Accountancy Notes

Arinjay Academy’s Accountancy Notes for Class 11 and Class 12 cover detailed Notes, Practice Questions and their solution for Class 11 and Class 12 Students.

We provide various notes, relevant to Student of Class 11 and Class 12, who may be studying in CBSE Board, ICSE, ISC or State board.

Accountancy Notes are in an interesting and easy-to-understand manner. Every effort has been made to clear every concept in a simple or easy language.

We hope that these notes will help in your studies and clear all your doubts.

Accountancy Notes – Class 11

The syllabus of class 11th accounts comprises of the following chapters. We have prepared various notes along with detailed questions and their solution, relevant for the student of Accounts class 11, who may be studying in CBSE, ISC or as per the NCERT syllabus. Each of these notes have been given under the particular chapter, which you can click and read : –

Chapter 1 – Introduction to Accounting

1. Meaning of Accounting
2. Accounting as a Source of Information
3. Objectives of Accounting
4. Role of Accounting
5. Basic Terms in Accounting – Meaning of Account

Chapter 2 – Theory Base of Accounting Accountancy Class 11 Notes

1. Generally Accepted Accounting Principles (GAAP)
2. Basic Accounting Concepts
3. Systems of Accounting – Singe Entry System
4. Basis of Accounting
5. Accounting Standards

Chapter 3 – Recording of Transactions

1. Business Transactions and Source Document
2. Accounting Equation
3. Using Debit and Credit  
   • Rules of Debit and Credit
4. Books of Original Entry – Click for Journal in Accounts
5. The Ledger
6. Posting from Journal

Chapter 4 – Recording of Transactions Accountancy Class 11 Notes

1. Cash Book
2. Purchases (Journal) Book
3. Purchases Return (Journal) Book
4. Sales (Journal) Book
5. Sales Return (Journal) Book
6. Journal Proper
7. Balancing the Accounts

Chapter 5 -Bank Reconciliation Statement

1. Need for Reconciliation
2. Preparation of Bank Reconciliation Statement
   • Renewal of Bill of Exchange
   • Accounting for Bills of Exchange
   • Bills of Exchange Questions and Answers
   • Dishonour of Bill Accounts
   • Calculation of due date of bill of exchange
   • Practice Questions and Solutions  Bank Reconciliation Statement

Chapter 6 -Trial Balance and Rectification of Errors

1. Meaning of Trial Balance
2. Objectives of Preparing the Trial Balance
3. Preparation of Trial Balance – Trial Balance Questions 
4. Significance of Agreement of Trial Balance
5. Searching of Errors
6. Rectification of Errors

Chapter 7 – Depreciation, Provisions and Reserves Accountancy Class 11 Notes

1. Depreciation and other Similar Terms
2. Causes of Depreciation
3. Need for Depreciation
4. Factors Affecting the Amount of Depreciation
5. Methods of Calculating Depreciation Amount
6. Straight Line Method and Written Down Method
7. Comparative Analysis
8. Methods of Recording Depreciation
9. Disposal of Asset
10. Effect of any Addition or Extension to the Existing Asset
11. Provisions
12. Reserves
13. Secret Reserve

Chapter 8 – Bill of Exchange Accountancy Class 11 Notes

1. Bill of Exchange
2. Promissory Note
3. Advantages of Bill of Exchange
4. Maturity of Bill – Calculating Due date of Bill of Exchange
5. Discounting and Endorsement of Bill
6. Accounting Treatment
7. Dishonor of a Bill
8. Renewal of the Bill
9. Retiring of the Bill

Accountancy Notes – Class 12

The syllabus of class 12th accounts comprises of the following chapters. We have prepared various notes along with detailed questions and their solution, relevant for the student of Accounts class 12, who may be studying in CBSE, ISC or as per the NCERT syllabus. Each of these notes have been given under the particular chapter, which you can click and read : –

Accountancy Part I 

Chapter 1 – Accounting for Not-for-Profit Organisation

1. Meaning and Characteristics of Not-for-Profit Organisation
2. Accounting Records of Not-for-Profit Organisations
3. Receipt and Payment Account
4. Income and Expenditure Account
5. Balance Sheet
6. Some Peculiar Items

Chapter 2 – Accounting for Partnership:  Basic Concepts

1.  Nature of Partnership
2.  Partnership Deed
3.  Special Aspects of Partnership Accounts
4.  Maintenance of Capital Accounts of Partners
5.  Distribution of Profit among Partners
6.  Guarantee of Profit to a Partner – Click here for our Video on Guarantee of Profits to a Partner
7.  Past Adjustments

Chapter 3 Reconstitution of a Partnership Firm – Admission  of a Partner

1. Modes of Reconstitution of a Partnership Firm
2. Admission of a New Partner
3. New Profit Sharing Ratio
4. Sacrificing Ratio
5. Goodwill
6. Adjustment for Accumulated Profits and Losses and Capitals
7. Revaluation of Assets and Reassessment of Liabilities
8. Change in Profit Sharing Ratio among the Existing Partners

For more example and Solutions on Distribution of Profits amongst Partners, you can Click Here

Chapter 4 – Reconstitution of a Partnership Firm   

1. Retirement/Death of a Partner
2. Ascertaining the Amount Due to Retiring/Deceased Partner
3. New Profit Sharing Ratio
4. Gaining Ratio
5. Treatment of Goodwill
6. Adjustment for Revaluation of Assets and Liabilities/Adjustment of Accumulated Profits and Losses
7. Disposal of Amount Due to Retiring Partner
8. Adjustment of Partners’ Capitals
9. Death of a Partner

Chapter 5 Dissolution of Partnership Firm

1. Dissolution of Partnership
2. Dissolution of a Firm
3. Settlement of Accounts
4. Accounting Treatment

Accountancy Part II

Chapter  1 – Accounting for Share Capital

1. Company and its Characteristics
   Company formation
2. Kinds of Companies
3. Share Capital of a Company
4. Nature and Classes of Shares
5. Issue of Shares
6. Accounting Treatment
7. Forfeiture of Shares

Chapter  2 –  Issue and Redemption of Debentures

1. Meaning of Debentures
2. Distinction between Shares and Debentures
3. Types of Debentures
4. Issue of Debentures
5. Over Subscription of Debentures
6. Terms of Issue of Debentures
7. Interest on Debentures
8. Writing off Discount/Loss on Issue of Debentures
9. Redemption of Debentures

Chapter  3 –  Financial Statements of a Company

1. Meaning and Nature of Financial Statements
2. Objectives of Financial Statements
3. Types of Financial Statements
4. Uses and Importance of Financial Statements
5. Limitations of Financial Statements

Chapter  4 –  Analysis of Financial Statements

1. Meaning of Analysis of Financial Statements
2. Significance of Analysis of Financial Statements
3. Objectives of Analysis of Financial Statements
4. Tools of Analysis of Financial Statements
5. Comparative Statements
6. Comparative Balance Sheet
7. Limitations of Financial Analysis

Chapter  5 – Accounting Ratios

1. Meaning of Accounting Ratios
2. Objectives of Ratio Analysis
3. Advantages of Ratio Analysis
4. Limitations of Ratio Analysis
5. Types of Ratios
6. Liquidity Ratios
7. Solvency Ratios 
8. Activity (or Turnover) Ratio
9. Profitability Ratios

Chapter 6 – Cash Flow Statement

1. Objectives and Benefits of Cash Flow Statement
2. Cash, Cash Equivalents and Cash flows
3. Ascertaining Cash Flow from Operating Activities
4. Ascertainment of Cash Flow from Investing
5. Cash Flow and Financing Activities
6. Preparation of Cash Flow Statement