INDEX

S. NO. PARTICULARS PAGE NO.

1. SYLLABUS 02-07

PART A: FINANCIAL ACCOUNTING - I -

2. CH - 01. INTRODUCTION TO ACCOUNTING 08 - 16

3. CH - 02. THEORY BASE OF ACCOUNTING 17 - 24

4. CH - 03. RECORDING OF TRANSACTIONS - I 25 - 48

5. CH - 04. RECORDING OF TRANSACTIONS - II 49 - 60

6. CH - 05. BANK RECONCILIATION STATEMENT 61 - 67

7. CH - 06. TRIAL BALANCE AND RECTIFICATION OF ERRORS 67 - 79

8. CH - 07. DEPRECIATION, PROVISIONS AND RESERVES 80 - 100

PART B: FINANCIAL ACCOUNTING – II -----

9. CH - 08. FINANCIAL STATEMENTS - I 101 - 116

10. CH - 09. ADJUSTMENTS IN PREPARATION OF FINANCIAL 117 - 133

STATEMENTS
 ACCOUNTANCY (Code No. 055)

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 & 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.
6. To enable students with accounting for Not-for-Profit organizations, accounting for Partnership
firms and Company accounts.

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 ACCOUNTANCY (Code No.055)
Course Structure Class - XI (2023 - 24)

Theory: 80 Marks 3 Hours

Project: 20 Marks

Units Periods Marks

Part A: Financial Accounting - I

Unit-1: Theoretical Framework 25 12

Unit-2: Accounting Process 115 44

Part B: Financial Accounting - II

Unit-3: Financial Statements of Sole Proprietorship 60 24

Part C: Project Work 20 20

PART A: FINANCIAL ACCOUNTING - I

Unit-1: Theoretical Frame Work
Units/Topics Learning Outcomes
Introduction to Accounting After going through this Unit, the students will be able to:
 Accounting- concept, meaning, as a source of  describe the meaning, significance, objectives, advantages
information, objectives, advantages & and limitations of accounting in the modem economic
limitations, types of accounting information; environment with varied types of business & non-business
users of accounting information and their needs. economic entities.
Qualitative Characteristics of Accounting  identify / recognise the individual(s) & entities that use
Information. Role of Accounting in Business. accounting information for serving their needs of decision
 Basic Accounting Terms- Entity, Business making.
Transaction, Capital, Drawings. Liabilities  explain the various terms used in accounting & differentiate
(Non Current & Current). Assets (Non Current, between different related terms like current & non-current,
Current); Expenditure (Capital & Revenue), capital and revenue.
Expense, Revenue, Income, Profit, Gain, Loss,  give examples of terms like business transaction, liabilities,
Purchase, Sales, Goods,Stock, Debtor, Creditor, assets, expenditure & purchases.
Voucher, Discount (Trade discount & Cash  explain that sales/ purchases include both cash & credit
Discount) sales/purchases relating tothe accounting year.
Theory Base of Accounting  differentiate among income, profits and gains.
 Fundamental accounting assumptions:
 state the meaning of fundamental accounting
GAAP: Concept
assumptions and their relevance in accounting.

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 Basic Accounting Concept : Business Entity,  describe the meaning of accounting assumptions and the
Money Measurement, Going Concern, situation in which an assumption is applied during the
Accounting Period, Cost Concept, Dual Aspect, accounting process.
Revenue Recognition, Matching, Full  explain the meaning, applicability, objectives, advantages
Disclosure, Consistency, Conservatism, and limitations of accounting standards.
 Materiality and Objectivity  appreciate that various accounting standards developed
 System of Accounting. Basis of Accounting: nationally and globally are in practice for bringing parity
cash basis and accrual basis in the accounting treatment of different items.
 Accounting Standards: Applicability of  acknowledge the fact that recording of accounting
Accounting Standards (AS) and Indian transactions follows double entrysystem.
Accounting Standards (Ind AS)  explain the bases of recording accounting transaction & to
 Goods and Services Tax (GST): Characteristics appreciate that accrual basis is a better basis for depicting
and Advantages. the correct financial position of an enterprise.
 Explain the meaning, advantages & characteristic of GST.

Unit-2: Accounting Process

Units/Topics Learning Outcomes
Recording of Business Transactions After going through this Unit, the students will beable to:
 Voucher and Transactions: Source documents &  explain the concept of accounting equation & appreciate
Vouchers, Preparation of Vouchers, Accounting that every transaction affectseither both the sides of the
Equation Approach:Meaning and Analysis, Rules equation or a positive effect on one item and a negative
of Debit & Credit. effect on another item on the same side of accounting
equation.
 Recording of Transactions: Books of Original  explain the effect of a transaction (increase ordecrease)
Entry- Journal on the assets, liabilities, capital, revenue & expenses.
 Special Purpose books:  appreciate that on the basis of source documents,
 Cash Book: Simple, cash book with bank accounting vouchers are prepared for recording
column and petty cashbook transaction in the books of accounts.
 Purchases book  develop the understanding of recording oftransactions in
 Sales book journal and the skill of calculating GST.
 Purchases return book
 explain the purpose of maintaining a Cash Book &
 Sales return book
develop the skill of preparing the format of different
 Journal proper
types of cash books and the method of recording cash
Note: Including trade discount, freight and cartage transactions in Cash book.
expenses for simple GST calculation.
 describe the method of recording transactions other than
 Ledger: Format, Posting from journal and cash transactions as per their nature in different
subsidiary books, Balancing of accounts subsidiary books .
Bank Reconciliation Statement:  appreciate that at times bank balance as indicated by
 Need and preparation, Bank Reconciliation cash book is different from thebank balance as shown
Statement by the pass book / bank statement and to reconcile both

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 Depreciation, Provisions and Reserves the balances, bank reconciliation statement is
 Depreciation: Meaning, Features, Need,Causes, factors prepared.
 Other similar terms: Depletion & Amortisation  develop understanding of preparing bank
 Methods of Depreciation: reconciliation statement.
i. Straight Line Method (SLM)  appreciate that for ascertaining the position of
ii. Written Down Value Method (WDV)Note: individual accounts, transactions are posted
Excluding change of method from subsidiary books and journal proper into
 Difference between SLM and WDV; Advantages of the concerned accounts in the ledger and
SLM and WDV develop the skill of ledger posting.
 Method of recoding depreciation  explain the necessity of providing depreciation
i. Charging to asset account and develop the skill of using different
ii. Creating provision for depreciation/ methods for computing depreciation.
accumulated depreciation account  understand the accounting treatment of
 Treatment of disposal of asset providing depreciation directly to the
 Provisions, Reserves, Difference Between Provisions concerned asset account or by creating
and Reserves. provision for depreciation account.
 Types of Reserves:  appreciate the method of asset disposal
i. Revenue reserve through the concerned asset account or by
ii. Capital reserve preparing asset disposal account.
iii. General reserve  appreciate the need for creating reserves and
iv. Specific reserve also making provisions for events which may
v. Secret Reserve belong to the current year but may happen in
Difference between capital and revenue reserve next year.
 appreciate the difference between reserveand
Trial balance and Rectification of Errors
reserve fund.
 Trial balance: objectives, meaning andpreparation
 state the need and objectives of preparingtrial
(Scope: Trial balance with balance method only)
balance and develop the skill of preparing trial
 Errors: classification-errors of omission, balance.
commission, principles, and compensating;their  appreciate that errors may be committed during
effect on Trial Balance. the process of accounting.
 Detection and rectification of errors;  understand the meaning of different types of
(i) Errors which do not affect trial balance errors and their effect on trial balance.
(ii) Errors which affect trial balance  develop the skill of identification and location
 preparation of suspense account. of errors and their rectification and preparation
of suspense account.

Part B: Financial Accounting – II

Unit 3: Financial Statements of Sole Proprietorship
Units/Topics Learning Outcomes
Financial Statements After going through this Unit, the students will be
Meaning, objectives and importance; Revenue and Capital able to:
Receipts; Revenue and Capital Expenditure;  state the meaning of financial statements the
Deferred Revenue expenditure. Opening journal entry. purpose of preparing financial statements.

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Trading and Profit and Loss Account: Gross Profit,  state the meaning of gross profit, operating profit
Operating profit and Net profit. Preparation. and net profit and develop the skill of preparing
Balance Sheet: need, grouping and marshalling of assets & trading and profit and loss account.
liabilities. Preparation. Adjustments in preparation of  explain the need for preparing balance sheet.
financial statements with respect to closing stock,  understand the technique of grouping and
outstanding expenses, prepaid expenses, accrued income, marshalling of assets and liabilities.
income received in advance, depreciation, bad debts,  appreciate that there may be certain items other
provision for doubtful debts, provision for discount on than those shown in trial balance whichmay need
debtors, Abnormal loss, Goods taken for personal use/staff adjustments while preparing financial statements.
welfare, interest on capital and managers commission.  develop the understanding and skill to do
Preparation of Trading and Profit and Loss account and adjustments for items and their presentation in
Balance Sheet of a sole proprietorship with adjustments. financial statements like depreciation, closing
Incomplete Records stock, provisions, abnormal loss etc.
Features, reasons and limitations.  develop the skill of preparation of trading and
Ascertainment of Profit/Loss by Statement of Affairs profit and loss account and balance sheet.
method. (excluding conversion method)

Part C: Project Work (Any One)

1. Collection of source documents, preparation of vouchers, recording of transactions with the help of vouchers.
2. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to
twenty-five transactions.
3. Comprehensive project of any sole proprietorship business. This may state with journal entries and their
ledgering, preparation of Trial balance. Trading Account, Profit and Loss Account; and Balance Sheet.
Expenses, incomes and profit (loss), assets and liabilities are to be depicted using pie chart / bar diagram. This
may include simple GST related transactions.

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

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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.

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 Suggested Question Paper Design
Accountancy (Code No. 055) Class XI
(2023-24)

Theory: 80 Marks 3 hrs.

Project: 20 Marks

S.No. Typology of Questions Marks Percentage

1. Remembering and Understanding:

Exhibit memory of previously learned material by recalling facts,
terms, basic concepts, and answers. 44 55%
Demonstrate understanding of facts and ideas by organizing,
comparing, translating, interpreting, giving descriptions, and stating
main ideas.

2. Applying: Solve problems to new situations by applying acquired

19 23.75%
knowledge, facts, techniques and rules in a different way.

3. Analysing, Evaluating and Creating:

Examine and break information into parts by identifying motives or
causes. Make inferences and find evidence to support generalizations.
Present and defend opinions by making judgments about information, 17 21.25%
validity of ideas, or quality of work based on a set of criteria.
Compile information together in a different way by combining
elements in a new pattern or proposing alternative solutions.

TOTAL 80 100%