NCERT Solutions Class 11 Accountancy Chapter 11

NCERT Solutions for Class 11 Accountancy Chapter 11 Accounts from Incomplete Records

The principles in Class 11 Accountancy Chapter 10, ‘Accounts from Incomplete Records,’ must be understood thoroughly to grasp the chapter. Also, students should practice the exercise questions given at the end of the chapter from a revision perspective. 

If you are looking for answers to the questions or want to check if the answer you have written is correct, NCERT Solutions for Class 11 Accountancy Chapter 11 is the right reference material. The subject matter experts at Extramarks have prepared the solutions while ensuring they are correct and written in simple language.

Class 11 Accountancy NCERT Solutions Chapter 11 Accounts from Incomplete Records

Access NCERT Solutions for Class 11 Accountancy Chapter 11- Accounts from Incomplete Records

NCERT Accountancy Class 11 Solutions

The NCERT Solutions Class 11 Accountancy Chapter 11 are great for understanding and solving the problematic sums of accountancy. The solutions have all the answers to the Accountancy Class 11 textbook questions. The solutions are prepared by subject matter experts at Extramarks who ensure that every answer is as per the CBSE guidelines and written in a comprehensive language.

What does accountancy mean?

According to the Oxford English Dictionary, Accountancy is the duties or profession of an accountant. It includes a variety of tasks such as processing and transmitting financial information, measuring, managing detailed financial reports or records, preparing tax documents, and keeping track of the economic resources of a firm. So overall, one can say that accountancy is a term that captures various financial areas of the natural world, which involves compilation, reviewing, and preparing. The principles of accountancy are pretty similar to the concepts of accounting taught to the students at their undergraduate and graduate levels.

As defined by the American Institute of Certified Public Accountants (AICPA), accountancy in terms of accounting is recording, distinguishing, classifying, and summarising terms of money or transactions that have financial aspects. The first accounting step begins with the bookkeepers after recording the financial information. To learn about this topic in detail, you can consider checking out the study materials provided by Extramarks for Class 11 accountancy.

Why is Accountancy Needed?

Accountancy or accounting is not  particularly field or profession-oriented. You can find its requirement in many arenas, be they big or small. Given below are a few reasons why accountancy is needed:

  • An accounting system is required by almost every industry.
  • Accountancy or accounting assists in keeping an organisation and its business well maintained.
  • The evaluation of a business’s overall performance is measured with the help of accounting, and it plays a vital role in this regard.
  • To get your business to reach a proper legal standing within the law, an accounting system is required, which ensures healthy management.
  • Budgeting is a vital step in a business, and it, along with future projections, helps in planning for the upcoming year. Accounting in this matter is needed at large.
  • The decision-making of an organisation or business requires the knowledge of accountancy. Accounting also plays a significant role in dealing with ample funds and complex taxes.

What is the Basis of Accounting?

The time in which several financial transactions are recorded is the basis of accounting. There are two basic methods of tracking income and expenses in accounting. They are:

  • Cash basis: The cash-basis accounting or the cash receipts and disbursements method of accounting is the method through which the revenue is recorded when the cash is received and when the expenses are paid in cash.
  • Accrual basis: The accrual basis method of accounting is the method through which the income items are recorded when earned, and the deductions are recorded when the expenses are incurred and not when the payments are made or received

Conclusion

The questions related to Chapter 11 of Accountancy have been answered in an elaborated form in the NCERT Solutions by Extramarks. Some of the answers also come with relevant examples or drawings to increase the understanding leNCERT Solutions for Class 4vel of students. The subject matter experts at Extramarks have ensured that every answer is prepared as per the CBSE guidelines so that students score higher marks in school and competitive exams.

Solved Example

Q1. Explain the phases of process flow in accounting.

A1. A number of steps are involved in the process flow in accounting. These are:

  • Identification of all business activities or transactions
  • Recording transactions or journal entry
  • Daily record keeping of transactions
  • Ascertaining trial balance
  • Register or activity document
  • Amendment of journal book
  • Updating the financial statements of the firm
  • Closing books or accounts for the respective financial year

Fun Fact

  • The first name recorded in the history of humans is Kushim which belonged to an accountant.
  • Bubblegum was invented by an accountant.

FAQs (Frequently Asked Questions)

Accountancy is considered both the subject of science and the subject of arts involving business activities. It is the structural procedure associated with a business involving the aspects of financial gain or loss. 

The incomplete records are those records for which the balance sheet is missing. In this accounting practise, a significantly less amount of the company’s financial activities are recorded.