Syllabus - Accountancy, Class 11 Commerce Notes | EduRev

Accountancy Class 11

Commerce : Syllabus - Accountancy, Class 11 Commerce Notes | EduRev

 Page 1


 
Accountancy (Code No.055) 
Couse Structure 
Class-XI (2018-19) 
One Paper Theory: 90 Marks 
3 Hours 
 
Units 
 
Periods Marks 
Part A: Financial Accounting-1 
  
 
Unit-1: Theoretical Framework 25 15 
 
Unit-2: Accounting Process 105 40 
  
130 55 
Part B: Financial Accounting-II 
  
 
Unit-3: Financial Statements of Sole Proprietorship from Complete and 
Incomplete Records 
60 25 
 
Unit-4: Computers in Accounting 20 10 
  
80 35 
Part C: Project Work 30 10 
 
 
SYLLABUS: CLASS-XI ACCOUNTANCY 
PART A: FINANCIAL ACCOUNTING - I 55 Marks 
Unit-1: Theoretical Frame Work 25 Periods 
 
Units/Topics Learning Outcomes 
Introduction to Accounting 11 Periods 
? Accounting- concept, objectives, advantages and 
limitations, types of accounting information; 
users of accounting information and their 
needs. Qualitative Characteristics of Accounting 
Information. Role of Accounting in Business. 
? Basic Accounting Terms- Business Transaction, 
Capital, Drawings.  Liabilities (Non Current and 
Current).  Assets (Non Current, Current); Fixed 
assets (Tangible and Intangible), Expenditure 
(Capital and Revenue), Expense, Income, Profit, 
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, 
Creditor,  Voucher, Discount (Trade discount and 
Cash Discount) 
Theory Base of Accounting 14 Periods 
? Fundamental accounting assumptions: GAAP: 
Concept 
? Business Entity, Money Measurement, Going 
Concern, Accounting Period, Cost Concept, Dual 
Aspect, Revenue Recognition, Matching, Full 
Disclosure, Consistency, Conservatism, Materiality 
and Objectivity 
? System of Accounting. Basis of Accounting: cash 
basis and accrual basis 
? Accounting Standards: Need, benefits, limitations, 
applicability; IFRS- Need 
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, 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 
Page 2


 
Accountancy (Code No.055) 
Couse Structure 
Class-XI (2018-19) 
One Paper Theory: 90 Marks 
3 Hours 
 
Units 
 
Periods Marks 
Part A: Financial Accounting-1 
  
 
Unit-1: Theoretical Framework 25 15 
 
Unit-2: Accounting Process 105 40 
  
130 55 
Part B: Financial Accounting-II 
  
 
Unit-3: Financial Statements of Sole Proprietorship from Complete and 
Incomplete Records 
60 25 
 
Unit-4: Computers in Accounting 20 10 
  
80 35 
Part C: Project Work 30 10 
 
 
SYLLABUS: CLASS-XI ACCOUNTANCY 
PART A: FINANCIAL ACCOUNTING - I 55 Marks 
Unit-1: Theoretical Frame Work 25 Periods 
 
Units/Topics Learning Outcomes 
Introduction to Accounting 11 Periods 
? Accounting- concept, objectives, advantages and 
limitations, types of accounting information; 
users of accounting information and their 
needs. Qualitative Characteristics of Accounting 
Information. Role of Accounting in Business. 
? Basic Accounting Terms- Business Transaction, 
Capital, Drawings.  Liabilities (Non Current and 
Current).  Assets (Non Current, Current); Fixed 
assets (Tangible and Intangible), Expenditure 
(Capital and Revenue), Expense, Income, Profit, 
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, 
Creditor,  Voucher, Discount (Trade discount and 
Cash Discount) 
Theory Base of Accounting 14 Periods 
? Fundamental accounting assumptions: GAAP: 
Concept 
? Business Entity, Money Measurement, Going 
Concern, Accounting Period, Cost Concept, Dual 
Aspect, Revenue Recognition, Matching, Full 
Disclosure, Consistency, Conservatism, Materiality 
and Objectivity 
? System of Accounting. Basis of Accounting: cash 
basis and accrual basis 
? Accounting Standards: Need, benefits, limitations, 
applicability; IFRS- Need 
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, 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 
 
? Goods and Services Tax (GST): Characteristics and 
Objective. 
assumptions and their relevance in accounting. 
? describe the meaning of accounting assumptions 
and the situation in which an assumption 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. 
? Understand the need of IFRS 
? Explain the meaning, objective and 
characteristic of GST. 
 
 
     
Unit-2: Accounting Process       105 Periods 
Units/Topics Learning Outcomes 
Recording of Business Transactions 30 Periods 
? Voucher and Transactions: Source documents and 
Vouchers, Preparation of Vouchers, Accounting 
Equation Approach: Meaning and Analysis, Rules of 
Debit and Credit. 
? Recording of Transactions: Books of Original Entry-  
? Journal 
? Special Purpose books:  
? Cash Book: Simple, cash book 
with bank column and petty 
cashbook 
? Purchases book 
? Sales book 
? Purchases return book 
? Sales return book 
Note: Including  simple GST calculations  
 
? Ledger: Format, Posting from journal and subsidiary 
books, Balancing of accounts 
                                                                                      15 Periods 
Bank Reconciliation Statement:  
? Need and preparation, Bank Reconciliation Statement 
with Adjusted Cash Book 
 
Depreciation, Provisions and Reserves.             20 Periods 
? Depreciation: Concept, Features, Causes, factors 
? Other similar terms: Depletion and Amortisation 
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 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 and the skill of 
calculating GST. 
? 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. 
Page 3


 
Accountancy (Code No.055) 
Couse Structure 
Class-XI (2018-19) 
One Paper Theory: 90 Marks 
3 Hours 
 
Units 
 
Periods Marks 
Part A: Financial Accounting-1 
  
 
Unit-1: Theoretical Framework 25 15 
 
Unit-2: Accounting Process 105 40 
  
130 55 
Part B: Financial Accounting-II 
  
 
Unit-3: Financial Statements of Sole Proprietorship from Complete and 
Incomplete Records 
60 25 
 
Unit-4: Computers in Accounting 20 10 
  
80 35 
Part C: Project Work 30 10 
 
 
SYLLABUS: CLASS-XI ACCOUNTANCY 
PART A: FINANCIAL ACCOUNTING - I 55 Marks 
Unit-1: Theoretical Frame Work 25 Periods 
 
Units/Topics Learning Outcomes 
Introduction to Accounting 11 Periods 
? Accounting- concept, objectives, advantages and 
limitations, types of accounting information; 
users of accounting information and their 
needs. Qualitative Characteristics of Accounting 
Information. Role of Accounting in Business. 
? Basic Accounting Terms- Business Transaction, 
Capital, Drawings.  Liabilities (Non Current and 
Current).  Assets (Non Current, Current); Fixed 
assets (Tangible and Intangible), Expenditure 
(Capital and Revenue), Expense, Income, Profit, 
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, 
Creditor,  Voucher, Discount (Trade discount and 
Cash Discount) 
Theory Base of Accounting 14 Periods 
? Fundamental accounting assumptions: GAAP: 
Concept 
? Business Entity, Money Measurement, Going 
Concern, Accounting Period, Cost Concept, Dual 
Aspect, Revenue Recognition, Matching, Full 
Disclosure, Consistency, Conservatism, Materiality 
and Objectivity 
? System of Accounting. Basis of Accounting: cash 
basis and accrual basis 
? Accounting Standards: Need, benefits, limitations, 
applicability; IFRS- Need 
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, 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 
 
? Goods and Services Tax (GST): Characteristics and 
Objective. 
assumptions and their relevance in accounting. 
? describe the meaning of accounting assumptions 
and the situation in which an assumption 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. 
? Understand the need of IFRS 
? Explain the meaning, objective and 
characteristic of GST. 
 
 
     
Unit-2: Accounting Process       105 Periods 
Units/Topics Learning Outcomes 
Recording of Business Transactions 30 Periods 
? Voucher and Transactions: Source documents and 
Vouchers, Preparation of Vouchers, Accounting 
Equation Approach: Meaning and Analysis, Rules of 
Debit and Credit. 
? Recording of Transactions: Books of Original Entry-  
? Journal 
? Special Purpose books:  
? Cash Book: Simple, cash book 
with bank column and petty 
cashbook 
? Purchases book 
? Sales book 
? Purchases return book 
? Sales return book 
Note: Including  simple GST calculations  
 
? Ledger: Format, Posting from journal and subsidiary 
books, Balancing of accounts 
                                                                                      15 Periods 
Bank Reconciliation Statement:  
? Need and preparation, Bank Reconciliation Statement 
with Adjusted Cash Book 
 
Depreciation, Provisions and Reserves.             20 Periods 
? Depreciation: Concept, Features, Causes, factors 
? Other similar terms: Depletion and Amortisation 
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 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 and the skill of 
calculating GST. 
? 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. 
 
? Methods of Depreciation:  
i. Straight Line Method (SLM) 
ii. Written Down Value Method (WDV) 
Note: Excluding change of method 
? Difference between SLM and WDV; Advantages of 
SLM and WDV 
? Accounting treatment of depreciation 
i. Charging to asset account 
ii. Creating provision for 
depreciation/accumulated depreciation 
account 
iii. Treatment for disposal of asset 
? Provisions and Reserves: Difference 
? Types of Reserves:  
i. Revenue reserve 
ii. Capital reserve 
iii. General reserve 
iv. Specific reserve 
v. Secret Reserve 
? Difference between capital and revenue reserve 
Accounting for Bills of Exchange. 20 Periods 
? Bill of exchange and Promissory Note: Definition, 
Specimen, Features, Parties.  
? Difference between Bill of Exchange and Promissory 
Note 
? Terms in Bill of Exchange:  
i. Term of Bill 
ii. Accommodation bill (concept) 
iii. Days of Grace 
iv. Date of maturity 
v. Discounting of bill 
vi. Endorsement of bill 
vii. Bill after due date 
viii. Negotiation 
ix. Bill sent for collection 
x. Dishonour of bill 
xi. Retirement of bill 
xii. Renewal of bill 
? Accounting Treatment 
Note: excluding accounting treatment for accommodation bill 
 
Trial balance and Rectification of Errors 20 Periods 
? Trial balance: objectives and preparation 
(Scope: Trial balance with balance method only) 
? Errors: types-errors of omission, commission, 
principles, and compensating; their effect on 
Trial Balance. 
? Detection and rectification of errors; preparation 
of suspense account. 
? describe the method of recording 
transactions other than cash transactions as 
per their  nature in different subsidiary 
books . 
? appreciate that at times bank balance a s 
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. 
? 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. 
? state the need and objectives of preparing 
Page 4


 
Accountancy (Code No.055) 
Couse Structure 
Class-XI (2018-19) 
One Paper Theory: 90 Marks 
3 Hours 
 
Units 
 
Periods Marks 
Part A: Financial Accounting-1 
  
 
Unit-1: Theoretical Framework 25 15 
 
Unit-2: Accounting Process 105 40 
  
130 55 
Part B: Financial Accounting-II 
  
 
Unit-3: Financial Statements of Sole Proprietorship from Complete and 
Incomplete Records 
60 25 
 
Unit-4: Computers in Accounting 20 10 
  
80 35 
Part C: Project Work 30 10 
 
 
SYLLABUS: CLASS-XI ACCOUNTANCY 
PART A: FINANCIAL ACCOUNTING - I 55 Marks 
Unit-1: Theoretical Frame Work 25 Periods 
 
Units/Topics Learning Outcomes 
Introduction to Accounting 11 Periods 
? Accounting- concept, objectives, advantages and 
limitations, types of accounting information; 
users of accounting information and their 
needs. Qualitative Characteristics of Accounting 
Information. Role of Accounting in Business. 
? Basic Accounting Terms- Business Transaction, 
Capital, Drawings.  Liabilities (Non Current and 
Current).  Assets (Non Current, Current); Fixed 
assets (Tangible and Intangible), Expenditure 
(Capital and Revenue), Expense, Income, Profit, 
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, 
Creditor,  Voucher, Discount (Trade discount and 
Cash Discount) 
Theory Base of Accounting 14 Periods 
? Fundamental accounting assumptions: GAAP: 
Concept 
? Business Entity, Money Measurement, Going 
Concern, Accounting Period, Cost Concept, Dual 
Aspect, Revenue Recognition, Matching, Full 
Disclosure, Consistency, Conservatism, Materiality 
and Objectivity 
? System of Accounting. Basis of Accounting: cash 
basis and accrual basis 
? Accounting Standards: Need, benefits, limitations, 
applicability; IFRS- Need 
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, 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 
 
? Goods and Services Tax (GST): Characteristics and 
Objective. 
assumptions and their relevance in accounting. 
? describe the meaning of accounting assumptions 
and the situation in which an assumption 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. 
? Understand the need of IFRS 
? Explain the meaning, objective and 
characteristic of GST. 
 
 
     
Unit-2: Accounting Process       105 Periods 
Units/Topics Learning Outcomes 
Recording of Business Transactions 30 Periods 
? Voucher and Transactions: Source documents and 
Vouchers, Preparation of Vouchers, Accounting 
Equation Approach: Meaning and Analysis, Rules of 
Debit and Credit. 
? Recording of Transactions: Books of Original Entry-  
? Journal 
? Special Purpose books:  
? Cash Book: Simple, cash book 
with bank column and petty 
cashbook 
? Purchases book 
? Sales book 
? Purchases return book 
? Sales return book 
Note: Including  simple GST calculations  
 
? Ledger: Format, Posting from journal and subsidiary 
books, Balancing of accounts 
                                                                                      15 Periods 
Bank Reconciliation Statement:  
? Need and preparation, Bank Reconciliation Statement 
with Adjusted Cash Book 
 
Depreciation, Provisions and Reserves.             20 Periods 
? Depreciation: Concept, Features, Causes, factors 
? Other similar terms: Depletion and Amortisation 
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 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 and the skill of 
calculating GST. 
? 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. 
 
? Methods of Depreciation:  
i. Straight Line Method (SLM) 
ii. Written Down Value Method (WDV) 
Note: Excluding change of method 
? Difference between SLM and WDV; Advantages of 
SLM and WDV 
? Accounting treatment of depreciation 
i. Charging to asset account 
ii. Creating provision for 
depreciation/accumulated depreciation 
account 
iii. Treatment for disposal of asset 
? Provisions and Reserves: Difference 
? Types of Reserves:  
i. Revenue reserve 
ii. Capital reserve 
iii. General reserve 
iv. Specific reserve 
v. Secret Reserve 
? Difference between capital and revenue reserve 
Accounting for Bills of Exchange. 20 Periods 
? Bill of exchange and Promissory Note: Definition, 
Specimen, Features, Parties.  
? Difference between Bill of Exchange and Promissory 
Note 
? Terms in Bill of Exchange:  
i. Term of Bill 
ii. Accommodation bill (concept) 
iii. Days of Grace 
iv. Date of maturity 
v. Discounting of bill 
vi. Endorsement of bill 
vii. Bill after due date 
viii. Negotiation 
ix. Bill sent for collection 
x. Dishonour of bill 
xi. Retirement of bill 
xii. Renewal of bill 
? Accounting Treatment 
Note: excluding accounting treatment for accommodation bill 
 
Trial balance and Rectification of Errors 20 Periods 
? Trial balance: objectives and preparation 
(Scope: Trial balance with balance method only) 
? Errors: types-errors of omission, commission, 
principles, and compensating; their effect on 
Trial Balance. 
? Detection and rectification of errors; preparation 
of suspense account. 
? describe the method of recording 
transactions other than cash transactions as 
per their  nature in different subsidiary 
books . 
? appreciate that at times bank balance a s 
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. 
? 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. 
? state the need and objectives of preparing 
 
trial balance and develop the skill of 
preparing trial balance. 
? 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 35 Marks 
 
Unit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplete Records     60 Periods 
 
Units/Topics Learning Outcomes 
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. 
Incomplete Records 
Features, Reasons and Limitations.  
Ascertainment of profit/loss by statement of affairs 
method.  
Difference between Accounts from incomplete records 
and Statement of Affairs. Preparation of Trading , Profit 
and Loss account and Balance Sheet. 
 
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, abnormal loss 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 / loss using the statement 
of affairs method. 
 
 
 
 
 
 
 
Page 5


 
Accountancy (Code No.055) 
Couse Structure 
Class-XI (2018-19) 
One Paper Theory: 90 Marks 
3 Hours 
 
Units 
 
Periods Marks 
Part A: Financial Accounting-1 
  
 
Unit-1: Theoretical Framework 25 15 
 
Unit-2: Accounting Process 105 40 
  
130 55 
Part B: Financial Accounting-II 
  
 
Unit-3: Financial Statements of Sole Proprietorship from Complete and 
Incomplete Records 
60 25 
 
Unit-4: Computers in Accounting 20 10 
  
80 35 
Part C: Project Work 30 10 
 
 
SYLLABUS: CLASS-XI ACCOUNTANCY 
PART A: FINANCIAL ACCOUNTING - I 55 Marks 
Unit-1: Theoretical Frame Work 25 Periods 
 
Units/Topics Learning Outcomes 
Introduction to Accounting 11 Periods 
? Accounting- concept, objectives, advantages and 
limitations, types of accounting information; 
users of accounting information and their 
needs. Qualitative Characteristics of Accounting 
Information. Role of Accounting in Business. 
? Basic Accounting Terms- Business Transaction, 
Capital, Drawings.  Liabilities (Non Current and 
Current).  Assets (Non Current, Current); Fixed 
assets (Tangible and Intangible), Expenditure 
(Capital and Revenue), Expense, Income, Profit, 
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, 
Creditor,  Voucher, Discount (Trade discount and 
Cash Discount) 
Theory Base of Accounting 14 Periods 
? Fundamental accounting assumptions: GAAP: 
Concept 
? Business Entity, Money Measurement, Going 
Concern, Accounting Period, Cost Concept, Dual 
Aspect, Revenue Recognition, Matching, Full 
Disclosure, Consistency, Conservatism, Materiality 
and Objectivity 
? System of Accounting. Basis of Accounting: cash 
basis and accrual basis 
? Accounting Standards: Need, benefits, limitations, 
applicability; IFRS- Need 
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, 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 
 
? Goods and Services Tax (GST): Characteristics and 
Objective. 
assumptions and their relevance in accounting. 
? describe the meaning of accounting assumptions 
and the situation in which an assumption 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. 
? Understand the need of IFRS 
? Explain the meaning, objective and 
characteristic of GST. 
 
 
     
Unit-2: Accounting Process       105 Periods 
Units/Topics Learning Outcomes 
Recording of Business Transactions 30 Periods 
? Voucher and Transactions: Source documents and 
Vouchers, Preparation of Vouchers, Accounting 
Equation Approach: Meaning and Analysis, Rules of 
Debit and Credit. 
? Recording of Transactions: Books of Original Entry-  
? Journal 
? Special Purpose books:  
? Cash Book: Simple, cash book 
with bank column and petty 
cashbook 
? Purchases book 
? Sales book 
? Purchases return book 
? Sales return book 
Note: Including  simple GST calculations  
 
? Ledger: Format, Posting from journal and subsidiary 
books, Balancing of accounts 
                                                                                      15 Periods 
Bank Reconciliation Statement:  
? Need and preparation, Bank Reconciliation Statement 
with Adjusted Cash Book 
 
Depreciation, Provisions and Reserves.             20 Periods 
? Depreciation: Concept, Features, Causes, factors 
? Other similar terms: Depletion and Amortisation 
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 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 and the skill of 
calculating GST. 
? 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. 
 
? Methods of Depreciation:  
i. Straight Line Method (SLM) 
ii. Written Down Value Method (WDV) 
Note: Excluding change of method 
? Difference between SLM and WDV; Advantages of 
SLM and WDV 
? Accounting treatment of depreciation 
i. Charging to asset account 
ii. Creating provision for 
depreciation/accumulated depreciation 
account 
iii. Treatment for disposal of asset 
? Provisions and Reserves: Difference 
? Types of Reserves:  
i. Revenue reserve 
ii. Capital reserve 
iii. General reserve 
iv. Specific reserve 
v. Secret Reserve 
? Difference between capital and revenue reserve 
Accounting for Bills of Exchange. 20 Periods 
? Bill of exchange and Promissory Note: Definition, 
Specimen, Features, Parties.  
? Difference between Bill of Exchange and Promissory 
Note 
? Terms in Bill of Exchange:  
i. Term of Bill 
ii. Accommodation bill (concept) 
iii. Days of Grace 
iv. Date of maturity 
v. Discounting of bill 
vi. Endorsement of bill 
vii. Bill after due date 
viii. Negotiation 
ix. Bill sent for collection 
x. Dishonour of bill 
xi. Retirement of bill 
xii. Renewal of bill 
? Accounting Treatment 
Note: excluding accounting treatment for accommodation bill 
 
Trial balance and Rectification of Errors 20 Periods 
? Trial balance: objectives and preparation 
(Scope: Trial balance with balance method only) 
? Errors: types-errors of omission, commission, 
principles, and compensating; their effect on 
Trial Balance. 
? Detection and rectification of errors; preparation 
of suspense account. 
? describe the method of recording 
transactions other than cash transactions as 
per their  nature in different subsidiary 
books . 
? appreciate that at times bank balance a s 
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. 
? 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. 
? state the need and objectives of preparing 
 
trial balance and develop the skill of 
preparing trial balance. 
? 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 35 Marks 
 
Unit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplete Records     60 Periods 
 
Units/Topics Learning Outcomes 
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. 
Incomplete Records 
Features, Reasons and Limitations.  
Ascertainment of profit/loss by statement of affairs 
method.  
Difference between Accounts from incomplete records 
and Statement of Affairs. Preparation of Trading , Profit 
and Loss account and Balance Sheet. 
 
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, abnormal loss 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 / loss using the statement 
of affairs method. 
 
 
 
 
 
 
 
 
Unit 4: Computers in Accounting 20 Periods 
 
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 Management Information System. 
? 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: 
(i) The scope of the unit is to understand accounting as 
an information system for the generation of 
accounting information and preparation of 
accounting reports. 
(ii) It is presumed that the working knowledge of any 
appropriate accounting software will be given to the 
students to help them learn basic accounting 
operations on computers. 
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 (Any One) 10 Marks 30 Periods 
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 of any sole proprietorship business. This may state with journal entries and their ledgering, 
preparation of Trial balance. Trading and Profit and Loss Account and Balance Sheet. Expenses, incomes and profit 
(loss), assets and liabilities are to be depicted using pie chart / bar diagram. 
COMPREHENSIVE PROJECT 
It is suggested to undertake this project after completing the unit on preparation of financial statements. The student(s) 
will be allowed to select any business of their choice or develop the transaction of imaginary business. 
The project is to run through the chapters and make the project an interesting process. The amounts should emerge as 
more realistic and closer to reality. 
 
 
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