CBSE Class 11 Accountancy Theory Base Of Accounting Enrichment Worksheet

Read and download the CBSE Class 11 Accountancy Theory Base Of Accounting Enrichment Worksheet in PDF format. We have provided exhaustive and printable Class 11 Accountancy worksheets for Chapter 2 Theory Base of Accounting, designed by expert teachers. These resources align with the 2025-26 syllabus and examination patterns issued by NCERT, CBSE, and KVS, helping students master all important chapter topics.

Chapter-wise Worksheet for Class 11 Accountancy Chapter 2 Theory Base of Accounting

Students of Class 11 should use this Accountancy practice paper to check their understanding of Chapter 2 Theory Base of Accounting as it includes essential problems and detailed solutions. Regular self-testing with these will help you achieve higher marks in your school tests and final examinations.

Class 11 Accountancy Chapter 2 Theory Base of Accounting Worksheet with Answers


1) What is material fact?

2) XYZ printers purchased a printing machine for 27 lakhs on 1.4.2014. The market price of the machine on 31.3.2015 was 32 lakhs. The company values the machine at 32 lakhs while preparing its balance sheet. Which of the accounting principles does the firm violate?

3) Who issues accounting standards in India?

4) What is meant by International Financial Reporting Standards?

5) Which concept requires that caliber or quality of management cannot be directly disclosed in the balance sheet?

6) When should revenue be recognized? Are there any exceptions to the general rule?

7) Describe the status of IFRS in India.

 

Important Questions for NCERT Class 11 Accountancy Theory Base Of Accounting

Question According to the Going Concern Concept   
(a) assets are recorded at cost and are depreciated over their useful life.
(b) assets are valued at their market value at the year-end and are recorded in the books of account.
(c) assets are valued at their market value, recorded in the books and depreciation is charged on the market value.
(d) None of the above.

Answer  :  B

Question . Income is measured on the basis of:  
(a) Matching Concept
(b) Consistency Concept
(c) Cost Concept
(d) None of the above

Answer  :  A

Question  According to the Business Entity Concept  
(a) transactions between the business and its owners are not recorded.
(b) transactions between the business and its owners are recorded considering them to be one single entity.
(c) transactions between the business and its owners are recorded from the business point of view.
(d) None of the above.

Answer  :  C

Question  According to the Accrual Concept  
(a) transactions and events are recorded in the books at the time of their settlement in cash.
(b) transactions and events are recorded in the books at the time when they are entered into.
(c) transactions and events may be recorded either at the time of the settlement or when they are entered into.
(d) None of the above.

Answer  :  A

Question . As per Income Tax Act, accounting period is :  
(a) From 1st January to 31st December
(b) From 1st April to 31st March
(c) From 1st July to 30th June
(d) From Diwali to Diwali

Answer  :  B

Question . As per Dual Aspect Concept:  
(a) Assets = Liabilities - Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Capital = Assets + Liabilities

Answer  :  C

Question  IFRS are   
(а) rule based accounting standards.
(б) principle based accounting standards.
(c) partially rule based and partially principle based accounting standards.
(d) None of the above.

Answer  :  B

Question  IFRS are based on   
(a) historical cost.
(b) fair value.
(c) both historical cost and fair value.
(d) None of these.

Answer  :  B
 
Question  Ind-AS are   
(a) rule based accounting standards.
(b) principle-based accounting standards.
(c) partially rule based and partially principle-based accounting standards.
(d) None of the above.

Answer  :  B

Question . Concept of Consistency means:  
(a) All the firms in the same industry should use identical accounting principles and procedures
(b) All principles and procedures of accounting are utilised
(c) Accounting principles and methods should remain consistent from one year to another
(d) All of the above

Answer  :  C

Question . Convention of conservatism takes into account:  
(a) All future profits and losses
(b) All future profits and not losses
(c) All future losses and not profits
(d) Neither profits nor losses of the future

Answer  :  C

Question . According to Convention of Conservatism closing stock is valued at:  
(a) At cost Price
(b) At Realisable value
(c) Cost price or realisable
(d) At Real value value whichever is less

Answer  :  C

Question . According to Convention of Conservatism:  
(a) Provision is made for bad and doubtful debts
(b) Depreciation is charged on assets
(c) Recording is made of outstanding expenses
(d) All of the above

Answer  :  A

Question  Accrual Basis of Accounting
(a) does not give a true and fair view of profit and financial position.
(b) gives a true and fair view of profit and financial position.
(c) may or may not give a true and fair view of profit and financial position.
(d) None of the above.

Answer :  B

Question. The term that refers the necessary assumptions and ideas which are fundamental to accounting practice is:
a) Accounting Convention
b) Accounting Concept
c) Accounting Period
d) Accounting Procedure.
Answer. B

Question. The term that connotes customs or traditions as a guide to the preparation of accounting statements is:
A Accounting Concept
b) Accounting Procedures
c) Accounting Convention
d) Accounting Standards
Answer. C

Question. Under which accounting concept the personal transactions of the owner are not recorded in the books of the business, unless it involves inflow or outflow of business funds.
a) Business Entity
b) Dual Aspect
c) Materiality
d) Money Measurement.
Answer. A

Question. Identify the assumption of accounting that provides the very basis for showing the value of assets in the Balance Sheet.
a) Going Concern Concept
b) Objectivity
c) Full Disclosure
d) Materiality
Answer. A

Question. Which concept/Principle does the Income Tax act refer under The Companies Act 1956 that requires that the income statement should be prepared annually?
a) Cost Concept
b) Dual Concept
c) Accounting Period Concept
d) Matching Concept.
Answer. C

Question. Identify the Accounting Principle which includes the cost of acquisition that does not change year after year.
a) Cost Concept
b) Revenue Recognition
c) Accounting Period
d) Consistency
Answer. A

Question. The concept that states that every transaction has at least two accounts involved in recording a transaction is:
a) Matching
b) Dual Aspect
c) Full Disclosure
d) Conservatism
Answer. B

 

CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting Fill in The Blanks 

Question. “Do not anticipate any profit but provide for all losses” the statement justify the ______________ concept.
Answer. Prudence

Question. The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________concept.
Answer. Business Entity

Question. Fixed assets are recorded at cost without considering the market price whether low or high under ________ concept.
Answer. Historical cost

Question. According to _________ concept, all expenses incurred to earn revenue of a particular period should be charged against that revenue to determine the net income.
Answer. Matching

Question. Only cash transactions are recorded in _______ basis of accounting.
Answer. Cash

Question. Cash as well as credit transactions are recorded in _________ basis of accounting.
Answer. Accrual

Question. AS stands for __________________.
Answer. Accounting Standards

Question. Assets = Liabilities + ____________; is a fundamental accounting equation under dual aspect concept.
Answer. capital

Question. IASB stands for ________.
Answer. International Accounting Standard Board

Question.GAAP stands for _______.
Answer. Generally Accepted Accounting Principles

Question. A code of conduct imposed on an accountant by custom, law and a professional body is termed as ____________.
Answer. Accounting Standards

Question. Accounting process starts from _____________.
Answer. Identifying

Question. Accounting process ends on _____________.
Answer. Communicating


CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting True and False

 
1. As per Income Tax Act, Accounting Period is from 1st January to 31st December. False
2. As per Dual Aspect Principle Capital = Assets + Liabilities. False
3. ICAI stands for Institute of Company Accounts. False
4. Accounting Standards signifies Uniformity, Transparency and Consistency in Accounting. True
5. Accounting Principles, concepts and conventions commonly known as GAAPs. True
6. Under Accrual Basis of Accounting, Only cash transactions are recorded. False
7. Due to consistency Concept, accounting practices once selected and adopted, should be applied year after year. True
8. Under Dual Aspect, every transaction has two aspects one Debit and another Credit. True
9. Prudence Concept considers all prospective losses and prospective profits of business. False
10. Accounting Standards are applicable for purely charitable organizations. False
11. The full form of Indian AS is Indian Accounting Services, False
12. Accounting Principles are static in nature. False
13. The concept of going concept assumes that a business firm would continue to carry out its operations indefinitely for a fairly long period of time. True
 
Question : Why is it necessary for accountants to assume that business entity will remain a going concern?
Answer : Going Concern Concept assumes that the business entity will continue its operation for an indefinite period of time. It is necessary to assume so, as it helps to bifurcate revenue expenditure (i.e. expenditure related to current year), and capital expenditure (i.e. expenditure whose benefits accrue over a period of time). For example, a machinery that costs Rs 1,00,000, having an expected life of 10 years, will be treated as a capital expenditure, as its benefit can be availed for more than one year; whereas, the per year depreciation of the machinery, say Rs 10,000, will be regarded as a revenue expenditure.
 
Question : 'Only financial transactions are recorded in accounting'. Explain the statement.
Answer : According to this principle, only those transactions and events are recorded in accounting which are capable of being expressed in terms of money are recorded in the books of accounts, such as the sale of goods or payment of expenses or receipt of income, etc. 
An event may be important for the business (such as dispute among the owners or managers, the appointment of a manager, etc.), but it will not be recorded in the books of accounts simply because it can not be converted or recorded in terms of money. For instance, strike by workers may adversely affect the business but it cannot be recorded in the books of accounts unless its effect can be measured in terms of money with a fair degree of accuracy. 
Another aspect of this principle is that the transactions that can be expressed in terms of money have to be converted in terms of money before being recorded. 
It should be remembered that money is the only measurement which enables various things of diverse nature to be added up together and dealt with. The money measurement assumption is not free from limitations. Due to the changes in price, the value of money does not remain the same over a period of time. The value of rupee today on account of rising in price is much less than what it was, say ten years back. As the change in the value of money is not reflected in the book of accounts, the accounting data does not reflect the true and fair view of the affairs of an enterprise. As, such, to make accounting records relevant, simple, understandable and homogeneous, they are expressed in a common unit of measurement,i.e., money.
 
Question : What is matching concept? Why should a business concern follow this concept? Discuss.
Answer : This concept is very important for the correct determination of net profit. According to this principle, expenses incurred in an accounting period should be matched with revenues during that period i.e., when revenue is recognised in a period, then the cost related to that revenue also needs to be recognised in that period to enable calculation of correct profits of the business. 
The matching concept thus, states that all revenues earned during an accounting year, whether received during that year or not and all costs incurred, whether paid during the year or not should be taken into account while ascertaining profit or loss for that year. When some expense, say insurance premium is paid partly for the next year also, the part relating to the next year will be shown as an expense only next year and not this year. This means that that part of the insurance premium against which benefit will be derived or revenue will be earned in future should be shown in the balance sheet as an asset and the rest is treated as an expense during the current year. 
For example, If there is unsold stock at the end of accounting period, then its cost needs to be carried over to next year, so that such cost can be recognised or adjusted with the revenue earned with the sale of such stock. 
Similarly, if a machinery is purchased with useful life of 10 years, then its cost needs to be spread over these 10 years, so that it gets adjusted with the revenue earned in those 10 years. If revenue is received for which expenses are to be incurred in next year, then such revenue is also carried over to next year to be matched with its cost only. 
A business concern should follow this concept otherwise it will be very much difficult to ascertain the profit or loss of a given period of time. 
 
Question : Briefly explain your understanding of IFRS and also give the underlying assumptions in IFRS. 
Answer : International Financial Reporting Standards (IFRS):- 
Globalisation has unified different economies of the world. Enterprises are carrying on business worldwide. As accounting is the language of business, different enterprises around the world should not be speaking different languages in their financial statements. It will be very difficult to understand and compare these statements. 
International Financial Reporting Standards (IFRS) are issued by the International Accounting Standard Board (IASB). IASB replaced International Accounting.Standard Committee (LASC) in 2001.LASC was formed in 1973 to develop accounting standards which have global acceptance and makes different accounting statements of different countries similar and comparable. 
Assumptions in IFRS:- 
The underlying assumptions in IFRS are as follows: 
i. Measuring Unit Assumption:- Current purchasing power is the measuring unit which means that assets in the balance sheet are shown at current or fair value and not at historical cost. 
ii. Constant Purchasing Power Assumption:- It means that the value of capital is to be adjusted for inflation at the end of the financial year. 
iii. Accrual Assumption:- Transactions are recorded as and when they occur and the date of settlement is irrelevant. 
iv. Going Concern Assumption:- It is assumed that the life of the business is infinite.
 

CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting Match The Following

Question.
1. It records only Cash transactions                    a) Cash Basis
2. It records both cash and credit transactions    b) Accrual Basis
Answer. 1-a, 2-b

Question.
1. It may or may not give true and fair view of the business                     a) Cash Basis
2. It is a Scientific method and gives true and fair view of the business   b) Accrual Basis
Answer. 1-a, 2-b

Question.
1. Accounting policies and practices must be consistently followed      a) Business entity concept
2. It records the transactions between Owner and business                 b) Consistency
                                                                                                               c) Matching concept
                                                                                                               d) Prudence concept
Answer. 1-b, 2-a

Question.
1. It facilitates intra firm comparisons       a) Consistency
2. It is based on Accrual Concept             b) Matching Principle
                                                                 c) Business Entity principle
Answer. 1-a, 2-b

Question.
1. It anticipates and provides for all possible losses    a) Money measurement principle
2. It does not records the quality of manpower            b) Conservatism concept
                                                                                     c) Verifiability Objective
                                                                                     d) Consistency concept
Answer. 1-b; 2-a

Question.
1. Unearned Commission recorded in the books      a) Accrual basis
2. Accrued commission                                             b) Cash basis
Answer. 1-a; 2-a

Question.
1. Contingent liabilities to be recorded as a foot note.                               a) Conservatism concept
2. Closing stock is valued at a cost or market price whichever is lower.    b) Matching principle
                                                                                                                   c) Verifiability Objective
                                                                                                                   d) Full disclosure principle
Answer. 1-d; 2- a

Question.
1. Competency of the management will not be recorded     a) Prudence principle
2. Policy of playing safe                                                        b) Revenue recognition principle
                                                                                              c) Money measurement principle
                                                                                              d) Going concern
Answer. 1-c; 2-a

Question.
1. Mohan had cash sales of Rs. 90,000 and credit sales of      a) Rs. 78,000 .
Rs. 60,000: and his expenses were Rs. 70,000 out of
which 30,000 is yet to be paid. Find the Profit earned
if books are mentioned on accrual basis. 
2. Mohan had cash sales of Rs. 90,000 and credit sales of       b) Rs. 70,000 .
Rs. 60,000: and his expenses were Rs. 70,000 out of
which 12,000 is only been paid. Find the profit earned
if books are mentioned on cash basis.
                                                                                                   c) Rs. 80,000 .
                                                                                                    d) Rs. 1,30,000 .
Answer. 1-c ;2-a

 
Chapter 01 Introduction to Accounting
CBSE Class 11 Accountancy Introduction To Accounting And Basic Worksheet
CBSE Class 11 Accountancy Introduction To Accounting Enrichment Worksheet
CBSE Class 11 Accountancy Introduction To Accounting Worksheet
Chapter 02 Theory Base of Accounting
CBSE Class 11 Accountancy Theory Base Of Accounting Enrichment Worksheet
CBSE Class 11 Accountancy Theory Base Of Accounting Worksheet
Chapter 03 Recording of Transactions - I
CBSE Class 11 Accountancy Accounting Equation Worksheet
CBSE Class 11 Accountancy Accounting Procedures And Source Documents Worksheet
CBSE Class 11 Accountancy Equation Enrichment Worksheet
CBSE Class 11 Accountancy Journal And Ledger Worksheet
Chapter 04 Recording of Transactions - II
CBSE Class 11 Accountancy Subsidiary Books I Cash Book Worksheet
CBSE Class 11 Accountancy Subsidiary Books II Other Books Worksheet
Chapter 05 Bank Reconciliation Statement
CBSE Class 11 Accountancy Bank Reconciliation Statement Worksheet
CBSE Class 11 Accountancy Question Bank Worksheet
Chapter 06 Trial Balance and Rectification of Errors
CBSE Class 11 Accountancy Rectification Of Errors Worksheet Set A
CBSE Class 11 Accountancy Rectification Of Errors Worksheet Set B
Chapter 07 Depreciation, Provisions and Reserves
CBSE Class 11 Accountancy Depreciation Provisions And Reserves Worksheet
Chapter 08 Financial Statements - I
CBSE Class 11 Accountancy Financial Statements Worksheet Set A
CBSE Class 11 Accountancy Financial Statements Worksheet Set B
Chapter 09 Financial Statements - II
CBSE Class 11 Accountancy Financial Statements II Worksheet Set A
More Worksheets for Class 11 Accountancy
CBSE Class 11 Accountancy Financial Statements Of Not For Profit Organizations Worksheet
CBSE Class 11 Accountancy Project Work Worksheet
CBSE Class 11 Accountancy Revision Worksheet Set A
CBSE Class 11 Accountancy Revision Worksheet Set B
CBSE Class 11 Accountancy Revision Worksheet Set C
CBSE Class 11 Accountancy Revision Worksheet Set D
~ Class 11 Accountancy (Old Chapters)
CBSE Class 11 Accountancy Accounting For Bills Of Exchange Worksheet Set A
CBSE Class 11 Accountancy Accounting For Bills Of Exchange Worksheet Set B
CBSE Class 11 Accountancy Accounts From Incomplete Records Worksheet Set A
CBSE Class 11 Accountancy Accounts From Incomplete Records Worksheet Set B
CBSE Class 11 Accountancy Applications of Computers in Accounting Worksheet Set A
CBSE Class 11 Accountancy Applications of Computers in Accounting Worksheet Set B
NCERT Class 11 Accountancy Computerized Accounting System Worksheet

Important Practice Resources for Class 11 Accountancy

CBSE Accountancy Class 11 Chapter 2 Theory Base of Accounting Worksheet

Students can use the practice questions and answers provided above for Chapter 2 Theory Base of Accounting to prepare for their upcoming school tests. This resource is designed by expert teachers as per the latest 2026 syllabus released by CBSE for Class 11. We suggest that Class 11 students solve these questions daily for a strong foundation in Accountancy.

Chapter 2 Theory Base of Accounting Solutions & NCERT Alignment

Our expert teachers have referred to the latest NCERT book for Class 11 Accountancy to create these exercises. After solving the questions you should compare your answers with our detailed solutions as they have been designed by expert teachers. You will understand the correct way to write answers for the CBSE exams. You can also see above MCQ questions for Accountancy to cover every important topic in the chapter.

Class 11 Exam Preparation Strategy

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