CBSE Class 12 Accountancy Syllabus 2023-24

Accountancy (Code No. 055)

Class-XII (2023-24)

Theory: 80 Marks 3 Hours

Project: 20 Marks

Units Periods Marks

Part A Accounting for Partnership Firms and Companies

Unit 1. Accounting for Partnership Firms 105 36

Unit 2. Accounting for Companies 45 24
150 60
Part B Financial Statement Analysis
Unit 3. Analysis of Financial Statements 30 12
Unit 4. Cash Flow Statement 20 8
50 20
Part C Project Work 20 20
Project work will include:

Project File 12 Marks

Viva Voce 8 Marks

Or
Part B Computerized Accounting

Unit 4. Computerized Accounting 50 20

Part C Practical Work 20 20
Practical work will include:

Practical File 12 Marks

Viva Voce 8 Marks

Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
Units/Topics Learning Outcomes
 Partnership: features, Partnership Deed. After going through this Unit, the students will be
 Provisions of the Indian Partnership Act 1932 able to:
in the absence of partnership deed.  state the meaning of partnership, partnership
 Fixed v/s fluctuating capital accounts. firm and partnership deed.
Preparation of Profit and Loss Appropriation  describe the characteristic features of
account- division of profit among partners, partnership and the contents of partnership
guarantee of profits. deed.
 Past adjustments (relating to interest on  discuss the significance of provision of
capital, interest on drawing, salary and profit Partnership Act in the absence of partnership
sharing ratio). deed.
 Goodwill: meaning, nature, factors affecting  differentiate between fixed and fluctuating
and methods of valuation - average profit, capital, outline the process and develop the
super profit and capitalization. understanding and skill of preparation of
Profit and Loss Appropriation Account.
Note: Interest on partner's loan is to be treated as a  develop the understanding and skill of
charge against profits. preparation profit and loss appropriation
Goodwill: meaning, factors affecting, need for account involving guarantee of profits.
valuation, methods for calculation (average profits,  develop the understanding and skill of
super profits and capitalization), adjusted through making past adjustments.
partners capital/ current account.  state the meaning, nature and factors
affecting goodwill
Accounting for Partnership firms - Reconstitution  develop the understanding and skill of
and Dissolution. valuation of goodwill using different methods.
 Change in the Profit Sharing Ratio among  state the meaning of sacrificing ratio, gaining
the existing partners - sacrificing ratio, ratio and the change in profit sharing ratio
gaining ratio, accounting for revaluation of among existing partners.
assets and reassessment of liabilities and  develop the understanding of accounting
treatment of reserves, accumulated profits treatment of revaluation assets and
and losses. Preparation of revaluation reassessment of liabilities and treatment of
account and balance sheet. reserves and accumulated profits by
 Admission of a partner - effect of admission preparing revaluation account and balance
of a partner on change in the profit sharing sheet.
ratio, treatment of goodwill (as per AS 26),  explain the effect of change in profit sharing
treatment for revaluation of assets and re- ratio on admission of a new partner.
assessment of liabilities, treatment of  develop the understanding and skill of
reserves, accumulated profits and losses,
 adjustment of capital accounts and treatment of goodwill as per AS-26, treatment
preparation of capital, current account and of revaluation of assets and re-assessment of
balance sheet. liabilities, treatment of reserves and
 Retirement and death of a partner: effect of accumulated profits, adjustment of capital
retirement / death of a partner on change in accounts and preparation of capital, current
profit sharing ratio, treatment of goodwill (as account and balance sheet of the new firm.
per AS 26), treatment for revaluation of  explain the effect of retirement / death of a
assets and reassessment of liabilities, partner on change in profit sharing ratio.
adjustment of accumulated profits, losses  develop the understanding of accounting
and reserves, adjustment of capital accounts treatment of goodwill, revaluation of assets
and preparation of capital, current account and re-assessment of liabilities and
and balance sheet. Preparation of loan adjustment of accumulated profits, losses
account of the retiring partner. and reserves on retirement / death of a
 Calculation of deceased partner’s share of partner and capital adjustment.
profit till the date of death. Preparation of  develop the skill of calculation of deceased
deceased partner’s capital account and his partner's share till the time of his death and
executor’s account. prepare deceased partner's and executor's
 Dissolution of a partnership firm: meaning account.
of dissolution of partnership and partnership  discuss the preparation of the capital
firm, types of dissolution of a firm. Settlement accounts of the remaining partners and the
of accounts - preparation of realization balance sheet of the firm after retirement /
account, and other related accounts: capital death of a partner.
accounts of partners and cash/bank a/c  understand the situations under which a
(excluding piecemeal distribution, sale to a partnership firm can be dissolved.
company and insolvency of partner(s)).  develop the understanding of preparation of
Note: realisation account and other related
(i) If the realized value of tangible assets is not given it accounts.
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

Units/Topics Learning Outcomes

Accounting for Share Capital After going through this Unit, the students will be
 Features and types of companies. able to:
 Share and share capital: nature and types.  state the meaning of share and share capital
  Accounting for share capital: issue and and differentiate between equity shares and
allotment of equity and preferences shares. preference shares and different types of
Public subscription of shares - over share capital.
subscription and under subscription of  understand the meaning of private placement
shares; issue at par and at premium, calls in of shares and Employee Stock Option Plan.
advance and arrears (excluding interest),  explain the accounting treatment of share
issue of shares for consideration other than capital transactions regarding issue of
cash. shares.
 Concept of Private Placement and Employee  develop the understanding of accounting
Stock Option Plan (ESOP), Sweat Equity. treatment of forfeiture and re-issue of
 Accounting treatment of forfeiture and re- forfeited shares.
issue of shares.  describe the presentation of share capital in
 Disclosure of share capital in the Balance the balance sheet of the company as per
Sheet of a company. schedule III part I of the Companies Act
2013.
Accounting for Debentures  explain the accounting treatment of different
 Debentures: Meaning, types, Issue of categories of transactions related to issue of
debentures at par, at a premium and at a debentures.
discount. Issue of debentures for  develop the understanding and skill of writing
consideration other than cash; Issue of of discount / loss on issue of debentures.
debentures with terms of redemption;  understand the concept of collateral security
debentures as collateral security-concept, and its presentation in balance sheet.
interest on debentures (concept of TDS is  develop the skill of calculating interest on
excluded). Writing off discount / loss on issue debentures and its accounting treatment.
of debentures.  state the meaning of redemption of
Note: Discount or loss on issue of debentures to be debentures.
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

Units/Topics Learning Outcomes
Financial statements of a Company: After going through this Unit, the students will be
Meaning, Nature, Uses and importance of financial able to:
Statement.  develop the understanding of major headings
Statement of Profit and Loss and Balance Sheet in and sub-headings (as per Schedule III to the
prescribed form with major headings and sub Companies Act, 2013) of balance sheet as
headings (as per Schedule III to the Companies Act, per the prescribed norms / formats.
2013)  state the meaning, objectives and limitations
of financial statement analysis.
Note: Exceptional items, extraordinary items and  discuss the meaning of different tools of
profit (loss) from discontinued operations are 'financial statements analysis'.
excluded.  develop the skill of preparation of preparation
 Financial Statement Analysis: Meaning, of comparative and common size statement,
Significance Objectives, importance and understand their uses and difference
limitations. between the two.
 Tools for Financial Statement Analysis:  state the meaning, objectives and
Comparative statements, common size significance of different types of ratios.
statements, Ratio analysis, Cash flow  develop the understanding of computation of
analysis. current ratio and quick ratio.
 Accounting Ratios: Meaning, Objectives,  develop the skill of computation of debt equity
Advantages, classification and computation. ratio, total asset to debt ratio, proprietary ratio
 Liquidity Ratios: Current ratio and Quick and interest coverage ratio.
ratio.  develop the skill of computation of inventory
 Solvency Ratios: Debt to Equity Ratio, Total turnover ratio, trade receivables and trade
Asset to Debt Ratio, Proprietary Ratio and payables ratio and working capital turnover
Interest Coverage Ratio. Debt to Capital ratio and others.
Employed Ratio.  develop the skill of computation of gross
 Activity Ratios: Inventory Turnover Ratio, profit ratio, operating ratio, operating profit
Trade Receivables Turnover Ratio, Trade ratio, net profit ratio and return on investment.
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.

Note: Net Profit Ratio is to be calculated on the basis of profit before and after tax.

Unit 5: Cash Flow Statement

Units/Topics Learning Outcomes

 Meaning, objectives Benefits, Cash and Cash After going through this Unit, the students will
Equivalents, Classification of Activities and be able to:
preparation (as per AS 3 (Revised) (Indirect  state the meaning and objectives of cash flow
Method only) statement.
  develop the understanding of preparation of
Note: Cash Flow Statement using indirect method
(i) Adjustments relating to depreciation and as per AS 3 with given adjustments.
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.

Note: Previous years’ Proposed Dividend to be given effect, as prescribed in AS-4, Events occurring after the
Balance Sheet date. Current years’ Proposed Dividend will be accounted for in the next year after it is declared
by the shareholders.
Project Work

One specific project based on financial statement analysis of a company covering any two aspects from the
following:

1. Comparative and common size financial statements

2. Accounting Ratios
3. Segment Reports
4. Cash Flow Statements

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

Prescribed Books:
Financial Accounting -I Class XI NCERT Publication
Accountancy -II Class XI NCERT Publication
Accountancy -I Class XII NCERT Publication
Accountancy -II Class XII NCERT Publication
Accountancy – Computerised Accounting System Class XII NCERT Publication
 Suggested Question Paper Design
Accountancy (Code No. 055)
Class XII (2023-24)
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.
44 55%
Demonstrate understanding of facts and ideas by organizing, comparing, translating,
interpreting, giving descriptions, and stating main ideas

3 Applying: Solve problems to new situations by applying acquired knowledge, facts,

techniques and rules in a different way. 19 23.75%

4
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
17 21.25%
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.

TOTAL 80 100%