Accounting 1

HIGHER SECONDARY CERTIFICATE 2028 Business Studies Group • English Version • Dhaka Education Board Accounting First Paper Subject Code 253 Complete Chapter Notes Full syllabus • Labelled diagrams • Board style questions Prepared by Md Ahbab Hamid Khan ahbab.dev September 6, 2026

HSC 2028 • Accounting First Paper • Code 253 1 Contents 1 Introduction to Accounting 7 1.1 What this chapter is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.2 The exam map for this paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.3 Key terms of this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.4 What accounting means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.5 Book keeping and accounting are not the same . . . . . . . . . . . . . . . . . . . . . . 9 1.6 Objectives of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.7 How information flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.8 Users of accounting information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.9 Branches of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.10 Qualities of good accounting information . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.11 Where accounting is applied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.12 Worked prob

HSC 2028 • Accounting First Paper • Code 253 2 3.5 Board exam traps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.6 Cheat Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.7 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3.8 Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 4 The Accounting Cycle 40 4.1 The idea of the accounting cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4.2 Why the cycle exists: the accounting period . . . . . . . . . . . . . . . . . . . . . . . . 42 4.3 The ten steps in order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 4.4 Step 1: identify and analyse the transaction . . . . . . . . . . . . . . . . . . . . . . . . 43 4.5 Step 2: journalise the transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.6 Step 3: post to the ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.7 Step 4: prepare the trial balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.8 Step 5: