CBSE Syllabus for Class 12 Accountancy 2020-21

CBSE Class 12 Accountancy Syllabus emphasises on enhancing the fundamental comprehension about the nature and purpose of the accounting information and its utility in the conduct of business operations. This progresses logical reasoning, analytical skills and considered judgmental potential among the students. Class 12 Accountancy provides a wide range of illustrative examples; which helps the students to comprehend and learn quickly.

Download CBSE Class 12 Accountancy Syllabus 2020-21 PDF

CBSE Class 12 Accountancy Deleted Syllabus Portion PDF for 2020-21

Accountancy (Code No. 055) Class-XII (2020-21)

Theory: 80 Marks

Duration: 3 Hours

Project: 20 Marks

Units Periods Marks
Part A Accounting for Not-for-Profit Organizations, Partnership Firms and Companies
Unit 1. Financial Statements of Not-for-Profit Organizations 25 10
Unit 2. Accounting for Partnership Firms 65 30
Unit 3. Accounting for Companies 25 20
115 60
Part B Financial Statement Analysis
Unit 4. Analysis of Financial Statements 30 12
Unit 5. Cash Flow Statement 20 8
50 20
Part C Project Work 10 20
Project work will include
Project File | 4 Marks
Written Test  | 12 Marks (One Hour)
Viva Voce | 4 Marks
OR
Part B Computerized Accounting
Unit 4. Computerized Accounting 50 20
Part C Practical Work 20 20
Practical work will include:
Practical File 4 Marks
Practical Examination 12 Marks (One Hour)
Viva Voce 4 Marks

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

Unit 1: Financial Statements of Not-for-Profit Organizations Units/Topics

  • Not-for-profit organizations: concept.
  • Receipts and Payments Account: features and preparation.
  • Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Unit 2: Accounting for Partnership Firms Units/Topics

  • Partnership: features, Partnership Deed.
  • Provisions of the Indian Partnership Act 1932 in the absence of partnership deed.
  • Fixed v/s fluctuating capital accounts. Preparation of Profit and Loss Appropriation account- division of profit among partners, guarantee of profits.
  • Past adjustments (relating to interest on capital, interest on drawing, salary and profit sharing ratio).
  • Goodwill: nature, factors affecting and methods of valuation – average profit, super profit and capitalization.

Note: Interest on partner’s loan is to be treated as a charge against profits. Goodwill to be adjusted through partners capital/ current account or by raising and writing off goodwill (AS 26)

Accounting for Partnership firms – Reconstitution and Dissolution.

  • Change in the Profit Sharing Ratio among the existing partners – sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits. Preparation of revaluation account and balance sheet.
  • Admission of a partner – effect of admission of a partner on change in the profit sharing ratio, treatment o goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulated profits.
  • Retirement and death of a partner: effect of retirement / death of a partner on change in profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, adjustment of accumulated profits and reserves.
  • Calculation of deceased partner’s share of profit till the date of death.
  • Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts – preparation of realization account, and other related accounts: capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Note: (i) The realized value of each asset must be given at the time of dissolution. (ii) In case, the realization expenses are borne by a partner, clear indication should be given regarding the payment thereof.

Unit-3 Accounting for Companies

Accounting for Share Capital

  • Share and share capital: nature and types.
  • Accounting for share capital: issue and allotment of equity and preferences shares. Public subscription of shares – over subscription and under subscription of shares; issue at par and at premium, calls in advance and arrears (excluding interest), issue of shares for consideration other than cash.
  • Concept of Private Placement and Employee Stock Option Plan (ESOP).
  • Accounting treatment of forfeiture and reissue of shares.
  • Disclosure of share capital in the Balance Sheet of a company.

Accounting for Debentures

  • Debentures: Issue of debentures at par, at a premium and at a discount. Issue of debentures for consideration other than cash; Issue of debentures with terms of redemption; debentures as collateral security concept, interest on debentures. Writing off discount / loss on issue of debentures.
    Note: Discount or loss on issue of debentures to be written off in the year debentures are allotted from Security Premium Reserve (if it exists) and then from Statement of Profit and Loss as Financial Cost (AS 16).
  • Creation of Debenture Redemption Reserve.

Note: Related sections of the Companies Act, 2013 will apply.

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Financial statements of a Company: Statement of Profit and Loss and Balance Sheet in prescribed form with major headings and sub headings (as per Schedule III to the Companies Act, 2013) Note: Exceptional items, extraordinary items and profit (loss) from discontinued operations are excluded.

  • Financial Statement Analysis: Objectives, importance and limitations.
  • Tools for Financial Statement Analysis: Comparative statements, common size statements, cash flow analysis, ratio analysis.
  • Accounting Ratios: Meaning, Objectives, classification and computation.
  • Liquidity Ratios: Current ratio and Quick ratio.
  • Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.
  • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Working Capital Turnover Ratio.
  • Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

Unit 5: Cash Flow Statement

Meaning, objectives and preparation (as per AS 3 (Revised) (Indirect Method only)

OR

Part B: Computerised Accounting

Unit 3: Computerised Accounting

Overview of Computerised Accounting System

  • Introduction: Application in Accounting.
  • Features of Computerised Accounting System.
  • Structure of CAS.
  • Software Packages: Generic; Specific; Tailored.

Accounting Application of Electronic Spreadsheet

  • Concept of electronic spreadsheet.
  • Features offered by electronic spreadsheet.
  • Application in generating accounting information – bank reconciliation statement; asset accounting; loan repayment of loan schedule, ratio analysis
  • Data representation- graphs, charts and diagrams.

Using Computerized Accounting System

  • Steps in installation of CAS, codification and Hierarchy of account heads, creation of accounts.
  • Data: Entry, validation and verification.
  • Adjusting entries, preparation of balance sheet, profit and loss account with closing entries and opening entries.
  • Need and security features of the system.

Database Management System (DBMS)

  • Concept and Features of DBMS.
  • DBMS in Business Application.
  • Generating Accounting Information – Payroll.

Suggested Question Paper Design

Accountancy (Code No. 055)

Class XII (2020-21)

Theory: 80 Marks – 3 hrs.

Project: 20 Marks

S N Typology of Questions Marks Percentage
1 Remembering and Understanding: Exhibit memory of previously learned material by recalling facts, terms, basic concepts, and answers. Demonstrate understanding of facts and ideas by organizing, comparing, translating, interpreting, giving descriptions, and stating main ideas 44 55%
2 Applying: Solve problems to new situations by applying acquired knowledge, facts, techniques and rules in a different way. 19 23.75%
3 Analysing, Evaluating and Creating: Examine and break information into parts by identifying motives or causes. Make inferences and find evidence to support generalizations. Present and defend opinions by making judgments about information, validity of ideas, or quality of work based on a set of criteria. Compile information together in a different way by combining elements in a new pattern or proposing alternative solutions. 17 21.25%
TOTAL 80 100%

Over the centuries, accounting has been conserved and limited to the monetary record-keeping pursuits of the accountant. However, the current day’s rapidly developing business environment has impelled the accountants to revise their representation and functions both within the enterprise and the association.

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