Do you know the abbreviations commonly used in accountancy

Do You Know The Abbreviations Commonly Used in Accountancy?

Knowing these common abbreviations will help you while writing the Accountancy exams and will give you a competitive edge in Class 11 &12 Commerce.

By Topperlearning Expert 05th Aug, 2020 | 11:51 am

After Class 10, students who opt for courses in the Commerce stream have some new subjects to be studied as part of their curriculum. Bookkeeping and Accountancy is such a subject which requires in-depth and detailed knowledge along with a lot of practice to master concepts in the syllabus.

The initial chapters introduce the most basic and important concepts of a particular subject, and therefore, it is important to remember all of these concepts for the longest time possible. However, just remembering the concepts is not enough. Why? Because Accountancy is a subject which involves a lot of calculations, numerous statements and multiple procedures. So, while preparing for the Accountancy exams, students will not only have to remember the concepts but will also have to thoroughly practice the calculations and statements to complete their exam paper on time.

Subject-specific abbreviations are usually used so that time spent on long words is saved and can be utilised elsewhere in the most effective manner. Knowing these abbreviations will help you while writing the exams and will give you a competitive advantage over others when working in the Accounting field in the future.

Let's look at some abbreviations (along with their full forms) which you should know all about before venturing into the vast and unchartered Accountancy realm.

Abbreviation	Full Form	Abbreviation	Full Form
DR	Debit	GP	Gross Profit
CR	Credit	NP	Net Profit
A/C	Account	GL	Gross Loss
BAL	Balance	NL	Net Loss
C/F	Carried Forward	NPAT	Net Profit After Tax
B/F	Brought Forward	NPBT	Net Profit Before Tax
C/D	Carried Down	ROI	Return on Investment
B/D	Brought Down	FMP	Future Maintainable Profit
JF	Journal Folio	NRR	Normal Rate of Return
LF	Ledger Folio	BD	Bad Debts
JV	Journal Voucher	DISC	Discount
AS	Accounting Standards	TDS	Tax Deducted at Source
IND-AS	Indian Accounting Standards	GST	Goods and Services Tax
IFRS	International Financial Reporting Standards	CGST	Central Goods and Services Tax
GAAPs	Generally Accepted Accounting Principles	SGST	State Goods and Services Tax
CAP	Capital	IGST	Integrated Goods and Services Tax
CE	Capital Employed	DRR	Debenture Redemption Reserve
WC	Working Capital	DRI	Debenture Redemption Investment
CL	Current Liability	ESOP	Employees Stock Option Plan
LTL	Long Term Liability	CO	Company
OD	Overdraft	BV	Book Value
FA	Fixed Asset	FV	Face Value
DEPR	Depreciation	MV	Market Value
WDV	Written Down Value	IPO	Initial Public Offer
SLM	Straight Line Method	PC	Purchase Consideration
FIFO	First-In, First-Out	SEBI	Securities and Exchange Board of India
LIFO	Last-In, First-Out	NPO	Not-for-Profit Organisation
COGS	Cost of Goods Sold	LLP	Limited Liability Partnership
WIP	Work in Progress	PSR	Profit Sharing Ratio
CA	Current Asset	OPC	One Person Company
BOE	Bill of Exchange	BS	Balance Sheet
BP	Bills Payable	P&L	Profit and Loss Account
BR	Bills Receivable	TB	Trial Balance
TP	Trade Payable	CFS	Cash Flow Statement
TR	Trade Receivable	BRS	Bank Reconciliation Statement

Before taking up any new task or work, you should always do a little research and then proceed. This helps in gaining knowledge and confidence as well as ensures effective learning outcomes. Similarly, before entering the Accountancy stream, having a clear idea of these commonly used abbreviations in the field can ensure effective communication, one which is free from error and confusion.

Remembering these abbreviations is of vital importance in order to effectively manage exam time and score more marks!

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