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Chapter 4 Admission of a Partner. Chapter 5 Retirement or Death of a Partner. Chapter 6 Dissolution of a Partnership Firm. Chapter 7 Company Accounts Issue of Share. Chapter 8 Company Accounts Issue of Debentures. Chapter 9 Company Accounts Redemption of Debentures. Chapter 1 Financial Statements of Companies. Chapter 2 Financial Statements Analysis.

Chapter 3 Tools for Financial Analysis. Chapter 4 Common Size Statements. Chapter 5 Accounting Ratios. Chapter 6: Cash Flow Statements. Accountancy is first introduced to the student's curriculum in Class 11, making them anxious to explore the subject.

This is the time when they discover Accountancy as either an easy subject or develop a diplomatic view of this subject. But it is essential to grab the ideologies and fundamentals of the subject and implement the best technique to study Accountancy under the guidance of chapter-wise solutions in textbooks. But the students often wonder to comprehend the theories and ideologies of the subject. Well, no worries, we are here to present you, the DK Goel Solutions for Class 11, to provide you with an extra push to climb the ladder of theories in Accountancy.

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Understand before Learning пїЅ Understanding a subject is the basis of its development. Every student must have clear ideas about the definitions, theories, terms, and examples of Accountancy concepts.

Practice Questions пїЅ As we know, practice is the key to Perfection. To make concepts strong, we need to practice and work on examples of respective concepts. Solve the Past Year's Question Papers пїЅ The students must go through the previous year's question papers and try to solve them, as this will assist them in getting a hold of the questions pattern and marks distribution system. Solve Sample Papers пїЅ If you want to score well in exams, the sample papers must be your companion.

Solve the sample papers to analyse questions and solutions of different difficulty levels and get proper guidance of the expected and important question on specific concepts. Revise пїЅ Revision is the key to remember all the essential concepts, definitions. Chapter 1: Meaning and Objectives of Accounting пїЅ In the initial chapter of DK Goel Accountancy Class 11 Solutions presents a glimpse of the subject to the students, explaining about пїЅ.

Chapter 2: Basic Accounting Terms пїЅ This chapter introduces the basic accounting terms such as profit, loss, revenue, revenue expenditures, current assets, fixed assets, etc. Chapter 6: Accounting Equation- The chapter defines the necessities of the accounting equation and numerical problems. Chapter 8: Origin of Transactions пїЅ This chapter discloses about initial phases of transactions. Chapter 9: Journal пїЅ This chapter in Dk Goel Accountancy Class 11 serves the students with vivid knowledge about journals.

Chapter Cashbook пїЅ This chapter presents the best solutions for the Cashbook sums. Chapter Ledger пїЅ This chapter presents the students with almost 13 numerical sums on Ledger Posting. Chapter Trial Balance and Errors пїЅ This chapter gives the students a clear picture of the trial balance system.

Chapter Depreciation пїЅ This chapter guides the students to calculate depreciation and to explore its meaning. Chapter Provisions and Reserves пїЅ This chapter helps the students to understand the true meaning of provisions and reserves. Chapter Bills and Exchanges пїЅ This chapter includes numerical sums based on пїЅ interest amounts, discounting charges, etc.

Chapter Rectification of Errors пїЅ This chapter allows the students to learn the methods to handle and rectify errors in the sums. Chapter Financial Statements пїЅ This chapter in DK Goel Accountancy Class 11 Solutions teaches the students to calculate adjusted purchase, the cost of sold goods, gross profit, direct expenditure, the value of sales, and many more.

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Chapter Computerised Accounting System пїЅ This chapter briefs about the working of Computerised Accounting System and it's the difference with manual accounting mechanism. Chapter Accounting Software Package пїЅ Tally пїЅ This chapter trains the students to use tally software efficiently.

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The basic steps in the recording process are: 1 Analyze each transaction for its effect on the accounts. The advantages of using the journal in the recording process are: 1 It discloses in one place the complete effects of a transaction.

When three or more accounts are required in one journal entry, the entry is referred to as a compound entry. An example of a compound entry is the purchase of equipment, part of which is paid for with cash and the remainder is on account.

It discloses in one place the complete effects of a transaction. It provides a chronological record of all transactions. It helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared. The advantage of the last step in the posting process is to indicate that the item has been posted. Invested cash in the business. Paid one-year insurance policy. Accounts Payable Purchased supplies on account.

Service Revenue Received cash for services performed. The chart of accounts is important, particularly for a company that has a large number of accounts, because it helps organize the accounts and define the level of detail that a company desires in its accounting system.

A trial balance is a list of accounts and their balances at a given time. The primary purpose of a trial balance is to prove check that the debits equal the credits after posting. A trial balance also facilitates the discovery of errors in journalizing and posting. In addition, it is useful in preparing financial statements.

Victor is not correct. The proper sequence is as follows: Business transaction occurs. Information entered in the journal. Debits and credits posted to the ledger. Trial balance is prepared. Financial statements are prepared. Rent Expense Accounts Receivable Analyze each transaction. In this step, business documents are examined to determine the effects of the transaction on the accounts. Enter each transaction in a journal. This step is called journalizing and it results in making a chronological record of the transactions.

Transfer journal information to ledger accounts. This step is called posting. Posting makes it possible to accumulate the effects of journalized transactions on individual accounts. Prepaid Insurance Salaries and Wages Expense Unearned Service Revenue DO IT!

The three activities would be recorded as follows: 1. Salaries and Wages Payable Increase the asset Cash, increase the liability Notes Payable. Increase the asset Equipment, decrease the asset Cash. Increase the asset Supplies, increase the liability Accounts Payable. Notes Payable The general ledger is not a book of original entry; transactions are first recorded in the general journal, then in the general ledger.

Paid salaries to date. Paid creditors on account. Received cash in payment of account. Received cash for future services. Obtained loan from bank. Billed clients for services performed. Trial Balance October 31, Cash Account Titles and Explanation Cash Maintenance and Repairs Expense Gasoline Expense Utilities Expense Advertising Expense Paid for advertising. Paid for one-year insurance policy. Purchased equipment on account. Received cash for coupon books sold. Withdrew cash for personal use Salaries and Wages Expense Paid salaries.

Paid creditor on account. Paid monthly office rent. Purchased supplies on account from Smile Company. Received cash for future service. Paid monthly salary. Paid Smile Company on account. Prepaid Rent Rented films for cash and on account. No entry. Paid advertising expense. The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair, are ethics.

DO IT! R Classifying economic events. C Explaining uses, meaning, and limitations of data. R Keeping a systematic chronological diary of events. R Measuring events in dollars and cents. C Preparing accounting reports. C Reporting information in a standard format. I Selecting economic activities relevant to the company. R Summarizing economic events. E Did the company earn a satisfactory income?

I Do we need to borrow in the near future? I What does it cost us to manufacture each unit produced? I Which product should we emphasize? E Will the company be able to pay its short-term debts? The historical cost principle requires that assets be recorded and reported at their cost, because cost is faithfully representative and can be objectively measured and verified. Angela Duffy could benefit if the company is able to attract more investors, but would be harmed if the inappropriate reporting is discovered.

Similarly, Jana Barth could benefit by pleasing her boss, but would be harmed if the inappropriate reporting is discovered. She should try to convince Angela Duffy that this is the appropriate course of action, but be prepared to resign her position if Duffy insists. The historical cost principle requires that assets such as buildings be recorded and reported at their cost. The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money.

The economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities. Increase in assets and increase in liabilities. Increase in assets and decrease in assets. Balance Sheet August 31, Assets Cash Balance Sheet June 30, Assets Cash A partnership is not an option since she is the sole owner of the business.

A proprietorship is the easiest to create and operate because there are no formal procedures involved in creating the proprietorship. However, if she operates the business as a proprietorship she will personally have unlimited liability for the debts of the business. Operating the business as a corporation would limit her liability to her investment in the business. Natalie will in all likelihood require the services of a lawyer to incorporate.

Costs to incorporate as well as additional ongoing costs to administrate and operate the business as a corporation may be costly. My recommendation is that Natalie choose the proprietorship form of business organization. Furthermore, it will be easier to stop operating the business if Natalie decides not to continue with it once she has finished college.

She will need information on her cash balance on a daily or weekly basis to help her determine if she can pay her bills. She will need to know the cost of her services so she can establish her prices.

She will need to know revenue and expenses so she can report her net income for personal income tax purposes, on an annual basis. If she borrows money, she will need financial statements so lenders can assess the liquidity, solvency, and profitability of the business.

Natalie would also find financial statements useful to better understand her business and identify any financial issues as early as possible. Monthly financial statements would be best because they are more timely, but they are also more work to prepare. This will make it easier to prepare financial statements for her business. The business is a separate entity from Natalie and must be accounted for separately. This work is becoming increasingly computerized and can rely on sophisticated random sampling methods.

Audit is the bread-and-butter work of accounting. This work can involve significant travel and allows you to really understand how money is being made in the company that you are analyzing.

There are plentiful jobs in this area in government and private industry. Besides quantitative skills many budget analyst jobs require good people skills because of negotiations involved in the work.

This work can be varied over time. One day you may be running spreadsheets. The next day you may be visiting a customer or supplier to set up a new account and discuss business.

This work requires a good understanding of both accounting and finance. Major functions include cost analysis, analysis of new contracts, and participation in efforts to control expenses efficiently. This work often involves the analysis of the structure of organizations. Is responsibility to spend money in a company at the right level of our organization?

Are goals and objectives to control costs being communi- cated effectively? This work requires a thorough understanding of economics and the tax code. Increasingly, large corpo- rations are looking for persons with both an accounting and a legal background in tax. This is not a valid basis for determining income because it only shows the change in cash between two points in time. Alternatively, since all revenues are received in cash, revenues earned can be computed from an analysis of the changes in cash as follows: Beginning cash balance A number of items in this balance sheet are not properly reported.

They are: 1. The balance sheet should be dated as of a specific date, not for a period of time. Equipment should be shown as an asset and reported below Supplies on the balance sheet. Accounts receivable should be shown as an asset, not a liability, and reported between Cash and Supplies on the balance sheet. Accounts payable should be shown as a liability, not an asset.

The note payable is also a liability and should be reported in the liability section. Would you want to start your first job having deceived your employer before your first day of work?

Would you be embarrassed if either firm found out that you double-charged? Would your school be embarrassed if your act was uncovered? Would you be proud to tell your professor that you collected your expenses twice? This would seem to be ethical. Since the expenditure was necessary, although perhaps accelerated, it would seem to be ethical.