NCERT Solutions Class 11 Accountancy Chapter 1 Introduction to Accounting

NCERT Solutions Class 11 Accountancy Chapter 1 Introduction to Accounting. The NCERT solutions for Class 11 Mathematics have been made by Mathematics teacher of one of the best CBSE school in India. These NCERT solutions have been made to give detailed answers and expanations of the concepts as per NCERT which can be easily understood by the students. Refer to other links also to download mathematics NCERT solutions, worksheets, sample papers and Exemplar Solutions.

Class 11 Accountancy

NCERT Solutions

Chapter 1 Introduction to Accounting

Q1. Define accounting.

Answer : Accounting is a process of identifying the events of financial nature, recording them in Journal, classifying in their respective ledgers, summarising them in Profit and Loss Account and Balance Sheet and communicating the results to the users of such information, viz. owner/s, government, creditors, investors etc.According to the American Institute of Certified Accountants, 1941, “Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money transactions and events that are, in part at least, of a financial character and interpreting the results thereof.”

Q2. State what is end product of financial accounting?

Answer :Income statements (Trading and/or Profit and Loss Account)- An income statement that includes Trading and Profit and Loss Account, ascertains the financial results of a business in terms of gross (or net) profit or loss. Balance Sheet- It depicts the true financial positions of a business that provides required information like assets and liabilities of a business firm, to the users of accounting information like owners, creditors, investors, government, etc.

Q3. Enumerate main objectives of accounting.

Answer : 1. The main objectives of accounting are given below.

2. To keep a systematic record of all business transactions

3. To determine the profit earned or loss incurred during an accounting period by preparing profit and loss account.

4. To ascertain the financial position of the business at the end of each accounting period by.