Updated On : April 3, 2023
If you appear for class 11 board exams, then going through some important questions will help enhance your preparation levels.
To ease out your preparation, we have provided chapter-wise Class 11 Accountancy Important Questions and Answers in this post. Solving these sample questions will let you understand the type of questions that can be asked in the exam.
Before starting the preparation, it is important to go through the detailed Class 11 Accountancy Syllabus, as this will help you know the important topics from the exam of view. The following are some of the important questions that you need to prepare from the introduction of the accounting topic.
Q) What is accounting?
Ans: According to the American Institute of Certified Public Accountants, Accounting is, ‘an art of recording, classifying and summarizing in a significant manner and terms of money, transactions and events, which are, in part at least, of a financial character, and interpreting the results thereof.’
Q) What are the functions of accounting?
Ans: Functions of accounting are
Q) What is the role of accounting?
Ans: Roles of accounting are
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Q) List the types of accounting?
Ans: The different types of accounting are
Q) Differentiate between debtors and creditors of a company?
Ans: Debtors of a company are the ones who owe the company, whereas Creditors of a company are the ones whom the company owes in monetary terms.
Q) Define Accountancy?
Ans: Accountancy is a body of knowledge prescribing definite rules to be observed while recording, classifying, and summarizing of transactions. It relies on both Book-keeping and accounting.
Solving Class 11 Accountancy Sample Papers will help you know the difficulty level of questions and the type of questions asked in the exam.
Q) What are the different bases of accounting?
Ans: Different bases of accounting are,
Q) State the differences between accrual and cash basis of accounting
Ans: 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 correct as it completes the record of transactions||Profit and loss are 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||It does not differentiate between capital and revenue items|
Q) What are the basic accounting equations? How do you calculate Capital and Liabilities?
Ans: Assets = Capital + Liabilities. It means that all the monetary value of a firm's assets is equal to the total claims, viz., Owners and insiders.
Q) Explain GST?
Ans: GST is a destination-based tax on the consumption of Goods and Services.
Q) What is IFRS?
Ans: International Financial Reporting Standards 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.
Q) What are the different types of liabilities?
Ans: The different types of liabilities are
Q) What are compound vouchers?
Ans: Compound vouchers are those vouchers that record different single or multiple debit/credit transactions.
Q) Define a journal voucher?
Ans: The preparation of accounting vouchers for multiple debit and credit transactions is known as a journal voucher.
Q) What is a complex transaction?
Ans: Transactions with multiple debits and credits are called complex transactions.
Q) State the rules that must be followed while recording differences in assets/expenses?
Ans: Two rules to be followed while recording differences in assets/expenses are:-
Q) List the rules to be followed while changing records in liabilities and capital change/revenue?
Ans: Two rules to be followed while changing a record in liabilities and capital change/revenue are:-
Q) What are the uses of vouchers?
Ans: Voucher is prepared for Cash received and paid Cash/Credit sales and Cash/Credit purchases.
Q) What do you call recording of a transaction?
Ans: Recording of a transaction is called journalizing.
Q) What is the format of a ledger?
Ans: The format of a ledger is as follows.
Q) What is the format of a journal?
Ans: The format of a journal is as follows
|Date||Particulars||L.F.||Debit Amount (in Rs)||Credit Amount(in Rs)|
Recording of Transaction needs a thorough understanding of the concepts.
Q) ____________ is also known as a subsidiary journal?
Q) What are the different types of day books?
Ans: The different types of daybooks maintained by accountants are as follows.
Q) To which account is the periodic total of the sales return journal posted?
Ans: The periodic total of sales return journal posted to Sales return account.
Q) List the different types of crossed cheques?
Ans: The four types of crossed cheques are as follows.
Q) What is the balancing of account?
Ans: Balancing of account means a difference in the total of debit & credit.
Q) 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
Ans: Cash deposited in our bank.
Q) What is the difference between a sales journal and purchase journal?
Ans: 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.
Q) What is a three column cash book?
Ans: A three column cash book has three columns for cash, discount and bank transactions.
Q) Write a note on the four types of cash books.
Ans: 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.
Check out the important question and answers for bank reconciliation statement below.
Q) Define the bank reconciliation statement?
Ans: 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.
Q) Debit balance in Passbook means ____________.
Ans: The debit balance in passbook means overdraft.
Q) What are the reasons for the difference between the company’s cash book and bank balance?
Ans: The reasons for the difference between the company’s cash book and bank balance are
Q) Why is the bank reconciliation statement important?
Ans: The bank reconciliation statement is important to determine the cause for the difference made on the part of the bank or customers side.
Q) What is bank overdraft?
Ans: Bank overdraft refers to taking money from bank accounts over the limits and the available balance goes below zero.
Q) What are the ways to prepare a Bank Reconciliation Statement?
Ans: The different ways to prepare a Bank Reconciliation Statement are given below.
Q) Explain correct cash balances?
Ans: 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.
Q) Which of the statement is not a part of the Double Entry System?
Ans: Bank Reconciliation Statement
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You have to focus more on topics like trail balance, suspense account, and significance of trail balance.
Q) What is a trial balance?
Ans: Trail balance is a statement balancing debt and credit from ledger account and is prepared at the end of a financial year.
Q) Debit balances are entered at the _____ side of the trail balance
Q) Explain the various classifications of errors.
Ans: Errors of commission – These occur when transactions are recorded wrongly or a totaling 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, they neutralize each other’s effect.
Q) 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
Ans: The wrong amount posted in the ledger account.
Q) While preparing a Trial balance which error cannot be disclosed?
Ans: While preparing a Trial balance which error cannot be disclosed is.
Q) Give an example of principal error?
Ans: A purchase of furniture is debited to purchase account instead of a furniture account.
Q) What are the limitations of a trial balance?
Ans: The limitations of trail balance are
Q) Define Depreciation. What causes depreciation?
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
Q) Define the term matching principle?
Ans: Matching principle is defined as revenue of any particular period should match the expense of the same period.
Q) What is ‘secret reserve?’
Ans: The amount by which the assets are understated or liabilities are overstated is termed as secret reserve.
Q) What are the different types of reserves?
Ans: 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.
Endorsement of bill, bill of exchange, renewal of bill are some of the important topics that you need to focus from bills of exchange topic.
Q) What is the bill of exchange?
Ans: 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.
Q) Explain the characteristics of the bill of exchange
Ans: The characteristics of the bill of exchange are.
Q) Liability for a discounted bill is
Ans: Contingent Liability
Q) What are the advantages of Promissory note?
Ans 4. The advantages of promissory note are as follows.
Q) Nothing charges are borne by ___________
Q) A promissory note is drawn and signed by the debtor. True or False?
Q) Explain retiring of bill?
Ans: 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.
This chapter covers concepts of financial statements, trading accounts, balance sheets etc. In addition it is important to learn the current liabilities, current and fixed assets, difference between revenue and capital expenditure, financial statements.
Q) Define Balance Sheet. Give two characteristics of the balance sheet.
Ans: 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.
Q) Define Net profit?
Ans: Net profit refers to the surplus of all the revenues overall expenses and losses of a company.
Q) Why should you prepare a trading account?
Ans: A trading account needs to be prepared for the following reasons.
Q) Describe EBIT
Ans: 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.
Q) Goodwill is
Ans : Intangible Asset
Q) Explain any five items of profit loss account.
Ans: The five items of profit loss account are
Q) Write the formula to calculate operating profit from net profit.
Ans: Operating Profit = Net Profit – Non-Operating Income + Non-Operating Expenses
Q) Write the formula to calculate the cost of goods sold.
Ans: Cost of goods sold = Sales – Gross Profit (Or)
Opening Stock + Purchases + Direct Expenses – Closing Stock
You have to focus more on topics like profit loss accounts, preparation of balance sheets, passing of journal entries, etc.
Q) Define outstanding expense?
Ans: 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.
Q) _____ journal account will be passed for outstanding salary.
Ans: Salary A/c Dr
Q) State why there is a provision for discount on debtors.
Ans: Provision for discount on debtors is allowed to encourage debtors to make prompt payments.
Q) Closing stock is shown in financial statement at ________________
Ans: Cost price or Realisable value whichever is less
Q) Give two examples of capital expenditure.
Ans: The two examples of capital expenditure are as follows.
Q) Use adjustment entries for the following
Closing stock, outstanding expenses, Income earned but not received, Income received in advance.
|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|
You will be given examples and asked to calculate capital, and profit/loss.
Q) Define incomplete record.
Ans: Incomplete record refers to those records which are not arranged according to the principles of double-entry.
Q) Give the reasons for keeping Incomplete Record.
Ans: The two reasons for keeping incomplete record are.
Q) Give two limitations of keeping Incomplete Record?
Ans: The two limitations of keeping incomplete record are.
Q) The single entry system account is maintained by ___________.
Ans: Sole Trader
Q) State the limitations of keeping incomplete records.
Ans: The two limitations of keeping incomplete record are.
Some important topics in this chapter are customized accounting software, tailor-made software, readymade accounting software, and computerized accounting system.
Q) Give two features of a computerized accounting system?
Ans 1. The two features of a computerized accounting system are.
Q) Give two advantages and disadvantages of a computerized accounting system.
Ans: The two advantages of a computerized accounting system are.
The two limitations of a computerized accounting system are.
Q) State two advantages of tailor-made software.
Ans: The two advantages of tailor-made software are.
Q) What is Customized software?
Ans: 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.
Q) ____________ oriented applications are used in computerized accounting system.
Q) Define data processing.
Ans: Data processing is the process of recording, classifying transforming data into useful information.
Q) What is an operation environment?
Ans: In computerized accounting system operating environment is a set of integrated software through which users work.
Go through the Class 11 important questions for structuring database.
Q) List the concepts of structuring database for accounting?
Ans: The three concepts of structuring database for accounting are.
Q) Define Data Processing Cycle?
Ans: Data processing cycle is a process of transforming the data into useful information for taking an important decision.
Q) What are the steps required in Data Processing Cycle?
Ans: The steps required in Data Processing Cycle are.
Q) What are the elements required for conceptualizing data model?
Ans: The elements required for conceptualizing data mode are.
You must have a thorough understanding about how to use a database management system works, queries etc.
Q) __________ query indicates an individual to access criteria for picking a collection of records.
Q) Which view is used to add a page number, date and time of the report?
Ans: Design View
Q) ________ is used to organize the record data into categories.
Ans: Sorting Data
Q) What is card sorting used for?
Ans: Card Sorting helps to organize the record data into categories.
Q) Which content of statements once recorded cannot be changed by the individuals?
Q) What are the features which of MS Access is capable of?
Ans: The capabilities of MS Access are listed below.
Q) Write the steps required to create a new database in Access?
Ans: The following steps are performed to create a new database in Access.
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