Accountancy Class 11 CBSE (Commerce) CBSE Topics and Syllabus

• Introduction to Accounting 
• Meaning of Accounting 
  • Economic Events
  • Identification, Measurement, Recording and Communication
  • Organisation
  • Interested Users of Information
• Accounting as a Source of Information 
  • Qualitative Characteristics of Accounting Information
• Objectives of Accounting 
  • Maintenance of Records of Business Transactions
  • Calculation of Profit and Loss
  • Depiction of Financial Position
  • Providing Accounting Information to its Users
• Role of Accounting 
• Basic Terms in Accounting 
  • Entity
  • Transaction
  • Assets
  • Liabilities
  • Capital
  • Sales
  • Revenues
  • Expenses
  • Expenditure
  • Profit
  • Gain
  • Loss
  • Discount
  • Voucher
  • Goods
  • Drawings
  • Purchases
  • Stock
  • Debtors
  • Creditors

• Introduction of Theory Base of Accounting 
• Generally Accepted Accounting Principles 
• Basic Accounting Concepts 
  • Business Entity Concept
  • Money Measurement Concept
  • Going Concern Concept
  • Accounting Period Concept
  • Cost Concept
  • Dual Aspect Concept
  • Revenue Recognition (Realisation) Concept
  • Matching Concept
  • Full Disclosure Concept
  • Consistency Concept
  • Conservatism Concept
  • Materiality Concept
  • Objectivity Concept
• Systems of Accounting 
• Basis of Accounting 
• Accounting Standards (AS) 
  • Need for Accounting Standards
  • Benefits of Accounting Standards
  • Limitations of Accounting Standards
  • Applicability of Accounting Standards
  • Need for IFRS
• Goods and Services Tax (GST) 
  • Meaning
  • Goods and Service Tax
  • Kinds of GST

  1. CGST
  2. SGST 
  3. UGST
  4. IGST
  5. IGST on exports

• Recording of Transactions 1 
• Business Transactions and Source Document 
  • Preparation of Accounting Vouchers
• Meaning of Accounting Equation 
• Using Debit and Credit 
  • Rules of Debit and Credit
• Books of Original Entry 
  • Journal
  • Format and
• The Ledger 
  • Classification of Ledger Accounts
• Ledger-Posting from Journal 

• Recording of Transactions 2 
• Meaning of Cash Book 
  • Single Column Cash Book
  • Double Column Cash Book
  • Petty Cash Book
  • Balancing of Cash Book
• Purchases Book 
  • Invoice
  • Trade discount
  • Posting from purchases book
• Purchases Returns Book 
  • Posting from the purchases returns book
  • Debit note – the source document for returns outward 
• Sales Book Or Sales Day Book 
  • Posting from sales book
• Sales Returns Book 
  • Posting from sales returns book
  • Credit note – Source document for returns inward
• Journal Proper 
  • Opening journal entry
  • Closing journal entry
  • Adjusting entries
  • Rectifying entries
  • Transfer entries 
  • Miscellaneous Entries
  • Other Entries
• Balancing the Accounts 

• Bank Reconciliation Statement 
• Need for Reconciliation 
  • Timing Differences
  • Differences Caused by Errors
• Preparation of Bank Reconciliation Statement 
  • Balance presentation method
  • Plus or Minus presentation
  • Preparation of Bank Reconciliation Statement without adjusting Cash Book Balance

• Trial Balance and Rectification of Errors 
• Meaning of Trial Balance 
• Objectives of Preparing Trial Balance 
  • Test of arithmetical accuracy
  • Basis for preparing final accounts
  • Location of errors
  • Summarised information of ledger accounts
  • To Ascertain the Arithmetical Accuracy of Ledger Accounts
  • To Help in Locating Errors
  • To Help in the Preparation of the Financial Statements 
• Preparation of Trial Balance 
  • Totals method
  • Balances Method
  • Totals-cum-balances Method
• Significance of Agreement of Trial Balance 
  • Classification of Errors
  • Errors of Commission
  • Errors of Omission
  • Errors of Principle
  • Compensating Errors
• Searching of Errors 
• Rectification of Errors 
  • Stages of rectification of errors
  • Rectification of Errors which do not Affect the Trial Balance
  • Rectification of Errors Affecting Trial Balance
  • Rectification of Errors in the Next Accounting Year

• Depreciation, Provisions and Reserves 
• Depreciation 
  • Meaning of Depreciation
  • Features of Depreciation
• Depreciation and Other Similar Terms 
  • Depletion
  • Amortisation
• Causes of Depreciation 
  • Wear and tear
  • Expiration of Legal Rights
  • Efflux of time
  • Obsolescence
  • Inadequacy for the purpose
  • Lack of maintenance
  • Abnormal factors
• Need for Depreciation 
  • Matching of Costs and Revenue
  • Consideration of Tax 
  • True and Fair Financial Position
  • Compliance with Law
• Factors Affecting the Amount of Depreciation 
  • Cost of Asset
  • Estimated Net Residual Value
  • Depreciable Cost
  • Estimated Useful Life
• Methods of Calculating Depreciation Amount 
  • Straight Line Method

  • Advantages of Straight Line Method
  • Limitations of Straight Line Method

  • Written Down Value Method

  • Advantages of Written Down Value Method
  • Limitations of Written Down Value Method
• Straight Line Method and Written Down Method: a Comparative Analysis 
  • Basis of Charging Depreciation
  • Annual Charge of Depreciation
  • Total Charge Against Profit and Loss Account on Account of Depreciation and Repair Expenses
  • Recognition by Income Tax Law
  • Suitability
• Methods of Recording Depreciation 
  • Charging depreciation to asset account
  • Creating Provision for Depreciation Account/Accumulated Depreciation Account
• Disposal of Asset 
  • Use of Asset Disposal Account
• Effect of Any Addition Or Extension to the Existing Asset 
• Provisions 
  • Accounting Treatment for Provisions
• Reserves 
  • Difference between Reserve and Provision
  • Types of Reserves
  • Difference between Revenue and Capital Reserve
  • Importance of Reserves
• Types of Reserves-Secret Reserves 

• Bill of Exchange 
• Meaning of Bill of Exchange 
  • Parties to a Bill of Exchange
• Promissory Note 
  • Parties to a Promissory Note
• Advantages of Bill of Exchange 
• Maturity of Bill 
• Discounting of Bills of Exchange 
• Important Terms of Bills of Exchange - Endorsement of Bill 
• Accounting Treatment 
  • Calls in Arrears
  • Calls in Advance
  • Over Subscription
  • Under Subscription
  • Issue of Shares at a Premium
  • Issue of Shares at a Discount
  • Issue of Shares for Consideration other than Cash
  • In the Books of Drawer/Promissor
  • In the Books of Acceptor/Promissor
• Dishonour of a Bill 
  • Noting Charges
• Renewal of the Bill 
• Retiring of the Bill 

• Stakeholders and Their Information Requirements 
• Distinction Between Capital and Revenue Receipts 
  • Expenditure
  • Receipts
  • Importance of Distinction between Capital and Revenue
• Financial Statements 
  • Meaning of financial statements
  • Features of financial statements
  • Significance of financial statements
  • Limitations of financial statements
• Trading and Profit and Loss Account 
  • Relevant Items in Trading and Profit and Loss Account
  • Closing Entries
  • Concept of Gross Profit and Net Profit
  • Cost of Goods Sold and Closing Stock–Trading Account Revisited
• Operating Profit (EBIT) 
• Balance Sheet 
  • Need for preparing a balance sheet.
  • Relevant Items in the Balance Sheet
  • Characteristics of balance sheet
  • Grouping and Marshalling of assets and liabilities in a balance sheet
  • Methods of drafting a balance sheet

  1. Horizontal form of balance sheet
  2. Vertical form of balance sheet

  • Preparation of Balance Sheet
  • Classification of assets and liabilities
• Opening Entry 

• Need for Adjustments 
• Effects of Adjustments-Closing Stock 
• Effects of Adjustments-Outstanding Expenses 
• Effects of Adjustments-Prepaid Expenses 
• Effects of Adjustments-Accrued Income 
• Effects of Adjustments-Income Received in Advance 
• Effects of Adjustments-Depreciation 
• Effects of Adjustments-Bad and Doubtful Debts 
• Provision for Bad and Doubtful Debts 
• Effects of Adjustments-Provision for Discount on Debtors and Creditors 
• Manager's Commission 
• Interest on Capital 

• Meaning of Incomplete Records 
  • Features of Incomplete Records
• Reasons of Incompleteness and Its Limitations 
• Ascertainment of Profit or Loss by Statement of Affairs Method 
  • Preparing Statement of Affairs
  • Difference between Statement of Affairs and Balance Sheet
• Preparation of Trading and Profit and Loss Account and Balance Sheet of Sole Proprietorship 
  • Ascertaining Credit Purchases
  • Ascertainment of Credit Sales
  • Ascertainment of Bills Receivable and Bills payable
  • Ascertainment of Missing Information through Summary of Cash

• Meaning and Elements of Computer System 
  • Hardware
  • Software
  • People.
  • Procedures
  • Data
  • Connectivity
• Capabilities of Computer System 
• Limitations of a Computer System 
• Components of a Computer 
  • Input Unit
  • Central Processing Unit

  1. Arithmetic and Logic Unit 
  2. Control Unit

  • Output Unit
  • Memory Unit
  • Input and Output Devices
• Evolution of Computerised Accounting 
  • Information and Decisions
  • Transaction Processing System
• Features of Computerised Accounting System 
• Management Information System and Accounting Information System 
  • Designing of Accounting Reports
  • Data Interface between the Information System

• Concept of Computerised Accounting System 
• Differences Between Manual and Computerised Accounting System 
• Advantages of Computerised Accounting System 
• Limitations of Computerised Accounting System 
• Sourcing of Accounting Software 
  • Accounting Packages
  • Ready-to-Use
  • Customized
  • Tailored
  • Free & Open Source
• Generic Considerations before Sourcing an Accounting Software 
  • Flexibility
  • Cost of Installation and Maintenance
  • Size of Organisation
  • Ease of Adaptation and Training needs
  • Utilities/MIS Reports
  • Expected Level of Secrecy (Software and Data) 
  • Exporting/Importing Data Facility
  • Vendors Reputation and Capability

• Basis of Accounting System - Cash Basis 
• Basis of Accounting System - Accrual Or Mercantile Basis 
• Qualitative Characteristics of Accounting Information 
  1. Reliability of Accounting Information
  2. Relevance of Accounting Information
  3. Understandability of Accounting Information
  4. Comparability of Accounting Information
• Business Transaction-Cash Transactions 
• Business Transaction-Credit Transactions 
• Goods 
• Profit 
  • Meaning of Profit
  • Kinds of Profit
  • Concepts of Profit
• Loss 
• Difference Between Profit and Income 
• Non-current and Current Asset 
• Assets 
• Fixed Assets 
• Liabilities 
• Capital and Drawings 
• Cash Discount 
• Trade Discount 
• Stock 
• Concept of Accounting and Objectives 
• Advantages and Limitations of Accounting 
• Accounting Information Types and Needs 
• Inventory 
• Trade Receivables (Debtors and Bills Receivable) 
• Trade Payables(Creditors and Bills Payable) 
• Fundamental Accounting Assumptions-Going Concern 
• Fundamental Accounting Assumptions-Consistency 
• Fundamental Accounting Assumptions-Accrual 
• Accounting Standards (AS) 
  • Need for Accounting Standards
  • Benefits of Accounting Standards
  • Limitations of Accounting Standards
  • Applicability of Accounting Standards
  • Need for IFRS
• Study of Double Entry Book-keeping System 
  • Advantages of Double Entry Book Keeping Systems or Accounting
• Explanation About IFRS (International Financial Reporting Standards) 
  • concept and objectives
• Accounting Principles Or GAAP-Accounting Entity 
• Accounting Principles Or GAAP-Accounting Period 
• Accounting Principles Or GAAP-Full Disclosure 
• Accounting Principles Or GAAP-Materiality Concept 
• Accounting Principles Or GAAP-Prudence, 
• Accounting Principles Or GAAP-Cost Concept 
• Accounting Principles Or GAAP-Matching Concept 
• Accounting Principles Or GAAP-Dual Aspect Concept 
• Purchases 
• Purchases Returns 
• Sales 
• Sales Return 
• Capital Expenditure 
  • Features of capital expenditure
• Revenue and Deferred Revenue Expenditure 
  • Features of deferred revenue expenditure

Introduction to Accounting
• Accounting- concept, objectives, and limitations, types of information; users of accounting and their needs. advantages accounting information
• 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.

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.

• Vouchers 
• Cash Memo 
• Debit and Credit Note 
• Cheque 
  • Bearer
  • Order
  • Crossed
  • Account payee
• Cash Book with Cash Column 
• Cash Book with Cash and Bank Columns 
  • Columns in Cash Book with Cash and Bank columns
  • Format of Cash Book with Cash and Bank columns
  • Accounting treatment of banking transactions in Cash Book with Cash and Bank
  • Balancing of Cash Book with Cash and Bank column
• Petty Cash Book 
  • Imprest system of petty cash
  • Advantages of maintaining petty cash book
  • Types of Petty Cash Book

  1. Simple petty cash
  2. Analytical Columnar Petty Cash Book

  • Balancing petty cash book
  • Posting of entries from petty cash book to ledger
• Purchase Book Or Purchases Day Book 
• Sales Book Or Sales Day Book 
  • Posting from sales book
• Purchase Return Book Or Purchases Return Day Book 
• Sales Return Book Or Sales Return Day Book 
• Journal Proper 
  • Opening journal entry
  • Closing journal entry
  • Adjusting entries
  • Rectifying entries
  • Transfer entries 
  • Miscellaneous Entries
  • Other Entries
• Analysis of Transactions Using Accounting Equation. 
• Rules of Debit and Credit for Assets 
• Rules of Debit and Credit for Liabilities 
• Rules of Debit and Credit for Capital 
• Rules of Debit and Credit for Revenue and Expenses. 
• Origin of Transactions 
• Preparation of Accounting Vouchers- Cash (Debit and Credit) 
• Preparation of Accounting Vouchers- Non Cash (Transfer). 
• Books of Original Entry 
  • Journal
  • Format and
• Specimen of Ledger 
• Balancing of Ledger Accounts 
  • Procedure for balancing an account
  • Direct ledger posting
• Ledger-Posting from Journal 
• Need and Importance of Bank Reconciliation Statement 
• Preparation of Bank Reconciliation Statement 
  • Balance presentation method
  • Plus or Minus presentation
  • Preparation of Bank Reconciliation Statement without adjusting Cash Book Balance
• Calculating Bank Balance at an Accounting Date 
• Corrected Cash Book Balanced 
• Meaning and Purpose of Trial Balance 
• Preparation of the Trial Balance by the Balance Method 
• Meaning and Effects of Errors 
• Types of Errors-Errors of Principles 
• Types of Errors-Errors of Ommission 
• Types of Errors-Errors of Commission 
• Types of Errors-Compensating Errors 
• Errors Affecting and Not Affecting Trial Balance 
• Treatment of Balance of Suspense Account 
• Rectification Entries 
• Detection of Error 
• Depreciation 
  • Meaning
  • Definition
  • Importance
  • Useful life of the asset
  • Depreciable assets
• Methods of Depreciation-Straight Line Method 
• Methods of Depreciation-Written Down Value Method 
• Accounting Treatment of Depreciation-By Charging to Asset Account 
• Accounting Treatment of Depreciation-By Creating Provision for Depreciation 
• Accounting Treatment of Depreciation-Accumulated Depreciation Account 
• Accounting Treatment of Depreciation-Treatment of Disposal of Asset 
• Provisions and Reserves 
  • Meaning and Objectives
• Difference Between Provisions and Reserves 
• Types of Reserves-Revenue Reserve 
• Types of Reserves-Capital Reserve 
• Types of Reserves-General Reserve 
• Types of Reserves-Specific Reserves 
• Promissory Note 
  • Parties to a Promissory Note
• Important Terms of Bills of Exchange - Term of Bill 
• Important Terms of Bills of Exchange - Due Date 
• Important Terms of Bills of Exchange - Days of Grace 
• Important Terms of Bills of Exchange - Date of Maturity 
• Important Terms of Bills of Exchange - Discounting of Bill, 
• Important Terms of Bills of Exchange - Endorsement of Bill 
• Important Terms of Bills of Exchange - Bill Sent for Collection 
• Important Terms of Bills of Exchange - Dishonor of Bill 
• Important Terms of Bills of Exchange - Noting of Bill 
• Important Terms of Bills of Exchange - Retirement and Renewal of a Bill 
• Accounting Treatment of Bill Transactions 

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/ supporting vouchers (invoice, cash memo, pay in slip, cheque), debit note, credit note, preparation of accounting vouchers - cash (debit and credit) and non cash (transfer).

• Books of original entry: format and recording - Journal.
• Cash book: simple cash book and cash book with bank col u m n 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- 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)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 BUls of Exchange. 16 Periods
• 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. Rectificatf on of Errors 17 Periods
• Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance.
• Detection and rectification of errors; preparation of suspense account.

• Financial Statements 
  • Meaning of financial statements
  • Features of financial statements
  • Significance of financial statements
  • Limitations of financial statements
• Preparation of Trading Account 
• Preparation of Profit and Loss Account 
• Gross Profit 
• Preparation of Balance Sheet 
• Effects of Adjustments-Closing Stock 
• Effects of Adjustments-Outstanding Expenses 
• Effects of Adjustments-Prepaid Expenses 
• Effects of Adjustments-Accrued Income 
• Effects of Adjustments-Income Received in Advance 
• Effects of Adjustments-Goods Distributed as Free Sample 
• Adjustments of Financial Statements - Abnormal Loss 
• Effects of Adjustments-Depreciation 
• Adjustments of Financial Statements - Goods Taken for Personal Use 
• Adjustments of Financial Statements - Goods Distributed as Free Samples and Manager's Commission 
• Incomplete Records 
• Ascertainment of Profit or Loss by Statement of Affairs Method 
  • Preparing Statement of Affairs
  • Difference between Statement of Affairs and Balance Sheet
• Marshalling of a Balance Sheet Or Assets and Liabilities 
• Preparation of Trading and Profit and Loss Account and Balance Sheet of Sole Proprietorship 
  • Ascertaining Credit Purchases
  • Ascertainment of Credit Sales
  • Ascertainment of Bills Receivable and Bills payable
  • Ascertainment of Missing Information through Summary of Cash

• 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, abnormal loss, goods taken for personal use, goods distributed as free samples and manager's commission.
• Preparation of Trading and Profit and Loss account and Balance Sheet of sole proprietorship.
• Incomplete records: uses and limitations.
• Ascertainment of profit/loss by statement of affairs method

• Concept of Not-for-profit Organizations 
• Feature of Receipts and Payments Account 
• Preparation of Receipts and Payments Account 
• Difference Between Receipts and Payments Account and Cash Book 
• Feature of Income and Expenditure Account 
• Preparation of Income and Expenditure Account 
• Balance Sheet from the Given Receipts 
• Payments Account with Additional Information 

• Not-for-profit organizations: concept.
• Receipts and Payments Account: features and preparation.
• 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:
(i) Adjustments in a question should not exceed 3 or 4 in number and restricted to subscriptions, consumables and sale of assets I old material.
(ii) Entrance! admission fees and general donations are to be treated as revenue receipts.
(iii) Trading Account of incidental activities is not to be prepared.

• Introduction to Operating Software, Utility Software and Application Software 
• Introduction to Computers 
• Introduction to Accounting Information System (AIS) as a Part of MIS 
• Stages in Automation - Accounting Process in a Computerised Environment 
• Comparison Between Manual Accounting Process and Computerised Accounting Process 
• Stages in Automation - Sourcing of Accounting Software 
• Kinds of Software - Readymade Software 
• Kinds of Software - Customised Software 
• Kinds of Software - Tailor-made Software 
• Generic Considerations before Sourcing Accounting Software 
• Stages in Automation - Creation of Account Groups and Hierarchy 
• Stages in Automation - Generation of Reports - Trial Balance, Profit and Loss Account and Balance Sheet 

• 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:
(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. For this, the teachers may refer to Chapter 4 of Class XII NCERT textbook on Computerized Accounting System.