CBSE Class 11 Accountancy Syllabus 2020-21| Check Latest Exam Pattern

CBSE has released Class 11 Accountancy Syllabus 2020-21 which will prove useful in knwoing the important topics that can come in the examinations. The annual board examination will be of 80 marks, with a duration of three hours. There will be project work for 20 Marks. This year, due to coronavirus pandemic, the board has decided to reduce the syllabus and thus removed various topics.

CBSE Class 11 Accountancy Syllabus 2020-21

Units-Marks 
Part A: Financial Accounting 1-
-Unit 1: Theoretical Framework12
-Unit 2: Accounting Process40
Part B: Financial Accounting 2-
-Unit 3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records20
-Unit 4: Computers in Accounting08
Part C: Project Work20

Unit 1: Theoretical Framework

Introduction to Accounting

• Accounting- concept, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Qualitative Characteristics of Accounting Information. Role of Accounting in Business.

• Basic Accounting Terms- Business Transaction, Capital, Drawings. Liabilities (Non Current and Current). Assets (Non Current, Current); Fixed assets (Tangible and Intangible), Expenditure (Capital and Revenue), Expense, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount (Trade discount and Cash Discount).

Theory Base of Accounting

• Fundamental accounting assumptions: GAAP: Concept
• Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism, Materiality and Objectivity
• System of Accounting. Basis of Accounting: cash basis and accrual basis
• Accounting Standards: Applicability in IndAS
• Need of IFRS
• Goods and Services Tax (GST): Characteristics and Objective.

Unit 2: Accounting Process

Recording of Business Transactions

• Voucher and Transactions: Source documents and Vouchers, Preparation of Vouchers, Accounting Equation Approach: Meaning and Analysis, Rules of Debit and Credit. (Traditional and Modern Approach)
• Recording of Transactions: Books of Original Entry- Journal
• Special Purpose books:
• Cash Book: Simple, cash book with bank column and petty cashbook
• Purchases book
• Sales book
• Purchases return book
• Sales return book
Note: Including trade discount, freight and cartage expenses for simple GST calculation.
• Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts

Bank Reconciliation Statement:

• Need and preparation

Depreciation, Provisions and Reserves

• Depreciation: Concept, Features, Causes, factors
• Other similar terms: Depletion and Amortisation
• Methods of Depreciation:
i. Straight Line Method (SLM)
ii. Written Down Value Method (WDV)
Note: Excluding change of method
• Difference between SLM and WDV;
Advantages of SLM and WDV
• Accounting treatment of depreciation
i. Charging to asset account
ii. Creating provision for depreciation/accumulated depreciation account
iii. Treatment for disposal of asset
• Provisions and Reserves: Difference
• Types of Reserves:
i. Revenue reserve
ii. Capital reserve
iii. General reserve
iv. Specific reserve
v. Secret Reserve
• Difference between capital and revenue reserve

Accounting for Bills of Exchange

• Bill of exchange and Promissory Note: Definition, Specimen, Features, Parties.
• Difference between Bill of Exchange and

Promissory Note

• Terms in Bill of Exchange:
i. Term of Bill
ii. Accommodation bill (concept)
iii. Days of Grace
iv. Date of maturity
v. Discounting of bill
vi. Endorsement of bill
vii. Bill after due date
viii. Negotiation
ix. Bill sent for collection
x. Dishonour of bill
• Accounting Treatment
Note: excluding accounting treatment for accommodation bill

Trial balance and Rectification of Errors

• Trial balance: objectives and preparation
(Scope: Trial balance with balance method only)
• Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance.
• Detection and rectification of errors; preparation of suspense account.

Unit 3: Financial Statements of Sole Proprietorship 

Financial Statements

• Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure. Trading and Profit and Loss Account: Gross Profit, Operating profit and Net profit. Preparation.
• Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation.
• Adjustments in preparation of financial statements with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, Abnormal loss, Goods taken for personal use/staff welfare, interest on capital and managers commission.
• Preparation of Trading and Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments.

Incomplete Records

• Features, reasons and limitations.
• Ascertainment of Profit/Loss by Statement of Affairs method.

Unit 4: Computers in Accounting 

• Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of computer system)
• Automation of accounting process: meaning.

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.

Deleted Topics from Class 11 Accountancy Syllabus 2020-21

Unit-2: Accounting Process

Bank Reconciliation Statement:
• Bank Reconciliation Statement with Adjusted Cash Book

Accounting for Bills of Exchange
• Retirement of bill
• Renewal of bill

Unit 3: Financial Statements of Sole Proprietorship

Incomplete Records
• Difference between accounts from incomplete records and Statement of Affairs.
• Preparation of Trading, Profit and Loss account and Balance Sheet.

Unit 4: Computers in Accounting

• Introduction to operating software, utility software and application software. Introduction to accounting information system (AIS) as a part of Management Information System.
• Stages in automation: (a) Accounting process in a computerised environment; comparison between manual accounting process and computerised accounting process, (b) 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 

Prescribed Books:

• Financial Accounting -I Class XI
• Accountancy -II Class XI

Download Class 11 Accountancy Syllabus 2020-21

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