{"id":107669,"date":"2021-10-06T11:44:00","date_gmt":"2021-10-06T06:14:00","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=107669"},"modified":"2023-05-22T17:21:24","modified_gmt":"2023-05-22T11:51:24","slug":"ncert-solutions-for-class-11-accountancy-chapter-1","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/","title":{"rendered":"NCERT Class 11 Accountancy Solutions Chapter 1 2023-24"},"content":{"rendered":"\n<p><img class=\"alignnone size-full wp-image-107686\" src=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/chapter1-1.jpg\" alt=\"NCERT Solutions for Class 11 Accountancy Chapter 1\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/chapter1-1.jpg 1200w, https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/chapter1-1-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><strong>NCERT Solutions for Class 11 Accountancy Chapter 1<\/strong>: The NCERT Accountancy Book Class 11 Solutions Chapter 1 makes it simple to learn and apply concepts, as well as to include them in financial statements. Accounting provides accurate financial accounts, positions, and outcomes to an organization&#8217;s management, allowing them to make more informed business decisions. Know more about the NCERT Solutions for <a href=\"https:\/\/www.kopykitab.com\/Class-11-Accountancy\" target=\"_blank\" rel=\"noopener\">Class 11 Accountanc<\/a><a href=\"https:\/\/www.kopykitab.com\/Class-11-Accountancy\" target=\"_blank\" rel=\"noopener\">y<\/a> Chapter 1 in this blog.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d7948b31c64\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d7948b31c64\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#ncert-solutions-for-class-11-accountancy-chapter-1\" title=\"NCERT Solutions for Class 11 Accountancy Chapter 1\">NCERT Solutions for Class 11 Accountancy Chapter 1<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#download-ncert-solutions-for-class-11-accountancy-chapter-1-pdf\" title=\"Download NCERT Solutions for Class 11 Accountancy Chapter 1 PDF\">Download NCERT Solutions for Class 11 Accountancy Chapter 1 PDF<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#accounts-class-11-chapter-1-notes-overview\" title=\"Accounts Class 11 Chapter 1 Notes- Overview\">Accounts Class 11 Chapter 1 Notes- Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#access-ncert-solutions-for-class-11-accountancy-chapter-1\" title=\"Access NCERT Solutions For Class 11 Accountancy Chapter 1\">Access NCERT Solutions For Class 11 Accountancy Chapter 1<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#financial-accounting-part-1-chapter-1-short-answers\" title=\"Financial Accounting Part-1 Chapter 1 Short answers\">Financial Accounting Part-1 Chapter 1 Short answers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#1-define-accounting\" title=\"1. Define accounting.\">1. Define accounting.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#2-state-what-is-end-product-of-financial-accounting\" title=\"2. State what is end product of financial accounting?\">2. State what is end product of financial accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#3-enumerate-main-objectives-of-accounting\" title=\"3. Enumerate main objectives of Accounting.\">3. Enumerate main objectives of Accounting.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#4-list-any-five-users-who-have-indirect-interest-in-accounting\" title=\"4. List any five users who have indirect interest in accounting.\">4. List any five users who have indirect interest in accounting.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#5-state-the-nature-of-accounting-information-required-by-long-term-lenders\" title=\"5. State the nature of accounting information required by long-term lenders.\">5. State the nature of accounting information required by long-term lenders.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#6-who-are-the-external-users-of-information\" title=\"6. Who are the external users of information?\">6. Who are the external users of information?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#7-enumerate-informational-needs-of-management\" title=\"7. Enumerate informational needs of management.\">7. Enumerate informational needs of management.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#8-give-any-three-examples-of-revenues\" title=\"8. Give any three examples of revenues.\">8. Give any three examples of revenues.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#9-distinguish-between-debtors-and-creditors\" title=\"9. Distinguish between debtors and creditors.\">9. Distinguish between debtors and creditors.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#10-%e2%80%98accounting-information-should-be-comparable%e2%80%99-do-you-agree-with-this-statement-give-two-reasons\" title=\"10. &#8216;Accounting information should be comparable&#8217;. Do you agree with this statement? Give two reasons.\">10. &#8216;Accounting information should be comparable&#8217;. Do you agree with this statement? Give two reasons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#11-if-the-accounting-information-is-not-clearly-presented-which-of-the-qualitative-characteristic-of-the-accounting-information-is-violated\" title=\"11. If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information is violated?\">11. If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information is violated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#12-the-role-of-accounting-has-changed-over-the-period-of-time%e2%80%9d-do-you-agree-explain\" title=\"12. The role of accounting has changed over the period of time&#8221;- Do you agree? Explain.\">12. The role of accounting has changed over the period of time&#8221;- Do you agree? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#13-giving-examples-explain-each-of-the-following-accounting-terms\" title=\"13. Giving examples, explain each of the following accounting terms:\">13. Giving examples, explain each of the following accounting terms:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#14-how-will-you-define-revenues-and-expenses\" title=\"14. How will you define revenues and expenses?\">14. How will you define revenues and expenses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#15-what-is-the-primary-reason-for-the-business-students-and-others-to-familiarize-themselves-with-the-accounting-discipline\" title=\"15. What is the primary reason for the business students and others to familiarize\u00a0themselves with the accounting discipline?\">15. What is the primary reason for the business students and others to familiarize\u00a0themselves with the accounting discipline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#access-other-ncert-solutions-for-class-11-accountancy\" title=\"Access Other NCERT Solutions For Class 11 Accountancy\">Access Other NCERT Solutions For Class 11 Accountancy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#faq-on-ncert-solutions-for-class-11-accountancy-chapter-1\" title=\"FAQ On NCERT Solutions for Class 11 Accountancy Chapter 1\">FAQ On NCERT Solutions for Class 11 Accountancy Chapter 1<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#who-is-accounting%e2%80%99s-forefather-in-ncert-solutions-for-class-11-accountancy-chapter-1\" title=\"Who is accounting&#8217;s forefather in NCERT Solutions for Class 11 Accountancy Chapter 1?\">Who is accounting&#8217;s forefather in NCERT Solutions for Class 11 Accountancy Chapter 1?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#what-are-the-five-different-types-of-accounts-as-per-the-ncert-solutions-for-class-11-accountancy-chapter-1\" title=\"What are the five different types of accounts as per the NCERT Solutions for Class 11 Accountancy Chapter 1?\">What are the five different types of accounts as per the NCERT Solutions for Class 11 Accountancy Chapter 1?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#what-is-accounting-and-what-does-it-do\" title=\"What is accounting and what does it do?\">What is accounting and what does it do?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#what-are-the-benefits-of-accounting\" title=\"What are the benefits of accounting?\">What are the benefits of accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/#what-are-the-three-accounting-golden-rules\" title=\"What are the three accounting golden rules?\">What are the three accounting golden rules?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-accountancy-chapter-1\"><\/span><strong>NCERT Solutions for Class 11 Accountancy Chapter 1<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"example1\" style=\"text-align: justify;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-1-Chapter-1.pdf\" target=\"_blank\" rel=\"noopener\">NCERT Solutions for Class 11 Accountancy Chapter 1<\/a>\n<div id=\"example1\" style=\"text-align: justify;\">\u00a0<\/div>\n<p style=\"text-align: justify;\"><style>\n.pdfobject-container { height: 800px;}<br \/>\n.pdfobject { border: 1px solid #666; }<br \/>\n<\/style><\/p>\n<p style=\"text-align: justify;\"><script src=\"https:\/\/www.kopykitab.com\/_utility\/js\/pdfobject.min.js\"><\/script><br \/><script>PDFObject.embed(\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-1-Chapter-1.pdf\", \"#example1\");<\/script><\/p>\n<div>\u00a0<\/div>\n<h3><span class=\"ez-toc-section\" id=\"download-ncert-solutions-for-class-11-accountancy-chapter-1-pdf\"><\/span><strong>Download NCERT Solutions for Class 11 Accountancy Chapter 1 PDF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: center;\"><a style=\"width: auto; padding: 18px; cursor: pointer; font-weight: bold; border-radius: 40px; color: #ffffff; background: #ff4500;\" href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-1-Chapter-1.pdf\" target=\"_blank\" rel=\"noopener\">NCERT Solutions for Class 11 Accountancy Chapter 1 Free PDF<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"accounts-class-11-chapter-1-notes-overview\"><\/span><strong>Accounts Class 11 Chapter 1 Notes- Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Introduction to Accounting<\/strong><\/p>\n<ul>\n<li>The significance of accounting education There are two sections to the NCERT accountancy curriculum for class 11th. The first section covers the following topics: introduction, accounting theory, transaction recording one and two, bank re-consolation statement, trial balance, and rectification. Errors, depreciation, provision, and bills of exchange are all examples.<\/li>\n<li>Part two of the NCERT accounting class 11 textbook comprises seven chapters. The first section attempts to familiarise students with the fundamental ideas of accounting, recordkeeping, and identifying and correcting scientific errors.<\/li>\n<\/ul>\n<p>Part to add a practical accounting understanding by covering her financial statements in a computerised and database manner, on the other hand.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-ncert-solutions-for-class-11-accountancy-chapter-1\"><\/span>Access NCERT Solutions For Class 11 Accountancy Chapter 1<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"financial-accounting-part-1-chapter-1-short-answers\"><\/span><strong>Financial Accounting Part-1 Chapter 1<\/strong><br \/><strong>Short answers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"1-define-accounting\"><\/span><strong>1. Define accounting.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accounting is a process of identifying the events of financial nature, recording them in Journal, classifying in their respective ledgers,<br \/>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.<\/p>\n<p>According to the American Institute of Certified Accountants, 1941, &#8220;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<br \/>interpreting the results thereof.&#8221;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-state-what-is-end-product-of-financial-accounting\"><\/span><strong>2. State what is end product of financial accounting?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1. Income statements (Trading and\/or Profit and Loss Account)- An income statement that includes Trading and Profit and Loss Account,<br \/>ascertains the financial results of a business in terms of gross (or net) profit or loss.<br \/>2. Balance Sheet- It depicts the true financial positions of a business that provides required information like assets and liabilities of a business<br \/>firm, to the users of accounting information like owners, creditors, investors, government, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-enumerate-main-objectives-of-accounting\"><\/span><strong>3. Enumerate main objectives of Accounting.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The main objectives of accounting are given below.<br \/>1. To keep a systematic record of all business transactions<br \/>2. To determine the profit earned or loss incurred during an accounting period by preparing profit and loss account<br \/>3. To ascertain the financial position of the business at the end of each accounting period by preparing balance sheet<br \/>4. To assist management for decision making, effective control, forecasting, etc.<br \/>5. To assess the progress and growth of business from year to year<br \/>6. To detect and prevent frauds and errors<br \/>7. To communicate information to various users<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-list-any-five-users-who-have-indirect-interest-in-accounting\"><\/span><strong>4. List any five users who have indirect interest in accounting.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The five users who have indirect interest in accounting are given below.<br \/>1. Trade associations<br \/>2. Labour unions<br \/>3. Customers<br \/>4. Stock exchanges<br \/>5. Tax authorities<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-state-the-nature-of-accounting-information-required-by-long-term-lenders\"><\/span><strong>5. State the nature of accounting information required by long-term lenders.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accounting information required by the long term lenders are repaying capacity of the business, profitability, liquidity, operational<br \/>efficiency, potential growth of business, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-who-are-the-external-users-of-information\"><\/span><strong>6. Who are the external users of information?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>External users of information are the individual or the organisations that have direct or indirect interest in the business firm; however, are not a part of management.<\/p>\n<p>They do not have direct access to the internal data of the firm and uses published data or reportslike profit and loss accounts, balance sheets, annual reports, press releases, etc. Some examples of external users are government, tax authorities, labour unions, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7-enumerate-informational-needs-of-management\"><\/span><strong>7. Enumerate informational needs of management.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The informational needs of management are concerned with the activities given below.<br \/>1. Assists in decision making and business planning<br \/>2. Preparing reports related to funds, costs and profits to ascertain the soundness of the business<br \/>3. Comparing current financial statements with its own historical financial statements and of other similar firms to assess the operational<br \/>efficiency of the business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8-give-any-three-examples-of-revenues\"><\/span><strong>8. Give any three examples of revenues<\/strong>.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three examples of revenue are given below.<br \/>1. Sales revenue<br \/>2. Interest received<br \/>3. Dividends<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9-distinguish-between-debtors-and-creditors\"><\/span><strong>9. Distinguish between debtors and creditors.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"border-collapse: collapse; width: 98.7578%; height: 554px;\">\n<tbody>\n<tr>\n<td style=\"width: 33.3333%;\"><strong>Basis of difference\u00a0<\/strong><\/td>\n<td style=\"width: 33.3333%;\"><strong>Debtors<\/strong><\/td>\n<td style=\"width: 33.3333%;\"><strong>Creditors<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">MEANING<\/td>\n<td style=\"width: 33.3333%;\">Persons or<br \/>organizations that are<br \/>liable to pay money to<br \/>a firm are called<br \/>debtors.<\/td>\n<td style=\"width: 33.3333%;\">Persons or organizations<br \/>to whom the firm is<br \/>liable to pay money are<br \/>called creditors.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">NATURE<\/td>\n<td style=\"width: 33.3333%;\">They have debit<br \/>balance to the firm.<\/td>\n<td style=\"width: 33.3333%;\">They have credit<br \/>balance to the firm.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">PAYMENT<\/td>\n<td style=\"width: 33.3333%;\">Payments are received<br \/>from them.<\/td>\n<td style=\"width: 33.3333%;\">Payments are made to<br \/>them.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">SHOWN<\/td>\n<td style=\"width: 33.3333%;\">They are shown as<br \/>assets in the Balance<br \/>sheet under Current<br \/>Assets.<\/td>\n<td style=\"width: 33.3333%;\">They are shown as<br \/>liabilities in the Balance<br \/>Sheet under Current<br \/>Liabilities.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"10-%e2%80%98accounting-information-should-be-comparable%e2%80%99-do-you-agree-with-this-statement-give-two-reasons\"><\/span>10. &#8216;<strong>Accounting information should be comparable&#8217;. Do you agree with this statement? Give two reasons.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accounting information should be comparable because of the following reasons.<br \/>1. Comparable accounting information helps in inter-firm comparisons. This helps in assessing viability and advantages of various policies<br \/>adopted by different firms.<br \/>2. It also helps in intra-firm comparisons that help in determining the changes and also to ascertain the results of various policies and plans<br \/>adopted in different time periods. This also helps to figure out the errors, ascertain growth and assist in management planning.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"11-if-the-accounting-information-is-not-clearly-presented-which-of-the-qualitative-characteristic-of-the-accounting-information-is-violated\"><\/span><strong>11. <\/strong><strong>If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information<\/strong><br \/><strong>is violated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the accounting information is not clearly presented, then the qualitative characteristics like, comparability, reliability and<br \/>understandability, are violated.<\/p>\n<p>This is because if the accounting information is not clearly presented, then meaningful comparisonmay not be possible, as the data is not trustworthy, which may lead to faulty conclusions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"12-the-role-of-accounting-has-changed-over-the-period-of-time%e2%80%9d-do-you-agree-explain\"><\/span><strong>12. <\/strong><strong>The role of accounting has changed over the period of time&#8221;- Do you agree? <\/strong><strong>Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The role of accounting is ever changing. While in earlier times, accounting was merely concerned with recording the financial<br \/>events, i.e. record-keeping activity; however, now-a-days, accounting is done with the rationale of not only maintaining records, but<br \/>also providing an information system that provides important and relevant information to various accounting users.<\/p>\n<p>The need of this change is brought over due to the ever-changing and dynamic business environment, which is more competitive in nature now than<br \/>it was in earlier times.<\/p>\n<p>Further, there are various relevant activities like decision making, forecasting, comparison, and evaluation that make these changes in the role of accounting, inevitable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"13-giving-examples-explain-each-of-the-following-accounting-terms\"><\/span><strong>13. Giving examples, explain each of the following accounting terms:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>\u00a0 \u00a0Fixed assets<\/strong><br \/><strong>\uf0b7 Gain<\/strong><br \/><strong>\uf0b7 Profit<\/strong><br \/><strong>\uf0b7 Revenue<\/strong><br \/><strong>\uf0b7 Expenses<\/strong><br \/><strong>\uf0b7 Short-term liability<\/strong><br \/><strong>\uf0b7 Capital<\/strong><\/p>\n<ul>\n<li><strong>Fixed assets<\/strong>&#8211; These are held for long term and increase the profit earning capacity of the business, over various accounting periods.<br \/>These assets are not meant for sale; for example, land, building, machinery, etc.<\/li>\n<li><strong>Revenue<\/strong>&#8211; It refers to the amount received from day to day activities of business, viz. amount received from sales of goods and services to<br \/>customers; rent received, commission received, dividend, royalty, interest received, etc. are items of revenue that are added to the capital.<\/li>\n<li><strong>Capital<\/strong>&#8211; It refers to the amount invested by the owner of a firm. It may be in form of cash or asset. It is an obligation of the business<br \/>towards the owner of the firm, since business is treated separate or distinct from the owner.<br \/>Capital = Assets &#8211; Liabilities.<\/li>\n<li><strong>\u00a0Gains<\/strong>&#8211; Gains are incidental to the business. They arise from irregular activities or non-recurring transactions; for example, profit on sale of<br \/>fixed assets, appreciation in value of asset, profit on sale of investment, etc.<\/li>\n<li><strong>Expenses<\/strong>&#8211; Expenses are those costs that are incurred to maintain the profitability of business, like rent, wages, depreciation, interest,<br \/>salaries, etc. These help in the production, business operations and generating revenues<\/li>\n<li><strong> Profit<\/strong>&#8211; This refers to the excess of revenue over the expense. It is normally categorized into gross profit or net profit. Net profit is added to<br \/>the capital of the owner, which increases the owner&#8217;s capital. For example, goods sold above its cost<\/li>\n<li><strong>Short term liabilities<\/strong>&#8211; Those liabilities that are incurred with an intention to be paid or are payable within a year; for example, bank<br \/>overdraft creditors, bills payable, outstanding wages, short-term loans, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"14-how-will-you-define-revenues-and-expenses\"><\/span><strong>14. How will you define revenues and expenses?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Revenues- Revenues refer to the amount received from day to day activities of the business, likesale proceeds of goods and rendering services to the customers. Rent received, commission received, royalties and interest received are considered as revenue, as they are regular in nature and concerned with day to day activities. It is shown in the credit side of the profit and loss account or trading account.<\/li>\n<li>Expenses- Expenses refer to those costs that are incurred to earn revenue for the business. It is incurred for maintaining profitability of the business. It indicates the amount spent to meet short-term needs of the business. It is shown in the debit side of the profit and loss account or trading account. For example, wages, rent paid, salaries paid, outstanding wages, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"15-what-is-the-primary-reason-for-the-business-students-and-others-to-familiarize-themselves-with-the-accounting-discipline\"><\/span>15. What is the primary reason for the business students and others to familiarize\u00a0themselves with the accounting discipline?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every monetary transaction must be recorded in such a manner that various accounting users must understand and interpret these results in the same manner without any ambiguity.<\/p>\n<p>The reasons for why business students and others should familiarize themselves<br \/>with the accounting discipline are given below.<br \/>1. It helps in learning the various aspects of accounting.<br \/>2. It helps in learning how to maintain books of accounts.<br \/>3. It helps in learning how to summarize accounting information.<br \/>4. It helps in learning how to interpret the accounting information with relative accuracy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"access-other-ncert-solutions-for-class-11-accountancy\"><\/span><b>Access Other NCERT Solutions For Class 11 Accountancy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-2\/\"><strong>Chapter-2 Theory Base Of Accounting<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-3\/\"><strong>Chapter-3 Recording Of Transactions &#8211; I<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-4\/\"><strong>Chapter-4 Recording Of Transactions &#8211; II<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-5\/\"><strong>Chapter-5 Bank Reconciliation Statement<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-6\/\"><strong>Chapter-6 Trial Balance And Rectification Of Errors<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-7\/\"><strong>Chapter-7 Depreciation, Provisions, and Reserves<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-7\/\"><strong>Chapter-8 Bill of Exchange<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/\"><strong>Chapter-9 Financial Statements &#8211; 1<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-10\/\"><strong>Chapter-10 Financial Statements &#8211; 2<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-11\/\"><strong><span style=\"color: #00ccff;\">Chapter-11 Accounts From Incomplete Records<\/span><\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-12\/\"><strong>Chapter-12 Applications of Computers in Accounting<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-13\/\"><strong>Chapter-13 Computerised Accounting System<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-14\/\"><strong>Chapter-14 Depreciation<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-15\/\"><strong>Chapter-15 Bank Reconciliation Statement<\/strong><\/a><\/p>\n<p>We have provided all the important NCERT Solutions For Class 11 Accountancy Chapter 1 above in the article regarding the <a href=\"https:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> NCERT Solutions of Class 11 Accountancy Chapter-1. If you have any queries, you can mention them in the comment section.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"faq-on-ncert-solutions-for-class-11-accountancy-chapter-1\"><\/span><b>FAQ On <\/b><strong>NCERT Solutions for Class 11 Accountancy Chapter 1<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1627029400942\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"who-is-accounting%e2%80%99s-forefather-in-ncert-solutions-for-class-11-accountancy-chapter-1\"><\/span><strong>Who is accounting&#8217;s forefather in NCERT Solutions for Class 11 Accountancy Chapter 1?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Luca Pacioli is known as the &#8220;Father of Accountancy.&#8221; In 1494, he wrote the first book on double-entry accounting.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627029506407\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-five-different-types-of-accounts-as-per-the-ncert-solutions-for-class-11-accountancy-chapter-1\"><\/span>What are the five different types of accounts as per the NCERT Solutions for Class 11 Accountancy Chapter 1?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>1) Assets 2) Liabilities 3) Equity, 4) Revenue, and 5) Expenses are the five components of a business.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627029539485\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-is-accounting-and-what-does-it-do\"><\/span>What is accounting and what does it do?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Accounting&#8217;s goal is to provide information about a company&#8217;s performance and financial situation. This data aids in the making of business decisions.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627029583078\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-benefits-of-accounting\"><\/span>What are the benefits of accounting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Accounting is particularly beneficial for recording a company&#8217;s financial transactions and alerting shareholders about the company&#8217;s financial health.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627035734460\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-three-accounting-golden-rules\"><\/span>What are the three accounting golden rules?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Three golden rules of accounting are 1) Debit the Receiver, Credit the Giver<br \/>2) Debit What Comes In, Credit What Goes Out. 3)Debit All Expenses and Losses, Credit All Incomes and Gains.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>NCERT Solutions for Class 11 Accountancy Chapter 1: The NCERT Accountancy Book Class 11 Solutions Chapter 1 makes it simple to learn and apply concepts, as well as to include them in financial statements. Accounting provides accurate financial accounts, positions, and outcomes to an organization&#8217;s management, allowing them to make more informed business decisions. Know &#8230; <a title=\"NCERT Class 11 Accountancy Solutions Chapter 1 2023-24\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/\" aria-label=\"More on NCERT Class 11 Accountancy Solutions Chapter 1 2023-24\">Read more<\/a><\/p>\n","protected":false},"author":238,"featured_media":107686,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[73413,73694,73692,2985],"tags":[3570,76233,76416],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/107669"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=107669"}],"version-history":[{"count":4,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/107669\/revisions"}],"predecessor-version":[{"id":376946,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/107669\/revisions\/376946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/107686"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=107669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=107669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=107669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}