CBSE Class 11 Accountancy Syllabus 2021-22

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 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.
6. To enable students with accounting for Not-for-Profit organizations, accounting for
Partnership Firms and company accounts.

Accountancy (Code No.055)
Course Structure
Class-XI (2021-22)

Theory: 80 Marks 3 Hours
Project: 20 Marks
Units Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 12
Unit-2: Accounting Process 105 40
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and 55 20
Incomplete Records
Unit-4: Computers in Accounting 15 08

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
 Accounting- concept, objectives, advantages able to:
and limitations, types of accounting  describe the meaning, significance,
information; users of accounting information objectives, advantages and limitations of
and their needs. Qualitative Characteristics of accounting in the modem economic
Accounting Information. Role of Accounting in environment with varied types of business
Business. and non-business economic entities.
 Basic Accounting Terms- Business  identify / recognise the individual(s) and
Transaction, Capital, Drawings. Liabilities entities that use accounting information for
(Non Current and Current). Assets (Non serving their needs of decision making.
Current, Current); Fixed assets (Tangible and  explain the various terms used in accounting
Intangible), Expenditure (Capital and and differentiate between different related
Revenue), Expense, Income, Profit, Gain, terms like current and non-current, capital
Loss, Purchase, Sales, Goods, Stock, and revenue.
Debtor, Creditor, Voucher, Discount (Trade  give examples of terms like business
discount and Cash Discount) transaction, liabilities, assets, expenditure
and purchases.

Theory Base of Accounting  explain that sales/purchases include both
 Fundamental accounting assumptions: cash and credit sales/purchases relating to
GAAP: Concept the accounting year.
 Business Entity, Money Measurement, Going  differentiate among income, profits and gains.
Concern, Accounting Period, Cost Concept,  state the meaning of fundamental accounting
Dual Aspect, Revenue Recognition, assumptions and their relevance in
Matching, Full Disclosure, Consistency, accounting.
Conservatism, Materiality and Objectivity  describe the meaning of accounting
 System of Accounting. Basis of Accounting: assumptions and the situation in which an
cash basis and accrual basis assumption is applied during the accounting
 Accounting Standards: Applicability in IndAS process.
 Goods and Services Tax (GST):  explain the meaning and objectives of
Characteristics and Objective. 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 After going through this Unit, the students will be
 Voucher and Transactions: Source able to:
documents and Vouchers, Preparation of  explain the concept of accounting equation
Vouchers, Accounting Equation Approach: and appreciate that every transaction affects
Meaning and Analysis, Rules of Debit and either both the sides of the equation or a
Credit. positive effect on one item and a negative
 Recording of Transactions: Books of Original effect on another item on the same side of

Entry- Journal accounting equation.
 Special Purpose books:  explain the effect of a transaction (increase or
 Cash Book: Simple, cash book with bank decrease) on the assets, liabilities, capital,
column and petty cashbook revenue and expenses.
 Purchases book  appreciate that on the basis of source
 Sales book documents, accounting vouchers are
 Purchases return book prepared for recording transaction in the
 Sales return book books of accounts.
Note: Including trade discount, freight and cartage  develop the understanding of recording of
expenses for simple GST calculation. transactions in journal and the skill of
 Ledger: Format, Posting from journal and calculating GST.
subsidiary books, Balancing of accounts  explain the purpose of maintaining a Cash
Book and develop the skill of preparing the
Bank Reconciliation Statement: format of different types of cash books and
 Need and preparation, Bank Reconciliation the method of recording cash transactions in
Statement with Adjusted Cash Book Cash book.
Depreciation, Provisions and Reserves  describe the method of recording
 Depreciation: Concept, Features, Causes, transactions other than cash transactions as
factors per their nature in different subsidiary books .
 Other similar terms: Depletion and  appreciate that at times bank balance as
Amortisation indicated by cash book is different from the
 Methods of Depreciation: bank balance as shown by the pass book /
i. Straight Line Method (SLM) bank statement and to reconcile both the
ii. Written Down Value Method (WDV) balances, bank reconciliation statement is
Note: Excluding change of method prepared.
 Difference between SLM and WDV;  develop understanding of preparing bank
Advantages of SLM and WDV reconciliation statement.
 Accounting treatment of depreciation  appreciate that for ascertaining the position of
i. Charging to asset account
individual accounts, transactions are posted
ii. Creating provision for
from subsidiary books and journal proper into
depreciation/accumulated depreciation
the concerned accounts in the ledger and
account
develop the skill of ledger posting.
iii. Treatment for disposal of asset
 explain the necessity of providing
 Provisions and Reserves: Difference
depreciation and develop the skill of using
 Types of Reserves:
different methods for computing depreciation.
i. Revenue reserve
 understand the accounting treatment of
ii. Capital reserve
providing depreciation directly to the
iii. General reserve
iv. Specific reserve
concerned asset account or by creating
provision for depreciation account.

v. Secret Reserve  appreciate the method of asset disposal
 Difference between capital and revenue through the concerned asset account or by
reserve preparing asset disposal account.
Accounting for Bills of Exchange  appreciate the need for creating reserves and
 Bill of exchange and Promissory Note: also making provisions for events which may
Definition, Specimen, Features, Parties. belong to the current year but may happen in
 Difference between Bill of Exchange and next year.
Promissory Note  appreciate the difference between reserve
 Terms in Bill of Exchange: and reserve fund.
i. Term of Bill  acquire the knowledge of using bills of
ii. Accommodation bill (concept) exchange and promissory notes for financing
iii. Days of Grace business transactions;
iv. Date of maturity  understand the meaning and distinctive
v. Discounting of bill
features of these instruments and develop
vi. Endorsement of bill
the skills of their preparation.
vii. Bill after due date
 state the meaning of different terms used in
viii. Negotiation
bills of exchange and their implication in
ix. Bill sent for collection
accounting.
x. Dishonour of bill
xi. Retirement of bill  explain the method of recording of bill

xii. Renewal of bill transactions.

 Accounting Treatment  state the need and objectives of preparing
Note: excluding accounting treatment for trial balance and develop the skill of
accommodation bill preparing trial balance.
 appreciate that errors may be committed
Trial balance and Rectification of Errors during the process of accounting.
 Trial balance: objectives and preparation  understand the meaning of different types of
(Scope: Trial balance with balance method only) errors and their effect on trial balance.
 Errors: types-errors of omission, commission,  develop the skill of identification and location
principles, and compensating; their effect on of errors and their rectification and
Trial Balance. preparation of suspense account.
 Detection and rectification of errors;
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 able to:
Capital Receipts; Revenue and Capital Expenditure;  state the meaning of financial statements the
Deferred Revenue expenditure.  purpose of preparing financial statements.
Trading and Profit and Loss Account: Gross Profit,
 state the meaning of gross profit, operating
Operating profit and Net profit. Preparation.
profit and net profit and develop the skill of
Balance Sheet: need, grouping and marshalling of assets
preparing trading and profit and loss account.
and liabilities. Preparation.
 explain the need for preparing balance sheet.
Adjustments in preparation of financial statements with
 understand the technique of grouping and
respect to closing stock, outstanding expenses, prepaid
expenses, accrued income, income received in advance, marshalling of assets and liabilities.

depreciation, bad debts, provision for doubtful debts,  appreciate that there may be certain items
provision for discount on debtors, Abnormal loss, Goods other than those shown in trial balance which
taken for personal use/staff welfare, interest on capital may need adjustments while preparing
and managers commission. financial statements.
Preparation of Trading and Profit and Loss account and  develop the understanding and skill to do
Balance Sheet of a sole proprietorship with adjustments. adjustments for items and their presentation
in financial statements like depreciation,
Incomplete Records closing 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.
 state the meaning of incomplete records and
Difference between accounts from incomplete records
their uses and limitations.
and Statement of Affairs. Preparation of Trading, Profit
 develop the understanding and skill of
and Loss account and Balance Sheet.
computation of profit / loss using the
statement of affairs method.

Unit 4: Computers in Accounting

Units/Topics Learning Outcomes
 Introduction to computer and accounting After going through this Unit, the students will be
information system {AIS}: Introduction to able to:
computers (elements, capabilities, limitations  state the meaning of a computer, describe its
of computer system) components, capabilities and limitations.
 Introduction to operating software, utility  state the meaning of accounting information
software and application software. system.

Introduction to accounting information system  appreciate the need for use of computers in
(AIS) as a part of Management Information accounting for preparing accounting reports.
System.  develop the understanding of comparing the
 Automation of accounting process: meaning manual and computerized accounting
 Stages in automation: (a) Accounting process process and appreciate the advantages and
in a computerised environment; comparison limitations of automation.
between manual accounting process and  understand the different kinds of accounting
computerised accounting process, (b) software.
Sourcing of accounting software; kinds of
software: readymade software; customised
software and tailor-made software; generic
considerations before sourcing accounting
software (c) creation of account groups and
hierarchy (d) generation of reports - trial
balance, profit and loss account and balance
sheet

Scope:
(i) The scope of the unit is to understand accounting
as an information system for the generation of
accounting information and preparation of accounting
reports.
(ii) 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.

Part C: Project Work (Any One)
1. Collection of source documents, preparation of vouchers, recording of transactions with the help of vouchers.
2. Comprehensive project of any sole proprietorship business. This may state with journal entries and their
ledgering, 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.

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

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.

Suggested Question Paper Design
Accountancy (Code No. 055)
Class XI (2021-22)
Theory: 80 Marks 3 hrs.
Project: 20 Marks

S
N 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

3 Applying: Solve problems to new situations by applying acquired knowledge, facts,
techniques and rules in a different way. 19 23.75%

4
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, validity of ideas, or
17 21.25%
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%