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

What Does Accountancy Mean?

Accountancy is a science as well as an art of chronological articulation of business activities. It is the systematic process flow of all the operations related to a business that involves the gain or loss of revenue. It also involves recognizing, distinguishing, documenting, and analyzing all those activities concerned with the profit and loss of the business. 

It reflects the financial status of a firm or organization, suggests the ways and means to proceed further, and implements all those decisions that guide the business in the path of earning profits more consistently. All the financial aspects of a firm that could encourage investments and improve the reputation of a business entity. Accountancy principles, theories, and laws are completely explained and streamlined through the topics covered in the Accountancy Class 11 Chapter 11.

Why is Accountancy Needed?

Accountancy is a structured process of recording or keeping a record of all the expenditures incurred and the revenues earned during a stipulated period of time. So, it is required to ascertain the financial status of the firm and to give first-hand information on the potential sources of income as well as the paramount areas that are to be administered to limit the expenses or overheads that may lead to the losses of the business entity. 

All such concepts are covered in the NCERT Accountancy Class 11 Solutions Chapter 11. Accountancy is also needed to attract or influence potential investors to invest in the concerned business activity and convince them by exhibiting a documented proof of the profits earned by the organization. Accountancy Class 11 Chapter 11 will help students to understand these concepts more effectively.

So, the accountancy process is the most integral aspect of business activity and needs to be inculcated by every organization that works to earn profits. Therefore, it is a very primary need to comprehend the state of affairs of every transaction and direct efforts to make them profitable, yielding results.

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What is the Basis of Accounting?

Accountancy and accounting originated from the universally recognized Generally Accepted Accounting Principles which are popularly called GAAP. GAAP refers to those principles that lay the foundation of how the accounting process of a business entity could be implemented according to the given rules, laws, and regulations. 

The Accountancy Class 11 Chapter 11 makes a comprehensive study resource on the principles that are to be followed in the process of accounting. It varies according to the location or concerning the country of establishment satisfying the needs of the economic and financial status of the nation and that of the business entity. The NCERT Accountancy Book Class 11 Solutions Chapter 11 gives all the required solutions for various problems in accounting. 

A conventional set of rules and guidelines are prescribed by the authorities and these are to be followed and utilized during the process of recording transactions into the concerned books of accounting. The class 11 accounts chapter 11 NCERT Solutions give a proper note of all the necessary steps to solve the problems on accountancy.

Conclusion

Vedantu ch 11 Accounts Class 11 provides a comprehensive structure of accountancy concepts in a clear language. It also provides solved examples from Chapter 11 of Accounts Class 11. Students will get to learn the types of questions that are often repeated in the exams by following these NCERT Solutions. Therefore, these solutions make it easier to secure good marks in the exam.

Solved Example:

Q1: What is the Process Flow in Accounting?

Ans: The accounting process involves a number of steps right from identifying to analyzing the transactions that are recorded. The following are the phases involved in accounting.

1. Identification of all the business activities or transactions

2. Journal Entry or recording transactions in Journal

3. Daily Record of transactions at regular intervals

4. Ascertaining the trial balance

5. Register or activity document

6. Amendment of Journal Book

7. Updating the Financial Statements of the firm

8. Closing accounts or the books for the respective financial year

Fun Fact

The polling or voting mechanism or a referendum for the international movie festival, i.e., Oscars are functioned with the help of Accountants and on the basis of accounting principles. At all stages from nominations to selections, these accountants provide guidance and assess the poll for a particular film.