CBSE - Class 11 - Accountancy - CBSE Revision Notes

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CBSE Revision Notes for Class 11 Accountancy

Download CBSE Revision Notes for CBSE Class 11 Accountancy Introduction to accounting Accounting- concept, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Basic accounting terms: business transaction, account, capital, drawings, liabilities (non -current and current); assets (non-current and current) fixed assets (tangible and intangible assets), receipts (capital and revenue), expenditure (capital, revenue and deferred), expense, income, profits, gains and losses, purchases, purchases returns, sales, sales returns, goods, stock, inventory, trade receivables (debtors and bills receivable), trade payables (creditors and bills payable), cost, vouchers, discount - trade and cash.

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Download CBSE Revision Notes for CBSE Class 11 Accountancy Theory Base of Accounting, AS & Ind-AS, Basis, GST 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. Accounting Standards and IFRS (International Financial Reporting Standards): concept and objectives. Double entry system of accounting. Bases of accounting - cash basis and accrual basis.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Ledger An Accounting equation is based on the dual concept of accounting, according to which, every transaction has two aspects namely Debit and Credit. It means that every transaction in accounting effect both Debit (DR.) and Credit (Cr.) side equally.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Cash Book 4.1 Cash Book 4.2 Purchases (Journal) Book 4.3 Purchases Return (Journal) Book 4.4 Sales (Journal) Book 4.5 Sales Return (Journal) Book 4.6 Journal Proper 4.7 Balancing the Accounts

Download CBSE Revision Notes for CBSE Class 11 Accountancy Bank Reconciliation Statement Bank reconciliation statement- concept, calculating bank balance at an 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)

Download CBSE Revision Notes for CBSE Class 11 Accountancy Trial Balance Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance. Detection and rectification of errors; preparation of suspense account.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Depreciation 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.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Bill 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, dishonor of bill, noting of bill , retirement and renewal of a bill. Accounting treatment of bill transactions.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Financial Statements -I Sole Proprietorship Financial statements: Receipts and Expenditure: Revenue receipts and capital receipts. Capital expenditure, Revenue expenditure and deferred expenditure Objective and Importance. Trading and Profit and Loss Account: Gross Profit, Operating profit and net profit. Preparation. Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation. 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, Abnormal loss, Goods taken for personal use/staff welfare, interest on capital and managers commission. Preparation of Trading and Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Financial Statements -II Adjustments 10.1 Need for Adjustments 10.2 Closing Stock 10.3 Outstanding Expenses 10.4 Prepaid Expenses 10.5 Accrued Income 10.6 Income Received in Advance 10.7 Depreciation 10.8 Bad Debts 10.9 Provision for Bad and Doubtful Debts 10.10 Provision for Discount on Debtors 10.11 Manager’s Commission 10.12 Interest on Capital

Download CBSE Revision Notes for CBSE Class 11 Accountancy Accounts from Incomplete Records Incomplete records: uses and limitations. Ascertainment of profit/loss by statement of affairs method. Some small size business entities do not follow the double entry system of maintaining the accounting records some business entities maintains books of accounts under the system Accounting from Incomplete records. The system in which no set rules of double entry system are followed is called Accounts from Incomplete records.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Computers in Accounting 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.

Download CBSE Revision Notes for CBSE Class 11 Accountancy Computerised Accounting System 13.1 Concept of Computerised Accounting System 13.2 Comparison between Manual and Computerised Accounting 13.3 Advantages of Computerised Accounting System 13.4 Limitations of Computerised Accounting System 13.5 Sourcing of Accounting Software 13.6 Generic Considerations before Sourcing Accounting Software

Download CBSE Revision Notes for CBSE Class 11 Accountancy Project Work in Accountancy Project Work in Accountancy class-11

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CBSE Revision Notes for class 11 Accountancy

CBSE Revision Notes for Class 11 Accountancy

CBSE revision notes for class 11 Accountancy NCERT chapter wise notes of 11th Accountancy CBSE key points and chapter summary for 11 Accountancy all chapters in PDF format for free download. CBSE short key notes and chapter notes for revision in exams. CBSE short notes of 11th class Accountancy. Summary of the chapter for class 11 Accountancy are available in PDF format for free download. These NCERT notes are very helpful for CBSE exam. CBSE recommends NCERT books and most of the questions in CBSE exam are asked from NCERT text books. These notes are based on latest NCERT syllabus and designed as per the new curriculum issued by CBSE for this session. Class 11 Accountancy chapter wise NCERT note for Accountancy part and Accountancy for all the chapters can be downloaded from website and myCBSEguide mobile app for free.

CBSE Class 11 Notes and Key Points

  • CBSE Revision notes (PDF Download) Free
  • CBSE Revision notes for Class 11 Accountancy PDF
  • CBSE Revision notes Class 11 Accountancy – CBSE
  • CBSE Revisions notes and Key Points Class 11 Accountancy
  • Summary of the NCERT books all chapters in Accountancy class 11
  • Short notes for CBSE class 11th Accountancy
  • Key notes and chapter summary of Accountancy class 11
  • Quick revision notes for CBSE exams

CBSE Class 11 Accountancy Chapter-wise Revision Notes

  • Chapter 1 – Introduction to Accounting
  • Chapter 2 – Theory Base of Accounting
  • Chapter 3 – Recording of Transactions-I
  • Chapter 4 – Recording of Transactions-II
  • Chapter 5 – Bank Reconciliation Statement
  • Chapter 6 – Trial Balance and Rectification of Errors
  • Chapter 7 – Depreciation, Provisions and Reserves
  • Chapter 8 – Bill of Exchange
  • Chapter 9 – Financial Statements – I
  • Chapter 10 – Financial Statements – II
  • Chapter 11 – Accounts from Incomplete Records
  • Chapter 12 – Applications of Computers in Accounting
  • Chapter 13 – Computerised Accounting System
  • Chapter 14 – Structuring Database for Accounting
  • Chapter 15 – Accounting System Using Database Management System

Free Download of CBSE Class 11 Revision Notes

Key Notes for CBSE Board Students for Class 11. Important topics of all subjects are given in these CBSE notes. These notes will provide you overview of the chapter and important points to remember. These are very useful summary notes with neatly explained examples for best revision of the book.

CBSE Class-11 Revision Notes and Key Points

CBSE class-11 Key points and summary of the lessons is given under this section for Chemistry , Physics, Mathematics, Biology, Accountancy, Business studies, Economics and other subjects. The notes includes all concepts given in NCERT books and syllabus issued by CBSE for class-11. Key notes are 'to the point' capsules for quick revision of the chapter. We have covered the whole syllabus in these notes.

CHAPTER-1
INTRODUCTION TO ACCOUNTING

According to American Institute of Certified Public Accountants, “Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof.”

Accounting Principles Board (APB) of AICPA(U.S.A) defined accounting as “Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.”

In Simple words, accounting is the process of collecting, recording, classifying, summarising and communicating financial information to the users for judgment and decision-making.

Objectives of Accounting

1. To keep systematic and complete record of financial transactions in the books of accounts according to specified principles and rules to avoid the possibility of omission and fraud.

2. To ascertain the profit earned or loss incurred during a particular accounting period which further help in knowing the financial performance of a business.

3. To ascertain the financial position of the business by the means of financial statement i.e. balance sheet which shows assets on one side and Capital & Liabilities on the other side.

4. To provide useful accounting information to users like owners, investors, creditors, banks, employees and government authorities etc who analyze them as per their requirements.

5. To provide financial information to the management which help in decision making, budgeting and forecasting.

6. To prevent frauds by maintaining regular and systematic accounting records.

Advantages of Accounting

1. It provides information which is useful to management for making economic decisions.

2. It help owners to compare one year’s results with those of other years to locate the factors which leads to changes.

3. It provide information about the financial position of the business by means of balance sheet which shows assets on one side and Capital & Liabilities on the other side.

4. It help in keeping systematic and complete record of business transactions in the books of accounts according to specified principles and rules, which is accepted by the Courts as evidence.

5. It help a firm in the assessment of its correct tax Liabilities such as income tax, sales tax, VAT, excise duty etc.

6. Properly maintained accounts help a business entity in determining its proper purchase price.

Limitations of Accounting

1. It is historical in nature; it does not reflect the current worth of a business.

Moreover, the figures given in financial statements ignore the effects of changes in price level.

2. It contain only those informations  which can be expressed in terms of money. It ignore qualitative elements such as efficiency of management, quality of staff, customers satisfactions etc.

3. It may be affected by window dressing i.e. manipulation in accounts to present a more favorable position of a business firm than its actual position.

4. It is not free from personal bias and personal judgment of the people dealing with it. For example different people have different opinions regarding life of asset for calculating depreciation, provision for doubtful debts etc.

5. It is based on various concepts and conventions which may hamper the disclosure of realistic financial position of a business firm. For example assets in balance sheet are shown at their cost and not at their market value which could be realised on their sale.

Book Keeping - The Basis of Accounting

Book keeping is the record-making phase of accounting which is concerned with the recording of financial transactions and events relating to business in a significant and orderly manner.

Book Keeping should not be confused with accounting. Book keeping is the recording phase while accounting is concerned with the summarizing phase of an accounting system. The distinction between the two are as under.

Book keeping

Accounting

1. It is the recording phase of an accounting system.

1. It is the summarizing phase of an accounting system.

2. It is a primary stage and basis for accounting.

2. It is a Secondary Stage which begins where the Book keeping process ends.

3. It is routine in nature and does not require any special skill or knowledge

3. It is analytical in nature and required special skill or knowledge.

4. It is done by junior staff called book-keepers

4. It is done by senior staff called accountants.

5. It does not give the complete picture of the financial conditions of the business unit.

5. It gives the complete picture of the financial conditions of the business unit.

Types of accounting information

Accounting information can be categorized into following:

1. Information relating to profit or loss i.e. income statement, shows the net profit of business operations of a firm during a particular accounting period.

2. Information relating to Financial position i.e. Balance Sheet. It shows assets on one side and Capital & Liabilities on the other side.

Schedules and notes forming part of balance sheet and income statement to give details of various items shown in both of them.

Subfields/Branches of Accounting

1. Financial Accounting:- It is that subfield/Branch of accounting which is concerned with recording of business transactions of financial nature in a systematic manner, to ascertain the profit or loss of the accounting period and to present the financial position of the business.

2. Cost Accounting:- It is that Subfield/Branch of accounting which is concerned with ascertainment of total cost and per unit cost of goods or services produced/ provided by a business firm.

3. Management Accounting:- It is that subfield/Branch of accounting which is concerned with presenting the accounting information in such a manner that help the management in planning and controlling the operations of a business and in better decision making.

Interested users/parties of Accountings information’s and their Needs

There are number of users interested in knowing about the financial soundness and the profitability of the business.

Users

Classification

Information the user want

Internal

1. Owner

Return on their investment, financial health of their company/business.

2. Management


3. Employees

 

To evaluate the performance to take various decisions.


Profitability to claim higher wages and bonus, whether their dues 

(PF, ESI, etc.) deposited regularly.

External

1. Investors and potential investors

To know about Safety, growth of their investments and future of the business.

2. Creditors

Assessing the financial capability, ability of the business to pay its debts.

3. Lenders

Repaying capacity, credit worthiness.

4. Tax Authorities

Assessment of due taxes, true and fair disclosure of accounting information,

5. Government

To compile national income and other information. Helps to take policy decisions.

6. Others

Customers, Researchers etc., may seek different in- formation for different reasons.



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