Syllabus 2024-25

Latest Syllabus
(Issued by CBSE on 22nd March 2024)
ACCOUNTANCY (Code No.- 055)
CLASS-XII
Theory : 80 Marks Hours : 3
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

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 Syllabus 2024-25
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 in able to:
the absence of partnership deed.  State the meaning of partnership, partnership
 Fixed v/s fluctuating capital accounts. Preparation firm and partnership deed.
of Profit and Loss Appropriation account- division  Describe the characteristic features of partnership
of profit among partners, guarantee of profits. and the contents of partnership deed.
 Past adjustments (relating to interest on capital,
 Discuss the significance of provision of
interest on drawing, salary and profit sharing
Partnership Act in the absence of partnership
ratio).
deed.
 Goodwill: meaning, nature, factors affecting
 Differentiate between fixed and fluctuating
and methods of valuation - average profit, super
capital, outline the process and develop the
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 making
super profits and capitalization) , adjusted through past adjustments.
partners capital/ current account.  State the meaning, nature and factors affect in
Accounting for Partnership firms - Reconstitution good will
and Dissolution.  Develop the understanding and skill of valuation
 Change in the Profit Sharing Ratio among of goodwill using different methods.
the existing partners - sacrificing ratio, gaining  State the meaning of sacrificing ratio, gaining
ratio, accounting for revaluation of assets and ratio and the change in profit sharing ratio
reassessment of liabilities and treatment of reserves, among existing partners.
accumulated profits and losses. Preparation of
 Develop the understanding of accounting
revaluation account and balance sheet.
treatment of revaluation assets and reassessment
 Admission of a partner - effect of admission of
of liabilities and treatment of reserves and
a partner on change in the profit sharing ratio,
accumulated profits by preparing revaluation
treatment of goodwill (as per AS 26), treatment
account and balance sheet.
for revaluation of assets and reassessment of
 Explain the effect of change in profit sharing
liabilities, treatment of reserves, accumulated
ratio on admission of a new partner.
profits and losses, adjustment of capital accounts
and preparation of capital, current account and
balance sheet.

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 Syllabus 2024-25
 Retirement and death of a partner: effect of  Develop the understanding and skill of
retirement / death of a partner on change in treatment of goodwill as per AS-26, treatment
profit sharing ratio, treatment of goodwill (as of revaluation of assets and re-assessment of
per AS 26), treatment for revaluation of assets liabilities, treatment of reserves and accumulated
and reassessment of liabilities, adjustment profits, adjustment of capital accounts and
of accumulated profits, losses and reserves, preparation of capital, current account and
adjustment of capital accounts and preparation balance sheet of the new firm.
of capital, current account and balance sheet.  Explain the effect of retirement / death of a
Preparation of loan account of the retiring partner. partner on change in profit sharing ratio.
 Calculation of deceased partner’s share of profit
 Develop the understanding of accounting
till the date of death. Preparation of deceased treatment of goodwill, revaluation of assets
partner’s capital account and his executor’s and re-assessment of liabilities and adjustment
account. of accumulated profits, losses and reserves
 Dissolution of a partnership firm: meaning
on retirement / death of a partner and capital
of dissolution of partnership and partnership adjustment.
firm, types of dissolution of a firm. Settlement
 Develop the skill of calculation of deceased
of a counts - preparation of realization account,
partner’s share till the time of his death and prepare
and other related accounts: capital accounts of
deceased partner’s and executor’s account.
partners and cash/bank a/c (excluding piecemeal
 Discuss the preparation of the capital accounts
distribution, sale to a company and insolvency
of the remaining partners and the balance sheet
of partner(s)).
of the firm after retirement / death of a partner.
Note:
(i) If the realized value of tangible assets is not  Understand the situations under which a
given it should be considered as realized at partnership firm can be dissolved.
book value itself.  Develop the understanding of preparation of
(ii) If the realized value of intangible assets is not realisation account and other related accounts.
given it should be considered as nil (zero value).
(iii) In case, the realization expenses are borne
by a partner, clear indication should be given
regarding the payment thereof.

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 Syllabus 2024-25
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 allotment and differentiate between equity shares and
of equity and preferences shares. Public preference shares and different types of share
subscription of shares - over subscription and capital.
under subscription of shares; issue at par and at  Understand the meaning of private placement of
premium, calls in advance and arrears (excluding shares and Employee Stock Option Plan.
interest), issue of shares for consideration other  Explain the accounting treatment of share capital
than cash. transactions regarding issue of shares.
 Concept of Private Placement and Employee Stock
 Develop the understanding of accounting
Option Plan (ESOP), Sweat Equity. treatment of forfeiture and re-issue of forfeited
 Accounting treatment of forfeiture and reissue of shares.
shares.
 Describe the presentation of share capital in the
 Disclosure of share capital in the Balance Sheet of
balance sheet of the company as per schedule III
a company. part I of the Companies Act 2013.
Accounting for Debentures
 Explain the accounting treatment of different
 Debentures: Meaning, types, Issue of debentures
categories of transactions related to issue of
at par, at a premium and at a discount. Issue of debentures.
debentures for consideration other than cash;
 Develop the understanding and skill of writing
Issue of debentures with terms of redemption;
of discount / loss on issue of debentures.
debentures as collateral security-concept,
 Understand the concept of collateral security
interest on debentures. Writing off discount / loss
on issue of debentures. and its presentation in balance sheet.
Note: Discount or loss on issue of debentures to be  Develop the skill of calculating interest on
written off in the year debentures are allotted from debentures and its accounting treatment.
Security Premium Reserve (if it exists) and then  State the meaning of redemption of debentures.
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 : Meaning, After going through this Unit, the students will be
Nature, Uses and importance of financial able to:
Statement. Statement of Profit and Loss and  Develop the understanding of major headings
Balance Sheet in prescribed form with major and sub-headings (as per Schedule III to the
headings and sub headings (as per Schedule III Companies Act, 2013) of balance sheet as per the
to the Companies Act, 2013)) prescribed norms / formats.
Note: Exceptional items, extraordinary items and profit  State the meaning, objectives and limitations of
(loss) from discontinued operations are excluded. financial statement analysis.
 Discuss the meaning of different tools of ‘financial
statements analysis’.

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 Syllabus 2024-25

 Financial Statement Analysis: Meaning, Signifi-  Develop the skill of preparation of comparative
cance Objectives, importance and limitations. and common size statement, understand their
 Tools for Financial Statement Analysis: uses and difference between the two.
Comparative statements, common size  State the meaning, objectives and significance of
statements, Ratio analysis, Cash flow analysis. different types of ratios.
 Accounting Ratios: Meaning, Objectives,  Develop the understanding of computation of
Advantages, classification and computation. current ratio and quick ratio.
 Liquidity Ratios: Current ratio and Quick ratio.  Develop the skill of computation of debt equity
 Solvency Ratios: Debt to Equity Ratio, Total Asset ratio, total asset to debt ratio, proprietary ratio
to Debt Ratio, Proprietary Ratio and Interest and interest coverage ratio.
Coverage Ratio. Debt to Capital Employed Ratio.  Develop the skill of computation of inventory
 Activity Ratios: Inventory Turnover Ratio, Trade turnover ratio, trade receivables and trade
Receivables Turnover Ratio, Trade Payables payables ratio and working capital turnover ratio
Turnover Ratio, Fixed Asset Turnover Ratio, and others.
Net Asset Turnover Ratio and Working Capital  Develop the skill of computation of gross profit
Turnover Ratio. ratio, operating ratio, operating profit ratio, net
 Profitability Ratios: Gross Profit Ratio, Operating profit ratio and return on investment.
Ratio, Operating Profit Ratio, Net Profit Ratio
and Return on Investment.
Note : Net Profit Ratio is to be calculated on the basis 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 be
Equivalents, Classification of Activities and able to:
preparation (as per AS 3 (Revised) (Indirect  State the meaning and objectives of cash flow
Method only) statement.
Note :  Develop the understanding of preparation of
(i) Adjustments relating to depreciation and amortization, Cash Flow Statement using indirect method as
profit or loss on sale of assets including investments, per AS 3 with given adjustments.
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.

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 Syllabus 2024-25
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 Accountancy -I Class XII NCERT Publication
Accountancy -II Class XII NCERT Publication
Accountancy -I Class XII NCERT Publication
Accountancy -II Class XII NCERT Publication
Accountancy – Computerised Accounting System Class XII NCERT Publication
qq

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 Syllabus 2024-25

SUGGESTED QUESTION PAPER DESIGN

Accountancy (Code No. 055)
Class XII
Theory : 80 Marks 3 hrs.
Project : 20 Marks

%
S.No. Typology of Questions Marks
Percentage

Remembering and Understanding:

Exhibit memory of previously learned material by recalling facts,
terms, basic concepts, and answers.
1. 44 55%
Demonstrate understanding of facts and ideas by organizing,
comparing, translating, interpreting, giving descriptions, and
stating main ideas

Applying: Solve problems to new situations by applying acquired

2. 19 23.75%
knowledge, facts, techniques and rules in a different way.

Analysing, Evaluating and Creating:

Examine and break information into parts by identifying
motives or causes. Make inferences and find evidence to support
generalizations.
3. Present and defend opinions by making judgments about 17 21.25%
information, validity of ideas, or 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%

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