ledger and trial balance

248 Pages·2015·3.3 MB·English

Directorate of eDucation
Govt. of NCt of Delhi
Support Material
(2015-2016)
Class : XI
aCCOUNTaNCY
Under the Guidance of:
Ms. Punya Salila Srivastava
Secretary (Education)
Ms. Padmini Singla
Director (Education)
Dr. Sunita Shukla Kaushik
Addl. DE (School & Exam)
Coordinators :
Ms. Savita Drall Ms. Sharda Taneja Dr. Satish Kumar
DDE (Exam) OSD (Exam) OSD (Exam)
Production Team
Anil Kumar Sharma
Published at Delhi Bureau of Text Books, 25/2, Institutional Area, Pankha Road,
New Delhi-110 058, by D.K. upadhayay, Secretary, Delhi Bureau of Text Books
and Printed at Tan Prints (India) Pvt. Ltd., Distt. Jhajjar, Village Rohad, Haryana

Support Material preparation
teaM: 2015-16
accountancy: claSS Xi
S.No. Teacher & Designation Name of School
Designation
1 Sanjeev Kumar Vice Principal Govt. Boys Sr. Sec. School, Mata
Team Leader Sundari Road, New Delhi-110002
2 Hem Chand Lecturer Commerce Govt. Boys Sr. Sec. School, Chander
Nagar, Delhi-110051
3 Vinod Kumar Lecturer Commerce Govt. Boys Sr. Sec. School, Mata
Sundari Road, New Delhi-110002
4 Pradeep Kumar Lecturer Commerce Govt. Sarvodaya Bal Vidyalaya, Vivek
Vihar, Delhi-110095
1 [Class XI : Accountancy]
SuggeSted QueStion paper deSign accountancy
(code no. 055) claSS Xi (2015-16) March 2016
eXaMination
Marks 90 Duration: 3 hrs.
S. Typology of Ques- Very Short Short Long Long Marks %
No. tions Short Answer I Answer II Answer I Answer II
Answer 3 Marks 4 Marks 6 Marks 8 Marks
1 Mark
1 Remembering -
(Knowledge based
simple recall ques-
tions, to know specific
2 2 1 1 - 18 20%
facts, terms, concepts,
principles, or theories;
identify, define, or re-
cite information)
2 Understanding -
(Comprehension to
be familiar with mean-
ing and understand
- 1 1 2 1 27 30%
conceptually, interpret,
compare, contrast, ex-
plain, paraphrase, or
interpret information)
3 Application - (Use
abstract information
in concrete situation,
to apply knowledge
to new situations; Use - - 2 1 1 22 25%
given content to in-
terpret a situation,
provide an example or
solve a problem)
4 High Order Thinking
Skills - (Analysis &
Synthesis- Classify,
compare, contrast,
or differentiate be-
tween different pieces 2 2 1 1 - 18 20%
of information; Orga-
nize and/or integrate
unique pieces of infor-
mation from a variety
of sources)
[Class XI : Accountancy] 2
S. Typology of Ques- Very Short Short Long Long Marks %
No. tions Short Answer I Answer II Answer I Answer II
Answer 3 Marks 4 Marks 6 Marks 8 Marks
1 Mark
5 Evaluation - (Ap- 2 1 - - - 5 5%
praise, judge, and/or
justify the value or
worth of a decision or
outcome, or to predict
outcomes based on
values)
TOTAL 6×1 = 6 6×3 = 18 5×4 = 20 5×6 = 30 2×8 = 16 90 (24) 100
100%
Note: Scheme of options: All questions carrying 8 marks will have internal choice.
3 [Class XI : Accountancy]
CHAPTER-1
INTRODUCTION TO ACCOUNTING
According to 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.”
Accounting Principles Board (APB) defined accounting as follows. “Accounting
is a service activity. Its function is to provide quantitative information primarily
financial in nature, about economic entities that is intended to be useful in mak-
ing economic decisions in making reasoned choices among alternative courses
of action.”
In Simple words, accounting is the process of identifying, recording, classifying,
summarizing, interpreting and communicating financial information to the users
for judgment and decision-making.
Objectives of Accounting
1. To keep systematic and complete record of business transactions in the
books of accounts according to specified principles and rules to avoid
the possibility of omission and fraud.
2. To ascertain the profit earned or loss incurred during a particular accounting
period which further help in knowing the financial performance of a
business.
3. To ascertain the financial position of the business by means of financial
statement i.e. balance sheet which shows assets on one side and Capital
& Liabilities on the other side.
[Class XI : Accountancy] 4
4. To provide useful accounting information to users like owners, investors,
creditors, banks, employees and government authorities etc who analyse
them as per their requirements.
5. To provide financial information to the management which help in decision
making, budgeting and forecasting.
Advantages of Accounting
1. It provides information which is useful to management for making economic
decisions.
2. It help owners to compare one year’s results with those of other years
to know the factors which leads to changes.
3. It provide information about the financial position of the business by
means of balance sheet which shows assets on one side and Capital &
Liabilities on the other side.
4. It help in keeping systematic and complete record of business transactions
in the books of accounts according to specified principles and rules,
which is accepted by the Courts as evidence.
5. It help a firm in the assessment of its correct tax Liabilities such as
income tax, sales tax, VAT, excise duty etc.
6. Properly maintained accounts help a business entity in determining its
proper purchase price.
Limitations of Accounting
1. It is historical in nature, it does not reflect the current worth of a business.
Moreover, the figures given in financial statements ignore the effects of
changes in price level.
2. It contain only those information’s which can be expressed in terms of
money. It ignore qualitative elements such as efficiency of management,
quality of staff, customers satisfactions etc.
3. It may be affected by window dressing i.e. manipulation in accounts to
present a more favourable position of a business firm than its actual
position.
4. It is not free from personal bias and personal judgement of the people
dealing with it. For example different people have different opinions
5 [Class XI : Accountancy]