Class XI Accountancy (Code No. 055) – CBSE 2025–26 Academic Session

Section A – Theoretical Framework of Accounting

This section builds the conceptual foundation of Accountancy. It explains the meaning, objectives, and functions of accounting. Accounting is the systematic process of identifying, recording, classifying, summarising, and communicating financial information to users for decision-making.

It introduces important topics such as:

Meaning and objectives of accounting

Book-keeping vs Accounting

Users of accounting information (internal and external)

Branches of accounting (Financial, Cost, Management, Tax Accounting)

Basic accounting terms like capital, drawings, assets, liabilities, revenue, expenses, etc.

Accounting principles and concepts such as Going Concern, Consistency, Accrual, Business Entity, Money Measurement, Matching Concept, Prudence, Cost Concept, and Dual Aspect Concept.

Accounting Standards and Indian Accounting Standards (Ind-AS)

This section helps students understand why accounting rules are necessary and how financial information becomes reliable and comparable.

Questions – Section A

Define accounting and explain its main objectives.

Differentiate between book-keeping and accounting.

Explain any five basic accounting concepts with suitable examples.

What are Accounting Standards? Why are they important?

Explain the difference between revenue expenditure and capital expenditure.

Section B – Accounting Process

This section explains how accounting is practically performed in business. It covers the complete accounting cycle from recording transactions to preparation of trial balance.

Major topics include:

Bases of Accounting (Cash Basis and Accrual Basis)

Accounting Equation (Assets = Liabilities + Capital)

Rules of Debit and Credit (Traditional and Modern Approach)

Classification of Accounts (Personal, Real, Nominal Accounts)

Source Documents and Vouchers

Journal, Ledger, Cash Book, and Subsidiary Books

Bank Reconciliation Statement

Trial Balance

Depreciation, Provision and Reserve

Rectification of Errors

Students learn how each business transaction affects two accounts (Dual Aspect Principle) and how the accounting equation always remains balanced.

This section is highly practical and forms the backbone of financial accounting.

Questions – Section B

Explain the difference between Cash Basis and Accrual Basis of Accounting.

State and explain the accounting equation with an example.

Explain the rules of debit and credit under traditional classification.

What is a Trial Balance? Why is it prepared?

Explain the purpose of preparing a Bank Reconciliation Statement.

What is depreciation? Why is it necessary to charge depreciation?

Section C – Financial Statements of Sole Proprietorship

This section explains how financial statements are prepared to determine profit or loss and financial position of a business.

Major topics include:

Trading Account

Profit and Loss Account

Balance Sheet

Adjustments in final accounts

Financial Statements with adjustments

Single Entry System

The Trading Account helps to calculate Gross Profit or Gross Loss.
The Profit and Loss Account determines Net Profit or Net Loss.
The Balance Sheet shows the financial position of the business on a particular date.

Adjustments such as outstanding expenses, prepaid expenses, depreciation, bad debts, closing stock, etc., are essential to present a true and fair view of the financial statements.

This section helps students understand how raw accounting data is converted into meaningful financial reports.

Questions – Section C

What is the purpose of preparing a Trading Account?

Differentiate between Gross Profit and Net Profit.

Explain the format of a Balance Sheet.

Why are adjustments necessary while preparing final accounts?

What is the Single Entry System? Mention its limitations.