Accountancy plays a vital role in many facets of life, say it a career or at the personal ground. In order to understand and plan the studies, a complete knowledge of the syllabus for CBSE Class 12 Accountancy is a must. As a student, a complete knowledge about accounts, statements, partnerships, business analysis, etc is mandatory. NCERT and CBSE boards have brought in 2019-20 syllabus for 12th class accountancy subject which can be downloaded here. The syllabus given below explains the detailed units, lessons, topics along with distribution of time and marks for each individual area. The table below depicts the detailed curriculum for CBSE Class 12 Accountancy.
Theory: 80 Marks, and Project: 20 Marks
Unit 1. Financial Statements of Not-for-Profit Organizations
Not-for-profit organizations: concepts
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
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- a division of profit among partners, a 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 of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of 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 and reserves, adjustment of capital accounts and preparation of balance sheet. Preparation of loan account of the retiring partner.
Calculation of the deceased partner’s share of profit till the date of death. Preparation of the deceased partner’s capital account and his executor’s account.
Dissolution of a partnership firm: the 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)).
The realized value of each asset must be given at the time of dissolution.
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 preference shares. Public subscription of shares - over subscription and under subscription of shares; issue at par and at a premium, call 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 the 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).
Redemption of debentures-Methods: Lump sum, the draw of lots.
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 Statement Sheet in statements of Profit and the prescribed of a Loss form company: and Balance with major headings and subheadings (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)
Note: (i) Adjustments relating to depreciation and amortization, profit or loss on the 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.
Part C-Project Work
Project work carry a total of 20 marks that includes submission of Project File which carry 4 Marks, A written test which carries 12 Marks (One Hour)and Viva Voce for a total of 4 Marks
Part B-Computerized Accounting
overview of Computerised Accounting System
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 spreadsheets.
Application in generating accounting information - bank reconciliation statement; asset accounting; loan repayment of loan schedule, ratio analysis.
Data representation- graphs, charts, and diagrams.
Using a Computerized Accounting System
Steps in the 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.
Part C-Practical Work
Practical work includes submission of practical file which carry 4 marks, one hour of practical examination which carry 12 marks and viva voce for 4 marks, so total practicum for 20 marks. Please refer to the guidelines published by CBSE as per the latest publication.