Important Topics: NCERT Accountancy Textbook for Class 11

For every class 11 student from commerce, Accountancy is the most important subject as it helps to build a base for further levels and gives the student an introduction to the very basics of accounting concepts. Moreover, it also aids in gaining an understanding of the Accounting Standards which is set by the Institute of Chartered Accountants of India (ICAI). The student also learns the whole system of Accounting. 

Below listed are the important topics a student belonging to class 11 must cover from the NCERT Accountancy Textbook for Class 11

  • Basic accounting terms

Class 11, accountancy subject forms the base for all commerce students. Hence, the students need to have a thorough knowledge of the basic accounting terms. These important terms include Business transaction, Account, Capital, Drawings, Liability (Non – current and current), Asset (Non – current; tangible and intangible assets and current assets), Receipts (capital and revenue), Expenditure (capital, revenue and deferred), Gains and Losses,  Discount – trade, and cash, Expense, Profits,  Purchases, Purchases Returns, Income, Sales, Sales Returns, Stock, Trade Receivables (debtors and bills receivable), Trade payables (creditors and bills payable), Vouchers, Goods and Cost.

  • Introduction to Accounting

Class 11 students must understand the accounting basics, and most importantly the objectives of accounting. The topics covered in this chapter are Advantages and limitations, Types of accounting information, and users of accounting information and their needs. The students must read this chapter very carefully because this acts as a pillar on which the entire accounting syllabus is based. 

  • Depreciation 

Depreciation refers to the decrease in the cost of an asset over time. These occur due to various reasons such as wear and tear, obsolescence, perishability, and expiration of rights. There are three methods of calculating depreciation. These include the unit of production, straight line, and declining balance method. For every business organization, it is very important to properly assess and record the correct value of every asset. Therefore, it is significant for every student to understand every entry which results in the decrease in the value of an asset by the process of depreciation over the years. 

  • Financial Statements 

Financial Statements help in getting a true and fair view of the financial performance and position of every business organization. These include the preparation of trading accounts, profit and loss accounts, and balance sheets. Every enterprise, irrespective of its size, prepares financial statements. Since students will be required to evaluate or prepare such statements in the future, they must learn how every transaction is recorded in books of accounts in such financial statements.

  • Journal Entries 

A journal entry refers to the act of keeping or maintaining records of any transactions either economic or non-economic. All such transactions are listed in the journal of the company in the form of debit or credit balances. Almost all accounting concepts have their basics in journal entries. Every commerce student must learn to record different transactions such as purchases, sales, abnormal losses, etc. 

  • Bills of Exchange 

Under this topic, every student learns about bills of exchange, promissory notes, and the various parties involved while the transfer of a negotiable instrument. Students are also introduced to new terms such as ‘discounting of the bill’, ‘endorsement’, ‘dishonor of bill’, and ‘renewal of bill’. The accounting treatment of these transactions is taught to commerce students in class 11. Since it is a new concept, every student must ensure that they clear all their doubts and properly understand the topic. 

  • Computers in Accounting

The whole process of accounting has been automated today. Through this unit, students are introduced to the computer and accounting information system (AIS), and the whole process of automation. Students also learn how the accounting process is carried out in a computerized environment and know how to distinguish between manual and automated accounting procedures. Each student must understand the process very carefully as it is this very concept that is applicable in all enterprises today. 

  • Rectification of Errors

Various errors arise during the process of recording transactions. These errors are broadly divided into three categories called omission, commission, and compensating errors. This gives inaccurate results while preparing final books of accounts. The process of rectification and detection of errors is taught to all commerce students to ensure that they know how to get the correct results at the end of the accounting year. 

  • Theory Concepts of Accounting 

Under this topic, students are taught the very basic fundamental assumptions including going concern, consistency, and the accrual concept. The double entry system of accounting and the bases of accounting whether on a cash or accrual basis is also taught under theory concepts of accounting. Although many students skip these during exams, theory knowledge is imperative in gaining a proper understanding of the practical illustrations and sums. 

  • Preparation of Bank Reconciliation Statement

Under this, students learn to calculate bank balance at a given accounting date and the 

adjustments that must be recorded in the passbook. Since every transaction today takes place with the use of bank accounts, every commerce student needs to understand the entries involved during the process of deposit and withdrawals from these accounts. This topic also covers the omissions and rectifications that must be done to the bank values to get an accurate bank balance. 


The whole syllabus of class 11 accountancy is divided into five major units. These include theoretical framework, accounting process, financial statements of a sole proprietorship, financial statements of not-for-profit organizations, and computers in accounting. For scoring well in exams and having a strong base, the student must focus and properly understand every concept covered in these units. The above-listed topics are critical in developing the student’s accountancy base as it is the first time the student is studying the subject. These points play a vital role in ensuring that the class 11 students are equipped with the basic accounting knowledge before they move forward to class 12. For better strategy, every commerce student must maintain a timetable and fixed schedule to ensure systematic grasping of all concepts. 

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