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Class 12 Accountancy Syllabus

ABOUT CBSE ACCOUNTANCY COURSE

 INTRODUCED AFTER CLASS 10

The formal commerce education of Accountancy in CBSE is provided after class 10th i.e. at Senior Secondary Education level.

PREPARING STUDENTS TO RESPOND IN DYNAMIC BUSINESS SCENARIO

At Senior Secondary Education Level, Accountancy has carved out a place for itself as a language of business and as a source of financial information. With the dynamic economic scenario and business environment in a state of continuous change, knowledge of Accounting is utmost important.

STRONG FOUNDATION OF ACCOUNTING

CBSE Accountancy syllabus is designed in such a way that content provides a firm foundation in basic accounting principles and methodology. It also acquaints them with the changes taking place in the presentation and analysis of accounting information, keeping in view the development of accounting standards and use of computers.

EMPHASIS OF SYLLABUS OF ACCOUNTANCY IN CBSE

CBSE Syllabus of Accountancy puts emphasis on developing basic understanding about the nature and purpose of the accounting information and its use in the conduct of business operations. This develops logical reasoning, Analytical Skills and considered judgement among students.

OBJECTIVES

(1) TO DEVELOP

  • the skills of using accounting equation in processing business transactions.
  • an understanding about recording of business transactions and preparation of financial statements.
  • statements.

(2) TO ENABLE

  • the students with accounting for reconstitution and dissolution of partnership firms.
  • the students to understand and analyse the financial statements.

(3) TO FAMILIARIZE

  • students with accounting as an information system.
  • students with basic concepts of accounting and accounting standards.
  • students with the fundamentals of computerized system of accounting.

 

Detailed Syllabus of Accountancy Class 12

Unit/Chapters Topics Sub Topics
Unit 1 – Accounting For Partnership Firms Partnership: Definition & Characteristics/features
Accounting for Partnership Firms – Fundamentals Partnership Deed – Meaning and Elements of Partnership Deed
Provisions of the Indian Partnership Act 1932 applicable in the absence of Partnership Deed
Charge & Appropriation – Meaning and Difference
Interest on Drawings Simple Interest Method – Monthly/Quarterly/Half Yearly/Lump-sum
Product Method
Interest on Capital When Firm has Sufficient Profit
When Profits are Insufficient – Interest on Capital is to be treated as a Charge or an Appropriation
Salary/Commission to a Partner When Firm has Sufficient Profit
When Profits are Insufficient – Salary/Commission+C3 is to be treated as a Charge or an Appropriation
Fixed & Fluctuating Capital Account Method Distinction between Fixed & Fluctuating Capital Account Method
Preparation of Accounts
Preparation of Profit and Loss Appropriation Account or Profit & Loss Account When Profit is After All Charges But Before All Appropriations
When Profit is Before a Charge and After an Appropriation
When there is Net Loss
Guarantee of Profits Guarantee by one partner to another partner
Guarantee by Firm to a partner
Double Guarantee – Guarantee by firm to a partner and at the same time by a partner to another partner
Guarantee by a Partner to the Firm
Past adjustments With respect to:
Interest on Capital; Interest on Drawings
Salary to a Partner; Profit Sharinng Ratio
Goodwill
Meaning & Nature of Goodwill
Factors affecting the value of Goodwill,
Circumstances when we need to calculate the value of Goodwill
Purchased Goodwill versus Self Generated Goodwill
Accounting Standards related to Goodwill
Accounting Treatment of Goodwill Average Profit Method (including the cases of Abnormal Gains or Losses)
Super Profit Method
Capitalisation Method- Capitalisation of Average Profits & Capitalisation of Super Profits
Change in the profit sharing ratio of Existing Partners
Reconstitution of Partnership – Meaning, Circumstances
Sacrificing Ratio & Gaining Ratio – Meaning & Computation
Accounting Treatment of Goodwill (Present Value)
Accounting Treatment of Existing Goodwill
Accounting Treatment of Reserves, Surplus and Accumulated Losses When these items are not to be shown in the Reconstituted Balance Sheet
When only Net Effect is to be given among partners and these items are to be shown in the Reconstituted Balance Sheet
Revaluation of Assets and Reassessment Liabilities When these items are be shown at their Present Value in the Reconstituted Balance Sheet
When only Net Effect is to be given among partners and these items are to be shown at their Original Values in the Reconstituted Balance Sheet
Preparation of Balance Sheet of Reconstituted Firm
Admission of a Partner
Calculation of New Profit Sharing Ratio and Sacrificing Ratio Type I, Type II, Type III, Miscellaneous
New Partner’s Goodwill Premium- Computation & Treatment Private Payment
Full Premium Brought in Cash and it is Retained in the Business
Full Premium Brought in Cash but it is Withdrawn by the Sacrifing Partners
New Partner did not bring Premium in Cash
When New Partner brings only a part of Premium in Cash
Premium Brought in Kind
Hidden Goodwill Liabilities Approach and Assets Approach
Treatment of Existing Goodwill (Self Generated)
Treatment of Reserves, Surplus and Accumulated Losses
Preparation of Partners’ Capital Accounts
Preparation of Balance Sheet of New/Reconstituted firm
Asset or Liability Taken Over by any Existing Partner At Book Value or at Higher/Lower Value
Manager/Creditor/Lender admitted as a new Partner
Partner without Capital
Adjustment of Partner’s Capital Type-I  When New Partner’s Capital is Given and we have to adjust Capitals of Old Partners.
Type -II Case a. When New Partner’s Capital is Not Given and it is given that he has to bring 1/x of Combined Capital of Old Partners.
Type -II Case b. When New Partner’s Capital is Not Given and it is given that he has to bring 1/x of Total Capital of New Firm or He has to bring Proportionate Capital.
Typical Adustments Treatment of Reserves etc. without Actually distributing these
Retirement of a partner
Calculation of New Profit Sharing Ratio and Gaining Ratio
Distinction between Sacrificing Ratio and Gaining Ratio
Retiring Partner’s Share in Firm’s Goodwill – Computation & Treatment
Treatment of Existing Goodwill
Treatment of Reserves, Surplus and Accumulated Losses
Preparation of Partners’ Capital Accounts
Preparation of Balance Sheet of New/Reconstituted firm
Payment to the Retiring Partner No Immediate Payment
Part Payment Immediately and Balance Payable in Installments
Sources of Cash For Payment of Retiring Partner – Sale of Investments, Bank Loan, Bank Overdraft, Fresh Capital Brought by Remaining Partners
Adjustment of Capital of Remaining Partners When New Firm’s Total Capital is Given
Asset or Liability Taken over by a Partner
Hidden Goodwill – Valuation & Treatment
Retiring Partner’s Loan Account
List of amount on differenat Accounts that Legal Representatives of Deceased Partner are entitled to get
Deceased Partner’s Share in Firm’s Goodwill – Computation & Treatment
Deceased Partner’s Share in Existing Goodwill, Reserves, Surplus & Accumulated Losses
Deceased Partner’s Interest on Capital, Salary, Commission and Interest on Drawings till the date of death
Accounts/Statements to be prepared to give effect to Retirment of a Partner Deceased Partner’s Capital Account
All the Ledger Accounts with Balance Sheet of Reconstituted/New Firm
Dissolution of a partnership Firm
Meaning & Modes of Dissolution of Firm By Order of Court
Other Situations
Settlement of Accounts on Dissolution of Firm – as per Sec. 48 of Partnership Act 1932
Firm’s Debts and Private Debts
Accounting Procedure at the time of Dissolution of Firm Preparation of Realization Account, Partners’ Capital A/c, Partners’ Loan A/c and Cash/Bank A/c
Treament of Some Special Items Realisation Expenses
Funds & Reserves given in Balance Sheet
Treatment of Unrecorded Assets and Liabilities
Unit II – Accounting for Companies
Company Accouns – Issue of Shares Company – Meaning, Characteristics, Kinds of Companies
Shares – Meaning, Nature, Types of Shares
Types of Share Capital – Authorised, Issued and Subscribed
Issue & Allotment of Shares – At Par & At Premium
– For Cash – Amount Called in Single or Multiple Installments Full Subscription, Under-Subscription and Over-Subscription – Meaning
Minimum Subscription
Alternatives in Case of Over-subscription and Treatment of Surplus Money Received
Pro-Rata Allotment, Surplus to be Adjusted Only upto Allotment or Adjusted in Calls
Provisions of Table F of Schedule I of Companies Act, 2013 (Applicable in the absence of AoA.
– For Consideration other than Cash to Vendors For Purchase of Assets
For Purchase of Business
Uses of Securities Premium Reserve prescribed U/s 52(2) of the Companies Act 2013
Calls in Advance and Calls in Advance – Meaning & Accounting Treatment
Forfeiture of Shares Originally issue at Par
Originally issue at Premium (Duly Received)
Originally issue at Premium (Not Received)
Re-issue of Forfeited Shares At Par/Premium/Discount
As Fully Paid Up or Partly Paid up
Disclosure of Only Share capital In Company’s Balance Sheet as per Schedule III Part I of Companies Act 2013
Private placement of Shares & Sweat Equity Shares – Concept
ESOP – Concept and Accountging Treatment
Difference between Reserve Capital and Capital Reserve
Accounting for Debentures
Company Accounts – Issue of Debentures Meaning, Features, Kinds of Debentures
Distinction between Share and Debentures
Issue & Allotment of Debentures – At Par/Premium/Discount
– For Cash – Journal Entries & Ledger Accounts Amount called in Single or Multiple Installments.
– For Consideration Other Than Cash at Par/Premium/Discount For Purchase of Assets
For Purcahse of Business
Issue of Debentures with Terms of Both Issue & Redemption Amount is called in one or Two Installments.
Issue of Debentures as a Collateral Security – Meaning (Concept), Methods of Recording (Two)
Interest on Debentures – Computation & Accounting Treatment Cases with and without TDS
Companies Accounts – Redemption of Debentures
Meaning of Redemption of Debentures
Sources of Redemption of Debentures
Methods of Redemption of Debentures Lump-sum Payment on Maturity
Draw of Lots
Purchase of Own Debentures in Open Market for immediate cancellation.
Conversion in Shares or New Debentures
SEBI Guidelines regarding Redemption of Debentures Obligation of Creation of Minimum DRR
Exemptions from Creation of DRR
Condition of Investing 15% of Debentures due for Redemption.
Sections & Rules of Companies Act 2013 dealing with Redemption.
Interest on Debentures Redemption Investment (with or without TDS) Annual & Half Yearly
Unit 3: Analysis of Financial Statements
Financial Statement of a company Statement of Profit and Loss as per Schedule III of Companies Act 2013 Format
Main Heads & Sub heads
Notes to Accounts containing the items shown under these heads in a specific order
Balance Sheet of a company as per Schedule III of Companies Act 2013 Format
Main Heads & Sub heads
Notes to Accounts containing the items shown under these heads in a specific order
Financial statement analysis Meaning, Objective and Significance
Tools of Financial Statement Analysis comparative statements
common size statement
Cash flow Analysis
Ratio analysis
Types of Financial Analysis External-Internal
Horizontal-Vertical
Uses of Financial Analysis
Limitations of Financial Analysis
Parties Interested in Financial Analysis
Tools for financial statement Analysis – Meaning, Objectives & Preparation of Comparative Financial Statements Comparative Statement of P & L
Comparative Statements and Common Size Statement Comparative Balance Sheet
Meaning, Objective & Preparation of Common Size Financial Statements Common Size Statement of P & L
Common Size Balance Sheet
Tools for financial statement Analysis – Meaning, Objective/Significance and Limitation of Ratio Analysis
Ratio Analysis Computation of Liquidity Ratios Current ratio
Liquid/Quick/Acid Test Ratio
Computation of Solvency Ratios Debt-Equity Ratio
Total Assets to Debt Ratio
Proprietary Ratio
Interest Coverage Ratio
Computation of Turnover/Performance/Activity Ratios InventoryTurnover Ratio
Trade Receivable Turnover Ratio
Trade Payable Ratio
Working Capital Turnover Ratio
Computation of Profitability Ratios Gross Profit Ratio
Operating Ratio
Operating Profit Ratio
Net Profit Ratio (Both before & after Tax)
Return On Investment
Unit – IV Cash Flow Statement Meaning & Objectives of Cash Flow Statement
Meaning of Cash Equivalents & Cash Flows
Classification of all financial activities of a business – (Financial Enterprise and Non-Financial Enterprise) Operating, Investing & Financing
Importance of Cash Flow Statement
Limitation of Cash Flow Statement
Preparation of Cash Flow Statement – As per AS-3 (Indirect Method only) Adjustments Covered:
Depreciation, Loss or Gain on Sale of Financial Assets & Investments.
Interest on Borrowings, Premium on Redemption of Debentures
Dividend on Equity and Preference Shares – Both Final & Interim
Interest on Investments
Treatment of some Special Items Bank Overdraft; Cash Credit; Interest over these
Current Investments