Accountancy (Code No.

055)
Course Structure
Class-XI (2020-21)

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 90 40
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and 40 20
Incomplete Records
Unit-4: Computers in Accounting 05 08

Part C: Project Work 15 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.
• Need of IFRS • explain the meaning and objectives of
• Goods and Services Tax (GST): accounting standards.
Characteristics and Objective. • 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. (Traditional and Modern Approach) 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 the method of recording cash transactions in
Depreciation, Provisions and Reserves Cash book.
• Depreciation: Concept, Features, Causes, • describe the method of recording
factors transactions other than cash transactions as
• Other similar terms: Depletion and per their nature in different subsidiary books .
Amortisation • appreciate that at times bank balance as
• Methods of Depreciation: indicated by cash book is different from the
i. Straight Line Method (SLM) bank balance as shown by the pass book /
ii. Written Down Value Method (WDV) bank statement and to reconcile both the
Note: Excluding change of method balances, bank reconciliation statement is
• Difference between SLM and WDV; prepared.
Advantages of SLM and WDV • develop understanding of preparing bank
• Accounting treatment of depreciation reconciliation statement.
i. Charging to asset account
• appreciate that for ascertaining the position of
ii. Creating provision for
individual accounts, transactions are posted
depreciation/accumulated depreciation
from subsidiary books and journal proper into
account
the concerned accounts in the ledger and
iii. Treatment for disposal of asset
develop the skill of ledger posting.
• Provisions and Reserves: Difference
• explain the necessity of providing
• Types of Reserves:
depreciation and develop the skill of using
i. Revenue reserve
different methods for computing depreciation.
ii. Capital reserve
• understand the accounting treatment of
iii. General reserve
providing depreciation directly to the
iv. Specific reserve
v. Secret Reserve concerned asset account or by creating
provision for depreciation account.
 • Difference between capital and revenue • appreciate the method of asset disposal
reserve through the concerned asset account or by
Accounting for Bills of Exchange preparing asset disposal account.
• Bill of exchange and Promissory Note: • appreciate the need for creating reserves and
Definition, Specimen, Features, Parties. also making provisions for events which may
• Difference between Bill of Exchange and belong to the current year but may happen in
Promissory Note next year.
• Terms in Bill of Exchange: • appreciate the difference between reserve
i. Term of Bill and reserve fund.
ii. Accommodation bill (concept) • acquire the knowledge of using bills of
iii. Days of Grace exchange and promissory notes for financing
iv. Date of maturity business transactions;
v. Discounting of bill
• understand the meaning and distinctive
vi. Endorsement of bill
features of these instruments and develop
vii. Bill after due date
the skills of their preparation.
viii. Negotiation
• state the meaning of different terms used in
ix. Bill sent for collection
bills of exchange and their implication in
x. Dishonour of bill
accounting.
• Accounting Treatment
• explain the method of recording of bill
Note: excluding accounting treatment for
accommodation bill transactions.
• state the need and objectives of preparing
Trial balance and Rectification of Errors trial balance and develop the skill of
• Trial balance: objectives and preparation preparing trial balance.
(Scope: Trial balance with balance method only) • appreciate that errors may be committed
• Errors: types-errors of omission, commission, during the process of accounting.
principles, and compensating; their effect on • understand the meaning of different types of
Trial Balance. errors and their effect on trial balance.
• Detection and rectification of errors; • 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 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
marshalling of assets and liabilities.
expenses, accrued income, income received in advance,
• appreciate that there may be certain items
depreciation, bad debts, provision for doubtful debts,
other than those shown in trial balance which
provision for discount on debtors, Abnormal loss, Goods
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
their uses and limitations.

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.
• Automation of accounting process: meaning • state the meaning of accounting information
Scope: system.
(i) The scope of the unit is to understand accounting • appreciate the need for use of computers in
as an information system for the generation of accounting for preparing accounting reports.
accounting information and preparation of accounting • develop the understanding of comparing the
reports. manual and computerized accounting
(ii) It is presumed that the working knowledge of any process and appreciate the advantages and
appropriate accounting software will be given to the limitations of automation.
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. 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 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. Kids 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 departmental store
7. A tyre repair shop 16. A sweet shop 25. A flower shop
8. A dry cleaner 17. A grocery shop 26. A gift shop
9. A stationery shop 18. A shoe shop 27. A photostat 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 with the help of computers.

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 (2020-21)
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%