ACCOUNTANCY NOTES
Class: 11th
Subject: Accountancy
Writer: D.K. Goel
Session: 2025-26
Chapter 1: Introduction to Accounting
Meaning of Accounting
Accounting is the process of identifying, measuring, recording, and communicating financial
information to help users make decisions.
Objectives of Accounting
- Maintain systematic records
- Ascertain profit or loss
- Know financial position
- Provide useful information to users
- Help in decision making
Features of Accounting
- Systematic recording
- Classification and summarization
- Analysis and interpretation
- Communicates information
Users of Accounting Information
Internal Users: Owners, Management, Employees
External Users: Creditors, Investors, Government, Tax authorities, Researchers
, Branches of Accounting
- Financial Accounting
- Cost Accounting
- Management Accounting
Accounting as Science, Art & Language
- Science: Has systematic rules and principles.
- Art: Requires skill and judgment.
- Language: Communicates financial results.
Book-Keeping vs Accounting
Aspect | Book-Keeping | Accounting
Scope | Recording only | Recording, classifying, summarizing, analyzing
Purpose | Maintain records | Find out profit/loss & financial position
Stage | Primary | Secondary and final stage
Accounting Process
1. Identification
2. Recording
3. Classification
4. Summarization
5. Analysis & Interpretation
6. Communication
Definitions
"Accounting is the art of recording, classifying and summarizing in a significant manner..." - AICPA
Class: 11th
Subject: Accountancy
Writer: D.K. Goel
Session: 2025-26
Chapter 1: Introduction to Accounting
Meaning of Accounting
Accounting is the process of identifying, measuring, recording, and communicating financial
information to help users make decisions.
Objectives of Accounting
- Maintain systematic records
- Ascertain profit or loss
- Know financial position
- Provide useful information to users
- Help in decision making
Features of Accounting
- Systematic recording
- Classification and summarization
- Analysis and interpretation
- Communicates information
Users of Accounting Information
Internal Users: Owners, Management, Employees
External Users: Creditors, Investors, Government, Tax authorities, Researchers
, Branches of Accounting
- Financial Accounting
- Cost Accounting
- Management Accounting
Accounting as Science, Art & Language
- Science: Has systematic rules and principles.
- Art: Requires skill and judgment.
- Language: Communicates financial results.
Book-Keeping vs Accounting
Aspect | Book-Keeping | Accounting
Scope | Recording only | Recording, classifying, summarizing, analyzing
Purpose | Maintain records | Find out profit/loss & financial position
Stage | Primary | Secondary and final stage
Accounting Process
1. Identification
2. Recording
3. Classification
4. Summarization
5. Analysis & Interpretation
6. Communication
Definitions
"Accounting is the art of recording, classifying and summarizing in a significant manner..." - AICPA
