Class 11 Accountancy Syllabus

Given below is the syllabus for Class 11 Accountancy

Accountancy

1. Introduction to Accounting

2. Theory Base of Accounting

3. Recording of Transactions – 1

4. Recording of Transactions – 2

5. Bank Reconciliation statement

6. Trial Balance and Rectification of Errors

7. Depreciation, Provisions and Reserves

8. Bills of Exchange

9. Financial Statements – 1

10. Financial Statements – 2

11. Accounts of Incomplete Records

12. Applications of Computers in Accounting

13. Computerized Accounting System

Detailed syllabus of Accountancy

Unit 1: Theoretical Framework

1. 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.

2. 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.
• Accounting Standards and IFRS (International Financial Reporting Standards): concept and objectives
• Double-entry system of accounting.
• Bases of accounting – cash basis and accrual basis.

Unit 2: Accounting Process

3. Recording of Transactions-1

4. Recording of Transactions-2

• 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 return book, sales returns book and journal proper.

5. Bank Reconciliation Statement

 6. Trial Balance and Rectification of Errors

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

(Scope: Trial Balance with balance method only)

7. 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.

8. 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.

Unit 3: Financial Statements of Sole Proprietorship

9. Financial Statement - 1

• Financial Statements: objective and importance.
• Trading and 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.

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

10. Financial Statement - 2

• 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.

Unit 5: Computers in Accounting

11. Accounts of Incomplete Records

12. Applications of Computers in Accounting

13. Computerized Accounting System

• 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
  •  Accounting process in a computerised environment; comparison between manual accounting process and Computerised accounting process.
  • Sourcing of accounting Software; kinds of software: readymade software; customised software and tailor-made software; Generic Considerations before sourcing accounting software
  • Creation of Account groups and hierarchy
  • 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 any appropriate accounting software will be given to the students to help them learn basic accounting operations on computers