CBSE Class 11 Accountancy Revision Notes for All Chapters
CBSE Class 11 Accountancy Revision Notes explain the concepts and procedures used to record transactions and prepare financial statements. The notes cover all nine chapters from NCERT Financial Accounting Parts I and II for the 2026–27 academic year.
Accountancy begins with the meaning and purpose of accounting. It then develops a complete process that includes identifying transactions, preparing vouchers, recording entries, posting them to ledgers and preparing financial statements.
Use these CBSE Class 11 Accountancy Revision Notes to revise definitions, formats, rules and numerical procedures. Students should practise each format after reviewing the related concept.
Key Takeaways
- Nine chapters: Seven chapters appear in Financial Accounting Part I and two in Part II.
- 80 theory marks: Financial Accounting-I and Financial Accounting-II form the theory portion.
- 20 project marks: Project Work forms the remaining part of the 100-mark course.
- Complete accounting cycle: The course moves from source documents to final accounts and adjustments.
Access CBSE Class 11 Accountancy Revision Notes in 30 Minutes
Revise the subject in three parts:
- First 10 minutes: Accounting terms, principles, accounting equation and debit-credit rules
- Next 10 minutes: Journal, ledger, cash book, subsidiary books, bank reconciliation and trial balance
- Final 10 minutes: Depreciation, provisions, reserves, final accounts and adjustments
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Chapter-Wise Class 11 Accountancy Notes
The current NCERT Accountancy course contains nine chapters across two books.
| Chapter | Chapter Name | Main Concepts |
| 1 | Introduction to Accounting Revision Notes | Meaning, objectives, users, role and accounting terms |
| 2 | Theory Base of Accounting Revision Notes | Principles, concepts, systems, basis and standards |
| 3 | Recording of Transactions - I Revision Notes | Source documents, accounting equation, journal and ledger |
| 4 | Recording of Transactions - II Revision Notes | Cash book, subsidiary books, journal proper and balancing |
| 5 | Bank Reconciliation Statement Revision Notes | Causes of differences and reconciliation preparation |
| 6 | Trial Balance and Rectification of Errors Revision Notes | Trial balance, errors, suspense account and corrections |
| 7 | Depreciation, Provisions and Reserves Revision Notes | Depreciation methods, disposal, provisions and reserves |
| 8 | Financial Statements - I Revision Notes | Trading Account, Profit and Loss Account and Balance Sheet |
| 9 | Financial Statements - II Revision Notes | Adjustments in final accounts |
Financial Accounting Part I Notes
Financial Accounting Part I establishes the rules and recording procedures required before final accounts can be prepared.
Introduction to Accounting Class 11 Notes
Accounting is the process of identifying, measuring, recording, classifying, summarising, analysing, interpreting and communicating financial information.
Its main purpose is to provide useful information about a business to interested users.
Functions of Accounting
The accounting process includes:
- Identifying: Selecting transactions and events that have a financial effect.
- Measuring: Expressing the selected transaction in monetary terms.
- Recording: Entering the transaction systematically in the books.
- Classifying: Grouping similar transactions in ledger accounts.
- Summarising: Preparing trial balances and financial statements.
- Analysing and interpreting: Studying the meaning of financial results.
- Communicating: Sharing relevant information with users.
Objectives of Accounting
Accounting helps a business:
- Maintain systematic records
- Determine profit or loss
- Assess its financial position
- Provide information to users
- Support planning and decision-making
- Protect and control business assets
- Meet legal and reporting requirements
Users of Accounting Information
Internal users include owners, managers and employees.
External users include investors, lenders, suppliers, customers, government departments and tax authorities.
Each user studies accounting information for a different purpose.
Bookkeeping and Accounting
| Bookkeeping | Accounting |
| Focuses mainly on recording transactions | Covers the complete information process |
| Routine and procedural | Analytical and interpretative |
| Forms a part of accounting | Includes bookkeeping |
| Produces systematic records | Produces useful financial information |
Qualitative Characteristics
Useful accounting information should have:
- Reliability: It should be based on dependable evidence.
- Relevance: It should support decisions.
- Understandability: Users should be able to comprehend it.
- Comparability: It should allow comparison across periods or businesses.
Important Accounting Terms
| Term | Meaning |
| Capital | Amount introduced by the owner into the business |
| Drawings | Cash or goods withdrawn by the owner for personal use |
| Asset | Resource controlled by the business with future economic benefit |
| Liability | Present financial obligation of the business |
| Revenue | Amount earned from normal business activities |
| Expense | Cost incurred to earn revenue |
| Profit | Excess of revenue over expenses |
| Loss | Excess of expenses over revenue |
| Debtor | Person or entity that owes money to the business |
| Creditor | Person or entity to whom the business owes money |
| Purchases | Goods bought for resale or production |
| Sales | Goods sold during the normal course of business |
| Stock | Goods remaining unsold on a given date |
| Bad debt | Amount receivable that has become irrecoverable |
| Voucher | Documentary evidence supporting a transaction |
Theory Base of Accounting Notes
Accounting follows commonly accepted rules and assumptions so that financial information remains consistent and comparable.
Basic Accounting Concepts
Important concepts include:
- Business Entity: Business and owner are treated separately.
- Money Measurement: Only measurable monetary transactions are recorded.
- Going Concern: The business is expected to continue operating.
- Accounting Period: Business life is divided into reporting periods.
- Cost Concept: Assets are initially recorded at acquisition cost.
- Dual Aspect: Every transaction affects at least two accounts.
- Revenue Recognition: Revenue is recorded when it is earned according to the applicable basis.
- Matching: Expenses are matched with the related revenue.
- Full Disclosure: Material information should be disclosed.
- Consistency: Similar methods should generally continue across periods.
- Conservatism: Expected losses receive appropriate recognition, while uncertain gains are not anticipated.
Cash and Accrual Bases
Under the cash basis, transactions are recognised when cash is received or paid.
Under the accrual basis, income and expenses are recognised when they are earned or incurred, even when cash moves later.
Recording of Transactions Class 11 Notes
Recording begins with source documents such as invoices, cash memos, receipts and debit or credit notes.
Accounting Equation
The accounting equation is:
Assets = Capital + Liabilities
Every transaction keeps this equation balanced.
For example, if the owner starts a business with ₹1,00,000 cash:
- Assets increase by ₹1,00,000.
- Capital increases by ₹1,00,000.
Debit and Credit Rules
| Account Type | Debit | Credit |
| Assets | Increase | Decrease |
| Liabilities | Decrease | Increase |
| Capital | Decrease | Increase |
| Revenue | Decrease | Increase |
| Expenses | Increase | Decrease |
| Drawings | Increase | Decrease |
Journal and Ledger
A journal records transactions in chronological order.
A ledger groups journal entries account-wise. Posting transfers information from the journal to the relevant ledger accounts.
The balance of each ledger account helps prepare the trial balance.
Recording of Transactions – II Notes
Businesses use specialised books to record frequent transactions efficiently.
Main Books of Original Entry
| Book | Transactions Recorded |
| Cash Book | Cash and bank transactions |
| Purchases Book | Credit purchases of goods |
| Purchases Return Book | Goods returned to suppliers |
| Sales Book | Credit sales of goods |
| Sales Return Book | Goods returned by customers |
| Journal Proper | Entries not recorded in another special book |
A cash book serves as both a journal and a ledger for cash and bank transactions.
Bank Reconciliation Statement Notes
A Bank Reconciliation Statement explains the difference between the bank balance shown by the cash book and the bank statement on a particular date.
Differences may arise because of:
- Cheques issued but not yet presented
- Cheques deposited but not yet collected
- Bank charges
- Interest credited by the bank
- Direct deposits by customers
- Standing instructions
- Dishonoured cheques
- Errors in either record
A BRS identifies timing differences and omissions. It does not change the bank’s records by itself.
Trial Balance and Rectification of Errors Notes
A trial balance lists the balances of ledger accounts on a particular date.
Objectives of a Trial Balance
It helps to:
- Check the arithmetical accuracy of ledger posting
- Prepare financial statements
- Summarise ledger balances
- Assist in locating certain errors
Agreement of the trial balance does not prove that every transaction is correct.
Errors not disclosed by a trial balance can include:
- Complete omission
- Error of principle
- Compensating error
- Wrong entry in the correct account on the correct side
Errors affecting only one side may require a suspense account until correction.
Depreciation, Provisions and Reserves Notes
Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
Common causes include:
- Use and wear
- Passage of time
- Obsolescence
- Accidents
- Depletion
Straight-Line Method
Annual Depreciation = (Cost − Residual Value) ÷ Useful Life
The same amount is generally charged each year.
Written-Down Value Method
Depreciation = Opening Book Value × Rate ÷ 100
The depreciation amount decreases as the book value falls.
Provision and Reserve
| Provision | Reserve |
| Created for a known liability or expected loss | Created by appropriating profit |
| Charged before calculating distributable profit | Created after determining profit |
| May be necessary for fair reporting | Often strengthens financial position |
Financial Accounting Part II Notes
Part II applies the accounting process to the preparation of the final accounts of a sole proprietorship.
Financial Statements Class 11 Notes
Financial statements show the performance and position of a business.
Trading Account
The Trading Account determines gross profit or gross loss.
Gross Profit = Net Sales − Cost of Goods Sold
Cost of goods sold generally includes opening stock, net purchases and direct expenses, adjusted for closing stock.
Profit and Loss Account
The Profit and Loss Account determines net profit or net loss.
Net Profit = Gross Profit + Other Incomes − Indirect Expenses
Indirect expenses may include office salaries, rent, advertising and depreciation.
Balance Sheet
A Balance Sheet shows assets, liabilities and capital on a particular date.
Closing capital is generally adjusted for:
- Additional capital
- Net profit or loss
- Drawings
- Interest on capital or drawings, where applicable
Financial Statements – II Notes
Adjustments ensure that the accounts follow the accrual and matching concepts.
Important adjustments include:
| Adjustment | General Treatment |
| Closing stock | Trading Account and Balance Sheet |
| Outstanding expense | Added to expense and shown as liability |
| Prepaid expense | Deducted from expense and shown as asset |
| Accrued income | Added to income and shown as asset |
| Income received in advance | Deducted from income and shown as liability |
| Depreciation | Charged as expense and deducted from asset |
| Bad debts | Charged to Profit and Loss Account |
| Provision for doubtful debts | Adjusted against debtors and charged as required |
| Interest on capital | Expense for business and addition to capital |
| Manager’s commission | Expense and liability when outstanding |
Each adjustment normally has a dual effect. Students should identify both effects before preparing the final statements.
CBSE Class 11 Accountancy Course Structure 2026–27
| Part | Unit | Marks |
| A | Theoretical Framework | 12 |
| A | Accounting Process | 44 |
| B | Financial Statements of Sole Proprietorship | 24 |
| C | Project Work | 20 |
| Total | 100 |
FAQs (Frequently Asked Questions)
Accounting follows the dual-aspect principle. Every transaction affects at least two accounts while keeping the accounting equation balanced.
The total debit amount must therefore equal the total credit amount.
No. Some errors do not disturb the equality of debit and credit totals.
Complete omission, errors of principle and compensating errors may remain even when the trial balance agrees.
The two records may recognise the same transaction on different dates. Cheques can remain unpresented or uncleared.
Bank charges, direct deposits and standing instructions may also appear first in the bank statement.
Capital expenditure provides benefits over more than one accounting period or helps acquire or improve a non-current asset.
Revenue expenditure supports normal operations and usually benefits the current accounting period.
Use the method stated in the question.
Under the straight-line method, depreciation is generally equal each year. Under the written-down value method, it is calculated on the asset’s reducing book value.