Accounts Class 11 ISC (Commerce) CISCE Topics and Syllabus

• Background of Accounting and Accountancy 
• Types of Accounts 
  • Personal account
  • Impersonal accounts

  1. Real account
  2. Nominal accounts
• Explanation About IFRS (International Financial Reporting Standards) 
  • concept and objectives
• Accounting Standards (AS) 
  • Need for Accounting Standards
  • Benefits of Accounting Standards
  • Limitations of Accounting Standards
  • Applicability of Accounting Standards
  • Need for IFRS
• Meaning of Accounting Equation 
• Usefulness of Accounting Equation 
• Financial Accounting 
• Cost Accounting 
• Management Accounting 
• 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
• Advantages and Limitations of Accounting Users of Accounting Information 
• Vouchers 
• Debtors and Creditors 
• Purchases 
• Sales 
• Assets 
• Liabilities 
• Stock 
• Profit 
  • Meaning of Profit
  • Kinds of Profit
  • Concepts of Profit
• Loss 
• Capital and Drawings 
• Basic Term - Goods Traded in 
• Basic Term - Transaction 
• Evolution of Accounting 
• Basic Term - Expense 
• Difference Between Bookkeeping, Accounting and Accountancy 
• Basic Term - Income 

Background of accounting and accountancy. ; types of accounts; basic terms used in accounting, and Accounting Equation. Knowledge and understanding of IFRS (International Financial Reporting Standards); GAAP (Generally Accepted Accounting Principles), Accounting Standards.

• Basic Terms: Event, Transaction, Vouchers, Debtors, Creditors, Purchases, Sales, Assets (intangible, tangible, fixed, current, liquid and fictitious), Liabilities (internal and external – current, fixed and contingent), Goods traded in, Stock (raw material, work in progress and finished goods), Profit, Loss, Expense, Revenue, Income, Drawings and Capital.
• Accounting equation – Meaning and usefulness.
  • Evolution of accounting; difference between bookkeeping, accounting and accountancy; functions, characteristics, objectives, advantages and limitations of accounting users of accounting information; subfields of accounting - meaning of financial accounting, cost accounting and management accounting.

• Journal 
  • Meaning
  • Definition
  • Importance and Utility
• Specimen Or Format of Journal 

  Explanation of columns

  • Date
  • Particulars
  • Ledger Folio Number
  • Debit Amount
  • Credit Amount
• Recording of Entries in Journal with Narration 
• Types of Accounts 
  • Personal account
  • Impersonal accounts

  1. Real account
  2. Nominal accounts
• Study of Double Entry Book-keeping System 
  • Advantages of Double Entry Book Keeping Systems or Accounting
• Advantages of Using a Journal 
• Simple and Compound Journal Entries 
• Rules of Journalizing 
  • Traditional Classification or Modern approach
• Meaning of Ledger 

  Meaning

  Definition

  Importance

  Contents of Ledger

  • Date
  • Particulars
  • Journal Folio (J.F.)
  • Amount
• Specimen of Ledger 
• Balancing of Ledger Accounts 
  • Procedure for balancing an account
  • Direct ledger posting
• Ledger-Posting from Journal 
• Ledger - Mechanics of Posting 
• Practical Problems on Journal and Ledger. 
• 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
• Sales Book Or Sales Day Book 
  • Posting from sales book
• Purchase Book Or Purchases Day Book 
• Sales Return Book Or Sales Return Day Book 
• Purchase Return Book Or Purchases Return Day Book 
• Journal Proper 
  • Opening journal entry
  • Closing journal entry
  • Adjusting entries
  • Rectifying entries
  • Transfer entries 
  • Miscellaneous Entries
  • Other Entries
• Sub-division of Journal - Cash Book 
• Meaning and Purpose of Trial Balance 
• Advantages and Limitations of a Trial Balance 
• Preparation of the Trial Balance by the Balance Method 

Journal: recording of entries in journal with narration.

1. Classification of Accounts.
2. Double Entry System.
3. Rules of journalizing – traditional classification or modern approach.
4. Meaning of journal.
5. Format of journal.
6. Simple and compound journal entries (with specimens to practice).
7. Advantages of using a journal.

Ledger: posting from journal to respective ledgers

1. Meaning of ledger
2. Format of a ledger.
3. Mechanics of posting.
4. Balancing of various ledger accounts.
5. Practical problems on journal and ledger.

Sub-division of journal - cash book [including simple cash book and triple column cash book (cash, bank and discount) with contra entry pertaining to receipt of cheque not deposited on the same day. Petty cash book (including analytical and imprest system), sales day book, purchases day book, sales return day book, purchases return day book and Journal proper.

Mechanics of posting from special subsidiary books.

Trial Balance.

• Meaning, objectives, advantages and limitations of a Trial Balance.
• Preparation of the Trial Balance by the balance method from the given ledger account balances.

• Bank Reconciliation Statement 
  • Meaning
  • Definition
  • Need for bank reconciliation statement
  • Importance of bank reconciliation statement
• Need and Importance of Bank Reconciliation Statement 
• Preparation of an Amended Cash Book and a Bank Reconciliation Statement from the Given Cash Book Balance 
• Preparation of an Amended Cash Book and a Bank Reconciliation Statement from the Given Cash Book Balance 
• Preparation of an Amended Cash Book and a Bank Reconciliation Statement from the Extract of the Cash Book as Well as the Pass Book Relating to the Same Month 

Bank reconciliation statement

• Meaning and need for bank reconciliation statement.
• Preparation of a bank reconciliation statement from the given cash book balance or pass book balance or both.
• Preparation of a bank reconciliation statement from the extract of the cash book as well as the pass book relating to the same month.
• Preparation of an amended cash book and a bank reconciliation statement from the given cash book balance.
• Preparation of an amended cash book and a bank reconciliation statement from the extract of the cash book as well as the pass book relating to the same month

• Depreciation 
  • Meaning
  • Definition
  • Importance
  • Useful life of the asset
  • Depreciable assets
• Need and Factors Affecting Depreciation 
• Objectives and Characteristics of Depreciation 
  • Objectives of providing depreciation:

  1. To find out the true profit or loss
  2. To present the true and fair view of financial position
  3. To facilitate replacement of fixed assets
  4. To avail tax benefits
  5. To comply with legal requirements

  • Characteristics of depreciation
• 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 
• Problems Relating to Purchase and Sale of Assets Incorporating the Application of Depreciation Under the Two Stated Methods 

• Depreciation. Depreciation - meaning, need, causes, objectives and characteristics.
• Methods of charging depreciation: Straight Line and Written Down Value method
• Method of recording depreciation – charging to asset account, creating provision for depreciation / accumulated depreciation.
• Problems relating to purchase and sale of assets incorporating the application of depreciation under the two stated methods. Self explanatory.

• Advantages and Disadvantages of Bills of Exchange 
• Promissory Note 
  • Parties to a Promissory Note
• Introduction to Negotiable Instruments 
  • Negotiable Instruments– Meaning, Characteristics, Assumptions
  • Characteristics of a Negotiable Instrument

  1. Transferability
  2. Title of the holder free from all defects
  3. Right of the transferee to sue
• Important Terms of Bills of Exchange - Due Date 
• Important Terms of Bills of Exchange - Days of Grace 
• 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 - Retirement and Renewal of a Bill 
• Basic Term of Bills of Exchange - Drawer 
• Basic Term of Bills of Exchange - Drawee 
• Basic Term of Bills of Exchange - Payee 
• Basic Term of Bills of Exchange - Endorser and Endorsee 
• Basic Term of Bills of Exchange - Bill on Demand Or Bill on Sight 
• Basic Term of Bills of Exchange - Bill After Date 
• Basic Term of Bills of Exchange - Bill After Sight 
• Basic Term of Bills of Exchange - Tenure of the Bill 
• Basic Term of Bills of Exchange - Noting Charges 
• Basic Term of Bills of Exchange - Notary Public 
• Basic Term of Bills of Exchange - Insolvency of the Drawee Or Acceptor. 
• Practical Problems of Drawer, Drawee and Endorsee 

• Introduction to Negotiable Instruments: explanation of basic terms
• Meaning of negotiable instruments; Bills of exchange, promissory note (including specimen and distinction), cheque, advantages and disadvantages of Bills of Exchange, explanation of basic terms - drawer, drawee, payee, endorser, endorsee, bill on demand / bill on sight, bill after date, bill after sight, tenure of the bill, days of grace, due date, endorsement and discounting of bills, bill sent for collection, dishonour of a bill, noting charges, notary public, renewal of a bill, retirement of a bill and insolvency of the drawee/acceptor
• Practical problems on the above in the books of drawer, drawee and endorsee
• Self explanatory.

• Basis of Accounting System - Cash Basis 
• Basis of Accounting System - Accrual Or Mercantile Basis 
• Accounting Standards (AS) 
  • Need for Accounting Standards
  • Benefits of Accounting Standards
  • Limitations of Accounting Standards
  • Applicability of Accounting Standards
  • Need for IFRS
• Explanation About IFRS (International Financial Reporting Standards) 
  • concept and objectives
• Accounting Principles Or GAAP-Accounting Entity 
• Accounting Principles Or GAAP-Money Measurement 
• Accounting Principles Or GAAP-Accounting Period 
• Accounting Principles Or GAAP-Full Disclosure 
• Fundamental Accounting Assumptions-Going Concern 
• Fundamental Accounting Assumptions-Consistency 
• Accounting Assumptions - Complete Disclosure 
• Accounting Assumptions - Revenue Recognition 
• Accounting Assumptions - Verifiable Objective 
• Accounting Assumptions - Historical Cost 
• Accounting Principles Or GAAP-Matching Concept 
• Fundamental Accounting Assumptions-Accrual 
• Accounting Principles Or GAAP-Dual Aspect Concept 
• Accounting Principles Or GAAP-Materiality Concept 
• Accounting Principles Or GAAP-Prudence, 
• Accounting Assumptions - Timeliness 

GAAP (Generally Accepted Accounting Principles), Basis of Accounting; Accounting Standards; Knowledge and understanding of IFRS (International Financial Reporting Standards);

• GAAP: Going Concern, Accounting Entity, Money Measurement, Accounting Period, Complete Disclosure, Revenue Recognition, Verifiable Objective, Matching Principle, Historical Cost, Accrual Concept, Dual Aspect Concept, Materiality, Consistency, Prudence and Timeliness.
• Basis of accounting – cash basis and accrual basis.
• Accounting Standards: Concept and objectives.
• Introduction to IFRS

• 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 
• Types of Reserves-Secret Reserves 
• 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
• Capital Expenditure 
  • Features of capital expenditure
• Revenue and Deferred Revenue Expenditure 
  • Features of deferred revenue expenditure
• Difference Between Capital Expenditure and Revenue Expenditure 
• Meaning of Capital Income and Revenue Income 
• Difference Between Capital Income and Revenue Income 
• Meaning of Capital Profit and Revenue Profit 
• Difference Between Capital Profit and Revenue Profit 
• Meaning of Capital Loss and Revenue Loss 
• Difference Between Capital Loss and Revenue Loss 
• Marshalling of a Balance Sheet Or Assets and Liabilities 
• Preparation of Trading Account 
• Preparation of Profit and Loss Account 
• Preparation of Balance Sheet 
  • Preparation of Balance sheet from receipt and payment account with additional information
• 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 
• Effects of Adjustments-Provision for Discount on Debtors and Creditors 
• Adjustments of Financial Statements - Goods Distributed as Free Samples and Manager's Commission 
• Adjustments of Financial Statements - Abnormal Loss 

Capital and Revenue Expenditure/Income

• Meaning and difference between capital expenditure and revenue expenditure with examples.
• Meaning and difference between capital income and revenue income with examples.
• Meaning and difference between capital profit and revenue profit with examples
• Meaning and difference between capital loss and revenue loss with examples.
• Meaning of deferred revenue expenditure with examples

Provisions and Reserves

• Meaning, importance; difference between provisions and reserves; types of reserves - revenue reserve, capital reserve, general reserve, specific reserve and secret reserve

Trading, Profit and Loss Account and Balance Sheet of a sole trader, (Horizontal Format) without adjustments.

• Meaning object, importance and preparation of Trading, Profit and Loss Account and Balance Sheet of a sole trader.

Preparation of Trading Account, Profit and Loss Account and Balance Sheet with necessary adjustments.

• Adjustments relating 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 (on the net profit before and after charging such commission), goods distributed as free samples and goods taken by the owner for personal use and abnormal loss.

Marshalling of a Balance Sheet:

Order of permanence and order of liquidity.Self explanatory

• Meaning and Effects of Errors 
• Types of Errors-Errors of Ommission 
• Types of Errors-Errors of Commission 
• Types of Errors-Errors of Principles 
• Types of Errors-Compensating Errors 
• Rectification of Errors After the Preparation of Final Accounts 
• Rectification of Errors After the Preparation of Trial Balance and Through Suspense Account 
• Rectification of Errors After the Preparation of Final Accounts Through P/L Adjustment A/C 

Errors and types of errors: Rectification of errors after the preparation of trial balance and Rectification of Errors after the preparation of Final Accounts.

• Types of Errors: errors of omission, errors of commission, errors of principle, compensating errors.
• Rectification of errors after the preparation of trial balance and through suspense account if required.
• Rectification of errors after the preparation of Final Accounts through P/L Adjustment A/c if required. Redrafting of Balance Sheet not required.

• Meaning of Single Entry 
• Characteristics and Limitations of Single Entry 
• Difference Between Single Entry System and Double Entry System 
• Ascertainment of Profit or Loss by Statement of Affairs Method 
  • Preparing Statement of Affairs
  • Difference between Statement of Affairs and Balance Sheet

• Single entry and difference with double entry.

1. Meaning, characteristics and limitations.
2. Difference between Statement of Affairs and Balance Sheet

• Ascertainment of profit/loss by statement of affairs method including application. Self explanatory.

• Meaning of Non Trading Organization 
• Objectives of Non Trading Organisation 
• Non Trading Organisation - Necessity and Treatment of Specific Items 
• Preparation of Receipts and Payments Account 
• Feature of Receipts and Payments Account 
• Difference Between Receipts and Payments Account and Cash Book 
• Preparation of Income and Expenditure Account 
  • Preparation of Income and Expenditure Account from receipt and payment account with additional information
• Feature of Income and Expenditure Account 
• Difference Between Income and Expenditure Account and Profit and Loss Account. 
• Preparation of Balance Sheet 
  • Preparation of Balance sheet from receipt and payment account with additional information
• Preparation of Income and Expenditure Account and Closing Balance Sheet 
  • Entrance, admission fees, life membership fees, legacies and special donations are to be capitalised.
  • General donations and all receipts of a recurring nature such as membership fees are to be taken as revenue receipts.
  • Preparation of accounts of incidental activities such as restaurant accounts are not required

Non Trading Organization

• meaning, objectives, necessity and treatment of specific items.
• Self explanatory.

Different books maintained and differences between them.

• Receipts and Payments Accounts: meaning, features, differences between Receipts and Payments Account and Cash Book
• Income and Expenditure Accounts: meaning, features, difference, between Income and Expenditure account and Profit and Loss account.
• Balance Sheet and its role.

Preparation of Income and Expenditure Account and Closing Balance Sheet.

Preparation of Income and Expenditure Account and Balance Sheet when Receipts and Payments Account and other information is given

• Entrance, admission fees, life membership fees, legacies and special donations are to be capitalised
• General donations and all receipts of a recurring nature such as membership fees are to be taken as revenue receipts.
• Preparation of accounts of incidental activities such as restaurant accounts are not required.

• Introduction and Features of Computer Accounting System 
• Components of CAS (Computer Accounting System) 
• Advantages and Limitations of CAS (Computer Accounting System) 
• Introduction to Accounting Information System (AIS) as a Part of MIS 
• Management Information System. 
• Preparation of Trial Balance 
  • Totals method
  • Balances Method
  • Totals-cum-balances Method
• Preparation of Balance Sheet 
  • Preparation of Balance sheet from receipt and payment account with additional information
• Preparation of Profit and Loss Account 
• Comparison Between Manual Accounting Process and Computerised Accounting Process 
• Selection of an Accounting Software Package 
• Introduction to Computerised Accounting Softwares 
• Advantages and Disadvantages of Ready to Use Customized Tailor-Made Accounting Systems 

• Introduction to Computerised Accounting System: Components of CAS, Features, Advantages and Limitations of CAS, Accounting Information System and Management Information System. Self explanatory.
• A theoretical understanding of preparation of Trial Balance, Profit and Loss account and Balance Sheet with the help of spreadsheets. Self explanatory.
• Comparison of accounting processes in manual and computerized accounting.
• Selection of an Accounting Software Package
• Factors affecting the selection of accounting software package/s based on organizational needs
• Introduction to Computerised Accounting softwares
• Basic understanding and advantages and disadvantages of ready to use, customized, tailor-made accounting systems (E.g.: Tally, VISHESH or any other accounting system).