Brief Description of Class 11th Accountancy Book

Class 11th is the turning point of life for every student because from here they have to choose what they want to do with their lives.

Which stream do they want to opt for? In which course do they want to be enrolled?

Accountancy is a subject that a student has to study if he/she opts for the commerce stream in Class 11th. 

Accounting is the art of recording, classifying, summarizing during a big manner, transactions, and events that are of a monetary character and interpreting the results thereof.

The NCERT Accountancy Textbook for Class 11 comprises 13 chapters in which students will learn many things about accountancy from what is accountancy to managing a balance sheet, etc.

A brief description of the chapters will be discussed below one by one:

Chapter 1: Introduction to Accounting

The first chapter provides an introduction to the essential concept of accounting, its objectives, characteristics, benefits, and limitations. It elaborates the role of accounting in various businesses, providing insights into the sensible world. Students find out how to analyze chunks of knowledge through classification, measurement, and summarisation.

Besides, the chapter details various terms associated with finance and accounting, including transaction, entity, assets, liability, stock, revenues, capital, sales, expenses, gain, profit, loss, etc. 

Chapter 2: Theory Base of Accounting

A sound theory base forms the stepping stone to each discipline. The second chapter of the Class 11 Class NCERT book discusses the subject’s theoretical aspects including concepts, principles, rules, regulations, and guidelines. It also contains details of the Accounting Standards outlined by ICAI. it’s mandatory to abide by these Standards for maintaining uniformity in accounting practices.

NCERT has developed bookkeeping with the sensible benefits of scholars in mind. Through this chapter, students can understand why a theory base of accounting is important, learn the character of GAAP and identify the aim of basic accounting concepts.

Chapter 3: Recording of Transactions – I

While the previous chapters introduced the fundamentals, this one goes into the small print of the accounting process. To start with, one has got to identify the financial transactions which require to be recorded, arrange source documents, and enter within the ledger’s individual accounts. This chapter helps a student find out how to use accounting equations to clarify transaction effects, record transactions using debit/credit rules, and more.

Chapter 4: Recording of Transactions – II

For small businesses, recording their transactions during a ledger is convenient. However, because it grows and expands, posting every transaction in journals can become troublesome. This is often when special journals like purchase books, sales books, cashbooks, journals proper, purchases return, etc. Continuation of the previous one, this chapter teaches how larger businesses can precisely record their large volumes of transactions in special journals.

Chapter 5: Bank Reconciliation Statement

Another important chapter of the Class book is “Balance Reconciliation Statement”. Besides maintaining bank transactions during a cash book, it’s crucial to verify an equivalent with bank transactions of the corporate. The 5th chapter elaborates the meaning and necessity of bank reconciliation statements. Most frequently, a bank balance in an enterprise’s cash book doesn’t match with its passbook. Students learn to spot why passbooks and cash books show such different bank balances. The book also enhances their skill to work out the accurate balance efficiently.

Chapter 6: Trial Balance and Rectification of Errors

The Accountancy textbook of Class 11 includes this chapter to primarily explain the meaning, importance, and method of preparing an attempted balance. balance is nothing but a tool that is utilized for verifying how correct the debit and credit amounts are. it’s prepared by three major methods – totals method, balances method, and totals-cum-balances method.

In this lesson, students learn the objectives of balance preparation, various sorts of errors, methods of locating those, and their rectification options. It teaches the way to rectify the errors both by using and without an account.

Chapter 7: Depreciation, Provisions, and Reserves

This chapter deals with the concept of depreciation and the way it differs from depletion and amortization. Depreciation signifies the gradual and permanent decline in fixed assets’ value caused by usage or thanks to time. The first causes of depreciation include passage of your time, obsolescence, expiration of legal rights, and abnormal factors. There are various processes of calculating depreciation amount, elaborated during this chapter. If you thoroughly follow this chapter of the Class 11 NCERT Class book, you’ll also study the utility of provisions and reserves in business. It also explains the varied points of differences between these two concepts, including purpose, basic nature, effect on taxable profits, presentation in the record, etc.

Chapter 8: Bill of Exchange

In India, when merchants purchase goods on credit, they often assure to pay the bill on the maturity through instruments of credit. referred to as bills of exchange, these comprise an unconditional order in writing to form the payment on the agreed date. This chapter teaches students the benefits, necessity, distinguishing factors, parties involved, etc. during a bill of exchange. It also explains notes and their features as defined by the law.

Chapter 9: Financial Statements – I:

After journalizing, posting, and balancing, this 9th chapter takes you to the subsequent step of accounting. It covers a number of the vital topics of accounting like financial statements, stakeholders, operating profit, the distinction between capital and revenue, trading, profit, and loss account, opening entry, and record. The lesson teaches the way to prepare financial statements, know the kinds of data that stakeholders require, the difference between revenue and capital, and more.

Chapter 10: Financial Statements – II:

In most situations, accounting complexities are common in various business operations. It primarily happens as financial positions and incomes are determined consistent with an accounting of accounting. The method emphasizes considering earning-based revenues to determine profitability and incurred-based expenditures. tons of adjustments are, therefore, required to organize the firm’s financial statements. The 10th chapter of the Class 11 NCERT book elaborates those items requiring adjustments and therefore the process to integrate those in final accounts.

Chapter 11: Accounts from Incomplete Records

This lesson deals with an important aspect of accounting – evaluating a firm’s gains or losses from incomplete records. Many small businesses don’t follow the double-entry bookkeeping system and find themselves with incomplete records of monetary transactions. Assessing the profit and loss of such enterprises, therefore, requires different approaches and expertise. During this chapter, you shall study incomplete records – their meaning, features, implementing statement of affairs methods to compute profit/loss, preparing balance sheets, trading and profit and loss accounts, etc.

Chapter 12: Applications of Computers in Accounting

From manual paperwork to automation, we’ve come an extended way. The role of technology within the business world is inevitable. A computer makes storing and processing the majority amount of knowledge not only effortless but also faster. The 12th chapter of your school’s Class book discusses the need of using computers for accounting. It also explains various sorts of relevant MIS reports and accounting information systems. Additionally, the lesson outlines all limitations of this technology to assist individuals to prepare with their decision-making skills.

Chapter 13: Computerised Accounting System

The concluding chapter of NCERT Class book Class 11 comprises advanced discussions on computerized accounting. It deals with its nature, benefits, sourcing, and limitations. By studying this lesson, you’ll precisely differentiate between computerized and manual accounting.