This article contains some important questions for Class 11 Accountancy. The questions have been given chapter-wise and the solutions are given below the questions in the same order. Other than the questions, the important topics have been mentioned along with the topics for which examples can be given and the candidate will be asked to solve it. It is important for candidates to be aware of the  Class 11 Accountancy Syllabus to better succeed in the exam.

Class 11 Accountancy Questions for Introduction to Accounting

In this chapter basic questions on the following topics are important.

  1. What is accounting? 
  2. What are the functions of accounting?
  3. What is the role of accounting
  4. List the types of accounting.
  5. Differentiate between debtors and creditors of a company.
  6. Define Accountancy.

Class 11 Accountancy Syllabus

Class 11 Accountancy Syllabus

Answers for Introduction to Accounting

Solving  Class 11 Accountancy Sample Papers will help candidates to improve the time-management skills and problem-solving skills. Candidates are advised to solve as many sample papers as possible.

Ans 1. According to the American Institute of Certified Public Accountants, Accounting is, ‘an 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.’

Ans 2. Functions of accounting are

  • Maintaining complete and systematic records
  • Trusteeship
  • Compliance of legal needs

Ans 3. Roles of accounting are

  • Role of language
  • Role of the historical record
  • Role of the service provider
  • Role of information system
  • Role of determining the net profit

Ans 4. The different types of accounting are

  • Financial Accounting
  • Cost Accounting
  • Management Accounting
  • Tax Accounting
  • Social responsibility Accounting

Ans 5. Debtors of a company are the ones who owe to the company whereas Creditors of a company are the ones whom the company owes in monetary terms.

Ans 6. Accountancy is a body of knowledge prescribing definite rules to be observed while recording, classifying, and summarising of transactions. It relies on both Book-keeping and accounting.

Class 11 Accountancy Questions for Theory Base of Accounting

  1. What are the different bases of accounting? 
  2. State the differences between accrual and cash basis of accounting
  3. What are the basic accounting equations? How do you calculate Capital and Liabilities?
  4. Explain GST.
  5. What is IFRS? 
  6. What are the different types of liabilities?

Answers for Theory Base of Accounting

Ans 1. Different bases of accounting are,

  • Cash basis
  • Accrual basis

Ans 2. The differences between accrual and cash basis of accounting are as follows.

Sl. no. Accrual Basis of accounting Cash basis of accounting
1 Profit and loss is considered correctly as it completes record of transactions Profit and loss is not considered, only cash transactions are recorded
2 Both cash and credit transactions are recorded Only cash transactions are recorded
3 The companies act is considered  The companies act is not considered 
4 Differentiates between capital and revenue items Does not differentiate between capital and revenue items

Ans 3. Assets = Capital + Liabilities. It means that all the monetary value of all assets of a firm is equal to the total claims viz. Owners and insiders.

Ans 4. GST is a destination based tax on consumption of Goods and Services.

Ans 5. International Financial Reporting Standard s or IFRS assists in bringing global standardization by the use of single accounting standards. IFRS can be created by International Accounting Standards Board or IASB.

Ans 6.The different types of liabilities are

  • Internal liabilities
  • External liabilities
  • Current liabilities
  • Non-current liabilities

Class 11 Accountancy Questions for Recording of Transactions -1

  1. What are compound vouchers?
  2. Define a journal voucher.
  3. What is a complex transaction?
  4. State the rules that need to be followed while recording differences in assets/expenses.
  5. List the rules to be followed while changing records in liabilities and capital change/revenue.
  6. What are the uses of vouchers?
  7. What do you call recording of a transaction?
  8. What is the format of a ledger?
  9. What is the format of a journal?

Answers for Recording of Transactions -1

Ans 1. Compound vouchers are those vouchers that record different single or multiple debit/credit transactions.

Ans 2. Preparation of accounting vouchers for multiple debit and credit transactions is known as a journal voucher.

Ans 3. Transactions with multiple debits and credits are called complex transactions.

Ans 4. Two rules to be followed while recording differences in assets/expenses are:-

  • A rise in an asset is debited, and the drop in the asset is credited.
  • A Rise in expenses/losses is debited, and the drop in expenses/ losses is credited.

Ans 5. Two rules to be followed while changing a record in liabilities and capital change/revenue are:-

  • A rise in the liabilities is credited and the drop in liabilities is debited.
  • A rise in the capital is credited and the drop in the capital is debited.

Ans 6. Voucher is prepared for Cash received and paid Cash/Credit sales, and Cash/Credit purchases.

Ans 7. Recording of a transaction is called journalizing.

Ans 8. The format of a ledger is as follows.

Date Particulars J.F Amount(Dr) Date Particulars J.F Amount(Cr)

Class 11 Accountancy Syllabus 2020

Class 11 Accountancy Syllabus 2020

Ans 9. The format of a journal is as follows

Date Particulars L.F. Debit Amount (in Rs) Credit Amount(in Rs)

Class 11 Accountancy Questions for Recording of Transactions -2

This chapter needs a thorough understanding of the concepts. Some important questions are given below. Candidates are advised to refer 11th Commerce Books that cover all the topics as per the latest syllabus and exam pattern. Also, learn the format of a petty cash account and understand how to enter the cash transactions in cash books as you may be given sample transactions and asked to enter in a cash book format.

  1. ____________ is also known as a subsidiary journal
  2. What are the different types of day books?
  3. To which account is the periodic total of the sales return journal posted?
  4. List the different types of crossed cheques.
  5. What is the balancing of account?
  6. The credit balance of bank account in cash book shows: Overdraft, Cash deposited in our bank, Cash is withdrawn from the bank, None of these
  7. What is the difference between a sales journal and purchase journal?
  8. What is a three column cash book?
  9. Write a note on the four types of cash books.

Answers for Recording of Transactions -2

Ans 1. Cashbook.

Ans 2. The different types of daybooks maintained by accountants are as follows.

Purchase book

  • Sales return book (Return inwards)
  • Journal paper
  • Purchase return book (Return outwards)
  • Sales book
  • Cash book

Ans 3. The periodic total of sales return journal posted to Sales return account.

Ans 4. The four types of crossed cheques are as follows.

  • Parallel crossed cheques
  • Crossed cheques with company name
  • Crossed cheques not negotiable
  • Crossed cheques with bank name

Ans 5. Balancing of account means a difference in the total of debit & credit.

Ans 6. Cash deposited in our bank.

Ans 7. A Sales journal is a journal in which only credit sales are recorded whereas a Purchase journal is a journal in which only credit purchases are recorded.

Ans 8. A three column cash book has three columns for cash, discount and bank transactions. 

Ans 9.The four types of cash books are as follows.

Single column cash book – It has a single column of amount on each debit and credit side.

Double column cash book – It has two columns of amount on both debit and credit side.

Three column cash book - It has three columns one each for cash, discount and bank transaction on both debit and credit side.

Petty cash book – Big companies have large number of small transactions which are all clubbed together to form a petty cash book.

Class 11 Accountancy Questions for Bank Reconciliation statement

Important questions for this chapter are given below. You also need to go through favorable balance, correct cash balance, timing difference. You can also be asked to prepare a reconciliation statement for sample problems.

  1. Define the bank reconciliation statement
  2. Debit balance in Passbook means ____________.
  3. What are the reasons for the difference between the company’s cash book and bank balance?
  4. Why is the bank reconciliation statement important?
  5. What is bank overdraft?
  6. What are the ways to prepare a Bank Reconciliation Statement?
  7. Explain correct cash balances.
  8. Which of the statement is not a part of the Double Entry System?
  9. Cash Book
  10. Trial Balance
  11. Journal
  12. Bank Reconciliation Statement

Answers for Bank Reconciliation statement

Ans 1. Bank Reconciliation Statement is a record book of the transactions of a bank account. It reconciles the difference between the company’s cash book and bank balance.

Ans 2. The debit balance in passbook means overdraft.

Ans 3. The reasons for the difference between the company’s cash book and bank balance are

  • Bank issued cheque but not yet deposited for payment
  • Paid cheque in the bank but yet not cleared

Ans 4. The bank reconciliation statement is important to determine the cause for the difference made on the part of the bank or customers side.

Ans 5. Bank overdraft refers to taking money from bank accounts over the limits and the available balance goes below zero.

Ans 6. The different ways to prepare a Bank Reconciliation Statement are given below.

  1. It can be prepared without adjusting the balance in the cash book.
  2. It can be prepared after adjusting the balance in the cash book.

Ans 7. Errors that occur during receipts and payments made in books need to be rectified. Computation of correct cash balance is done before reconciliation of statement so that these errors which happen during recording of receipts and payments are rectified.

Ans 8. Bank Reconciliation Statement

Class 11 Accountancy Questions for Trial Balance and Rectification of Errors

In this chapter the main topics are Trail balance and errors. Problems can come asking you to rectify a sample journal entry so the concept has to be clear. You also need to go through preparation of trail balance, suspense account, significance of trail balance.

  1. What is a trial balance?
  2. Debit balances are entered at the _____ side of the trail balance
  3. Explain the various classifications of errors.
  4. Select the correct error that is revealed by the Trial balance: The wrong amount entered in to book of original entry; The wrong amount posted in the ledger account; The complete omission of an entry from the book of original entry; None of the above
  5. While preparing a Trial balance which error cannot be disclosed? 
  6. Give an example of principal error.
  7. What are the limitations of a trial balance?

Answers for Bank Trial Balance and Rectification of Errors

Ans 1. Trail balance is a statement balancing debt and credit from ledger account and is prepared at the end of a financial year.

Ans 2. Debit

Ans 3. Errors of commission – These occur when transactions are recorded wrongly or a totalling of transaction is wrong or transactions are casted wrongly or balancing a transaction goes wrong.

Error of omission – errors occurring due to omission of a record which can be entirely or partly in the account

Errors of Principle – Errors caused due to inaccurate placements of payment and receipt between revenue and capital receipts and revenue and capital expenditure.

Compensating errors – When two or more errors occur such that they neutralize each other’s effect.

Ans 4.The wrong amount posted in the ledger account.

Ans 5. While preparing a Trial balance which error cannot be disclosed is.

  • Error of Omission
  • Error of Commission

Ans 6. A purchase of furniture is debited to purchase account instead of a furniture account. 

Ans 7. The limitations of trail balance are

  1. If an entry is not entered in the journal it will not be shown in any of the ledge account. It will make no difference in the trail balance.
  2. If an entry is done in the wrong account but at correct side it will not affect the trail balance.
  3. If a wrong amount is entered in the journal it cannot be identified through trail balance.
  4. If entry is not allocated in proper account it will make no difference in trail balance.

Class 11 Accountancy Questions for Depreciation, Provisions and Reserves

  1. Define Depreciation. What causes depreciation?
  2. Define the term matching principle.
  3. What is ‘secret reserve?’
  4. What are the different types of reserves?

Answers for Depreciation, Provisions and Reserves

Ans 1. Depreciation is defined as continuing or permanent decrease in the quantity, value, and quality of assets. It is caused by

By constant use

By the expiry of a time

Ans 2. Matching principle is defined as revenue of any particular period should match the expense of the same period.

Ans 3. The amount by which the assets are understated or liabilities are overstated is termed as secret reserve.

Ans 4. The types of reserves are

General reserve and specific reserve: General reserve is created as free reserve so the company can use this reserve for any purpose whereas specific reserve is prepared for a specific purpose such as workmen compensation etc.

Capital reserve and revenue reserve: Capital reserve is created from profit from capital and they do not arise operating activities of the business. They are not available for distribution of dividend. While revenue reserves are created from operating activities of the business. They can be used for writing off capital losses or issue of bonus.

Class 11 Accountancy Syllabus PDF

Class 11 Accountancy Syllabus PDF

Class 11 Accountancy Questions for Bills of Exchange

Some important questions from Bills of Exchange are given below. Other important topics are endorsement of bill, bill of exchange, renewal of bill. Candidates can expect examples of proceeds of third party discount notes.

  1. What is the bill of exchange?
  2. Explain the characteristics of the bill of exchange
  3. Liability for a discounted bill is a
    1. Contingent Liability
    2. Fixed Liability
    3. Current Liability
    4. None of the above
  1. What are the advantages of Promissory note?
  2. Nothing charges are borne by ___________
  3. A promissory note is drawn and signed by the debtor. True or False?
  4. Explain retiring of bill.

Answers for Bills of Exchange

Ans 1. Bill of exchange is a written document signed by the head of the department or the makers guiding them to pay a certain amount for the order of a certain individual or the bearer of the device.

Ans 2. The characteristics of the bill of exchange are.

  • A bill of exchange should be in writing
  • The order must be unconditional
  • The date of payment must be a fixed date
  • It should be signed by the drawee of the bill
  • It should be signed by the drawer of the bill

Ans 3. Contingent Liability

Ans 4. The advantages of promissory note are as follows.

  1. A promissory note can be used to borrow money even if the borrower doesn’t have good credit rating.
  2. It can be used as a payment assurance in case of a borrowing.
  3. It can be secured or unsecured.
  4. It allows payment in monthly, quarterly, half yearly or yearly instalment.
  5. It provides higher interest rate than a bank deposit.
  6. A secure promissory note will have low risk.

Ans 5. Drawee

Ans 6. True

Ans 7. If a drawee has excess money at his disposal he asks the drawer to accept the payment before maturity period and if the drawer agrees on it will be considered as retiring of bill.

Class 11 Accountancy Questions for Financial Statements -1

This chapter contains very important concepts of financial statements, trading accounts, balance sheets etc. Some important questions are listed below. In addition it is important to learn the current liabilities, current and fixed assets, difference between revenue and capital expenditure, financial statements.

  1. Define Balance Sheet. Give two characteristics of the balance sheet.
  2. Define Net profit.
  3. Why should you prepare a trading account?
  4. Describe EBIT
  5. Goodwill is
    1. Current Asset
    2. Tangible Asset
    3. Intangible Asset
    4. Fictitious Asset
  1. Explain any five items of profit loss account.
  2. Write the formula to calculate operating profit from net profit.
  3. Write the formula to calculate the cost of goods sold.

Answers for Financial Statements -1

Ans 1. A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major groups in which it is categorized, namely, assets, which is classified into Non – Current Assets and Current assets. Current Assets are such assets which are easily transformed into cash. On the other hand, the Non – Current Assets are such types of assets with the assistance of which the enterprise operates the enterprise.

 The two characteristics of the balance sheet are as follows.

  • Determine the financial position of the enterprise on a specific date
  • The balance sheet has two sides Assets and Liabilities

Ans 2. Net profit refers to the surplus of all the revenues overall expenses and losses of a company.

Ans 3. A trading account needs to be prepared for the following reasons.

  1. To keep track of gross profit and loss of company.
  2. To know information about the stock of the company.
  3. It provides information regarding factory expense
  4. To inform company about the direct expense in relation to operation.

Ans 4. Operating profit is the excess of operating revenue over operating expense. In other words operating profit is the profit obtained by operation activities. Operating profit is also considered as EBIT – earnings before interest and tax. It is calculated by adding net profit to non operating expenses and then subtracting non operating income. 

Ans 5. Intangible Asset

Ans 6. The five items of profit loss account are

  1. Salaries – The salaries paid to the employees for administrative purpose. It includes the cash salary and salary paid in kind of accommodation, rent, transport, medical etc.
  2. Commission paid – commission paid to the agent for selling the goods
  3. Electricity and power – electricity and power charges of office
  4. Rent – rent of office building
  5. Miscellaneous – small expenses clubbed as miscellaneous.

Ans 7. Operating Profit = Net Profit – Non-Operating Income + Non-Operating Expenses

Ans 8. Cost of goods sold = Sales – Gross Profit

Or

Opening Stock + Purchases + Direct Expenses – Closing Stock

Class 11 Accountancy Questions for Financial Statements -2

This chapter contains very important concepts of financial statements, prepaid expenses, balance sheets etc. Some important questions are listed below. In addition to these, preparation of profit loss accounts, preparation of balance sheets, passing of journal entries should be understood as examples will be given and you would be asked to prepare.

  1. Define outstanding expense.
  2. _____ journal account will be passed for outstanding salary.
  3. State why there is a provision for discount on debtors.
  4. Closing stock is shown in financial statement at ________________
  1. Cost Price
  2. Realisable Value
  3. Cost price or Realisable value whichever is greater
  4. Cost price or Realisable value whichever is less
  1. Give two examples of capital expenditure.
  2. Use adjustment entries for the following 

Closing stock, outstanding expenses, Income earned but not received, Income received in advance.

Answers for Financial Statements -2

Ans 1. Outstanding expenses are those expenses which have been acquired during a given period of time but have left unpaid till the date of preparing a financial statement.

Ans 2. Salary A/c Dr.

Ans 3. Provision for discount on debtors is allowed to encourage debtors to make prompt payments.

Ans 4. Cost price or Realisable value whichever is less

Ans 5. The two examples of capital expenditure are as follows.

  1. Purchase of Machinery
  2. Expenditure on the installation of Machinery

Ans 6. 

Adjustment Adjustment entry  Treatment in Balance sheet
Closing stock Closing stock a/c Dr. To Trading a/c Shown on asset side
Outstanding expenses Expenses a/c Dr. To Outstanding expenses a/c Shown on liabilities side
Income earned but not received Accrued income a/c Dr. To Income a/c Shown on asset side
Income received in advance Income a/c Dr. To Income received in advance a/c Shown on liabilities side
Depreciation Depreciation a/c Dr. To Asset a/c Deduction from the value of asset
Manager’s Commission Manager’s commission a/c Dr. To Outstanding commission a/c Shown on liabilities side

Class 11 Accountancy Questions for Accounts of Incomplete Records

The important questions for the chapter are given below. You can be given examples and asked to calculate capital, profit/loss.

  1. Define incomplete record.
  2. Give the reasons for keeping Incomplete Record.
  3. Give two limitations of keeping Incomplete Record?
  4. The single entry system account is maintained by ___________.
  5. State the limitations of keeping incomplete records.

Answers for Accounts of Incomplete Records

Ans 1. Incomplete record refers to those records which are not arranged according to the principles of double-entry.

Ans 2. The two reasons for keeping incomplete record are.

  • Convenient Method- It is an easy and uncomplicated method of registering the company’s transactions as it does not demand any individual knowledge of the principles of double-entry
  • Limited resources required – Since only cash book and few ledger accounts are recorded in this system, the staff required for support is also smaller as compared to the double-entry system.

Ans 3. The two limitations of keeping incomplete record are.

Ans 4. Sole Trader

Ans 5. The two limitations of keeping incomplete record are.

  • Trial Balance preparation is not possible- This system does not record both the debit and credit aspect of a transaction. Due to which the trial balance cannot be prepared and the accuracy of the financial transaction cannot be rectified.
  • Incomplete system- It is incomplete because of the fact that this system does not record both the aspect of a transaction (credit & debit). Also, this system does not follow any set of rules.

Ans 6. The difference between statement of affairs and balance sheet is as follows.

Sl no. Statement of affairs Balance sheet
1.  It is prepared from incomplete records It is prepared from double entry records
2. It is not a part of financial statement It is a part of financial statement
3. It is used to estimate the balance in the capital account on a particular date It is used to determine true value of the financial position of the firm
4. Detecting omission of any assets or liabilities is not easy in it Omission can be easily detected through balance sheet

Ans 7. Performa for ascertaining profit and loss of a company by statement of affairs

Particular Amount
Ending capital ---------------
Add: Drawings during the year ---------------
Less: Additional capital introduced during the year ---------------
Adjusted capital at the end of the year ---------------
Less: beginning capital ---------------
Profit or loss during year ---------------

Class 11 Accountancy Questions for Applications of Computers in Accounting

Some important topics in this chapter are customized accounting software, tailor-made software, readymade accounting software and computerized accounting system. Some important questions are discussed below.

  1. Give two features of a computerized accounting system.
  2. Give two advantages and disadvantages of a computerized accounting system.
  3. State two advantages of tailor-made software.
  4. What is Customized software?
  5. ____________ oriented applications are used in computerized accounting system.
  6. Define data processing.
  7. What is an operation environment?

Answers for Computerised Accounting System

Ans 1. The two features of a computerized accounting system are.

  • It facilitates on-line input and storage of accounting data
  • It generates a print-out of purchase and sale invoices

Ans 2. The two advantages of a computerized accounting system are.

  • High Speed
  • High Reliability

The two limitations of a computerized accounting system are.

  • Staff Opposition
  • High Cost of Training

Ans 3. The two advantages of tailor-made software are.

  • The secrecy of data is massive
  • It can be developed according to the customer’s requirement

Ans 4. Customized software is described as making changes in the ready to use software according to the customers need. Any ready to use software can be modified according to the needs of the user.

Ans 5. Database

Ans 6. Data processing is the process of recording, classifying transforming data into useful information.

Ans 7. In computerized accounting system operating environment is a set of integrated software through which users work.

Class 11 Accountancy Questions for Structuring Database for Accounting

  1. 1. List the concepts of structuring database for accounting.
  2. Define Data Processing Cycle.
  3. What are the steps required in Data Processing Cycle?
  4. What are the elements required for conceptualizing data model?

Answers for Structuring Database for Accounting

Ans 1. The three concepts of structuring database for accounting are.

  • Documentation of Transaction
  • Computerized Accounting
  • Accounting Database

Ans 2. Data processing cycle is a process of transforming the data into useful information for taking an important decision.

Ans 3. The steps required in Data Processing Cycle are.

  • Sources of document
  • Input of data
  • Data Storage
  • Manipulation of Data
  • Output of Data

Ans 4. The elements required for conceptualizing data mode are.

  • Reality
  • ER Design
  • Relational Data Model
  • Normalization
  • Refinement

Class 11 Accountancy Questions for Accounting System Using Database Management System

The following questions are important in this chapter. Be thorough with how to use a database management system works, queries etc.

  1. __________ query indicates an individual to access criteria for picking a collection of records.
  2. Which view is used to add a page number, date and time of the report?
  3. ________ is used to organize the record data into categories.
  4. What is card sorting used for?
  5. Which content of statements once recorded cannot be changed by the individuals?
  6. What are the features which of MS Access is capable of?
  7. Write the steps required to create a new database in Access.

Answers for Accounting System Using Database Management System

Ans 1. Parameter

Ans 2. Design View

Ans 3. Sorting Data

Ans 4. Card Sorting helps to organize the record data into categories.

Ans 5. Snapshot

Ans 6.The capabilities of MS Access are listed below.

  • It helps in storing data in an organized way
  • Supports various views of data and information
  • Provides data sharing and different user transaction processing.

Ans 7. The following steps are performed to create a new database in Access.

  •  Open the access window. Choose blank access database, and click OK button.
  • Click the displayed new file database dialogue box, this will enable the user to enter the file name and set a location for the database. Now click Create button.
  • If the task pane does not open, you can choose the file from the menu bar and click open to open a task pane and create a new database.

FAQ's

Which are the best books to study for Class 11 accountancy?

Ultimate book of accountancy, T.S. Grewal Double entry book keeping, Oswal CBSE question bank, CBSE All in one Accountancy class 11 are some good books for accountancy.

What is the best preparation strategy for accountancy?

Regular study, practice questions, solving question papers and not keeping things for the last minute will be the best preparation method for the exam.

Will there be practical problems in the exam?

Yes. Problem based questions can come in the exam. Refer to the tips before the questions in each chapter for topics on which problem based questions can come.

What is the most important thing for problem based questions?

If you have understood the concept for e.g. preparation of a balance sheet, and remember the format you will certainly be able to solve the example.

How many chapters are there in Class 11 Accountancy subject?

There are a total of 15 chapters in Class 11 Accountancy subject. Some of them are i.e. Introduction to Accounting, Theory Base of Accounting, Recording of Transaction - I, Recording of Transaction - II, Bank Reconciliation Statement, Trial Balance and Rectification of Errors, Depreciation, Provision, and Reserves, Bill of Exchange.

Which is the best book for studying Class 11 Accountancy Syllabus?

Some of the most recommended Class 11 Accountancy Books are:

  • Accountancy Financial Accounting Part - 1 Textbook for Class - 11… NCERT. ...
  • Accountancy Financial Accounting Part - 2 for Class - 11- 11112. NCERT. ...
  • Accountancy Class- XI. D.K. Goel. ...
  • Business Studies Textbook for Class - 11 - 11108. NCERT. ...
  • NCERT. Paperback

How many units are there in Class 11 Accountancy Syllabus?

There are a total of four units that are divided into 2 parts:

  • PART A: Financial Accounting - 1: Unit-1: Theoretical Framework; Unit-2: Accounting Process
  • PART B: Financial Accounting - 2: Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records; Unit-4: Computers in Accounting