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CBSE Class 11 Accountancy Syllabus

The CBSE Class 11 Accountancy Syllabus covers a wide range of ideas and provides an overview of the subject. Students can directly verify the Term Wise CBSE Accountancy Syllabus for Class 11 academic years 2022-23 from below. 

Term Wise CBSE Class 11 Revised Accountancy Syllabus 2022-23

Marks Weightage of CBSE Class 11 Accountancy Syllabus Term 1

Theory: 40 Marks
Time: 90 Minutes

Units

Term – 1 (MCQ Based Question Paper)

Marks

Part A: Financial Accounting-1

12

Unit-1

Theoretical Framework

Introduction to Accounting
Theory Base of Accounting

Unit-2

Accounting Process:

28

Recording Of Business Transactions,
Bank Reconciliation Statement,
Depreciation, Provisions And Reserves


Total Theory

40


Project Work (Part -1)

10

CBSE Syllabus for Class 11 Accountancy Term 1

Unit-1: Theoretical Frame Work

Introduction to Accounting

  • 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

  • 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: Applicability in IndAS
  • Goods and Services Tax (GST): Characteristics and Objective

Unit-2: Accounting Process

Recording of Business Transactions

  • 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 book
  • Sales return book

Ledger:

  • Format, Posting from journal and subsidiary books, Balancing of accounts

Bank Reconciliation Statement:

  • Need and preparation

Depreciation, Provisions and Reserves

  • Depreciation: Concept, Features, Causes, factors
  • Other similar terms: Depletion and Amortisation
  • Methods of Depreciation:

i. Straight Line Method (SLM)
ii. Written Down Value Method (WDV)

  • Difference between SLM and WDV; Advantages of SLM and WDV
  • Accounting treatment of depreciation

i. Charging to asset account
ii. Creating provision for depreciation/accumulated depreciation account

  • Provisions and Reserves: Difference
  • Types of Reserves:

i. Revenue reserve
ii. Capital reserve
iii. General reserve
iv. Specific reserve
v. Secret Reserve

  • Difference between capital and revenue reserve

PART A: FINANCIAL ACCOUNTING - I

Unit-1: Theoretical Framework

Units/Topics

Learning Outcomes

Introduction to Accounting

  • 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)

After going through this Unit, the students will be able to:

  • describe the meaning, significance, objectives, advantages and limitations of accounting in the modem economic environment with varied types of business and non-business economic entities.

  • identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.

  • explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and revenue.

  • give examples of terms like business transaction, liabilities, assets, expenditure and purchases.

Theory Base of Accounting

  • 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: Applicability in IndAS

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

  • explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.

  • differentiate among income, profits and gains.

  • state the meaning of fundamental accounting assumptions and their relevance in accounting.

  • describe the meaning of accounting assumptions and the situation in which an assumption is applied during the accounting process.

  • explain the meaning and objectives of accounting standards.

  • appreciate that various accounting standards developed nationally and globally are in practice for bringing parity in the accounting treatment of different items.

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

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

  • Understand the need of IFRS

  • Explain the meaning, objective and characteristic of GST.

Unit-2: Accounting Process

Units/Topics

Learning Outcomes

Recording of Business Transactions

  • 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

After going through this Unit, the students will be able to:

  • explain the concept of accounting equation and appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of

Entry- Journal

  • Special Purpose books:

  • Cash Book: Simple, cash book with bank column and petty cashbook

  • Purchases book

  • Sales book

  • Purchases return book

  • Sales return book

Note: Including trade discount, freight and cartage expenses for simple GST calculation.

  • Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts


Bank Reconciliation Statement:

  • Need and preparation.

Depreciation, Provisions and Reserves

  • 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 asset account

    2. Creating provision for depreciation/accumulated depreciation account

  • Provisions and Reserves: Difference

  • Types of Reserves:

    1. Revenue reserve

    2. Capital reserve

    3. General reserve

    4. Specific reserve

accounting equation.

  • explain the effect of a transaction (increase or decrease) on the assets, liabilities, capital, revenue and expenses.

  • appreciate that on the basis of source documents, accounting vouchers are prepared for recording transaction in the books of accounts.

  • develop the understanding of recording of transactions in journal and the skill of calculating GST.

  • explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book.

  • describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books .

  • appreciate that at times bank balance as indicated by cash book is different from the bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared.

  • develop understanding of preparing bank reconciliation statement.

  • appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting.

  • 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.

v. Secret Reserve

  • Difference between capital and revenue reserve

  • appreciate the need for creating reserves and also making provisions for events which may belong to the current year but may happen in next year.

  • appreciate the difference between reserve and reserve fund.

Marks Weightage of CBSE Class 11 Accountancy Syllabus Term 2

Theory: 40 Marks

Units

Term – 2

Marks

Part A

12

Unit-2

Accounting Process:

Accounting For Bills Of Exchange
Trial Balance And Rectification Of Errors

Unit-3, 4

Part B: Financial Accounting-II

28

Financial Statements Of Sole Proprietorship From Complete And Incomplete Records
Computers In Accounting


Total Theory

40


Project Work (Part -2)

10

Accounting for Bills of Exchange

  • Bill of exchange and Promissory, Note: Definition, Specimen, Features, Parties
  • Difference between Bill of Exchange and Promissory Note
  • Terms in Bill of Exchange:

i. Term of Bill
ii. Accommodation bill (concept)
iii. Days of Grace
iv. Date of maturity
v. Discounting of bill
vi. Endorsement of bill
vii. Bill after due date
viii. Negotiation
ix. Bill sent for collection
x. Dishonour of bill

  • Accounting Treatment

Trial balance and Rectification of Errors

  • Trial balance: objectives and preparation
  • Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance
  • Detection and rectification of errors; preparation of suspense account

Accounting for Bills of Exchange

  • 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

  • Accounting Treatment

Note: excluding accounting treatment for accommodation bill

Trial balance and Rectification of Errors

  • 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.

  • 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 implication 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 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 trial balance.

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

Part B: Financial Accounting – II

Unit 3: Financial Statements of Sole Proprietorship

Financial Statements

Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure. Trading and Profit and Loss Account: Gross Profit, Operating Profit and Net profit. Preparation. Balance Sheet: need, grouping and marshalling 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 Statement of Affairs method.

Units/Topics

Learning Outcomes

Financial Statements

Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure.

Trading and Profit and Loss Account: Gross Profit, Operating profit and Net profit. Preparation.

Balance Sheet: need, grouping and marshalling 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 Statement of Affairs method.

After going through this Unit, the students will be able to:

  • state the meaning of financial statements the

  • purpose of preparing financial statements.

  • state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account.

  • explain the need for preparing balance sheet.

  • understand the technique of grouping and marshalling of assets and liabilities.

  • appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial statements.

  • develop the understanding and skill to do adjustments for items and their presentation in financial statements like depreciation, closing stock, provisions, abnormal loss etc.

  • develop the skill of preparation of trading and profit and loss account and balance sheet.

  • state the meaning of incomplete records and their uses and limitations.

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

Unit 4: Computers in Accounting

  • Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of computer system)

Units/Topics

Learning Outcomes

  • Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of computer system)

After going through this Unit, the students will be able to:

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

  • state the meaning of accounting information system.

Scope:

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

  • appreciate the need for 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.

Part C: Project Work

The project work would be divided into two parts i.e. Term I (10 marks) and Term II (10 marks) for the purpose of assessment and will be covered as detailed below.

Comprehensive project of any sole proprietorship business. This may state with journal entries and their ledger postings, preparation of Trial balance. Trading and Profit and Loss Account and Balance Sheet. Expenses, incomes and profit (loss), assets and liabilities are to be depicted using pie chart / bar diagram.

TERM -I

PARTICULARS

MARKS

Project (Till Ledger Posting and balancing of accounts)

10

TERM -II

PARTICULARS

MARKS

Project (Financial statements and depiction using diagrammatic / graphical tools)

10

PROJECT WORK

It is suggested to undertake this project after completing the unit on preparation of financial statements. The student(s) will be allowed to select any business of their choice or develop the transaction of imaginary business. The project is to run through the chapters and make the project an interesting process. The amounts should emerge as more realistic and closer to reality.

Specific Guidelines for Teachers

Give a list of options to the students to select a business form. You can add to the given list:

  1. A beauty parlour
  2. Men’s saloon
  3. A tailoring shop
  4. A canteen
  5. A cake shop
  6. A confectionary shop
  7. A chocolate shop
  8. A dry cleaner
  9. A stationary shop
  10. Men’s wear
  11. Ladies wear
  12. Kiddies wear
  13. A saree shop
  14. Artificial jewellery shop 
  15. A small restaurant
  16. A sweet shop
  17. A grocery shop
  18. A shoe shop
  19. A coffee shop
  20. A music shop
  21. A juice shop
  22. A school canteen
  23. An ice-cream parlour
  24. A sandwich shop
  25. A flower shop 

After selection, advise the student(s) to visit a shop in the locality (this will help them to settle on a realistic amounts different items. The student(s) would be able to see the things as they need to invest in furniture, decor, lights, machines, computers etc.

A suggested list of different item is given below.

  1. Rent    19. Wages and Salary
  2. Advance rent [approximately three months]    20. Newspaper and magazines
  3. Electricity deposit    21. Petty expenses
  4. Electricity bill    22. Tea expenses
  5. Electricity fitting    23. Packaging expenses
  6. Water bill    24. Transport
  7. Water connection security deposit    25. Delivery cycle or a vehicle purchased
  8. Water fittings    26. Registration
  9. Telephone bill    27. Insurance
  10. Telephone security deposit    28. Auditors fee
  11. Telephone instrument    29. Repairs & Maintenance
  12. Furniture    30. Depreciations
  13. Computers    31. Air conditioners
  14. Internet connection    32. Fans and lights
  15. Stationery    33. Interior decorations
  16. Advertisements    34. Refrigerators
  17. Glow sign    35. Purchase and sales
  18. Rates and Taxes

At this stage, performas of bulk of originality and ledger may be provided to the students and they may be asked to complete the same. In the next step the students are expected to prepare the trial balance and the financial statements.

Accounting is the process of recognising, documenting, calculating, categorising, substantiating, summarising, clarifying, and liaising financial facts in a systematic manner. It reveals profit or loss for a specific time period, as well as the nature and value of a company's assets, liabilities, and equity. Accounting aids the establishment in resolving the company's financial situation. With all accounting endeavours, the final report provided supports management in understanding the business situation and determining which direction they are moving in. Accounting aids in the making of important economic choices by examining prior performance. A certificate or diploma in accounting and finance enables students to acquire skills that are useful in a variety of businesses.

Rationale

The course in accountancy is introduced at plus two stage of senior second of school education, as the formal commerce education is provided after ten years of schooling. With the fast changing economic scenario, accounting as a source of financial information has carved out a place for itself at the senior secondary stage. Its syllabus content provide students a firm foundation in basic accounting concepts and methodology and also acquaint them with the changes taking place in the preparation and presentation of financial statements in accordance to the applicable accounting standards and the Companies Act 2013.

The course in accounting put emphasis on developing basic understanding about accounting as an information system. The emphasis in Class XI is placed on basic concepts and process of accounting leading to the preparation of accounts for a sole proprietorship firm. The students are also familiarized with basic calculations of Goods and Services Tax (GST) in recording the business transactions. The accounting treatment of GST is confined to the syllabus of class XI.

The increased role of ICT in all walks of life cannot be overemphasized and is becoming an integral part of business operations. The learners of accounting are introduced to Computerized Accounting System at class XI and XII. Computerized Accounting System is a compulsory component which is to be studied by all students of commerce in class XI; whereas in class XII it is offered as an optional subject to Company Accounts and Analysis of Financial Statements. This course is developed to impart skills for designing need based accounting database for maintaining book of accounts.

The complete course of Accountancy at the senior secondary stage introduces the learners to the world of business and emphasize on strengthening the fundamentals of the subject.

Objectives:

  1. To familiarize students with new and emerging areas in the preparation and presentation of financial statements.
  2. To acquaint students with basic accounting concepts and accounting standards.
  3. To develop the skills of designing need based accounting database.
  4. To appreciate the role of ICT in business operations.
  5. To develop an understanding about recording of business transactions and preparation of financial statements.