CBSE Syllabus for Class 12 Accountancy 2022-23

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

CBSE Class 12 Accountancy Syllabus 2022-23

Students can download the latest released CBSE Class 12 Syllabus PDF of Accountancy from the link below. Going through the syllabus will help students know the topics they will study in Accountancy during the academic year.

By clicking on the link above, students can directly download the CBSE Accountancy Syllabus for Class 12, the academic year 2022-23. We have provided the marks distribution along with the syllabus for accountancy below.

CBSE Class 12 Accountancy Syllabus and Marks Distribution 2022-23

Accountancy (Code No. 055) Class-XII (2022-23)

Theory: 80 Marks
Duration: 180 minutes

Units Marks
Part A Accounting for Partnership Firms and Companies
Unit 1. Accounting for Partnership Firms 36
Unit 2. Accounting for Companies 24
60
Part B Financial Statement Analysis
Unit 3. Analysis of Financial Statements 12
Unit 4. Cash Flow Statement 8
20
Part C Project Work 20
Project work will include:
Project file 4
Written test 12
Viva voce 4
OR
Part B Computerized Accounting
Unit 4. Computerized Accounting 20
Part C Practical Work 20
Practical work will include:
Practical file 4
Practical Examination 12
Viva voce 4

Part A – Accounting for Partnership Firms and Companies

Unit 1: Accounting for Partnership Firms

  • 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: meaning, factors affecting, need for valuation, methods for calculation (average profits, super profits and capitalization) , 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, accumulated profits and losses. 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 of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves, accumulated profits and losses, adjustment of capital accounts and preparation of capital, current account and balance sheet.
  • 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, losses and reserves, adjustment of capital accounts and preparation of capital, current account and balance sheet. Preparation of loan account of the retiring partner.
  • Calculation of deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account and his executor’s account
  • 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) If the realized value of tangible assets is not given it should be considered as realized at book value itself.
(ii) If the realized value of intangible assets is not given it should be considered as nil (zero value).
(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

  • Features and types of companies
  • 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: Meaning, types, 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)

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Financial statements of a Company: Meaning, Nature, Uses and importance of financial Statement

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: Meaning, Significance Objectives, importance and limitations.
  • Tools for Financial Statement Analysis: Cash flow analysis, ratio analysis.
  • Accounting Ratios: Meaning, Objectives, Advantages, 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. Debt to Capital Employed Ratio.
  • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, Fixed Asset Turnover Ratio, Net Asset 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 Benefits, Cash and CashEquivalents, Classification of Activities and preparation (as per AS 3 (Revised) (Indirect Method only)

Note:
(i) Adjustments relating to depreciation and amortization, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.
(ii) Bank overdraft and cash credit to be treated as short term borrowings.
(iii) Current Investments to be taken as Marketable securities unless otherwise specified.

Project Work
Note: Kindly refer to the Guidelines published by the CBSE. The comprehensive project may contain simple GST calculations.

OR

Part B: Computerised Accounting

Unit 4: 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.

Part C: Practical Work

Please refer to the guidelines published by CBSE

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Frequently Asked Questions on CBSE Syllabus for Class 12 Accountancy 2022-23

How many parts is the CBSE Syllabus for Class 12 Accountancy divided into?

The CBSE Syllabus for Class 12 Accountancy is divided into three parts. Part A is accounting for partnership firms and companies, part B is financial statement analysis or computerized accounting, and part C is project work or practical work.

What marks are allotted for the project work in the CBSE Syllabus for Class 12 Accountancy?

The marks allotted for the project work in the CBSE Syllabus for Class 12 Accountancy is 20 marks. It is divided as 4 marks for the project file, 12 marks for the written test, and 4 for viva voce.

What are the two units present in part A of the CBSE Syllabus for Class 12 Accountancy?

The two units in part A of the CBSE Syllabus for Class 12 Accountancy are accounting for partnership firms and companies.

5 Comments

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  2. Shashank chaturvedi

    Thank you

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