Hi friends, today we are going to discuss you about the latest accountancy Accountancy class 12 Syllabus of CBSE. We all know that in this fast changing economic scenario and business environment, elementary business education along with accountancy as the language of business and as a source of financial information has carved out a place for itself at the Senior School stage. Its syllabus content should give students a firm foundation in basic accounting principles and methodology and also acquaint 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.
As you know very well that Central Board of Secondary Education (CBSE) has its own curriculum and syllabus designed for the students and they hold the supreme authority to change it further for the benefit of students. So it is always a wise decision to keep an eye on what happening around with the subject you are going to learn. This year CBSE made little bit changes in class 11 Accountancy syllabus.
Accounts book for class 12th accountancy
For Accountancy of class XII, one can opt from the list of books listed below.
- Double Entry Book Keeping Accountancy By T.S.Grewal,
- ‘ULTIMATE BOOK OF ACCOUNTANCY’ by Vishvas Publications.
- Accountancy by D.K.Goel
- Accountancy for Class XII (Sultan Chand and Sons)
- NCERT Accountancy book class 12( NCERT Publication)
Overview of CBSE Class 12 Accountancy Syllabus, Chapter wise Accountancy syllabus for class 12, Class XII Accountancy syllabus for session 2017-2018.
CBSE class 12 accountancy syllabus’ chapter details in brief
Now Let us have a brief look at the salient features asked in CBSE class 12 Accountancy syllabus.
Accountancy (Code No. 055) Class-XII (2017-18)
|Part A: Accounting for Partnership Firms and Companies|
|Unit 1. Accounting for Partnership Firms||90||35|
|Unit 2. Accounting for Companies||60||25|
|Part B: Financial Statement Analysis|
|Unit 3. Analysis of Financial Statements||30||12|
|Unit 4. Cash Flow Statement||20||08|
|Part C: Project Work||40||20|
|Project Work will include|
|Part B: Computerized Accounting|
|Unit 3. Computerized Accounting||50||20|
|Part C. Practical Work||26||20|
|Practical Work will include:|
Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
(A) 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, the 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.
(B) Accounting for Partnership Firm- 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 evaluation account and balance sheet.
- Admission of a partner – Effect of the admission of a partner on the change in the profit sharing a 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 deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account, executor’s o account and preparation of balance sheet.
- Dissolution of a 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 o distribution, sale to a company and insolvency of partner(s)).
(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, the clear indication should be given regarding the payment thereof.
Unit-2. Accounting for Companies
(A) Accounting for Share Capital
- Share and share capital: nature and types.
- Accounting for share capital: issue and allotment of equity shares, private placement of shares, Employee Stock Option Plan (ESOP). Public subscription of shares – over subscription and under subscription of shares; issued at par and at the premium, calls in advance and arrears (excluding interest), the issue of shares for consideration other than cash.
- The concept of Private Placement.
- Accounting treatment of forfeiture and re-issue of shares.
- Disclosure of share capital in company’s Balance Sheet.
(B) Accounting for Debentures
- Debentures: Issue of debentures at par, at a premium and at a discount. The issue of debentures for consideration other than cash; the issue of debentures with terms of redemption; debentures as collateral security-concept, interest on debentures.
- Redemption of debentures for immediate Cancellation: Lump sum, draw of lots, purchase in the open market (excluding ex- interest and cum-interest) and conversion. Creation of Debenture Redemption Reserve.
- Conversion method.
Note: Related sections of the Indian Companies Act, 2013 will apply.
Part B: Financial Statement Analysis
Unit 3: Analysis of Financial Statements
Financial statements of a company: Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and subheadings (as per Schedule Ill to the Companies Act, 2013).
Scope: 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: 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 4: Cash Flow Statement
Meaning, objectives, and preparation (as per AS 3 (Revised) (Indirect Method only)
(i) Adjustments relating to depreciation and amortization, profit or loss on sale of assets o develop the understanding of preparation including investments, dividend (both final of Cash Flow Statement using indirect method 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.
Accountancy projects for class 12 are asked according to Guidelines published by the CBSE.
Part B: computerized Accounting
Unit 3: Computerized Accounting
(A) Overview of Computerized Accounting System.
- Introduction: Application in Accounting.
- Features of Computerized Accounting System.
- The structure of CAS.
- Software Packages: Generic; Specific; Tailored.
(B) Accounting Application of Electronic Spreadsheet.
- The concept of an electronic spreadsheet.
- Features offered by an 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.
(C) Using Computerized Accounting System.
- Steps in the installation of CAS, codification, and hierarchy of account heads, the 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.
(D) Database Management System (DBMS)
- Concept and Features of DBMS.
- DBMS in Business Application.
- Generating Accounting information – Payroll.
Part C: Practical Work
For class 12 accountancy practical projects, please refer to the guidelines published by CBSE.