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NCERT Solutions for Class 11 Accountancy Chapter 2 Theory Base of Accounting

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Class 11 Accountancy NCERT Solutions Chapter 2 Theory Base of Accounting

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NCERT Solutions for Class 11 Accountancy Chapter-2 Theory Base of Accounting that are provided by Vedantu cover an easy explanation for all the topics of this chapter. The subject-matter experts at Vedantu have prepared these NCERT Solutions as per the latest CBSE guidelines. These solutions can be downloaded from Vedantu for free. They help students to revise every concept of this chapter and score well in the exams. NCERT Solutions for Class 11 Accountancy Chapter-2 Theory Base of Accounting PDF is available for free download on Vedantu.

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FAQ (Frequently Asked Questions)

1. What is the basic accounting equation?

In order to gain proper knowledge about the subject of accounting, an individual must possess prior knowledge in the basic fundamental equations of accounting. One of the most fundamental parts of the balance sheet is the accounting equation. A company’s total assets amount to the total of its liabilities and the capital held by the shareholders. There are many equations in accounting that can help a student to identify various variables in the form of working capital, the value of assets, and liabilities. With the application of these principles, accounting can be made easier and more interactive in nature.

2. Why is it required to adopt a consistent method of preparation of financial statements?

Maintaining proper books of accounts is an essential factor that every independent accountant or business organization should acknowledge. It is crucial to determine how the company is faring financially as making profits is the primary objective of any business organization. This process can only be satisfied by effectively maintaining books of accounts consistently. Hence, consistency in bookkeeping is required. How consistent accounting practices help with the decision making of the company. For example, an organization adopting one specific method of preparing the financial statements should continue using the same procedure and not use a different way after a duration to calculate the financial results of two years.