CBSE Syllabus for Class 11 Accountancy

Course Structure for Class XI  Accountancy (2017-18)

Unit Topic Marks
Part A Financial Accounting – I
1. Theoretical Framework 15
2. Accounting Process 35
Part B Financial Accounting – II
3. Financial Statements of Sole Proprietorship 15
4. Financial Statements of Non-Profits 15
5. Computers in Accounting 10
Part C Project Work 10
Total Marks 100

Part A: Financial Accounting – I (50 Marks)

Unit 1: Theoretical Framework

Units/Topics Learning Outcomes
Introduction to Accounting

  • Accounting: objectives, advantages and limitations, types of accounting information; users of  accounting information and their needs.
  • Basic accounting terms: business transaction, account, capital, drawings, liability (Non – current  and current); asset (Non – current; tangible and intangible assets and current assets), receipts  (capital and revenue), expenditure (capital, revenue and deferred), expense, income, profits,  gains and losses, purchases, purchases returns, sales, sales returns, stock, trade receivables (debtors  and bills receivable), trade payables (creditors and bills payable), goods, cost, vouchers, discount  – trade and cash.

Theory Base of Accounting

  • Fundamental accounting assumptions: going concern, consistency, and accrual.
  • Accounting principles: accounting entity, money measurement, accounting period, full disclosure,  materiality, prudence, cost concept, matching concept and dual aspect.
  • Bases of accounting – cash basis and accrual basis.
  • Accounting Standards and IFRS (International Financial Reporting Standards): Concept and  Objectives
  • DoubLe entry system of accounting.
  • Bases of accounting – cash basis and accrual
    basis.
After going through this Unit, the students will be able to:

  • describe the meaning, significance, objectives, advantages and limitations of accounting in the modem economic environment with varied types of business and non-business economic entities.
  • identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.
  • explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and revenue.
  • give examples of terms like business transaction, liabilities, assets, receipts, expenditure and purchases.
  • explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.
  • differentiate among income, profits and gains.
  • state the meaning of fundamental accounting assumptions and their relevance in accounting.
  • describe the meaning of accounting principles and the situation in which a principle is applied during the accounting process.
  • explain the meaning and objectives of accounting standards.
  • appreciate that various accounting standards developed nationally and globally are in practice for bringing parity in the accounting
    treatment of different items.
  • acknowledge the fact that recording of accounting transactions follows double entry system.
  • explain the bases of recording accounting transaction and to appreciate that accrual basis is a better basis for depicting the correct
    financial position of an enterprise.

Unit 2: Accounting Process

Units/Topics Learning Outcomes
Recording of Transactions

  • Accounting equation: analysis of transactions using accounting equation.
  • Rules of debit and credit: for assets, liabilities, capital, revenue and expenses
  • Origin of transactions- source documents (invoice, cash memo, pay in slip, cheque), preparation  of vouchers – cash (debit and credit) and non cash (transfer).
  • Books of original entry: format and recording – Journal.
  • Cash Book: Simple Cash Book, Cash Book with Discount Column and Cash Book with Bank and  Discount Columns, Petty Cash Book.
  • Other books: purchases book, sales book, purchases returns book, sales returns book and journal  proper.

Preparation of Bank Reconciliation Statement, Ledger and Trial Balance.

  • Bank reconciliation statement- calculating bank balance at accounting date: need and preparation.  Corrected cash book balance.
  • Ledger – format, posting from journal, cash book and other special purpose books, balancing of  accounts.
  • Trial balance: objectives and preparation

(Scope: Trial Balance with balance method only)

Depreciation, Provisions and Reserves

  • Depreciation: concept need and factors affecting depreciation; methods of computation of  depreciation: straight line method, written down value method (excluding change in method)
  • Accounting treatment of depreciation: by charging to asset account, by creating provision for  depreciation/ accumulated depreciation account, treatment of disposal of asset.
  • Provisions and reserves: concept, objectives and difference between provisions and reserves;  types of reserves- revenue reserve, capital reserve, general reserve and specific reserves.

Accounting for Bills of Exchange

  • Bills of exchange and promissory note: definition, features, parties, specimen and distinction.
  • Important terms : term of bill, due date, days of grace, date of maturity, discounting of bill,  endorsement of bill, bill sent for collection, dishonour of bill, noting of bill, retirement and  renewal of a bill.
  • Accounting treatment of bill transactions.

Rectification of Errors

  • Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial  Balance.
  • Detection and rectification of errors; preparation of suspense account.
After going through this Unit, the students will be able to:

  • explain the concept of accounting equation and appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of accounting equation.
  • explain the effect of a transaction (increase or decrease) on the concerned assets, liabilities, capital, revenue and expenses.
  • appreciate that on the basis of source documents, accounting vouchers are prepared for recording transaction in the books of accounts.
  • develop the understanding of recording of transactions in journal.
  • explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book.
  • describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books .
  • appreciate that at times bank balance as indicated by cash book is different from the bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared.
    develop understanding of preparing bank reconciliation statement.
  • appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting.
  • state the need and objectives of preparing trial balance and develop the skill of preparing trial balance.
  • explain the necessity of providing depreciation and develop the skill of using different methods for computing depreciation.
  • understand the accounting treatment of providing depreciation directly to the concerned asset account or by creating provision for depreciation account.
  • appreciate the method of asset disposal through the concerned asset account or by preparing asset disposal account.
  • appreciate the need for creating reserves and also making provisions for events which may belong to the current year but may happen in next year.
  • appreciate the difference between reserve and reserve fund.
  • acquire the knowledge of using bills of exchange and promissory notes for financing business transactions;
  • understand the meaning and distinctive features of these instruments and develop the skills of their preparation.
  • state the meaning of different terms used in bills of exchange and their implication in accounting.
  • explain the method of recording of bill transactions.
  • appreciate that errors may be committed during the process of accounting.
  • understand the meaning of different types of errors and their effect on trial balance.
  • develop the skill of identification and location of errors and their rectification and preparation of suspense account.

Part B: Financial Accounting – II (40 Marks)

Unit 3: Financial Statements of Sole Proprietorship

Units/Topics Learning Outcomes
  • Financial Statements: objective and importance.
  • Profit and loss account: gross profit, operating profit and net profit.
  • Balance Sheet: need, grouping, marshalling of assets and liabilities.
  • Adjustments in preparation of financial statements : with respect to closing stock, outstanding  expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad  debts, provision for doubtful debts, provision for discount on debtors, manager’s commission,  abnormal loss, goods taken for personal use and goods distributed as free samples.
  • Preparation of Trading and Profit and Loss Account and Balance Sheet of sole proprietorship.
  • Incomplete records: use and limitations. Ascertainment of profit/loss by statement of affairs  method.
After going through this Unit, the students will be able to:

  • state the meaning of financial statements the purpose of preparing financial statements.
  • state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account.
  • explain the need for preparing balance sheet.
  • understand the technique of grouping and marshalling of assets and liabilities.
  • appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial statements.
  • develop the understanding and skill to do adjustments for items and their presentation in financial statements like depreciation, closing stock, provisions etc.
  • develop the skill of preparation of trading and profit and loss account and balance sheet.
  • state the meaning of incomplete records and their uses and limitations.
  • develop the understanding and skill of computation of profit I loss using the statement of affairs method.

Unit 4: Financial Statements of Not-for-Profit Organizations

Units/Topics Learning Outcomes
  • Not-for-profit organizations: concept.
  • Receipts and Payment account: features.
  • Income and Expenditure account: features. Preparation of Income and Expenditure account and  Balance Sheet from the given Receipts and Payments account with additional information.

Scope:

  1. Adjustments in a question should not exceed 3 or 4 in number and restricted to subscriptions,  consumption of consumables, and sale of assets/ old material.
  2. Entrance/ admission fees and general donations are to be treated as revenue receipts.
  3. Trading Account of incidental activities is not to be prepared.
After going through this Unit, the students will be able to:

  • state the meaning of a Not-for-profit organisation and its distinction from a profit making entity.
  • state the meaning of receipts and payments account, and understanding its features.
  • develop the understanding and skill of preparing receipts and payments account.
  • state the meaning of income and expenditure account and understand its features.
  • develop the understanding and skill of preparing income and expenditure account and balance sheet of a not-for-profit organisation with the help of given receipts and payments account and additional information.

Unit 5: Computers in Accounting

 Units/Topics  Learning Outcomes
  • Introduction to Computer and Accounting Information System (AIS): Introduction to computers  (Elements, Capabilities, Limitations of Computer system),
  • Introduction to operating software, utility software and application software. Introduction to  Accounting Information System (AIS), as a part of MIS
  • Automation of Accounting Process. Meaning
  • Stages in automation (a) Accounting process in a computerised environment (Comparison  between manual accounting process and Computerised accounting process.) (b) Sourcing of  accounting Software (Kinds of software: readymade software; customised software and tailor-made software; Generic Considerations before sourcing accounting software)(c)Creation of  Account groups and hierarchy ( d) Generation of reports -Trial balance, Profit and Loss account  and Balance Sheet.

Scope:

  • The scope of the unit is to understand accounting as an information system for the generation of  accounting information and preparation of accounting reports.
  • It is presumed that the working knowledge of Tally software will be given to the students for the  generation of accounting software. For this, the teachers may refer Chapter 4 of Class XII NCERT  textbook on Computerized Accounting System.
After going through this Unit, the students will be able to:

  • state the meaning of a computer, describe its components, capabilities and limitations.
  • state the meaning of accounting information system.
  • appreciate the need for use of computers in accounting for preparing accounting reports.
  • develop the understanding of comparing the manual and computerized accounting process and appreciate the advantages and limitations of automation.
  • understand the different kinds of accounting software.

Part C: Project Work (10 Marks)

Any One:

  1. Collection of Source Documents,Preparation of Vouchers, Recording of Transactions with the help of vouchers.
  2. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to twenty-five transactions.
  3. Comprehensive project starting with journal entries regarding any sole proprietorship business, posting them to the ledger and preparation of Trial balance.The students will then prepare Trading and Profit and Loss Account on the basis of the prepared trial balance. Expenses, incomes and profit (loss) are to be depicted using pie chart / bar diagram.

NCERT Solutions