Cheat sheet · Class 11 · CBSE · Commerce Accountancy
Theory Base of Accounting cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 11 · Accountancy
Cheat sheet
Chapter 2Theory Base of Accounting
GAAP → standards (AS/Ind AS) → uniform, comparable accounts.
1. Basic Accounting Concepts
| Concept | Meaning |
|---|---|
| Business entity | business is separate from the owner |
| Money measurement | only money transactions are recorded |
| Going concern | business will continue indefinitely |
| Accounting period | results reported for a period (usually a year) |
| Cost | assets recorded at purchase price |
| Dual aspect | every transaction has two sides: Assets = Liabilities + Capital |
| Revenue recognition | revenue recorded when earned |
| Matching | expenses matched with related revenue |
| Full disclosure | all material facts shown |
| Consistency | same methods year to year |
| Conservatism (prudence) | anticipate no profit, provide for all losses |
| Materiality | record significant items properly |
| Objectivity | based on verifiable evidence |
2. Bases of Accounting
Cash basis
record only when cash is received/paid.
Accrual basis
record when earned/incurred (used by companies).
3. Standards
- ASB of ICAI issues Accounting Standards.
- Ind AS converge with IFRS.
- GST: dual tax (CGST + SGST, or IGST for inter-state).
4. Key Points
- Closing stock valued at cost or market price, whichever is lower (conservatism).
- Depreciation follows the matching concept.
- Dual aspect gives the accounting equation.
- Consistency aids comparison.
Remember: 13 concepts | cash vs accrual | AS, Ind AS, GST
Theory Base of Accounting: questions and notes
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