PROGRAM NAME

GRADE 11

ELIGIBILITY

AFTER RELEVANT GRADE 10

DURATION

1 YEAR

Accountancy (AC 1121) - Grade 11

Unit Area Covered Marks
Unit 1 Introduction to Accounting 10 Read more
Unit 2 Theory Base of Accounting 10 Read more
Unit 3 Recording of Transactions and Preparation of Trial Balance 10 Read more
Unit 4 Depreciation, Provisions and Reserves 10 Read more
Unit 5 Rectification of Errors 10 Read more
Unit 6 Financial Statements of Business Organizations 10 Read more
Unit 7 Accounting for Bills of Exchange 10 Read more
Unit 8 Financial Statements of Not-For-Profit Organizations 10 Read more
Unit 9 Accounts from Incomplete Records 10 Read more
Unit 10 Computers in Accounting 10 Read more
Total Marks 100

Unit 1


Introduction to Accounting

  • Accounting-objectives, advantages and accounting information; accounting information and their needs.
  • Basic accounting terms: business transaction, account, capital, drawings, liability (internal external, long term & short term), asset (intangible & tangible, current, non-current liquid fictitious), receipts (capital revenue), expenditure (capital, revenue & deferred), expense, income, profits, gains and losses, purchases, sales, stock, debtors , bills receivable, creditors, payable, goods, cost, vouchers, discount- trade and cash.

Unit 2


Theory Base of Accounting

  • 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
  • Double entry system
  • Basis of accounting – cash basis and accrual basis
  • Accounting Standards: concept & objective. IFRS (International Financial Reporting Standards)

Unit 3


Recording of Transactions and Preparation of Trial Balance

  • 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 (invoice, cash memo, pay in slip, cheque), preparation of vouchers – cash (debit & credit) and non cash (transfer)
  • Books of original entry: format and recording – Journal
  • Cash book: simple, Cash book with bank column, petty cash book
  • Other books: Purchases book, Sales Book, Purchases Returns Book, Sales Returns Book, Bills Receivable Book, Bills Payable Book and Journal Proper
  • Ledger – format, posting from Journal, Cash Book and other special purpose books, balancing of accounts
  • Trial balance: objectives and preparation
  • Bank Reconciliation Statement: need and preparation. Corrected cash book balance

Unit 4


Depreciation, Provisions and Reserves

  • 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, specific reserves and secret reserves.

Unit 5


Rectification of Errors

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

Unit 6


Financial Statements of Business Organizations

  • 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, manager's commission, abnormal loss, goods taken for personal use and goods distributed as free samples
  • Preparation of Trading and Profit and Loss Account and Balance Sheet of sole proprietorship.

Unit 7


Accounting for Bills of Exchange

  • Bills of exchange and promissory no definition, features, parties, specimen a distinction.
  • Important terms: term of bill, due date, days of grace, date of maturity, bill at sight, bill after date, discounting of bill, endorsement of bill, bill sent for collection, dishonor of bill, noting of bill, retirement and renewal of a bill, insolvency of acceptor
  • Accounting treatment of bill transaction

Unit 8


Financial Statements of Not-For-Profit Organizations

  • Not-for profit organizations:concept.
  • Receipts and payment account: features
  • Income and Expenditure Account: explain the meaning of Income and features. Preparation of Income and Expenditure Account and its features. Expenditure Accountand balance develop the understanding of preparing sheet from the given receipt and Income and Expenditure Account and Payment account with additional information.

Unit 9


Accounts from Incomplete Records

  • Incomplete records: uses and limitations
    • state the meaning of incomplete records and their uses and limitations.
  • Ascertainment of profit/loss by Statement of Affairs method.
    • develop the skill of computation of profit/loss using the Statement of Affairs method

Unit 10


Computers in Accounting

  • Introduction to Computer and Accounting Information system {AIS}
  • Application of computers in Accounting: automation of accounting process, designing accounting reports, MIS reporting, data exchange with other information systems.
  • Comparison of accounting process in manual and computerized accounting highlighting advantages and limitations of automation. Sourcing of accounting system: Readymade, customized and tailor-made accounting system. Advantages and disadvantages of each option.
  • Accounting system Accounting Management system. Concept relationship: relationships in an Accounting system: Designing and creating simple tables, forms, and reports in the context system.
  • Concept of Electronic Spreadsheet
  • Features offered by Electronic Spreadsheet Graphs, Charts and Diagrams