TS Grewal Accountancy Class 11 Solutions

1. Basic Accounting Terms

The first chapter briefs about some popular accounting terms like loss, expense, opening stock, closing stock, vouchers, asset, debts, capital, goods, revenue, liability, etc. This lesson in TS Grewal class 11 solutions can be viewed as a foundation of the upcoming accountancy chapters. 

Accounting is a procedure that involves reporting, documenting, evaluating, and summarising economic data. Accounting's introduction assists a company's decision-makers in making successful decisions by giving information on the financial health of the organization. Accounting is utilized by everyone nowadays, and having a strong grasp of it is advantageous to everyone. Accountancy serves as a financial language. Accounting factors must be understood in order to grasp accounting properly.

2. Accounting Equation

An Accounting Equation depicts the link between the firm's assets and liabilities, demonstrating that total assets equal total liabilities and owner's capital/equity. Accounting equations are based on the accounting notion of dual aspects. Every transaction has two components: debt and credit, and it impacts either both sides of the equation or simply one side with equal quantities. The second chapter shows how the accounting equation is implemented in business to find out different values. Solutions in this chapter depict the effect of the accounting equation on various business activities. 

3. Accounting Procedures – Rules of Debit and Credit

According to the double-entry system of accounting, a business transaction is carried on by two aspects. One is debit while the other is credit. An accounting procedure is a systematic method of carrying out a task in the accounting department. Accountancy processes include the following:

• Billing Customers 

• Supplier invoices payment

• Calculate employee wages and fixed asset depreciation

• Fixated assets should be de-recognized.

• Reconcile your accounts.

An accounting method is created to quickly execute a task while also adding enough controls to reduce the risk of loss. Employees can utilize a process as a training tool, reading it to learn about a new job.

4. Origin of Transactions – Source Documents and Preparation of the Voucher

The fourth chapter in TS Grewal Accountancy class 11 teaches the following –

• Meaning of source documents

• Types of source documents

• Preparing accounting vouchers

5. Journal

Journal is a record of all the financial transactions in a business. It records the transactions in chronological order. Journal contains debit as well as credit entries. The chances of errors in accounting records are minimized with the help of a journal. A journal is a complete record of all a company's transactions. The information recorded in a journal is used to reconcile accounts and transmit information to other accounting records. A transaction is normally documented using a double-entry technique in a company's journal, but it can also be kept in a record using a single-entry practice of bookkeeping. After a transaction, the double-entry approach displays changes in two accounts: a rise in one and a drop in the matching account. Single-entry accounting, which simply records changes in one account, is rarely utilized. In the financial industry, a journal may also refer to a trading journal that chronicles an investor's trades and why they were done.

6. Ledger

An accounting ledger is a bookkeeping account or record that stores balance-sheet and income-statement transactions. All forms of balance sheet and income statement transactions are recorded in accounting ledgers. The accounting ledger, often known as the general ledger, is the backbone of any company financial system since it serves as a consolidated repository for all account data rolled up from sub-ledgers or modules. The accounting ledger is used to create the company's important financial statements, such as the income statement, cash flow statement, and balance sheet. Once the financial entries are made in a journal, it is to be transferred to the concerned accounts in a Ledger. A ledger can be said to be a financial record that contains all the transaction details related to a particular business account. Chapter 6 in class 11 Accountancy TS Grewal Solutions explains the drafting of the ledger.

7. Special Purpose Books 1 – Cashbook

Cashbook is a journal that contains all the financial and transaction-related information of a company. It includes bank deposits, withdrawals, payments, receipts, and so on. Kept in chronological order, the cash book and the amount are constantly updated in order to confirm. The cash book is mostly divided into two components in bigger organizations: the cash distribution diary and the cash receipts notebook. A cashbook varies from a cash account in that it is a distinct ledger where cash transactions are kept into account, whereas a cash account is a general ledger account. The most used ones are single column, double column, and triple column cash books.

8. Special Purpose Books 2 – Other Books

This chapter in class 11 Accounts TS Grewal Solutions is about the other special-purpose books apart from a cash book.

9. Bank Reconciliation Statement

A bank reconciliation statement is the summary of all banking and business activities that constitute bank account records. It contains details of deposits, withdrawals, etc. By summarising banking and commercial activity, a bank reconciliation statement reconciles an entity's bank account with its financial records. A bank's costs on an account must be accounted for in a reconciliation statement. By summarising banking and commercial activity, a bank reconciliation statement reconciles an entity's bank account with its financial records. According to bank reconciliation data, payments have been completed and cash collected has been deposited into a bank account. A bank's costs on an account must be accounted for in a reconciliation statement. 

10.  Trial Balance

A trial balance is an accounting statement that shows the total debits and credits of an account. This simplifies the task of preparing the final statements of a company. It can be prepared in 3 ways -

• Totals method

• Balances method

• Combination of Totals and Balances method

A trial balance is a worksheet with two columns, one for debits and the other for credits, that ensures the technical validity of a company's accounting.

The debits and credits, which comprise the sum of such accounts as assets, expenses, liabilities, and revenues, contain all business transactions for an organization during a certain time.

If the debits and credits of a trial balance are equal and there are no mathematical problems, but the accounting procedures may still have defects or errors.

11.  Depreciation

In the accounting context, depreciation is the reduction in value or recorded cost of fixed assets until it reaches the least value. In this chapter of class 11 TS Grewal solutions 2024-25, there are solved sums on depreciation. The cost of using a physical thing is linked to the benefit gained via depreciation throughout its useful life. Straight-line and other types of accelerated depreciation are two examples of depreciation. Accumulated depreciation refers to the entire depreciation reported on an asset up to a particular date. The carrying value that an asset is marked as having on the balance sheet is its original cost less any depreciation that has occurred. The carrying value that an asset has after all depreciation has been eliminated is referred to as salvage value.

12.  Accounting for Bills of Exchange

Bills of exchange are documents or records which signify a transaction between a seller and a buyer. It includes a drawer, drawee, payee, acceptor, maturity date, bills, etc. A bill of exchange is a document that binds one party to pay another party a specified amount of money on demand or at a later date. The drawee, who pays the money, the payee, who receives it, and the drawer, who obligates the drawee to pay the payee, are the three persons involved in a bill of exchange. The bill of exchange is in the form of a document that helps importers and exporters complete transactions in international trade. While a bill of exchange isn't a contract in and of itself, it can be used by the parties to set the conditions of a transaction, such as credit terms and interest rates.

13.  Rectification of Errors

In financial accounting, few entries might be put up incorrectly. These mistakes end up making the entire financial statement erroneous. Thus, they need to be rectified in due time. This process is called rectification of errors in Accountancy. The technique of rectifying inaccuracies committed to documenting transactions is referred to as rectification of errors. These errors can happen while posting entries to ledger accounts, categorizing accounts, carrying forward balances, and so forth.

14.  Financial Statements of a Sole Proprietorship

Sole proprietorship in a business is when a single individual or entity enjoys the ownership and management of a company. The business entity in such cases has the same existence as the owner and is not a separate legal entity.  The number of assets possessed, obligations, and the amount of the owner's capital illustrates the financial status of a sole proprietorship. The name of the business, the name of the statement, and the date of the statement are all shown on the balance sheet of a sole proprietorship.

15.  Adjustments in Preparation of Financial Statements

While accounting for the financial records of a company, there might be some records that still need adjustment or updates. Such records are incorporated in the financial statement once they are adjusted, finalized, or updated. In chapter 15 of TS Grewal Accountancy class 11 solutions, students learn about such adjustments in the preparation of financial statements. Incomplete records tend to come up when an organization does not use double-entry accounting. Alternatively, it keeps a smaller quantity of information regarding its financial outcomes using a more informal accounting system, such as a single-entry system.

16.  Accounts from Incomplete Records – Single Entry System

A single entry system in accounting is the method of maintaining records where each transaction is recorded as a single entry in the books. This is a simple and cost-effective way of maintaining financial records. Usually, small companies resort to this method of accounting. An adjusting entry is essentially a change to your books that allows your financial statements to more correctly represent your revenue and spending, generally on an accrual basis but not always. After the accounting period comes to an end, adjusting entries are made. This might happen towards the end of the month of the year.

TS Grewal class 11 solutions is a must-read for students approaching their board exams of 2024-25. The solutions are error-free and have been updated as per the syllabus specified by the CBSE board.