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CLASS 11 ACCOUNTANCY CHAPTERS THAT ARE IMPORTANT FOR CA ENTRANCE EXAM

In the commerce stream, accountancy is likely to be a student’s toughest subject. The concepts might not necessarily be very difficult to understand, but it is a demanding subject that can get on your nerves. On top of that, the CA exams mostly test your fundamental knowledge in these subjects, so being thorough with your basics is very important. However, the syllabus for accountancy is quite extensive, and it may seem very overwhelming to go through all of this. Here is a compilation of the importance of the syllabus chapter-wise.

Since the NCERT Books for Class 11 Accountancy are the most widely used reference material in CBSE schools, this list will be according to the chapters in this textbook.

To begin with, gaining a basic understanding of the introduction to accounting that is taught at the beginning of 11th sets the tone for the rest of what you will learn in the remainder of 11th and 12th as well. So paying attention in class when these introductory concepts are being taught is the first step to preparing for the CA exams.

The rest of the chapters build on this foundation, so completely comprehending the basics will mean that you will not find much difficulty in understanding the other topics.

  1. Chapters 1&2

These two chapters: Introduction to Accounting and Theory Base of Accounting are pretty simple yet fundamental chapters. They provide an introduction to the basics of accounting as well as the theoretical aspects of the discipline.

These 2 chapters are not as important for the exam as they are for your understanding, so not many questions will be asked from the first two chapters.

The most important thing to pay attention to in these 2 chapters is the definitions of some accounting vocabulary such as capital and creditors.

The ICAI approved guidelines for accounting practices are also introduced in this chapter and are an essential couple of points that are extremely important for the exam, as well as a future as a potential CA.

  1. Chapters 3&4

These two chapters are parts I and II of Recording of Transactions. The details of the accounting process are taught in these chapters including concepts such as:

  • applying accounting equations to transaction
  • arranging source documents
  • introducing special accounting journals such as cashbooks, sales books and purchases returns, and how they are used by larger businesses etc.

Journals are one of the main concepts that will appear in the CA exam as they are a very crucial skill to learn and apply in this field.

  1. Chapter 5 – Bank Reconciliation Statement 

This chapter deals with verifying transactions seen in the cash books of a business, with the bank balances and transactions, and learning to justify the differences between what is reflected in the cash books and the passbooks.

This is not one of the major chapters that will appear on the exam, but according to analysis of past papers, this is still a chapter you must pay attention to and be comfortable with.

  1. Chapter 6 – Trial balances and rectifying errors 

This chapter is all about trial balances – how they are prepared, the details of each of the 3 ways of preparation, their importance and their significance.

Students are also introduced to the various possibilities of errors that can be created and how they are rectified, with regard to trial balances.

This, like the previous chapter, isn’t known to be super important, but moderately important to the CA exam.

  1. Chapter 7 – Depreciation, provisions and reserves

This chapter mainly centres around depreciation and how it differs from other similar accounting concepts. The causes of depreciation, various ways of calculating it, as well as the utilities of provisions and reserves in the business sector, and the many differences between these two aspects are some of the other concepts that are included in this chapter.

This, in comparison to some of the other chapters, is still more theory-based, so it is moderately important for the exams.

  1. Chapter 8 – Bill of Exchange 

This is another relatively minor chapter and is entirely centred around everything about the bill of exchange, including its importance, relevance, advantages and all the parties that are involved.

Since this is a chapter that also has to do with journal entries, it is quite an important concept, but can still be grouped as a topic under special journals in accounting.

  1. Chapters 9&10

These two chapters are parts I and II of Financial Statements. This is considered as the next step of accountancy, i.e. a more advanced concept than the journals, balancing etc.

It has a lot to do with Finance, as the chapter name itself suggests. So it includes a lot of topics such as revenues and profit, stakeholders, preparing financial statements, trading, balance sheets etc.

The second part of the concept builds on this foundation that was established in the first part, and emphasises the practical application of financial concepts in a business venture setting, and elaborates on already discussed topics such as profits and revenue but also stocks, expenses and debt.

Since this is also an introductory chapter in a way, it is moderately important for the CA exam.

  1. Chapter 11 – Accounts from incomplete records 

This is quite an important chapter in terms of societal significance because incomplete records is a problem that many small businesses face. So this chapter deals with introducing students to this problem, and teaching them how to overcome it from an accounting perspective. This includes things such as balance sheets, profits and loss accounts, trading etc.

Some concepts in this chapter are very important such as the balance sheets, so you could consider this chapter to be more than moderately important.

  1. Chapters 12&13 

Finally, the last two chapters in the 11th Accounts syllabus centre around accounts and computers. This is one of the most essential opportunities for practical applications of accounting and the addition of technology gives it a more complicated twist. This is why this chapter is more relevant to future job prospects and is not as important for the CA exams.

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