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Financial Statements - II — Revision Notes

CBSE · Class 11 · Accountancy

Financial Statements - II revision notes for CBSE Class 11 Accountancy: 4 topics in quick points. Part of the CBSE Class 11 Accountancy syllabus.

205 questions64 flashcards5 concepts

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Key Topics to Revise

1

1. Need for Adjustments

  • Final accounts are prepared from the trial balance and additional information.
  • Accrual basis means revenue is recognised when earned and expense when incurred.
  • Adjustments are needed because some items relate partly to the current year and partly to another year.
2

2. Closing Stock

  • Closing stock is the cost of unsold goods lying in stores at the end of the accounting period.
  • It is credited to the trading account and shown on the assets side of the balance sheet.
  • The adjustment entry is Closing stock A/c Dr. To Trading A/c.
3

3. Outstanding Expenses and Prepaid Expenses

  • Outstanding expenses are expenses of the current accounting period that remain unpaid at year end.
  • They are added to the related expense in the profit and loss account and shown as liabilities in the balance sheet.
  • Prepaid or unexpired expenses are expenses paid in advance whose benefit is not fully received in the current year.
4

4. Accrued Income and Income Received in Advance

  • Accrued income is income earned during the current year but not yet received.
  • It is added to the related income in the profit and loss account and shown as an asset.
  • Income received in advance is income received but belonging to the next accounting period.

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Full Notes

Key Concepts

Profit for an accounting yearClosing stock is the costOutstanding expenses are expenses ofPrepaid expenses are expenses paidAccrued income is income earned during

Frequently Asked Questions

What are the important topics in Financial Statements - II for CBSE Class 11 Accountancy?
Key topics in Financial Statements - II include Need for Adjustments, Closing Stock, Outstanding Expenses and Prepaid Expenses, Accrued Income and Income Received in Advance. Study these first, then practise questions on each for Class 11 exams.
How should I revise Financial Statements - II for Class 11 exams?
Learn the core ideas first, then work through the 205 practice questions on Financial Statements - II. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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All CBSE Class 11 Accountancy Revision Notes

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