According to my knowledge, the 2's complement is used to describe a negative number in binary representation. But I have this confusion.
Example: Suppose that we are using 5 bits registers. The representation of -5 and +5 is as follows:
+5 is represented as it is represented in sign magnitude method. -5 is represented using the following steps:
(i) +5 = 0 0101
(ii) Take the 2’s complement of 0 0101, which is 1 1011. The MSB is 1, which indicates that number is negative. (The MSB is always 1 for negative numbers.)
(The example is described clearly below.)

My question: In this example, 0101 is 5. But when we find its negative binary form, it is 1011.
But 1011 is equivalent to 11 in decimal. How can two decimal numbers be represented by the same binary representation, which is 1011?
The number $11011_2$ is not meant to be read as a binary number "in the usual sense", as you seem to assume. If you really wanted a number like that, with a sign bit and then five in binary, that'd be $10101_2$, which is the what -5 is with one's complement.
In the two's complement system, we take another number as negative, which simplifies the addition/subtraction process. In a stricter mathematical sense we take the number mod $2^N$ where $N=5$ in this case. ($-5 = 27 \mod 32$)