CBSE Class 11 Accountancy Notes

Accountancy is a practice through which business transactions are recorded, classified, and reported for the proper and successful running of an organization. GeeksforGeeks Class 11 Accountancy Notes have been designed according to the CBSE Syllabus for Class 11. These revision notes consist of detailed Chapterwise important topics and concepts. Here, the learners can get easy access to the Chapterwise notes from the below-mentioned quick links. The notes contain 11 chapters covering every important topic like Bills of Exchange, GAAP, Financial Statements, Journal, Ledger, Reserves, Depreciation, Bank Reconciliation Statement, Trial Balance, and many more. 

 

PART – A

Chapter 1: Introduction to Accounting

Accounting means identifying, recording, measuring, and communicating the Accounting Information with its different users. Chapter 1 Introduction of Accounting of Class 11th Accountancy describes the basic concept of accounting, accounting information, and different users of accounting information in detail for a better understanding of the subject. The notes of this chapter also contain basic accounting terms like capital, profit, loss, drawings, purchase, sale, etc., to build a strong base of the subject so that the learners can easily understand further chapters.

• Introduction to Accounting
• Types and Users of Accounting Information
• Difference between Bookkeeping and Accounting
• Accounting: Objectives, Characteristics, Advantages, Disadvantages and Role of Accounting
• Basic Accounting Terms
• Difference between Accounting and Accountancy

Chapter 2: Theory Base of Accounting

The second chapter of Class 11th Accountancy Part-A consists of the basis of accounting and accounting standards. The notes also cover the basic and important accounting concepts in detail, like Business Entity Concept, Going Concern Concept, Cost Concept, Matching Concept, and many more. The below-mentioned quick links also describe the International Financial Reporting Standards and Generally Accepted Accounting Principles for accounting. Another major topic to understand the concept of Accounting, Single and Double Entry Systems of Accounting, is also mentioned in the notes. 

• Accounting Standards: Need, Benefits, Limitations and Applicability
• IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles)
• Difference between Cash Basis and Accrual Basis of Accounting
• Basic Accounting Concepts 
• Systems and Basis of Accounting | Single and Double Entry System

Chapter 3: Recording of Business Transactions

As we know from the definition of Accountancy, the business transactions of an organization are recorded for further reference and preparation of financial statements. The third chapter of Class 11th Accountancy Part-A contains all the required information on how to record a transaction, where to record a transaction, and how to transfer the recorded transactions from Journal to Ledger. It is the most important chapter of Accountancy as it will help in solving the full-fledged questions of Accountancy. The notes of this chapter include detailed knowledge of the important topics like Accounting Equation, Journal Entry, Cash Book, Sales Book, Ledger, and many more with meaning, format and examples. The below-mentioned quick links are sufficient to understand the Recording of Business Transactions. 

• What is an Accounting Voucher? Explain the Types of Vouchers.
• Introduction to Accounting Equation
• Accounting Equation | Increase in Assets and Capitals both and Increase in Assets and Liability both
• Accounting Equation | Decrease in Assets and Capital both and Decrease in Asset and Liability both
• Accounting Equation|Decrease in Capital and Increase in the Liability, Decrease in Liability and Increase in the Capital and Increase and Decrease in Assets
• Accounting Equation|Sale of Goods and Calculation of Net Worth (Owner’s Equity) Or Capital
• Journal Entries
• Rules of Journal Entry
• Journal Entry (Capital, Drawings, Expenses, Income & Goods)
• Journal Entry for Capital
• Journal Entry for Drawings
• Journal Entry for Paid Expenses
• Journal Entry for Income
• Journal Entry for Sales and Purchase of Goods
• Journal Entry for Cash and Credit Transactions
• Journal Entries | Banking Transactions (Part-1)
• Journal Entries | Banking Transactions (Part-2)
• Journal Entry for Assets
• Journal Entry for Depreciation
• Journal Entry for Discount Allowed and Received
• Journal Entry for Full/Final Settlement
• What is a Compound Journal Entry ?
• Opening Journal Entry
• Journal Entry for Bad Debts and Bad Debts Recovered
• Journal Entry for Loss of Insured Goods/Assets
• Journal Entry for Loan Taken
• Journal Entry for Loan Given
• Journal Entry for Outstanding Expenses
• Journal Entry for Prepaid or Unexpired or Advance Expenses
• Journal Entry for Accrued Income or Income Due
• Journal Entry for Income Received in Advance or Unearned Income
• Journal Entry for Income Tax
• Journal Entry for Life Insurance Premium & Employee’s Life Insurance Premium
• Journal Entry for Interest on Capital
• Journal Entry for Interest on Drawings
• Journal Entry for Use of Goods in Business
• Journal Entry for Expenditure on Assets (Erection or Installation)
• Journal Entry for Expenses on Purchase of Goods
• Journal Entries under GST (Goods and Services Tax)
• Cash Book: Meaning, Types. and Example
• Purchases Book: Meaning, Format, and Example
• Sales Book: Meaning, Format and Example
• Purchase Return Book: Meaning, Format, and Example
• Sales Return Book: Meaning, Format, and Example
• Journal Proper: Meaning, Format and Examples
• What is Ledger in Accounting – Meaning, Format, Example and Balancing of Accounts

Chapter 4: Bank Reconciliation Statement

The fourth chapter of Class 11th Accountancy, Bank Reconciliation Statement is one of the important chapters of Accountancy. The notes of this chapter cover the meaning, format, and example of the Bank Reconciliation Statement. It also describes how to prepare a statement reconciling the balances of an organization’s Cash Book and Pass Book. 

• Bank Reconciliation Statement
• Preparation of Bank Reconciliation Statement
• Difference between Bank Statement and Bank Reconciliation Statement
• Preparation of Bank Reconciliation Statement without correcting Cash Book
• Bank Reconciliation Statement: Preparation of Reconciliation without correcting Cash Book-II
• Preparation of Bank Reconciliation Statement with Amended Cash Book
• Bank Reconciliation Statement: When Extracts from Cash Book and Pass Book are given

Chapter 5: Depreciation, Provisions, and Reserves

The fifth chapter of Class 11th Accountancy Part-A is Depreciation, Provisions and Reserves. The important topics covered in the notes of this chapter are Depreciation, Methods of Calculating Depreciation (SLM and WDV Methods), Accounting Treatment of Depreciation, Reserves, Provisions, Different types of Reserves, and many more. The notes provide detailed information on these topics with formulas to calculate and examples for a better understanding of the topic. 

• Depreciation: Features, Causes, Factors and Need
• Methods of charging Depreciation
• Straight Line Method of Charging Depreciation
• Written Down Value Method
• Difference between Straight Line and Written Down Value Method of calculating Depreciation
• Accounting Treatment of Depreciation
• Depletion and Amortization: Meaning and Difference
• Provisions in Accounting – Meaning, Accounting Treatment, and Example
• Reserves in Accounting: Meaning, Accounting Treatment, Importance, and Example
• Difference between Provisions and Reserves
• Reserves and its Types
• Difference between Capital Reserve and Revenue Reserve

Chapter 6: Trial Balance and Rectification of Errors

Although Trial Balance is not a part of the accounting process of an organization, it is essential to ascertain the accuracy of the Ledger Accounts and determine any mistake or error in the Accounts. Chapter 6 of Class 11th Accountancy Part-A, Trial Balance and Rectification of Errors covers the detailed information on how to prepare a trial balance, its format, objectives, etc. The notes also consist of important topics like Detection of Errors in Trial Balance, Rectification of Errors, and Suspense Account. 

• Trial Balance: Meaning, Objectives, Preparation, Format, and Example
• Types of Errors in Trial Balance
• Detection and Rectification of Errors in Trial Balance
• What is a Suspense Account?

Chapter 7: Bills of Exchange

The last chapter of Class 11th Accountancy Part-A is Bills of Exchange. The important topics covered in the notes of this chapter are Bills of Exchange, Promissory Note, How these two (Bills of Exchange and Promissory Note) are different from each other, its accounting treatment, and important terms such as Term of Bill, Accommodation Bill, Discounting of Bill, Maturity of Bill, etc. 

• Bills of Exchange: Meaning, Features, Parties, and Advantages
• Promissory Note: Features and Parties
• Difference between Bills of Exchange and Promissory Note
• Important Terms in Bills of Exchange
• Accounting Treatment of Bills of Exchange

PART – B

Chapter 1: Financial Statements

Financial Statements are statements depicting the financial position, profit and loss, and cash flow position of an organization. The first chapter of Accountancy Part-B contains detailed information about the financial statements and their adjustments. The notes also describe the purpose and importance of preparing the financial statements for an organization and its different users. Other important topics of this chapter are Stakeholders, Capital, Revenue, Operating Profit, and many more. 

• Introduction to Financial Statements
• Financial Statements with Adjustments
• Financial Statements with Adjustments (Journal Entries)
• Financial Statement with Adjustment with Examples-I
• Adjustment of Closing Stock in Final Accounts (Financial Statements)
• Adjustment of Outstanding Expenses in Final Accounts (Financial Statements)
• Adjustment of Prepaid Expenses in Final Accounts (Financial Statements)
• Adjustment of Accrued Income in Final Accounts (Financial Statements)
• Adjustment of Unearned Income in Final Accounts (Financial Statements)
• Financial Statement with Adjustment with Examples-II
• Adjustment of Interest on Capital in Final Accounts (Financial Statements)
• Adjustment of Interest on Drawings in Final Accounts (Financial Statements)
• Adjustment of Interest on Loan in Final Accounts (Financial Statements)
• Adjustment of Proprietor’s Salary in Final Accounts (Financial Statements)
• Adjustment of Interest on Deposits in Final Accounts (Financial Statements)
• Financial Statement with Adjustment with Examples-III
• Adjustment of Depreciation in Final Accounts (Financial Statements)
• Adjustment of Appreciation in Final Accounts (Financial Statements)
• Adjustment of Bad Debts in Final Accounts (Financial Statements)
• Adjustment of Provision for Bad and Doubtful Debts in Final Accounts (Financial Statements)
• Adjustment of Bad Debts Recovered in Final Accounts (Financial Statements)
• Financial Statement with Adjustment-Provision for Discount on Debtors, Provision for Discount on Creditors, Loss of Insured Goods & Assets, Goods given away as Charity or Free Sample, Goods used for Personal Purpose
• Financial Statement with Adjustment with Examples-V
• Adjustment of Use of Goods in Business in Final Accounts (Financial Statements)
• Adjustment of Manager’s Commission in Final Accounts (Financial Statements)
• Adjustment of Deferred Revenue Expenditure in Final Accounts (Financial Statements)
• Financial Statement with Adjustment-Loss of Insured Goods & Assets (All three cases)
• Stakeholders and their Information Requirements
• Capital and Revenue: Meaning and Difference
• Capital Expenditure | Meaning, Example and Accounting Treatment
• Revenue Expenditure | Meaning and Example and Accounting Treatment
• Capital Receipts | Meaning and Example and Accounting Treatment 
• Revenue Receipts | Meaning and Example and Accounting Treatment
• Difference between Capital Expenditure and Revenue Expenditure in Accountancy
• Difference between Capital Receipts and Revenue Receipts in Accountancy
• Trading and Profit and Loss Account: Meaning and Relevant Items
• Trading and Profit and Loss Account: Opening Journal Entries
• Operating Profit (EBIT): Meaning, Formula and Example
• Balance Sheet: Meaning, Format, Need and Objectives
• How to prepare a Balance Sheet?