NCERT Book Class 11 Accountancy Chapter 8 Financial Statements – I

Financial Statements - I 8

Y ou have learnt that financial accounting is a
well-defined sequential activity which begins
with Journal (Journalising), Ledger (Posting),
Learning Objectives and preparation of Trial Balance (Balancing and
After studying this chapter, Summarisation at the first stage). In the present
you will be able to : chapter, we will take up the next step, namely,
• state the nature of the preparation of financial statements, and discuss
financial statements;
the types of information requirements of various
• identify the various
stakeholders and their stakeholders, the distinction between capital and
information require-­ revenue items and its importance and the nature
ments; of financial statements and the preparation thereof.
• distinguish between
the capital and reve­
8.1 Stakeholders and their
nue expenditure and
receipts; Information Requirements
• explain the concept of Recall from chapter I (Financial Accounting Part I)
trading and profit and
loss account and its that the objective of business is to communicate
preparation; the meaningful information to various stakeholders
• State the nature of in the business so that they can make informed
gross profit, net profit decisions. A stakeholder is any person associated
and operating profit;
with the business. The stakes of various stakeholders
• describe the concept of
balance sheet and its can be monetary or non-monetary. The stakes can
preparation; be active or passive; or can be direct or indirect. The
• explain grouping and owner and persons advancing loan to the business
marshalling of assets would have monetary stake. The government,
and liabilities;
• prepare profit and loss
consumer or a researcher will have non-monetary
account and balance stake in the business. The stakeholders are also
sheet of a sole prop­ called users who are normally classified as internal
rietor­­y firm; and and external depending upon whether they are inside
• make an opening the business or outside the business. All users
entry.
have different objectives for joining business and

Ch-8.indd 277 9/13/2022 2:49:08 PM