ISC Class 11 Syllabus 2027 Accountancy

ISC YEAR 2027

INDIAN SCHOOL CERTIFICATE
EXAMINATION

ACCOUNTANCY
(858)

February 2025
____________________________________________________________________________________________

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endeavours, empowering them to contribute towards
a humane, just and pluralistic society, promoting
introspective living, by creating exciting learning
opportunities, with a commitment to excellence.

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Minimum monitoring.
Allowing schools to evolve their own niche.
Catering to the needs of the children.
Giving freedom to experiment with new ideas
and practices.
Diversity and plurality - the basic strength for
evolution of ideas.
Schools to motivate pupils towards the
cultivation of:
Excellence - The Indian and Global
experience.
Values - Spiritual and cultural - to be the bedrock
of the educational experience.
Schools to have an 'Indian Ethos', strong roots in
the national psyche and be sensitive to national
aspirations.

ACCOUNTANCY (858)

Aims:
1. To provide an understanding of the principles of 2. To develop an understanding of the form and
accounts and practice in recording transactions classification of financial statements as a means of
and interpreting individual as well as company communicating financial information.
accounts.

CLASS XI
There will be two papers in the subject: NOTE: Practical problems in Accounting
Equation are not required.
Paper I - Theory: 3 hours ……80 marks
Paper II- Project Work………20 marks
2. Journal, Ledger and Trial Balance
PAPER - I (THEORY) – 80 MARKS (i) Journal: recording of entries in journal with
1. Introduction to Accounting narration.
(a) Classification of Accounts- traditional
Background of accounting and accountancy; types
classification or modern approach.
of accounts; basic terms used in accounting, and
Accounting Equation. (b) Double Entry System.
(i) Evolution of accounting: The three phases. (c) Rules of journalizing – traditional
classification or modern approach.
(ii) Basic Terms: Event, Transaction, Vouchers,
(d) Meaning of journal; Advantages of using
Capital, Assets (intangible, tangible, fixed,
a journal.
current, liquid, wasting and fictitious),
Liabilities (internal and external – current, (e) Format of journal.
long-term and contingent), Trade Debtors, (f) Simple and compound journal entries.
Trade Creditors, Purchases, Sales, Goods
(g) Opening Journal entry.
traded in, Stock (raw material, work in
progress and finished goods), Profit, Loss, (h) Journal Entries- Input CGST and Input
Expense, Revenue, Income and Drawings. SGST / Input IGST; Output CGST and
Output SGST/ Output IGST) / Setting off
(iii) Accounting equation: Meaning and Input GST against Output GST.
usefulness.
(ii) Ledger: posting from journal to respective
(iv) Meaning and definition of Book-keeping, ledgers.
Accounting and Accountancy; difference
between book-keeping, accounting and (a) Meaning of ledger.
accountancy; accounting cycle. (b) Format of a ledger.
(v) Users of accounting information. (c) Mechanics of posting.
(vi) Subfields of accounting: Meaning of financial (d) Closing / Balancing of ledger accounts-
accounting, cost accounting and management expenses and revenues to be closed by
accounting. transferring to Trading / P/L Account

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depending upon their direct/ indirect (b) Preparation of the Trial Balance by the
nature and balances of Assets, Liabilities balance method from the given ledger
and Capital to be carried down. account balances.
(e) Adjusting and closing journal entries. 3. Bank Reconciliation Statement
(iii) Sub-division of journal - cash book [including Bank Reconciliation statement.
simple cash book and triple column cash book (i) Meaning and need for bank reconciliation
(cash, bank and discount) with - contra entry statement.
pertaining to receipt of cheque not deposited (ii) Preparation of a bank reconciliation
on the same day; adjustments pertaining to a statement from the given cash book balance /
definite cash balance to be maintained / overdraft or pass book balance / overdraft.
overdraft facility to be availed at the end of the (iii) Preparation of a bank reconciliation
month. Petty cash book (including analytical statement from the extract of the cash book
and imprest system), sales day book, as well as the pass book relating to the same
purchases day book, sales return day book, month.
purchases return day book and Journal proper.
(iv) Preparation of an amended cash book and a
(a) Cash book [including simple cash book bank reconciliation statement after adjusting
and triple column cash book (cash, bank the cash book balance from the given cash
and discount) with - contra entry book balance.
pertaining to receipt of cheque not 4. Depreciation
deposited on the same day; adjustments Depreciation, Methods of charging depreciation,
pertaining to a definite cash balance to be Method of recording depreciation.
maintained / overdraft facility to be
availed at the end of the period]. (i) Depreciation: meaning, need, causes,
objectives and characteristics.
(b) Petty cash book (including analytical and (ii) Methods of charging depreciation: Straight
imprest system). Line and Written Down Value method;
(c) Sales day book, purchases day book- advantages, limitations of both the methods
Simple (Date, Particulars, I. No, L.F, and differences between the two.
Details, Amount); Columnar (Date, (iii)Methods of recording depreciation: charging
Particulars, I. No, L.F, Details, Net to asset account, creating provision for
Invoice, Goods, Carriage, GST-Input depreciation / accumulated depreciation.
CGST and Input SGST / Input IGST; (iv) Problems relating to purchase and sale of
Output CGST and Output SGST / Output assets (with or without asset disposal account)
IGST- Amount or percentage given). incorporating the application of depreciation
under the two stated methods.
(d) Sales return day book, purchases return
day book- Simple (Date, Particulars, NOTE: Questions on change of method from SLM
Credit/ Debit Note No., L.F, Details, to WDV and vice-versa are not required.
Amount. 5. Bills of Exchange
(e) Journal proper. (i) Introduction to Negotiable Instruments:
explanation of basic terms.
(f) Mechanics of posting from special
subsidiary books. Meaning of negotiable instruments; Bills of
exchange, promissory note (including
NOTE: Transactions with GST is excluded in specimen and distinction), cheque,
Cash Book and Returns Books. advantages and disadvantages of Bills of
Exchange, explanation of basic terms -
(iv) Trial Balance.
drawer, drawee, payee, endorser, endorsee,
(a) Meaning, objectives, advantages and bill on demand / bill on sight, bill after date,
limitations of a Trial Balance. bill after sight, tenure of the bill, days of
grace, due date, endorsement and discounting

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of bills, bill sent for collection, dishonour of a (c) Meaning and difference between capital
bill, holder of a bill, noting charges, notary profit/income and revenue profit/ income
public, renewal of a bill, retirement of a bill with examples.
and insolvency of the drawee/acceptor. (d) Meaning and difference between capital
(ii) Practical problems on the above in the books loss and revenue loss with examples.
of drawer, drawee and endorsee- Journal (e) Meaning of deferred revenue expenditure
entries and Ledger accounts. with examples.
Self explanatory. (ii) Provisions and Reserves.
NOTE:
Meaning, importance; difference between
• Accommodation Bill is not required. provisions and reserves; types of reserves -
• Recording in the books of the bank not revenue reserve, capital reserve, general
required. reserve, specific reserve and secret reserve.
6. Accounting Concepts (iii) Trading, Profit and Loss Account and Balance
GAAP (Generally Accepted Accounting Sheet of a sole trader, (Horizontal Format)
Principles), Basis of Accounting; Accounting without adjustments.
Standards; Knowledge and understanding of IFRS Meaning, objectives, importance and
(International Financial Reporting Standards).
preparation of Trading, Profit and Loss
(i) GAAP: Going Concern, Accounting Entity, Account and Balance Sheet of a sole trader.
Money Measurement, Accounting Period,
Complete Disclosure, Revenue Recognition, (iv) Preparation of Trading Account, Profit and
Verifiable Objective, Matching Principle, Loss Account and Balance Sheet with
Historical Cost, Accrual Concept, Dual necessary adjustments.
Aspect Concept, Materiality, Consistency, Adjustments relating to closing stock,
Prudence and Timeliness, Industry Practice, outstanding expenses, prepaid expenses,
Substance over legal form.
accrued income, income received in advance,
(ii) Basis of accounting – cash basis and accrual
basis (meaning; difference). depreciation, bad debts, provision for
(iii) Accounting Standards: Meaning; Utility/ doubtful debts, provision for discount on
Advantages. debtors, manager’s commission (on the net
(iv) IFRS (International Financial Reporting profit before and after charging such
Standards) - Meaning; Need for IFRS; commission), goods distributed as free
Fundamental Assumptions in IFRS- Going samples, goods taken by the owner for
Concern, Accrual, Measuring Unit, personal use and abnormal loss; Treatment of
Purchasing Power; difference between IFRS Adjusted Purchases and calculation of cost of
and Indian GAAP; Procedure for goods sold.; Input CGST and Input SGST/
implementation of IFRS; India and IFRS. Input IGST and Output CGST and Output
SGST/ Output IGST given in the Trial Balance
7. Final Accounts and Concept of Trading, Profit to offset against each other in the Balance
and Loss account and Balance Sheet (with and Sheet.
without adjustments), Marshalling of Balance
Sheet (v) Marshalling of a Balance Sheet: Order of
(i) Capital and Revenue Expenditure/Income. permanence and order of liquidity.
(a) Meaning and difference between capital (vi) Adjusting, closing and transfer entries.
expenditure and revenue expenditure with GST is excluded in Adjustments.
examples. NOTE:
(b) Meaning and difference between capital 1. Practical problems on preparation of provision
receipts and revenue receipts with for doubtful debts account are not required.
examples.
2. Since creating provision for doubtful debts
accounts involves being prudent, in the
absence of any information of the amount of the

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new provision, it will be assumed that the (b) General donations, general grants and all
remaining amount / balance of debtors are receipts of a recurring nature such as
good/ Apply same percentage of provision on membership fees/ subscriptions are to be
the closing debtors as the percentage applied taken as revenue receipts.
at the beginning of the year.
(c) Preparation of accounts of incidental
8. Rectification of Errors activities such as restaurant accounts are
Errors and types of errors: Rectification of errors not required.
after the preparation of trial balance and NOTE: Preparation of a Receipt and Payments
rectification of errors after the preparation of Final Account only or an Income and Expenditure
Accounts. Account with a Balance Sheet from incomplete
(i) Types of Errors: errors of omission, errors of records need not be covered (in horizontal
commission, errors of principle, format).
compensating errors.
(ii) Rectification of errors after the preparation of PAPER II – PROJECT WORK – 20 MARKS
trial balance and through suspense account if
required. Candidates will be expected to have completed two
(iii) Rectification of errors after the preparation of projects from any topic covered in Theory.
Final Accounts through P/L Adjustment A/c if Mark allocation for each Project [10 marks]:
required.
Overall format 1 mark
NOTE: Redrafting of Balance Sheet not required.
Content 4 marks
9. Non -Trading Organisation Findings 2 marks
(i) Non-Trading Organization: meaning, Viva-voce based on the Project only 3 marks
objectives, necessity and treatment of specific
items.
A list of suggested Projects is given below:
Self-explanatory. 1. Preparation of Journal / sub-division of journal,
(ii) Different books maintained and differences Ledger, Trial balance and Financial Statements of
between them. a trading organization on the basis of a case study.
(a) Receipts and Payments Accounts: • Develop a case study of a sole trader starting
meaning, features, differences between business with a certain amount of capital.
Receipts and Payments Account and Cash He could have got the amount from his past
Book. savings or by borrowing from a bank by
(b) Income and Expenditure Accounts: mortgaging his personal assets or by winning
meaning, features, difference between a lottery or any other source.
Income and Expenditure account and • Write in detail, his transactions during the
Profit and Loss account. year- his purchases - cash and credit, sales-
cash and credit, expenses, purchase of fixed
(c) Balance Sheet and its role. assets and depreciation charged on them, any
(iii) Preparation of Income and Expenditure outstanding expenses, prepaid expenses,
Account and Closing Balance Sheet. accrued income, drawing bills of exchange,
accepting bills payable, etc.
Preparation of Income and Expenditure
Account and Balance Sheet when Receipts • From this case study developed (which should
have at least 15 transactions), pass the journal
and Payments Account and other information
entries, post them into the ledger, prepare a
is given.
Trial Balance and the Trading and Profit and
(a) Entrance, admission fees, life membership Loss Account and Balance Sheet.
fees, legacies, special grants and special
donations are to be capitalised.

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• The various expenses for comparison (i) Prepare a Spreadsheet as per the following
purposes, could be depicted in the form of bar format:
diagrams and pie charts.
Revenue Jan. Feb. March April
2. Preparation of the accounts of a
Not-for-Profit-Organisation on the basis of a case Outdoor
study. Sales
• Develop a case study of an NPO by beginning Indoor
with the primary motive of establishing it, that Sales
is, why have you decided to open a club or a
Total Sales
library or a hospital, etc.
• Write in detail about the sources of capital
fund, subscriptions, donations (ordinary and Expenses
special), other receipts and payments of your
NPO as well as outstanding expenses, prepaid Salaries
expenses, subscription due but not received, Rent &
subscription received in advance, purchase of Utilities
fixed assets and depreciation charged on them,
legacy received, etc. Others
• From this case study developed (which should
have at least 15 transactions), pass the journal (ii) Fill the Sales and Expenses for the months in
entries, post them into the ledger, prepare a lakhs and calculate the Total Sales and Total
trial balance and thereafter prepare the NPO’s Expenses.
Cash Book, Receipts and Payment Account,
its Income and Expenditure Account and its (iii) Calculate the Net Profit using the excel
Balance Sheet. formulas by subtracting the expenses from
revenue.
• The various expenses, for comparison
purposes, could be depicted in the form of bar (iv) Highlight all the numbers and prepare a Bar
diagrams and pie charts. Chart showing the Indoor and Outdoor Sales
for the months.
3. Prepare a Bank Reconciliation Statement and
(v) Save your work on the desktop as
Amended Cash Book from the information given
Label_Project.
in your Cash Book and Bank Statement (Pass
(vi) Print a hard copy of your work and close the file.
Book) with at least fifteen transactions.
4. Draw a specimen of bill of exchange – show how
they differ from Promissory note and develop a
question based on two bills of exchange, one of
them being honoured and the other dishonoured
and its renewal along with noting charges and
interest.
5. Take any five accounting concepts and give any
two practical examples of each to bring out clearly
the understanding of the concept.
6. Develop a case study by creating an imaginary
Trial Balance and develop any five-six
adjustments and then prepare the Trading, Profit&
loss account and Balance Sheet out of it, along
with journal entries for those adjustments.
7. Complete the labels.

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