web analytics

Accountancy (Code No.055)
Couse Structure
Class-XI (2017-18)

 

  Theory: 90 Marks

    One Paper                                                                                                                                  3 Hours

Units   Marks
Part A: Financial Accounting-1  
  Unit-1: Theoretical Framework 15
  Unit-2: Accounting Process 35
  Total 50
Part B: Financial Accounting-II  
  Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records 15
  Unit-4: Financial Statements of Not-for-Profit Organizations 15
  Unit-5: Computers in Accounting 10
  Total 40
Part C: Project Work 10
  Total 100

SYLLABUS: CLASS-XI

ACCOUNTANCY

PART A: FINANCIAL ACCOUNTING - I                                            50 Marks

Unit-1: Theoretical Frame Work                                                    25 Periods

Units/Topics Learning Outcomes

Introduction to Accounting 11 Periods

  • Accounting- concept, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs.
  • Basic accounting terms: business transaction, account, capital, drawings, liabilities (non - current and current); assets (non-current and current) fixed assets (tangible and intangible assets), receipts (capital and revenue), expenditure (capital, revenue and deferred), expense, income, profits, gains and losses, purchases, purchases returns, sales, sales return, goods, stock, inventory, trade receivables (debtors and bills receivable), trade payables (creditors and bills payable), cost, vouchers, discount - trade and cash.

Theory Base of Accounting 14 Periods

  • Fundamental accounting assumptions: going
    concern, consistency and accrual.
  • Accounting principles: accounting entity,
    money measurement, accounting period, full
    disclosure, materiality, prudence, cost
    concept, matching concept and dual aspect.
  • Accounting Standards and IFRS (International
    Financial Reporting Standards): concept and
    objectives
  • Double entry system of accounting.
  • Bases of accounting - cash basis and accrual
    basis.

After going through this Unit, the students will be able to:

  • describe the meaning, significance, objectives, advantages and limitations of accounting in the modem economic environment with varied types of business and non-business economic entities
  • identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.
  • explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and revenue.
  • give examples of terms like business transaction, liabilities, assets, receipts, expenditure and purchases.
  • explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.
  • differentiate among income, profits and gains.
  • state the meaning of fundamental accounting assumptions and their relevance in accounting.
  • describe the meaning of accounting principles and the situation in which a principle is applied during the accounting process.
  • explain the meaning and objectives of 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.

Unit-2: Accounting Process

Units/Topics Learning Outcomes

Recording of Transactions                  23 Periods

  • Accounting equation: analysis of transactions using accounting equation.
  • Rules of debit and credit: for assets, liabilities,capital, revenue and expenses.
  • Origin of transactions- source documents/supporting vouchers (invoice, cash memo, pay in slip, cheque etc.), debit note, credit note, preparation of accounting vouchers - cash (debit and credit) and non cash (transfer).
  • Books of original entry: format and recording -Journal.
  • Cash book: simple cash book, cash book with bank columns and petty cash book.
  • Other books: purchases book, sales book, purchases returns book, sales returns book and journal proper.

Preparation of Bank Reconciliation Statement,
Ledger and Trial Balance                    23 Periods

  • Bank reconciliation statement- concept, calculating bank balance at an accounting date: need and preparation. Corrected cash
    book balance.
  • Ledger - format, posting from journal, cash book and other special purpose books, balancing of accounts.
  • Trial balance: objectives and preparation {Scope: Trial balance with balance method only)

Depreciation, Provisions and Reserves.     16 Periods

  • Depreciation: concept, need and factors affecting depreciation; methods of computation of depreciation: straight line method, written down value method (excluding change in method)
  • Accounting treatment of depreciation: by charging to asset account, by creating provision for depreciation/ accumulated depreciation account, treatment of disposal of asset.
  • Provisions and reserves: concept, objectives and difference between provisions and reserves; types of reserves- revenue reserve, capital reserve, general reserve and specific
    reserves.

Accounting for Bills of Exchange.             16 Periods

  • Bills of exchange and promissory note:
  • definition, features, parties, specimen and distinction.
  • Important terms : term of bill, due date, days of grace, date of maturity, discounting of bill, endorsement of bill, bill sent for collection, dishonor of bill, noting of bill , retirement and
    renewal of a bill.
  • Accounting treatment of bill transactions.

Rectification of Errors               17 Periods

  • Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance.
  • Detection and rectification of errors; preparation of suspense account.

After going through this Unit, the students will
be able to:

  • explain the concept of accounting equation and appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of accounting equation.
  • explain the effect of a transaction (increase or decrease) on the concerned assets, liabilities, capital, revenue and expenses.
  • appreciate that on the basis of source documents, accounting vouchers are prepared
    for recording transaction in the books of accounts.
  • develop the understanding of recording of transactions in journal.
  • explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book.
  • describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books .
  • appreciate that at times bank balance as indicated by cash book is different from the
    bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared.
  • develop understanding of preparing bank reconciliation statement.
  • appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting.
  • state the need and objectives of preparing trial balance and develop the skill of preparing trial balance.
  • explain the necessity of providing depreciation and develop the skill of using different
    methods for computing depreciation.
  • understand the accounting treatment of providing depreciation directly to the
    concerned asset account or by creating provision for depreciation account.
  • appreciate the method of asset disposal through the concerned asset account or by
    preparing asset disposal account.
  • appreciate the need for creating reserves and also making provisions for events which may belong to the current year but may happen in
    next year.
  • appreciate the difference between reserve and reserve fund.
  • acquire the knowledge of using bills of exchange and promissory notes for financing
    business transactions;
  • understand the meaning and distinctive features of these instruments and develop the
    skills of their preparation.
  • state the meaning of different terms used in bills of exchange and their implication in
    accounting.
  • explain the method of recording of bill transactions.
  • appreciate that errors may be committed during the process of accounting.
  • understand the meaning of different types of errors and their effect on trial balance.
  • develop the skill of identification and location of errors and their rectification and preparation of suspense account.

Part B: Financial Accounting - II            40 Marks

Unit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplete Records            40 Periods

Units/Topics Learning Outcomes
  • Financial statements: objective and importance.
  • Trading and profit and loss account: gross profit, operating profit and net profit
  • Balance sheet: need, grouping, marshalling of
    assets and liabilities.
  • 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,
    goods distributed as free samples and manager’s
    commission.
  • Preparation of Trading and Profit and Loss
    account and Balance Sheet of sole
    proprietorship.
  • Incomplete records: uses and limitations.
  • Ascertainment of profit/loss by statement of
    affairs method.

After going through this Unit, the students will be
able to:

  • state the meaning of financial statements the purpose of preparing financial statements.
  • state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account.
  • explain the need for preparing balance sheet.
  • understand the technique of grouping and marshalling of assets and liabilities.
  • appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial
    statements.
  • develop the understanding and skill to do adjustments for items and their presentation in financial statements like depreciation, closing
    stock, provisions etc.
  • develop the skill of preparation of trading and profit and loss account and balance sheet.
  • state the meaning of incomplete records and their uses and limitations.
  • develop the understanding and skill of computation of profit / loss using the statement of affairs method.

Unit 4: Financial Statements of Not-for-Profit Organizations

Units/Topics Learning Outcomes
  • Not-for-profit organizations: concept.
  • Receipts and Payments Account: features and preparation.
  • Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Scope:

  1. Adjustments in a question should not exceed 3 or 4 in number and restricted to subscriptions, consumption of consumables and sale of assets/ old material.
  2. Entrance/admission fees and general donations are to be treated as revenue receipts.
  3. Trading Account of incidental activities is not to be prepared.

After going through this Unit, the students will be able to:

  • state the meaning of a Not-for-profit organisation and its distinction from a profit making entity.
  • state the meaning of receipts and payments account, and understanding its features.
  • develop the understanding and skill of preparing receipts and payments account.
  • state the meaning of income and expenditure account and understand its features.
  • develop the understanding and skill of preparing income and expenditure account and balance sheet of a not-for-profit organisation with the help of given receipts and payments account and additional information.

Unit 5: Computers in Accounting

Units/Topics Learning Outcomes
  • Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of computer system),
  • Introduction to operating software, utility software and application software. Introduction to accounting information system (AIS) as a part of Management Information System.
  • Automation of accounting process: meaning
  • 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.

Scope:

  1. The scope of the unit is to understand accounting as an information system for the generation of accounting information and preparation of accounting reports.
  2. 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.

After going through this Unit, the students will be able to:

  • state the meaning of a computer, describe its components, capabilities and limitations.
  • state the meaning of accounting information system.
  • appreciate the need for use of computers in accounting for preparing accounting reports.
  • develop the understanding of comparing the manual and computerized accounting process and appreciate the advantages and limitations of automation.
  • understand the different kinds of accounting software.

Part C: Project Work (Any One)               10 Marks           30 Periods

  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 enteries 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.

COMPREHENSIVE PROJECT
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 transation of immaginary 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.

3. Specific Guidelines for Teachers

Give a list of options tothe students to select a business form. You can add to the given list:

  1. A beauty parlour 
  2. Men's saloon
  3. A tailoring shop
  4. A canteen
  5. A cake shop
  6. A confectionery shop
  7. A chocolate shop
  8. A dry cleaner
  9. A stationery shop
  10. Men's wear
  11. Ladies wear
  12. Kiddies wear
  13. A Sareeshop
  14. Artificial jewellery shop
  15. A small restaurant
  16. A sweet shop
  17. A grocery shop
  18. A shoe shop
  19. A coffee shop
  20. A music shop
  21. A juice shop
  22.  A school canteen
  23. An ice cream parlour
  24. A sandwich shop
  25. A flower shop

After selection, advise the student(s) to visit a shop in the locality (this will help them to settle on a relistic amounts different items. The studen(s) would be able to see the things as they need to invest in furniture, decor, lights, machines, computers etc.

A suggested list of differen item is given below.

  1. Rent 
  2. Advance rent [approximately three months]
  3. Electricity deposit 
  4. Electricity bill 
  5. Electricity fitting 
  6. Water bill 
  7. Water connection security deposit 
  8. Water fittings 
  9. Telephone bill 
  10. Telephone security deposit 
  11. Telephone instrument 
  12. Furniture 
  13. Computers 
  14. Internet connection 
  15. Stationery 
  16. Advertisements 
  17. Glow sign 
  18. Rates and Taxes
  19. Wages and Salary
  20. Petty expenses
  21. Newspaper and magazines
  22. Tea expenses
  23. Packaging expenses
  24. Transport
  25. Delivery cycle or a vehicle purchased
  26. Registration
  27. Insurance
  28. Auditors fee
  29. Repairs & Maintenance
  30. Depreciation
  31. Air conditioners
  32. Fans and lights
  33. Interior decorations
  34. Refrigerators
  35. Purchase and sales

At this stage performs 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 (2017-18)

March 2018 Examination

Marks 90                                                                                                                                          Duration: 3 hrs

S. No. Typology of Questions Very Short Answer 1 Mark Short Answer I 3 Marks Short Answer II 4 Marks Long Answer I 6 Marks Long Answer II 8 Marks Marks %
1 Remembering - (Knowledge based simple recall questions, to know specific facts, terms, concepts, principles, or theories; identify, define, or recite, information) 2 2 1 1 - 18 20%
2 Understanding - (Comprehension
- to be familiar with meaning and
to understand conceptually,
interpret, compare, contrast,
explain, paraphrase, or interpret
information)
- 1 1 2 1 27 30%
3 Application - (Use abstract
information in concrete
situation, to apply knowledge to
new situations; Use given content
to interpret a situation, provide
an example, or solve a problem)
- - 2 1 1 22 25%
4 High Order Thinking Skills -
(Analysis & Synthesis- Classify,
compare, contrast, or
differentiate between different
pieces of information; Organize
and/or integrate unique pieces of
information from a variety of
sources)
2 2 1 1 - 18 20%
5 Evaluation - (Appraise, judge, and/or justify the value or worth of a decision or outcome, or to predict outcomes based on values) 2 1 - - - 5 5%
  Total 6x1=6 6x3=18  5x4=20  5x6=30 2x8=16 90
(24)
100%
100

Note: Scheme of options: All questions carrying 8 marks will have internal choice

Note: The Board has introduced Learning Outcomes in the syllabus to motivate students to constantly explore all levels of learning. However these are only indicative. These do not in any way restrict the scope of questions being asked in the examinations. The examination question will be strictly based on the prescribed question paper design and syllabus.


About the author
Teachoo