mean cash in hand or cash at the bank in the beginning and at the end. The balance of receipts and payment account must be debit being cash in hand or cash at the bank unless there is a bank overdraft.

8. Does not reflect net income or net loss: This account does not tell us whether the current income exceeds the current expenditure or vice versa or in other words, it does not give any information of net income or a net loss.

Steps in the Preparation of Receipt and Payment Account
1. Put the opening balance of cash in hand and cash at the bank at the beginning on the Receipt side. If there is a bank overdraft at the beginning, but the same in the Payment side of the account.

2. Enter the total amounts of all receipts (either cash or cheque) in the Receipt side (Dr. side) irrespective of their nature (whether capital or revenue) and whether they pertain to past, present, and future periods.

3. Enter the total amounts of all payments (either cash or cheque) in the Payment side (Cr. side) irrespective of their nature (whether capital or revenue) and whether they pertain to past, present, and future periods.

4. Do not enter the non-cash item like depreciation, outstanding expenses, accrued income, etc.

5. Find out the difference between the total debit side and the total credit side of the account and enter the same on the credit side as the closing balance of cash or bank balances.

But, if the total of credit side is more than of debit side, show the difference on the debit as bank overdraft and close the account.

Examples of Important Receipts and Payments Items

Format of Receipts and Payments Account
Receipts and Payments Account

There will be either of the two amounts i.e. cash at a bank or bank overdraft, not both.

Limitations of Receipts and Payments Account:

1. It does not show expenses and incomes on an accrual basis.
2. It does not show whether the organization is able to meet its day-to-day expenses out of its income.

Income and Expenditure Account:
it is a nominal account of Not-For-Profit Organisation equivalent to the Profit & Loss Account of the grading concerns. The terms profit is substituted by the words excess of income over expenditure (surplus) and the loss is expressed as an excess of expenditure over income (deficit). It reveals the surplus or deficit arising out of the organization’s activities during an accounting period.

This account is prepared on an accrual basis and includes only items of a revert ie nature. All the revenue items placing to the current penned shop in the account, the expenses and losses on the expenditure side (debit side), and incomes and gains on the income side (credit side) of the account. It shows the net operating result in the form of surplus or deficit, which is transferred to the capital fund is shown in the balance sheet.

Salient Features of Income and Expenditure Account:
1. Nominal Account: It is a nominal account, therefore the ride of nominal account i.e. “Debit all expenses and losses and credit all incomes and gains” is followed.

2. Ignore Items of Capital Nature: In this account, only items of revenue nature are to be considered and all the items of capital nature should be ignored.

3. Prepare from Receipt and Payment Account: It is generally prepared from a given Receipts and Payments Account and other information after making necessary adjustments.

4. No Opening and Closing Balances: In this account, no opening and closing balances of cash and bank are recorded.

5. Same as Profit & Loss Account: This account is prepared in the same manner in which a Profit & Loss Account is prepared, considering, all adjustments relating to the current year.

6. Exclude Past and Future Items: It excludes all the items of income and expenditure which do not pertain to the current period.

7. End-balance of this Account: The end-balance of the Income and Expenditure Account, which may be either “excess of income over expenditures’ or ‘excess of expenditure over income’ would be added to or deducted from, as the case may be, the capital fund, on the liabilities side of the Balance Sheet.

Steps in the Preparation of Income and Expenditure Account:
1. From the Receipts and Payments Account exclude the opening and closing balance of cash and bank as they are not an income.

2. Exclude the items of capital nature as these are to be shown in the balance sheet.

3. Take out the revenue receipts only for the current year to be shown on the income side of the Income and Expenditure Account. These are adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet received.

4. Take out the revenue payments only for the current year to be shown on the expenditure side of the Income and Expenditure Account. These are adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet paid.

5. Make the adjustments to non-cash items like
(a) Depreciation on fixed assets.
(b) Provision for doubtful debts, if required.
(c) Profit or Loss on sale of fixed assets etc.

For determining the surplus/deficit for the current year.
So, we can also prepare the Income and Expenditure Account with the help of the following methods after considering the Receipt and Payment Account and information given

Income and Expenditure Account for the year ended………..

Format of Income and Expenditure Account
Income and Expenditure Account for the year ended…………..

The distinction between Income and Expenditure Account and Receipt and Payment Account

Balance Sheet:
Not-For-Profit organizations prepare a Balance Sheet at the end of an accounting period to ascertain the financial position of the organization. The preparation of their Balance Sheet is the same as that of the business or trading entities. It is prepared in the usual way showing assets on the ‘right-hand side and the liabilities on the ‘left-hand side. However, the term capital is not to be found.

Instead, there will be a capital fund or a general fund, or an accumulated fund, and the surplus or deficit as per the Income and Expenditure Account shall be added to or deducted from this fund. Some capitalized items like legacies, entrance fees, and life membership fees directly (added) in the capital fund.

Sometimes it becomes necessary to prepare a Balance Sheet at the beginning of the year in order to find out the opening balance of the capital/general fund.

Steps in the Preparation of Balance Sheet:
1. Find out the Capital fund as per the Opening Balance Sheet and add surplus from the Income and Expenditure Account. Then, add capitalized items like legacies, entrance fees, and life membership fees, etc. received during the year.

2. Put all the fixed assets (from the opening balance sheet) with additions (from Receipts and Payments Account) after charging depreciation (as per Income and Expenditure Account), on the assets side of the balance sheet.

3. Compare items on the receipts side of the Receipts and Payments Account with the income side of the Income and Expenditure Account to find out the amounts of
(a) Subscription due but not yet received,
(c) Sale of fixed assets made during the year,
(d) Items to be capitalized etc.

4. Compare items on the payment side of the Receipts and Payments Account with the expenditure side of the Income and Expenditure Account to find out the amount of
(a) Outstanding Expenses,
(b) Prepaid Expenses,
(c) Purchases of a fixed asset during the year,
(d) Depreciation on fixed assets,
(e) Stock of consumable items like stationery in hand,
(f) Closing balance of cash in hand and cash at bank etc.

Format of Balance Sheet
Balance Sheet of…………………
as on ………………….

Some important items relating to Not-For-Profit Organisations
1. Subscription: It is the amount paid by the members of the organization periodically so that their membership is not canceled. This is the main source of income of Not-For-Profit Organisations.

Treatment:
1. The total amount of subscriptions received during the accounting period is shown on the receipt side (Dr. side) of the Receipt and Payment Account.

2. Subscription related to the current period shown in the income side (Cr. side) of Income and Expenditure Account. The amount of subscription to be shown in the Income and Expenditure Account is calculated as follows :

Table Showing Calculation of Subscriptions

Or
Subscription Account

3. Subscription Outstanding at the end of the year is shown on the assets side of the Balance Sheet and subscription received in advance in the current year for the next year is shown on the liabilities side of the Balance Sheet.

2. Donations: It is a type of gift in cash or in property received from some person, firm, or company. The donation can be for specific purposes or for general purposes.

Both the donation received appears on the receipts side of the Receipts and Payments Account.
1. Specific Donations: If the amount received as the donation is for a specific purpose such as a donation for extension of the existing building, donation for the library, for construction of new computer laboratory, etc., it is capitalized and is shown on the liabilities side of Balance Sheet.

2.. General Donations: Such donations are to be utilized to promote the general purpose of the organization. It is of two types:
(a) General Donation of Big Amount: It is shown on the liability side of the Balance Sheet because it is non-recurring in nature as the donations of huge amounts cannot be expected every year.

(b) General Donation of Small Amount: These are treated as revenue receipts as it is a regular source of income hence, it is taken to the income side of the Income and Expenditure Account of the current year.

3. Legacies: It is in the nature of a gift, received in cash or in the property as per the will of a deceased person. It is not treated as an income because it is not of recurring nature. Such receipts come very rarely and therefore it is of a capital nature and is shown on the liabilities side of the Balance Sheet. It appears on the receipt side of the Receipts and Payments Account and is directly added to Capital Fund in the Balance Sheet. However, legacies of the small amount may be treated as income and show on the income side of the Income and Expenditure Account.

4. Life Membership Fees: In order to become a member of an organization for the whole of the life, some members pay the fee in lump sum i.e. once in their lifetime. It is a receipt of non¬recurring nature since the members will not be required to pay the fees regularly. It is shown on the receipt side of the Receipt and Payment Account and added to the Capital Fund in the Balance Sheet. It should not be credited to the Income and Expenditure Account.

5. Entrance Fees: The entrance fee also known as the Admission Fee is paid only once by the member at the time of becoming a member.
1. In the case of organizations like clubs and some charitable institutions, where the membership is limited and the amount of Entrance Fees is quite large, it is treated as the non-recurring item and added directly to Capital Fund in the Balance Sheet and also shows in the receipt side of the Receipt and Payment Account.

2. For some organizations like educational institutions the entrance fee is a regular income and the amount is quite small. So it is treated as the recurring item and shown in the income side of the Income and Expenditure Account. It is also shown on the receipt side by the Receipt and Payment Account.

From the examination point of view, if there is no specific instruction about Entrance Fees, it should be treated as Capital Receipt and directly added to Capital Fund in the Balance Sheet.

6. Sale of Old Assets: Receipt from the sale of the old asset appears in the receipt side of Receipt and Payment Account. Only the profit or loss on the sale of a fixed asset is credited or debited, as the case may be, to the Income and Expenditure Account. In the Balance Sheet, the book value of the asset sold should be deducted from the relevant asset.

7. Sale of Periodicals: Receipts from the sale of periodicals shown in the receipt side of Receipt and Payment Account. It is an item of recurring nature and shown in the income side of the Income and Expenditure Account.

8. Sale of Sports Materials: The sale of sports materials like old bats, old nets, etc. is a regular feature with any sports club. It is treated as revenue income on the assumption that their book value is zero. It is therefore shown in the income side of the Income and Expenditure Account. It is also shown on the receipt side of the Receipt and Payment Account.

9. Payment of Honorarium: It is the payment made to a person for his specific services rendered by him, not as a regular employee. This is an item of expense and is shown in the ‘debit or expenditure side’ of the Income and Expenditure Account.

→ Endowment Fund: “It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose.” – Eric L. Kohler

Thus, Endowment Fund is a capital receipt and is shown on the liabilities side of the Balance Sheet.

→ Government Grant: Some organizations like schools, colleges, public hospitals, etc. depend upon Government grants for their activities.

It is shown on the receipt side of the Receipt and Payment Account:

1. The maintenance grant is a recurring grant. It is treated as a revenue receipt and shown on the income side of the Income and Expenditure Account.
2. Grants such as building grants are treated as capital receipts and transferred to the building fund account.

→ Cash subsidy: Some Not-For-Profit Organisations receive cash subsidies from the Government or Government agencies. This subsidy is also treated as revenue income for the year in which it is received.

→ Special Funds: Not-For-Profit Organisation creates some special funds for a specific purpose such as ‘prize funds’, ‘match fund’ and ‘sports fund’ etc. The amount of such fund is invested in securities and the income earned on such investment is added to the respective fund, not credited to the Income and Expenditure Account. Similarly, the expenses incurred on such a specific purpose are also deducted from the fund.

→ Stationery (or some consumable items): Expenses incurred on Stationery (or some consumable items) are charged to the Income and Expenditure Account.

If the opening or closing stock of stationery is given, then the amount of stationery consumed during the year will be shown in the Income and Expenditure Account and the closing stock in the Balance Sheet.

The calculation for Expenses for the Current Year

Total Amount paid shown in Payment side of Receipt and Payment Account. Outstanding experiences at the end of the current year shown in the Liabilities side of the Balance Sheet and prepaid at the end shown in the Assets side of the Balance Sheet.

The calculation for Income for the Current Year

Total Amount Received shown in Receipt side of Receipt and Payment Account. Accrued income at the end of the current year shown in the assets side of the Balance Sheet and Income received in advance at the end of the current year shown on the liabilities side of the Balance Sheet.

## Accounting System Using Database Management System Class 11 Notes Accountancy Chapter 15

By going through these CBSE Class 11 Accountancy Notes Chapter 15 Accounting System Using Database Management System, students can recall all the concepts quickly.

## Accounting System Using Database Management System Notes Class 11 Accountancy Chapter 15

A Database Management System (DBMS) is essentially a collection of inter-related data and |set of programmes to access this data. This selection of data is usually called the database. It can be regarded as an electronic filing cabinet. Relational Database Management System (RDBMS) enables us to manipulate data in a more sophisticated way. RDBMS avoids redundancy in data and defines the relationships between sets of data. The data stored in each table can be retrieved and updated based on data in another table.

MS ACCESS is a Database Management System (DBMS) that help in managing data that is stored in a computer database. Like the majority of database management systems in use today. Access is a relational database management system. Access database help in storing and managing information.

Access is Database Management System that allows the user to create and manipulate the database. Access is software that enables its user to perform various functions such as create, modify, delete and create data in tables of the database.

With Access, we can perform the following tasks:

• Organize data into manageable related units.
• Enter, locate and modify data.
• Extract subsets of data based on specific criteria.
• Create custom forms and reports.
• Graph data relationships.

In Access, the term database refers to a single file that contains a collection of information. A database consists of the following objects:

→ Tables: Tables store data in a row-and-column format similar to spreadsheets. Every table in a database focuses on one subject, for example, products, customers, students etc. Each row or record in the table is a unique instance of the subject of the table.

→ Queries: Queries extract data from a table on user-defined criteria. They enable us to view’ fields from more than one table.

→ Forms: Forms display and print data from a table(s) or a query based on a user-defined custom format. Forms enable us to view, edit and print data.

→ Reports: Reports display and print data from a table(s) or query based on a user-defined custom format.

→ Pages: Pages can be posted on a website of an organisation using the internet or sent via email to someone on the organisation network.

→ Macros: Macros automate common database action based on user-specified commands and events.

→ Modules: Modules automate complex operations and give a programme more control than macros. Modules are procedures written in Visual Basic or Application Programming Language.

→ Capabilities of MS Access: Access has certain capabilities, which bring it closer to an ideal Database Management System.

These capabilities are

• Storing the data in an organised manner.
• Enforcing data integrity constraints.
• Representing complex relationship among data.
• Providing for persistent storage of database object.
• Allowing fast retrieval of data with or without processing by using SQL.
• Flexibility to create multiple user interfaces.
• Providing for data showing and multi-user transaction processing.
• Supporting multiple views of advanced information. A new database can be created with the help of a computer wizard or without the help of a wizard.

Creating of Table in Access shows three columns i.e. Field Name, Data Type and description, which define the schema of a table is created. Field name refers to the column name of the table being created. Access supports different data types like Text, remove, Number, Date/ Time, Auto Number, Yes/No, OLE object and Hyperlink.

Access allows the designer to define the two types of properties of each column which are General properties and Lookup properties. General properties are Field size, format, Decimal places, Input Mask, Caption, Default value, validation Rule and Text, required and induced and Allow-zero length. Look up properties used by a field to find its values in another table, query or from a fixed list of values.

Forms are a way to view table data. We create the link between the form and its record source by using graphical objects called controls. We can use forms for a variety of purpose, for example, create a data entry form to enter data into a table or create a custom dialogue box to accept user input, and then carry out an action based on that input. The first step in designing a form is to create the table(s) or review the design of the tables. A forms problem often can be attributed to improperly designed table(s).

• Forms can display a complete record at a time, usually in vertical format.
• Forms allow us to customize the appearance in much more detail than a table with fonts, colours and graphics.
• Forms can display fields that the user cannot edit and can edit.
• Forms enable us to rearrange the field.
• Forms provide special field display functions, for example, drop-down list, word wrapping in fields and calculated fields.

Every form control is complete objects with its independent set of properties, which determine the shape, size, behaviour and functionality of the object. Properties of these objects are of three types: Format, Data and other.

Format Properties:

1. Format
2. Decimal Places
3. Caption
4. Visible
5. Layout Properties (Left, Top, Width, Height)
6. Back Colours and Style
7. Special Effects
8. Border Properties (Style, Colours, Effect)
9. Fore Colour
10. Font Properties (Name, Size etc.)
11. Text Align
12. Margins (Left, Right, Top, etc.)
13. Line Spacing
14. Display When
15. Scroll Bars

Data Properties:

1. Control Source
3. Default Value
4. Validation (Rule and Text)
5. Enabled and Locked

Other Properties:

1. Name
2. Status Bar Text
3. Enter Key Behaviour
4. Allow AutoCorrect
5. Vertical
6. Default
7. Tab Stop
8. Tab Index
10. Control Tip Text
11. Help Context ID

Access provides for a number of controls and more can be added using the added-in-manager in Tools of the menu bar. Bound, Unbound and Calculated are three types of control.

Some of the common controls important for designing a form are:

1. Label
2. Text Box
3. List Box
4. Combo Box
5. Sub-Form
(a) Source Object
6. Option Group
7. Command Button
(b) Record Operation
(c) Form Operation
(d) Report Operation
(e) Application
(f) Miscellaneous
8. Control Wizard

Creation of Form can be done by
(a) Design,
(b) Wizard.

One of the most useful features of modern database applications is the query, which provides us with a way to question our database. The result of the query can then .be printed or viewed on-screen.

A query is a statement that communicates to Access the kind of information we need to extract from one or more table. Queries can be used as a source of information for forms and reports. Access executes the query each time we open the form of the object or the report.

For each type of query, we can specify the query parameters that prompt the user to specify the query criteria before the query executes.

There are several types of queries in Access that are used to generate information:
(a) Simple Query
(b) Parameter Queries
(c) Summary Queries

There are three methods by which any of the above queries can be created in Access:
(a) Wizard Method
(b) Design Method
(c) SQL view Method

An accounting reporting capability is incomplete as reporting is one of the main purposes for which an accounting system is designed and operated upon. The output of the accounting system takes the form of accounting reports.

Accounting report display information that is acquired from data processing and transformation in an organised manner. Reports sent to reduce the level of uncertainly associated with decision-makers and also influence their positive actions. The output of the computerised is accounting reports. Financial accounting Reports such a Cash Books, Bank Book, Ledger and Trial Balance may be generated in Access by adhering to the report generation process.

Generating accounting reports in Access involves three steps:

1. Designing the report
2. Identifying accounting information queries
3. Using the record set o final SQL

There are two types of formats for presenting information through a report:

1. Columns Report Format
2. Tabular Report Format

A report in Access is designed using seven sections which taken together constitutes the structure of report design.

4. Details
5. Group Footer
6. Page Footer
7. Report Footer

The Report can be created by using any of the following methods:
(a) Auto Report Method
(b) Wizard Method
(c) Design View Method

The design of the report created by any of the methods may be improved upon by making the following addition and modification to the report.

1. Adding Dates and Page Number.
2. Adding and Deleting Report Contbls
3. Conditionally Formatting Report Control
4. Grouping Levels and Sorting Order

The design and a generated report ai saved for future use and reference. The generated report may also b exported for use by others.
(a) Saving and Exporting Report ejects in Access
(b) Saving as Snapshot
(c) Exporting to Excel
(d) Exporting to MS WORD
(e) Printing a Report
(f) E-Mailing a Report

Financial Accounting Reports such as Cash Book, Bank Book, Ledger Accounts and Trial Balance may be generated on Access by adhering to the report generation process.

## Structuring Database for Accounting Class 11 Notes Accountancy Chapter 14

By going through these CBSE Class 11 Accountancy Notes Chapter 14 Structuring Database for Accounting, students can recall all the concepts quickly.

## Structuring Database for Accounting Notes Class 11 Accountancy Chapter 14

As we know that the working and success of any business is based on lots of information. Every business enterprise needs ready answers to lots of its queries. For this, it requires a proper system that readily provides an accurate and prompt answer to its queries. Numerous techniques and devices have been developed to manage and organize the information.

Before the development of computers, people used to store and process data with the help of papers, file folders, etc. Now-a- days, computers are playing a significant role in performing these tasks. They have replaced all old techniques. The advantages of the computer over the other tools are that it is faster, more accurate, and more reliable than other methods.

In today’s information society, it is often said that information is power. Due to the rapid growth of information technology, all organizations have realized the value of information as a resource.

As we know that computerized accounting involves identifying, storing, and retrieving the data content of transactions. This requires a technique to record and store data in such a way that it allows Its user, easy and convenient retrieval as and when required. This can be achieved by designing a suitable database for accounting. Such a database consists of inter-related data tables that are structured in a manner that ensures data consistency and integrity,

Data can be anything such as a number, a person’s name, images, sounds, etc. So, it is a set of isolated and unrelated raw facts, N represented by values, which have little or no meaning. They have little or no meaning because they lack a context for evaluation. When data is processed and converted into a meaningful and useful form, it is known as information. It is a set of organized and validated collections of data.

Database: Database is a collection of related data. A database is an integrated and logical collection of data. Data is collected and stored in such a way that a common and controlled approach is sufficient in adding new data and modifying and retrieving existing data within the database. A database system is an integrated collection of related files along with details of the interpretation of the data contained therein.

Basic Concept; of Database System of Accounting: Data Processing Cycle Data processing involves the technique of collecting, sorting, relating, interpreting, and computing data items in such a manner as to provide meaningful and useful information for decision making. Data capturing, inputting, processing, and generating information available to the user are the basic steps of the data processing cycle.

In the context of accounting, the data process cycle involves the following steps:

1. Source documents
2. Input of data
3. Data storage
4. Manipulation of data
5. Output of data

Designing Database for Accounting:
A definite data structure for storing the accounting data is required by both computerized and computer-based A.I.S.

Process of Database Designing:

Entity-Relationship (ER) Model:
It is a popular conceptual data model, which is mostly used in database-oriented applications. Even though ER model describes the physical database model, it is more useful in the design and communication of the logical data model.

The model is best depicted with the help of ER symbols. While preparing ER diagram, the following symbols are used to represent the different types of entities, attributes, identifies and relationships:

Anything in a real-world with independent existence is called an entity. Accounting data is captured through entities. Some properties of interest that describe the entity are called attributes.

Types of Attributes:

1. Composite and simple attributes
2. Single-valued and multivalued attributes
3. Stored and derived attributes
4. Null value
5. Complex attributes
6. Entity types and entity sets
7. Value sets of attributes

Almost every entity type has one of its attributes, which contains unique values for identifying the entity instance. Relationship among two or more entity types represents an interaction among their respective entities. Entity types, which do not has key attributes of their own are known as weak entity types.

ER Presentation of Accounting Reality
1. Accounting database

2. An entity type accounting database

3. An entity type ‘voucher’ with Vno. as a key attribute

4. An entity type accounts type

5. An entity type support

Database Technology:
Database Technology is the technique used for designing a database. Concepts that are crucial to the creation of structure and development of the database designs are:

1. Reality
2. Data
3. Database
4. Information
5. DBMS
6. Database System

Reality is some aspect of the real world. It consists of an organization, people facilities, etc., and the environment in which the organization exists arid operates. The continuous interaction with the environment in which it works results in real-world transactions.

Data are known facts that ora be recorded and which have implicit meaning. It represents concerning people, places, objects, entities, events, concepts, etc., it may be quantitative and qualitative or they may be of financial character or Nora-financial character.

A database is a collection of related data. It Is a shared collection of interrelated -data tables, files, or structures, which are designed to meet the varied information needs of an organization.

It has two properties:

1. it is Integrated,
2. It Is Shared.

An accounting database is a collection of related accounting data to -represent some -aspect of accounting information in a system.

The raw data processed In accordance with decision usefulness becomes information, Information is a date that has -been processed arad refilled, and then presented in a format for decision making purpose.

DBMS i.e., Database Management System is essentially a collection of Interrelated data, and a set of programs to access this data. This collection of data is usually called the database. It can be regarded as an electronic filing cabinet Database systems are designed to maintain large volumes of data.

Management of data involves:

• Defining the structures for the storage of data.
• Providing fie mechanisms for the manipulation of data.
• Providing for fie security of the data against unauthorized access.

The DBMS is a general-purpose software system that facilitates the process of defining, constructing, and maintaining databases for various applications. A database management system is a collection of programs that enables the user to create and maintain a database.

Defining a database involves specifying the data types, structures, and constraints or the data to be stored in a database. Constructing the database is the process of storing the data itself on some storage medium that is controlled by the DBMS. Manipulating a database includes some functions as query tug Ac database to receive specific data, updating the database to retrieve specific data, updating the database to reflect changes in reality, and generating the reports from the data.

Database Processing for an application

Relational Data Model (RDM):
Relational database stores and organizes information in table rows and columns where rows of a table represent records and columns represent fields. A relational database is one that is built and operated in accordance with the Relational Model of Data proposed by E.F. Codd (1970).

Relational Model provides a simple and intuitive method for defining a database,.storing and updating data in it, and submitting queries of arbitrary complexity to it. It also provides a firm, sound, and consistent foundation for all the other topics that database management systems must commonly embrace, such as security and authorization database integrity, transaction management, reeord&bility and distribution of data.

The relation model is based on the concept of an entity and attribute. An entity is like a name, person, place, or event and an attribute is a property. of an entity. In a relation a table is also called ‘relation’: Each (able is made up of records. Horizontal rows known as records and vertical columns known as attributes.

A domain is a collection of all possible values from which values for a given column or attribute are drawn. The domains are defined for every attribute in the table. The number of attributes determines the degree of the relation. The number of types in a relation is known as the cardinality of the relation. Each table can be identified by a unique name.

Relational Databases and Schemes:
It is a set of related schemes and a set of integrity constraints. A relational database state is a state of relation states such that even/ relational database state satisfies the integrity constraints specified on relational database scheme.

Constraints and Database Schemes

1. Domain constraint
2. Key constraint
3. Entity integrity constraint
4. Referential integrity constraint

Operations and Constraint Violations

These operations must enforce integrity constraints specified OR relational database schemes. Retrieval operations do not cause violation of any integrity constraints.

Designing Relational Database Scheme
To transform ER design into Relational Data Model design the following steps should be taken:

1. Create a relation for every strong entity.
2. Create a separate relation for each weak entity type.
3. Identify entity types participating in binary 1: N relationship type.

Example: It is based on modified example reality that uses Credit and Debit Vouchers.

Interacting with Database
Query language enables the users to ask specific questions to the database. Database query languages are not universal such as procedure-oriented languages. Each database may have its own query language with a unique rules instruction format. The most popular query language is a structured query language (SQL), which has an industry-wide standard.

The name SQL stands for Structured Query Languages which was originally called Sequel (Structured English Query Language) developed by IBM in 1970. It has statements for data definition, query, and update. It has the capability to define user-oriented views of the database, specify security and authorization, define integrity constraints, and various other operations. DQL, Data Query Language, is a sub-set of SQL that is widely used. A basic set of queries.

Select-From-Where Structure

• Select: Specify the data or information that is described to answer the query.
• From: Specify the source of data for answering the query.
• Where: Specify the conditions that are used to narrow down the choice of data.

## Computerised Accounting System Class 11 Notes Accountancy Chapter 13

By going through these CBSE Class 11 Accountancy Notes Chapter 13 Computerised Accounting System, students can recall all the concepts quickly.

## Computerised Accounting System Notes Class 11 Accountancy Chapter 13

Accounting is called the language of business. It communicates financial information to a variety of users by preparing financial reports. It is considered as a system that collects and processes financial information of an enterprise and reports that information to users to enable them to make appropriate decisions.

Accounting helps to summarise a lot of financial transactions and events and enables accountants to convey economic information to their users. According to AiCPA, American Institute of Certified Public Accounts, accounting is ‘‘the art of recording, classifying and summarizing in a significant manner and its terms of money, transactions, and events, which are. in part at least. of a financial character and interpreting the results thereof”

Accounting, as an information system is a process of identifying, measuring, and communicating the economic information of an organization to its user who needs the information for decision-making. It is based on the following:

It is very important that accounts of different enterprises are prepared on a uniform basis and an enterprise maintains consistency in the preparation of financial accounts over a period of time. To have uniformity and consistency in the preparation and presentation of financial accounts, accounting operates within a framework of ‘Generally Accepted Accounting Principles (GAAP).

The term GAAP is used to describe rules developed for preparations of financial statements and are variously called concepts, conventions, axioms, postulates, principles modifying principles, etc. Accounting standards are the policy documents issued by the regulatory accountancy body, relating to various aspects of measurements, treatment, and disclosure of accounting transactions and events with a view to harmonize and standardize accounting policies.

So, accounting is a systematic but flexible exercise. It includes entering the transactions, preparation of vouchers, preparing books of accounts, drawing trial balances, and thereafter, preparing the trading account, profit and loss account, and balance sheet. It includes calculations relating to multiplication, addition, and subtraction. It is quite a monotonous job as transactions in the business are quite repetitive in nature.

On the basis of the record, the profit has to be ascertained based on some principles. The first part is monotonous and at times boring, whereas, the second part is more challenging and at times very interesting, when the records are kept manually, it is referred to as manual accounting.

When accounts are maintained with the help of computers, it is called computerized accounting. Most of the computer programs help in the proper basic recording of business transactions. Nowadays computer is being widely used in the field of accounting. It itself can do the calculation, collects and process accounting data and presents the results in the form of proper reports to the management for decision-making purpose. It also performs the function of recording, posting, classification, summarization, and interpretation of the results.

A computerized accounting system is an accounting information system that records and processes the accounting transactions and events and produced the reports as per the requirement of the user, according to Generally Accepted Accounting Principles (GAAP). Every accounting system whether manual or computerized works under a framework of well-defined principles i.e. accounting principles and in a user-defined network for maintenance of records and generation of reports.

Operating Environment: The framework of storage and processing of data in a computerized accounting system is called the operating environment.

The operating environment of a computerized accounting system consists of hardware and software of the computer system. Hardware and software are both dependent on each other. The type of software determines the structure of hardware whereas the selection of hardware depends upon the type and number of users, size of the organization, network and working of the organization, extent of working, etc.

In a small business where the number and variety of transactions are small, the number of customers and suppliers are less, a personal computer with the standard software may be perfect. But in an organization, whose business is spread over large area i.e., in different parts of city or country or world, a number of transactions are very large with variety, some powerful computer system with sophisticated software needed to maintain the voluminous data. For this purpose multi-user systems such as Unix, Linux, etc. are used.

Modern accounting systems use the concept of database. It is implemented using a DBMS i.e. Database Management System. Every’ computerized accounting system need two things:

1. Accounting Framework
2. Operating Procedure.

Requirements of database-oriented application of computer system:

1. Front-end Interface
2. Back-end Database
3. Data Processing
4. Reporting System.

Thus, a computerized accounting system based on database applications is a system where data is collected, stored, processed, and interpreted to generate reports for the decision-making purpose of management.

Comparison between Manual and Computerised Accounting

As we know that the accounting is the art of identifying, recording, classifying, and summarising financial transactions to produce the financial statements, so we can also compare the working of manual accounting and computerized accounting on the basis of the following heads:

1. Identifying financial transactions
2. Recording of these transactions
3. Classification of the recorded transactions
4. Summarising
6. Preparation of Financial Statement
7. Closing of books of accounts.

All the above functions, under the manual accounting system done according to the principle of accounting and by preparing vouchers, journal, ledger, trial balance, etc., manually and in a computerized system, all this work is done by some standard database software automatically. In both systems the accounting process is identical but the technology used is different.

1. Record and process a large volume of transactions
2. Timely reporting
3. Lower cost
4. Less paperwork.
5. Provide flexible reports
6. Scalable to handle the growing transactions
7. Secured
8. Accurate
9. Fast
10. Reliable
11. Up-to-date information
12. Automatic
13. VIIS reporting
14. Storage and retrieval at ease
15. Motivate the employees.

Limitations of Computerised Accounting System

1. Huge training cost
2. Opposition from staff
3. Loss of work time
4. The danger of system failure
5. Ill effect on health
6. Inability to check unanticipated errors
7. Breaches of security.

Sourcing of Accounting Software:
Today there is a number of readymade software packages that are available in the market. Since the applications in the area of accounting are standard, the difference is in the number of features provided by an individual package. The most popular software used in India is Tally and Ex. Accounting software is an integral part of the computerized accounting system. It is the people, who are responsible for accounting, not the computer, so before acquiring the accounting software it is very important to analyze the expertise level of the people who would use it.

The need of acquiring software arises in two following situations:

1. When the organization replaces the manual system of accounting with the computerized system of accounting.
2. When the organization replaces the current accounting software with the new accounting software according to the recent changes.

Accounting Packages and Their Types
Since the application in the area of accounting is standard, every computerized accounting system is implemented to perform recording, classifying, storing, and summarizing of accounting data and generates reports according to the requirements of the user. So there is a difference in the number of features provided by an individual package.

The accounting packages are classified into the following categories:

2. Customized
3. Tailored.

Considerations before Sourcing an Accounting Software

1. Cost of installation and maintenance
2. Size of organization
3. Flexibility
5. Level of utilities/MIS reports
6. Level of secrecy
7. Vendor reputation and capability
8. Exporting/Importing data facility.

## Applications of Computers in Accounting Class 11 Notes Accountancy Chapter 12

By going through these CBSE Class 11 Accountancy Notes Chapter 12 Applications of Computers in Accounting, students can recall all the concepts quickly.

## Applications of Computers in Accounting Notes Class 11 Accountancy Chapter 12

Computers are becoming indispensable in our day-to-day life. It has brought a complete revolution in every sphere of human activity. It becomes an essential tool of today’s society.

Examples of their increasing uses are; reservation in railway and air tickets, to forecast weather, preparing customer’s bill, diagnosing diseases, recording the monetary transaction of customers in the bank, etc. In fact, computers have become indispensable in almost every field of communication, commerce, industry, science and research, technology, transport.

Computers are not used only by engineers, scientists, and mathematicians but even in the typesetting for printing, TV programming, film editing, music composing, etc.

Both in the commercial and personal areas, there are so many works which we are not able to do. due to lack of time. The computer makes it possible by doing our work speedily and efficiently. Computers are nowadays being used on a large scale in business houses for a number of functions. They are used for recording and posting transactions, maintaining journals, ledgers, stock records, pay-rolls, wages records, purchases and sales records, etc. The computer performs all the accounting operations at a phenomenal speed and with a high degree of accuracy.

Limitations of a Computer System:

1. Lack of common sense.
2. Lack of feelings.
3. Lack of IQ (Intelligence Quotient).
4. Lack of decision-making.
5. Complex and rigid procedure.
6. Installation cost.
7. Frequent changes.
8. Costly maintenance.
9. Unemployment.
10. Loss of data: Backup required.

Difference between Human and Computer:
Following are the differences between Human and Computer:

1. Memory: Human memory is limited however computer’s memory has no limits.
2. Speed: is faster than human.
3. Repetitive task: can be performed by computers errorlessly.
4. Computers do not possess mind and work as directed by a human. It has no impact of emotions however human is emotional and decides on its own, which computers cannot.

Difference between Hardware and Software:

Difference between Computer and Calculator

Components of Computer:
The computer is an electronic device that stores and processes information to give meaningful results. It takes information from an input device and after processing the information, gives the processed information to an output device.

Three basic components of a computer are:

1. Input Device
2. Central Processing Unit (CPU)
3. Output Device.

Need of Computer in Accounting or Evolution of Computerised Accounting:
In past, the business transactions were limited so that they were handled manually. Trader himself or by taking the service of Accountant to maintain the books of accounts such as cashbook, journal, and ledger. As the economy starts growing, the trades also developed and the number of transactions starts increasing.

With the help of scientific development, new machines were invented which perform the large work in a short time, for e.g. billing the machine. With the substantial increase in the number of transactions, the technology advanced further. The success of a growing organization with the complexity of transactions tended to depend on resource optimization, quick decision-making, and control. Such a system of maintaining accounting records becomes convenient with the computerized accounting system.

Computers are required in accounting for the following tasks:

1. To note down business transactions.
2. Processing and maintaining payrolls.
3. Maintaining personal records.
4. Keeping effective stock control.
5. Invoicing of sales.
6. To maintain ledgers of creditors.
7. To make bills.
8. To prepare accounts of credit and debit.
9. Classification of accounting transactions through sorting; merging and updating.
10. Prepare reports in the form of ledger accounts and balance sheets.
11. Stores accounting.

Automation of Accounting Process:
An organization is a col section of interdependent decision-making units that works for the achievement of common goals. Every organization, as a system, performs the same function that accepts inputs and transforms them into outputs. Information system facilitates the decision-making regarding allocation of resources.

The information thus becomes the most important resource in business. With the increasing use of information systems in organizations. Transaction Processing Systems (TPS) have started playing important role in supporting business operations. A large number of devices are now available to automate the input process for TPS.

Transaction Processing System:
They can perform and records the daily routine transactions which are necessary to conduct the business.

Process of TPS

1. Collection of data.
2. Validation of data
3. Manipulation of data
4. Storage of data
5. Generation of output
6. Query support.

Features of Computerised Accounting System:

1. Online input and storage of accounting data.
2. Automatically update the ledger etc.
3. Printout of purchases and sales invoices.
4. Grouping of accounts.
5. Instant Reports like Stock Statement, Trial Balance, Trading and Profit, and Loss A/c, Balance Sheet, Value Added Tax (VAT), Payroll, etc.
6. Codification of accounts and transactions.

Management Information System (MIS) and Accounting Information System (AIS):
Accounting information is one of the most important information used by the management in taking decisions. However, the scope of accounting information is limited. Accounting information when contained in a computerized environment is called an accounting information system.

However, management information system is a much broader term and incorporates many functional information systems like production, marketing, research, and development, etc., besides accounting information systems.

A management information system is an information system that generates, accurate, timely, and organized information to help managers make decisions, control processes, solve problems, supervise activities and track progress.

An accounting information system identifies, collects processes, and communicates the economic information of an organization to a wide variety of users. Every accounting system is a part of an accounting information system where AIS is part of a management information system.

Meaning of Computer:
The dictionary meaning of computer is “an electronic calculating machine”. This meaning of computer does not reflect upon the true capabilities of a computer. A computer is a very versatile machine capable of performing diversified functions at an incredibly fast speed with accuracy.

It converts raw data into meaningful information. The data is fed into the computer and in case of need, it can be retrieved and converted into output.

A computer is an electronic machine that operates on given instruction and PROCESSES the INPUT DATA, to convert it into some OUTPUT.

“A computer is a data processor that can perform substantial computation, including numerous arithmetical and logical operations, without intervention by a human operator during the run.” – International Standards Organisation

‘‘A computer is a device capable of solving problems by accepting data, performing described operations on the data, and supplying the results of these operations. —U.S. Institute

Thus, a computer is an electronic device, in which a lot of information or data can be stored so Jhat the data can be used in the future. It can also perform various calculations at a very high speed.

Elements of Computer System
A Computer System is a combination of six elements:

1. Hardware
2. Software
3. People.
4. Procedure
5. Data
6. Connectivity.

1. Hardware: The hardware of a computer may be classified under the following categories:

They are further classified as follows:
Input Devices

1. Keyboard
2. Mouse
3. Joystick
4. Touch Screen
5. Scanner
6. Voice Input System
7. Magnetic Ink Character Reader (MICR)

Output Devices:

1. Monitor or Visual Display Unit (VDU)
2. Printers
3. Voice Response System (VRS)

Central Processing Unit (CPU)

1. Storage Unit
2. Control Unit
3. Arithmetic Logic Unit (ALU)

Secondary Storage Devices

1. Hard Disk
2. Floppy Disk
3. Compact Disk
4. DVD (Digital Visual Disc)

2. Software: A set of programs, which is used to work with hardware is called its software. There are six types of software which are following:

1. Operating System
2. Utility Software
3. Application Software
4. Language Processors
5. System Software
6. Connectivity Software.

3. People: People are basically those individuals who use computers to develop, maintain and use the information system. They are also called live-ware of the computer. The main categories of people involved with the computer system are:

1. System Analysts
2. Computer Operators
3. Programmers.

4. Procedures: The procedures are the various operations performed in a certain way in order to achieve some desired results.

There are basically three types of procedures:

1. Software-oriented
2. Hardware-oriented
3. Internal procedure.

5. Data: The data is therefore processed and organized to create information that is relevant and can be used for decision-making.

6. Connectivity: The element of connectivity refers to the way in which a computer system is connected to other electronic devices and link-ups such as satellite links, internet, telephone lines, etc.

Capabilities or Features of a Computer System
1. High Speed: A computer can perform millions of operations in one second. The calculations will be error-free.

2. Automatic IHachine: Once the data are fed into the computer, it executes the instructed functions without human intervention.

3. Accuracy: This machine is extremely accurate. Its operations are error-free and the information derived from that is more reliable.

4. Reliability: Computer can perform jobs of repetitive nature any number of times. They are immune to tiredness, boredom, or fatigue. Therefore, they are more reliable than human beings.

5. Versatility: A computer can perform a wide variety of jobs simple as well as complex.

6. Storage: The storage capacity, of a computer, is so large that it can store any volume of information or data for being processed.

7. Scientific Approach: The computer operates scientifically and never gets emotional while solving problems.

8. Work on Special Language: A computer can perform many functions by giving or programming in any one language of computers, which are developed in order to feed the information and data into a computer.

9. Logical decision: Computer has the capability to make decisions that are based on certain conditions.

10. Use of Binary System: The computer uses a two-way system known as Binary System, not the decimal system.

Relationship of Management Information System with other functional Information Systems
Designing of Accounting Reports: When the related information is summarised to meet a particular need it is called a report. It must be effective, efficient, and useful for decision-making.

Every accounting report must be able to fulfill the following features:

1. Relevance
2. Accuracy
3. Completeness
4. Timeliness
5. Summarisation.

Types of Reports

1. Summary Reports
2. Customer Reports
3. Supplier Reports
4. Demand Reports
5. Exception Reports
6. Responsibility Reports.

Steps in Designing Reports

1. Definition of objectives
2. Structure or format of the report
3. Querying with database
4. Finalizing the report.

Data Interface between the Information System:
I. Relationship between Accounting Information System (AIS), Manufacturing Information System and Unman Resource Information System.

II. Relationship between AIS and Marketing Information System: Marketing and Sales Department perform following activities:

1. Inquiry Process
2. Creating Contacts
3. Order Taking
4. Dispatching Goods
5. Billing

The accounting sub-system transaction cycle includes:

1. Processing of sales order
2. Credit Authorisation
3. Keeping custody of goods
4. Stock Position
5. Dispatch Details
6. Accounts Receivable etc.

III. Relationship between AIS and Manufacturing Information
System: Production Department performs the following activities:

1. Preparing plans, schedules ‘
2. Issue of material requisition forms
3. Issue of job cards
4. Issue of stock
5. Handling of vendor invoices
6. Payment to vendors/suppliers

The accounting sub-system transaction cycle includes:

• Processing purchases order
• Stock Updation
• Accounts payable etc.

Application of Computer in Accounting
Although computers influence every field of accounting, however, its usage in normal modes is mentioned below:
(b) Accounting of Debtors
(c) Stores Accounting
(d) Pay-toll Accounting.

(a) Problems that arise due to manual accounting such as complexity, percentage of error, delayed work can be easily rectified using a computer in accounting. Computers can automatically generate ledger postings of business transactions. Using computers, can therefore completely maintain ledger accounts.

(b) Debtors account can easily be maintained via computers. Computers can generate accurate figures for the debtor’s account. They can also be used to prepare reminders to debtors in order to timely collect debt.

(c) Stores Accounting: In stores accounting, the contribution of computers is appreciable. They can be used for

1. Daily Stock Position
2. Price of Stock
3. Need of goods to be credited.

(d) Payroll Accounting: To generate pay of employees in an organization, wages, salary, bonus, allowances, etc. are calculated. Furthermore, employee provident fund, income tax, etc. is deducted from salary. Traditional manual accounting is difficult and bound to make errors that can be made easy, fast, and accurate through the use of payroll accounting.

Components Of Computerised Accounting Software System

## Accounts from Incomplete Records Class 11 Notes Accountancy Chapter 11

By going through these CBSE Class 11 Accountancy Notes Chapter 11 Accounts from Incomplete Records, students can recall all the concepts quickly.

## Accounts from Incomplete Records Notes Class 11 Accountancy Chapter 11

Generally, business transactions are recorded on the basis of the double-entry system of bookkeeping. Sometimes rules of the double-entry system are not followed for recording business transactions. When a double entry system is not followed for maintaining records, these records are turned into incomplete records. Many authors describe it as a Single Entry System.

However, Singe Entry System is a misnomer because there is no such system for maintaining accounting records. It is rather a mechanism of maintaining records in which rules of the double-entry system are not followed completely. There is the partial observance of rules of the double-entry system in this system.

This recording is done according to the convenience and needs of business entities and there is no uniformity in the maintenance of records by different entities. This system differs from concern to concern. In this, only records of cash and of personal accounts are maintained. It is always an incomplete double entry system, varying with circumstances. business, nature of business, prevailing circumstances, etc.; the procedure of recording followed by different business entities may vary’. Therefore, there is no uniformity in the maintenance of records under incomplete records.

→ Suitability: This system is suitable for a sole trader or partnership firms. Companies, because of legal provisions, cannot keep incomplete records.

→ Flexibility: This method is flexible as the recording procedure can be adjusted according to the information needs of a particular business enterprise. As rules of the double-entry system are not followed, knowledge of principles of the double-entry system of bookkeeping is not necessary.

→ Maintenance of Personal Accounts and Cash Book: Under this system mainly the personal and cash-book maintained which mixes up business as well as private transactions.

→ Variation of Recording Process: It is an incomplete double entry system, varying according to the information needs of business entities. There is no hard and fast rule for the maintenance of records under this system.

→ Dependence on Original Vouchers: Original vouchers play every important role as they provide all the information to be recorded.

→ Less Expensive: As complete records are not kept, the time and labor involved in maintaining accounting records are less in comparison to double entry.

Incomplete Records contain:

1. Both aspects of some of the transactions.
2. Only one aspect of some of the transactions.
3. No aspect of some of the transactions.

Reasons for Incompleteness:
Accounting records may be incomplete due to any one or more of the following reasons:

1. The businessman may be ignorant of the separate legal entity assumption.
2. The businessman may be ignorant of the double-entry accounting principle.
3. The businessman may not intentionally maintain proper accounts to evade taxation.
4. Destruction of the books of accounts due to fire, flood, etc.

Limitations of Che Incomplete Records:
→ Unscientific: The absence of systematic recording of both aspects of a transaction under this, makes it unscientific.

→ No trial balance or arithmetical accuracy of accounts cannot be checked: The dual aspect of a transaction is not recorded under this system. As a result, the trial balance cannot be prepared from the accounting records maintained. Hence, the arithmetical accuracy of accounting records cannot be checked.

→ True profits cannot be known: Nominal accounts are not maintained and therefore it is not possible to prepare a trading account and Profit & Loss Account to calculate gross profit and net profit respectively. Although the amount of net profit is determinable the absence of details of revenue, other income, expenses, and losses affect sound decision making.

→ The finance position cannot be determined: As all the assets and liabilities and depreciation are not recorded, the Balance Sheet cannot be prepared and thus the true financial position cannot be ascertained.

→ Difficult to detect fraud: Trial balance cannot be prepared to check prima facia arithmetical accuracy of accounts. It encourages carelessness, misappropriation, and fraud because, in the absence of complete records, detection of fraud is very difficult.

→ Difficult to make planning and decision making: In the absence of reliable information about nominal and real accounts, effective planning and control over expenses, assets, etc. are not possible.

→ Not recognized by tax authorities: Accounts maintained based on this system are not accepted by sales-tax and income-tax authorities.

→ Interfirm comparison not possible: Because of variation in accounting procedure and rules, comparison of two or more businesses is not possible.

→ Simple method: It is a very simple method of accounting. It can be maintained by anyone who does not have adequate knowledge of accounting.

→ Less time-consuming: It is less time-consuming since it requires a limited number of books.

→ Less costly: It is less costly because expenses related to the keeping of books are nominal.

→ Suitable-It is suitable for small shopkeepers who do not require an elaborate system of accounting.

Ascertainment of Profit and Loss:
A profit or loss in the case of a Single Entry System can be ascertained by the following two methods:

1. Statement of Affairs Method (or Net Worth Method)
2. Conversion Method (or Final Account Method).

Statement of Affairs Method: A statement of affairs is a statement of assets and liabilities of a business as on a particular date. Under this method, profit is ascertained by comparing the capital at the beginning and capital at the end of the accounting period and necessary adjustments are made for drawings, fresh additional capital, drawings, and interest on capital.

The following steps are followed to ascertain the profit or loss:
1. Prepare a Statement of Affairs at the beginning (if not given) of the accounting period to ascertain the Opening Capital.

2. Ascertain drawings and capital introduced during the year.

3.Prepare a Statement of Affairs at the end of the accounting period to ascertain the Closing Capital (capital at the end) or Prepare a Statement for ascertaining the closing capital before making certain adjustments.

Format of Statement of Affairs Statement of Affairs of…………. as on …………..

4. Prepare a Statement of Profit with the help of the following formula:
Net Profit = Capital at the end Add: Drawings
Less: Additional Capital introduced Less: Opening Capital
Statement of profit is usually prepared as follows:

Statement of Profit for the year ended ………….

If it is desired to calculate profit before certain adjustments separately the Statement of Profit should be prepared as follows:

Statement of Profit for the year ended……………….

5. Prepare Balance Sheet/Received or Final Statements of Affairs at the end after adjusting depreciation, provision for bad and doubtful debts, etc.

Difference between Balance Sheet and Statement of Affairs:

Calculation of Missing Figures and Prepare Final Accounts:
The following steps are followed while calculating the missing figures and preparation of final accounts:
1. Prepare cash and Bank Summary (if not available in proper form with both sides tallied) to ascertain the missing information (Such as opening and closing balances, cash sales/cash purchases, drawing, etc.).

If both the sides of the Cash Book are not tallied, then the difference in both sides may be treated as one of the following items:

If credit sides exceed debit side:

1. Opening Cash or Bank Balance or Closing Bank Overdraft
2. Cash sales
3. Collection from debtors
4. Bills Receivable collected
6. Sale of fixed assets
7. Sundry Income.

If debit sides exceed credit side:

1. Closing Cash or Bank Balance or Opening Bank Overdraft
2. Cash purchases
3. Payment to creditors
4. Bills Payable discharged
5. Drawings
6. Purchase of fixed assets
7. Sundry expenses
8. Cash embezzlement by Cashier.

2. Prepare Total Debtors Account to ascertain the missing information (such as opening debtors, closing debtors, credit sales, collections, bills receivable drawn). If both sides of this account are not tallied, then the difference of both the sides may be treated as one of the following items:

If the credit side exceeds the debit side:

1. Opening Debtors
2. Credit Sales
3. Bills receivable dishonored

If the debit side exceeds the credit side:

1. Closing Debtors
2. Collection from debtors
3. Bills receivable drawn
4. Sales Returns
5. Discount allowed

Format of Total Debtors Account

Important: Provision for Doubtful Debts, Provision for Discount on Debtors, Bad Debts Recovered, Trade Discount Allowed, Bills Receivable Discounted do not affect the Total Debtors Account.

3. Prepare Bills Receivable Account to ascertain the missing information (such as Opening B/R, Closing B/R, B/R drawn, B/R collection, B/R endorsed).

If both the sides of this account are not tallied then the difference in both the sides may be treated as one of the following items:

If the credit side exceeds the debit side:

1. Opening B/R
2. B/R drawn

If the debit side exceeds the credit side:

1. Closing B/R
2. B/R collected
3. B/R dishonored
4. B/R discounted
5. Banker’s discount charges
6. B/R endorsed

Format of Bills Receivable Account

Important: Provision for Doubtful Bills does not affect the Bill Receivable Account

4. Prepare Total Creditors Account to ascertain the missing information (such as Opening Creditors, Closing Creditors, Credit Purchases, Payment made, B/P accepted).

If both the sides of this account are not tallied, then the difference in both the sides may be treated as one of the following items:

If the credit side exceeds the debit side:

1. Closing Creditors
2. Payment to Creditors
3. B/P accepted
4. B/R endorsed to creditors
5. Purchase Return

If the debit side exceeds the credit side:

1. Opening Creditors
2. Credit Purchases
3. B/P canceled
4. Endorsed B/R Dishonoured.

Format of Total Creditors Account

Important: Reserve for Discount on Creditors does not affect the Total Creditors Account.

5. Prepare Bills Payable Account to ascertain the missing information (such as Opening B/P, Closing B/P, B/P accepted, B/P discharged). If both the sides of this account are not tallied, then the difference in both sides may be treated as one of the following items:

If the credit side exceeds the debit side:

1. Closing B/P
2. B/P discharged/canceled.

If the debit side exceeds the credit side:

1. Opening B/P
2. B/P accepted.

Format of Bills Payable Account:

6. Ascertain opening capital by preparing the statement of affairs at the beginning of the accounting period.

7. Prepare the Trial Balance to check the authentical accuracy.

8. Prepare Trading and Profit & Loss Account and the Balance Sheet.