Top 20 Class 11th Accountancy Questions and Answers

Class 11th Accountancy: Preparing for Class 11th exams can be daunting, especially when it comes to subjects like Accountancy. To assist you in your preparation journey, we have curated a comprehensive list of the top 20 Class 11th Accountancy Important Questions and Answers. These questions have been carefully selected to give you a clear understanding of the types of questions that may appear in the exam.

Top 20 Class 11th Accountancy Questions With Answers

• Recording: Documenting all financial transactions accurately and systematically.
• Classifying: Organizing transactions into categories such as assets, liabilities, equity, income, and expenses.
• Summarizing: Compiling financial data into reports such as balance sheets and income statements to provide a clear overview of the company's financial position.
• Interpretation: Analyzing financial information to identify trends, patterns, and areas of concern or improvement.
• Communication: Presenting financial data to stakeholders such as investors, creditors, and management through reports and presentations.
• Decision-making: Assisting management in making informed decisions based on financial analysis and projections.

• Language: Accounting serves as the language of business, facilitating communication and understanding among stakeholders.
• Historical record: It provides a historical record of financial transactions, which can be used for analysis, comparison, and decision-making.
• Service provider: Accountants provide essential services such as bookkeeping, financial reporting, auditing, and tax preparation to businesses and individuals.
• Information system: Accounting systems collect, process, and disseminate financial information to support decision-making processes.
• Determining net profit: Accounting helps calculate the net profit or loss of a business by comparing revenues and expenses over a specific period.

• Financial Accounting : Focuses on recording and reporting financial transactions to external stakeholders such as investors, creditors, and regulatory authorities.
• Cost Accounting : Involves analyzing and controlling the costs of production, distribution, and selling of goods and services within a business.
• Management Accounting: Provides internal stakeholders with financial information and analysis to support strategic planning, budgeting, and decision-making.
• Tax Accounting: Deals with preparing tax returns and ensuring compliance with tax laws and regulations.
• Social Responsibility Accounting: Evaluates and reports on the social and environmental impact of a company's operations, including its corporate social responsibility initiatives.

• Debtors: Debtors are individuals or entities that owe money to the company for goods or services purchased on credit. They represent accounts receivable on the company's balance sheet.
• Creditors: Creditors are individuals or entities to whom the company owes money for goods or services received on credit. They represent accounts payable on the company's balance sheet.

• Cash Basis: This method records revenue and expenses when cash is actually received or paid. It does not consider credit transactions or accounts receivable/payable.
• Accrual Basis: This method records revenue and expenses as they are earned or incurred, regardless of the date cash is received or paid. It recognizes transactions as they occur, providing a more accurate depiction of a company's financial position.

Q uestion 9. What are the basic accounting equations? How do you calculate Capital and Liabilities?

• Debit and Credit: An increase in assets or expenses is recorded as a debit entry, while a decrease is recorded as a credit entry.
• Principle of Conservatism: When uncertain about the valuation or recognition of an asset or expense, accountants should err on the side of caution and recognize losses or impairments promptly, ensuring that financial statements reflect a conservative estimate of the company's financial position and performance.

• Purchase Book: Records purchases of goods for resale or production.
• Sales Book: Records sales of goods or services to customers.
• Cash Book: Records cash transactions, including receipts and payments.
• Purchase Return Book (Return Outwards): Records returns of goods to suppliers.
• Sales Return Book (Return Inwards): Records returns of goods from customers.
• Journal: Records miscellaneous transactions that do not fit into other specialized journals.

• Single Column Cash Book: Contains a single column for recording cash transactions.
• Double Column Cash Book: Contains separate columns for cash and bank transactions.
• Three-Column Cash Book: Contains columns for cash, discount, and bank transactions.
• Petty Cash Book: Used to record small, miscellaneous cash expenses or payments, typically maintained for minor expenditures and replenished periodically.

• General Reserve: A reserve created out of profits to strengthen the financial position of the company or to meet future contingencies.
• Specific Reserve: A reserve earmarked for a particular purpose, such as a provision for doubtful debts or a reserve for repairs and maintenance.
• Capital Reserve: A reserve created from capital profits, such as the proceeds from the sale of fixed assets or revaluation of assets, which cannot be distributed as dividends.
• Revenue Reserve: A reserve created from revenue profits, such as retained earnings or accumulated profits from operations, available for distribution as dividends or reinvestment in the business.

Also Read: Accountancy MCQs for Class 11 and 12

How to Solve Class 11th Accountancy Questions?

• Understand the Question: Read the Class 11th Accountancy question carefully to grasp what it's asking for. Pay attention to keywords and instructions provided in the question to ensure you address all aspects.
• Review Relevant Concepts: Review the relevant concepts covered in your Class 11th Accountancy syllabus that are related to the question. Make sure you understand the underlying principles and theories to solve the problem accurately.
• Organize Your Approach: Plan how you will tackle the question. Break it down into smaller parts if necessary, and decide on the steps you need to take to arrive at the solution. This helps to ensure a structured and systematic approach to problem-solving.
• Apply Formulas and Techniques: Apply the appropriate formulas, methods, or techniques learned in your Class 11th Accountancy studies to solve the question. Use relevant accounting principles and rules to analyze the given data and arrive at the solution.
• Check Your Work: Once you've solved the Class 11th Accountancy question, review your solution to ensure accuracy. Double-check calculations, verify answers against the question requirements, and make any necessary revisions. This step helps to catch any errors and ensures that your solution is complete and correct.

Also Read: Class 11 Accountancy Overview, Syllabus, NCERT Solutions, Tips