# Introduction to Accounting, Class 11 Accountancy | SwaVid Introduction to Accounting, NCERT Class 11 Accountancy: notes with key ideas, formats, common mistakes and 3 quick checks with worked answers. Canonical: https://www.swavid.com/cbse/class-11/accountancy/chapter/introduction-to-accounting Source: https://www.swavid.com/cbse/class-11/accountancy/chapter/introduction-to-accounting # Introduction to Accounting ## Definitions, formats and formulas ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 11 Accountancy on SwaVid ### Meaning and process of accounting ### Economic events ### Objectives of accounting ### Qualitative characteristics of accounting information ### Users of accounting information ### Basic accounting terms ### Next chapter ### Related chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 11 › Accountancy › Introduction to Accounting Notes written by SwaVid from the NCERT textbook. Class 11 Accountancy, Chapter 1. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. This chapter introduces accounting as an information system that identifies, measures, records, and communicates economic events of an enterprise. It establishes the basic vocabulary, objectives, qualitative characteristics, and roles of accounting in modern business. Source: NCERT Financial Accounting I (Reprint 2026-27) , Chapter 1, Introduction to Accounting Accounting is the art of identifying, measuring, recording, and communicating economic events to interested users. It involves keeping systematic records in terms of money and preparing reports for decision-making. An economic event is an occurrence of consequence to a business enterprise that consists of transactions that are measurable in monetary terms. They are classified into external events involving third parties and internal events within the enterprise. The primary objectives are maintaining business records, calculating profit or loss for an accounting period, depicting the financial position of the business, and providing information to various users. To be useful, accounting information must possess four key qualitative characteristics: reliability, relevance, understandability, and comparability. Reliability requires the information to be factual and verifiable. Users are divided into internal users like management, chief executives, and plant managers, and external users like investors, creditors, banks, tax authorities, and employees. The chapter defines fundamental business terms including entity, transactions, assets, liabilities, capital, sales, revenues, expenses, profit, gain, loss, expenditure, drawings, purchases, stock, debtors, and creditors. Try each question first. Then tap it to see the answer. Capital = Assets - Liabilities Capital = ₹ 5,00,000 - ₹ 1,80,000 = ₹ 3,20,000 ₹ 3,20,000 Profit = Revenue - Expenses Profit = ₹ 8,50,000 - ₹ 6,20,000 = ₹ 2,30,000 ₹ 2,30,000 Closing Capital = Opening Capital + Profit - Drawings Closing Capital = ₹ 2,00,000 + ₹ 60,000 - ₹ 25,000 = ₹ 2,35,000 ₹ 2,35,000 Theory Base of Accounting . Recording of Transactions - I . Financial Statements - I . The 9 chapters of Class 11 Accountancy . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Theory Base of Accounting. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 1 NCERT book - 80 marks, theory paper - 3 quick checks - Treating non-monetary business events as accounting transactions . Only record events that can be measured objectively in monetary terms. Qualitative factors like employee morale or management disputes are omitted from accounts. - Confusing revenue with cash received . Revenue represents the gross inflow of economic benefits arising from the ordinary activities of an enterprise, regardless of whether cash has been received immediately or is receivable later. - Failing to distinguish between expenditure and expense . Expenditure is any disbursement of cash or transfer of property to acquire assets, goods, or services. An expense is only that portion of expenditure that is consumed or used up during the current accounting period to earn revenue. - Mixing up gains and profits . Profit arises from regular operating activities of the business over an accounting period, whereas gain refers to incidental or non-operating receipts, such as the profit on the sale of a fixed asset. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 11](https://www.swavid.com/cbse/class-11) - [Accountancy](https://www.swavid.com/cbse/class-11/accountancy/chapters) - [Start free →](https://www.swavid.com/signup) - [All 9 chapters](https://www.swavid.com/cbse/class-11/accountancy/chapters) - [NCERT Financial Accounting I (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-11/accountancy/chapter/theory-base-of-accounting) - [Open notes](https://www.swavid.com/cbse/class-11/accountancy/chapter/recording-of-transactions-i) - [Open notes](https://www.swavid.com/cbse/class-11/accountancy/chapter/financial-statements-i) - [Class 11 Accountancy](https://www.swavid.com/cbse/class-11/accountancy/chapters) - [Start free →](https://www.swavid.com/signup)