CBSE Class 11 NCERT 2023 Solution Accounts Chapter 1 Introduction to Accounting
Updates – Computerized Accounting system to acknowledge students with ICT, Details, and computation of GST, More conceptual understanding about accounting as an information system. To cope with the current scenario. CBSE has reduced the curriculum by 30%. The idea behind the revised syllabus is to allow students to cover the major topics in this adversity. The reduced course has been struck out and deleted from the 2021 syllabus chapter-wise. This subject will help students to maintain books of accounts, manage databases and make analytical decisions depending on it. CBSE Class 11 NCERT 2021 Solution Accounts Chapter 1 are provided below
Detailed Marking Scheme for Accounts Syllabus 2021
The detailed marking scheme of the Account subject is provided here. The CBSE has deleted some topics from the class 11 commerce accountancy syllabus for 2021. Students should avoid those deleted topics and primarily focus on high weightage chapters. CBSE Class 11 NCERT 2021 Solution Accounts Chapter 1 is important for students to clear their doubts.
- The XI class student should cover unit 2 first in the Accounts paper
- Should practice more problems from the exercises.
- Evaluation and presentation skill will be assessed in internal assessment
|Unit-1: Theoretical Framework
|Unit-2: Accounting Process
|Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records
|Unit-4: Computers in Accounting
|For all chapters
In this blog, we will understand the NCERT solution and explanation of all the illustrations of Introduction to Accounting Class 11 Chapter-1 of class 11 NCERT book. After understanding the entire chapter you will be able to get the solution for the following questions.
|Questions for Practice
1. Define accounting.
Ans. Accounting is a process of identifying, measuring,
recording the business transactions and communicating thereof the required
information to the interested users
2. State the end product of financial accounting?
3. Enumerate the main objectives of accounting.
4. Who are the users of accounting information?
5. State the nature of accounting information required by long-term lenders.
6. Who are the external users of information?
7. Enumerate information needs of management.
8. Give any three examples of revenues.
9. Distinguish between debtors and creditors; profit and gain
10. ‘Accounting information should be comparable’. Do you agree with this
statement? Give two reasons.
11. If the accounting information is not clearly presented, which of the qualitative
characteristic of the accounting information is violated?
12. “The role of accounting has changed over the period of time”- Do you agree?
13. Giving examples, explain each of the following accounting terms :
• Fixed assets • Revenue • Expenses
• Short-term liability • Capital
14. Define revenues and expenses?
15. What is the primary reason for business students and others to
familiarise themselves with the accounting discipline?
1. What is accounting? Define its objectives.
2. Explain the factors which necessitated systematic accounting.
3. Describe the informational needs of external users.
4. What do you mean by an asset and what are different types of assets?
5. Explain the meaning of gain and profit. Distinguish between these two terms.
6. Explain the qualitative characteristics of accounting information.
7. Describe the role of accounting in the modern world.
CBSE/NCERT Class 11 Accounts Chapter – 1, Introduction to Accounting | Definition & History
CBSE Class 11 NCERT 2021 Solution Accounts Chapter 1 is the gateway to accountancy, and a firm grasp on the relevant concepts is essential not only to this chapter but also to every form of accounting practice. Let’s take a look at the overview of all topics and Basic Accounting Definitions covered in our video.
According to the American Institute of Certified Public Accountants, “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character, and interpreting the results thereof.”
The Accounting Principles Board (APB) of AICPA(U.S.A) defined accounting as “Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that are intended to be useful in making economic decisions.”
In Simple words, accounting is the process of collecting, recording, classifying, summarising and communicating financial information to the users for judgment and decision-making.
CBSE/NCERT Class 11 Accounts Chap-1, Introduction To Accounting, Economic Event & Uses of Accounting
Business organisations involve economic events. An economic event is known as a happening of consequence to a business organisation which consists of transactions and which are measurable in monetary terms. For example,purchase of machinery, installing and keeping it ready for manufacturing is an event which comprises a number of financial transactions such as buying a machine, transportation of machine, site preparation for installation of a machine, expenditure incurred on its installation and trial runs. Thus,accounting identifies a bunch of transactions relating to an economic event. If an event involves transactions between an outsider and an organisation, these are known as external events. The following are the examples of such transactions:
An internal event is an economic event that occurs entirely between the internal wings of an enterprise, e.g., supply of raw material or components by the stores department to the manufacturing department, payment of wages to the employees, etc.
CBSE/NCERT Class 11 Accounts Chapter – 1, Accounting as a Source of Information, Lecture – 3
As discussed earlier, accounting is a definite process of interlinked activities,(refer figure 1.1) that begins with the identification of transactions and ends with the preparation of financial statements. Every step in the process of accounting generates information. Generation of information is not an end in itself. It is a means to facilitate the dissemination of information among different user groups. Such information enables the interested parties to take appropriate decisions. Therefore, the dissemination of information is an essential function of accounting. To be useful, the accounting information should ensure to:
CBSE/NCERT Class 11 Accounts Chap-1, Qualitative Characteristics of Accounting Information, Lect-4
Qualitative characteristics are the attributes of accounting information which
tend to enhance its understandability and usefulness. In order to assess
whether accounting information is decision-useful, it must possess the
characteristics of reliability, relevance, understandability and comparability.
Reliability means the users must be able to depend on the information. The
reliability of accounting information is determined by the degree of
correspondence between what the information conveys about the transactions or events that have occurred, measured and displayed. Reliable information should be free from error and bias and faithfully represents what it is meant to represent. To ensure reliability, the information disclosed must be credible, verifiable by independent parties use the same method of measuring, and be neutral and faithful
CBSE/NCERT Class 11 Accounts Chapter – 1, Objectives of Accounting, Lecture – 5
As an information system, the basic objective of accounting is to provide useful information to the interested group of users, both external and internal. The necessary information, particularly in case of external users, is provided in the form of financial statements, viz., profit and loss account and balance sheet. Besides these, the management is provided with additional information from time to time from the accounting records of the business.
CBSE/NCERT Class 11 Accounts Chapter – 1, Role of Accounting & Basic Terms Lecture – 6
For centuries, the role of accounting has been changing with the changes in
economic development and increasing societal demands. It describes and
analyses a mass of data of an enterprise through measurement, classification and summarization, and reduces those data into reports and statements, which show the financial condition and results of operations of that enterprise. Hence, it is regarded as the language of business. It also performs service activity by providing quantitative financial information that helps users in various ways. Accounting as an information system collects and communicates economic information about an enterprise to a wide variety of interested parties. However, accounting information relates to past transactions and is quantitative and financial in nature, it does not provide qualitative and non-financial information. These limitations of accounting must be kept in view while making use of the accounting information.
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