CBSE Accountancy Class 11 Syllabus 2024 – Chapters, Topics, Weightage

Unit-3: Financial Statements of Sole Proprietorship from Complete and

Incomplete Records

Part C: Project Work

·         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

·         Goods and Services Tax (GST): Characteristics and
Objective.

·         acknowledge the fact that the recording of accounting transactions follows the double-entry system.

·         explain the bases of recording accounting transactions and to appreciate that accrual basis is a better basis for depicting the correct financial position of an enterprise.

·         Understand the need for IFRS

·         Explain the meaning, objective, and characteristics of GST.

·         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 a 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

·         Methods of Depreciation:

1.      Straight Line Method (SLM)

2.      Written Down Value Method (WDV)

Note: Excluding change of method

·         Difference between SLM and WDV; Advantages of SLM and WDV

·         Accounting treatment of depreciation

1.      Charging to an asset account

2.      Creating provision for depreciation/accumulated depreciation account

3.      Treatment for disposal of asset

·         Provisions and Reserves: Difference

·         Types of Reserves:

1.      Revenue reserve

2.      Capital reserve

3.      General reserve

4.      Specific reserve

5.      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:

1.      Term of Bill

2.      Accommodation bill (concept)

3.      Days of Grace

4.      Date of maturity

5.      Discounting of bill

6.      Endorsement of bill

7.      Bill after due date

8.      Negotiation

9.      Bill sent for collection

10.  Dishonour of bill

11.  Retirement of bill

12.  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.

·         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 an asset disposal account.

·         appreciate the need for creating reserves and also making provisions for events that may belong to the current year but may happen 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 implications 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 a 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 the trial balance.

·         develop the skill of identification and location of errors and their rectification and preparation of suspense account.

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 marshaling 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 a statement of affairs method.
Difference between Accounts from incomplete records and Statement of Affairs. Preparation of Trading, Profit
and Loss account and Balance Sheet.

·         develop the understanding and skill of computation of profit/loss using the statement of affairs method.

·         Introduction to operating software, utility
software and application software. Introduction to accounting information system (AIS) as a part of the 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:

1.      The scope of the unit is to understand accounting as an information system for the generation of accounting information and the preparation of accounting reports.

2.      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.

·         state the meaning of a computer, describe its components, capabilities, and limitations.

·         state the meaning of the accounting information system.

·         appreciate the need for the 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.