CBSE Class 12 Accountancy Syllabus 2023-24

CBSE Class 12 Accountancy Syllabus 2023-24 includes Accounting for Partnership Firms, Accounting for Companies, Analysis of Financial Statements, Cash Flow Statement, Computerized Accounting etc for the session 2023 – 2024. Here is the detailed syllabus. To download class 12 Accountancy CBSE latest sample question papers for the 2023 exams, please install the myCBSEguide App which is the best mobile app for CBSE students. The myCBSEguide app not only provides you the CBSE class 12 Accountancy model question papers but it also provides class 12 Accountancy chapter-wise test papers, class 12 Accountancy best revision notes and other study material for class 12 Accountancy students.

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CBSE Class – 12
Accountancy (Code No. 055)
Syllabus (2023-24)

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CBSE Class 12 Accountancy Syllabus

Theory: 80 Marks
Project: 20 Marks
Time: 3 Hours

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

Unit/Topics

• 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: meaning, 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.

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:

1. If the realized value of tangible assets is not given it should be considered as realized at book value itself.
2. If the realized value of intangible assets is not given it should be considered as nil (zero value).
3. 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), Sweat Equity.
• 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: Comparative statements, common size statements, Ratio analysis, Cash flow 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.

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

Unit 5: Cash Flow Statement

• Meaning, objectives Benefits, Cash and Cash Equivalents, Classification of Activities and preparation (as per AS 3 (Revised) (Indirect Method only).

Note:

1. Adjustments relating to depreciation and amortization, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.
2. Bank overdraft and cash credit to be treated as short term borrowings.
3. 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.

CBSE Class 12 Accountancy Syllabus 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

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.

CBSE Class 12 Accountancy Syllabus Part C: Practical Work

Prescribed Books:

Accounting-I	Class XII	NCERT Publication
Accountancy-II	Class XII	NCERT Publication
Accountancy – Computerised Accounting System	Class XII	NCERT Publication

Guidelines for Project Work in Accounting and Practical work in computerised Accounting Class XII CBSE Publication.

CBSE Class 12 Accountancy Syllabus Question Paper Design

Suggested Question Paper Design
Accountancy (Code No. 055)
Class XII (2023-24)

Theory: 80 Marks
Project: 20 Marks
Time: 3 Hours

S.No.	Typology of Questions	Marks	Percentage
1	Remembering and Understanding: Exhibit memory of previously learned material by recalling facts, terms, basic concepts, and answers. Demonstrate understanding of facts and ideas by organizing, comparing, translating, interpreting, giving descriptions, and stating main ideas	44	55%
2	Applying: Solve problems to new situations by applying acquired knowledge, facts, techniques and rules in a different way.	19	23.75%
3	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 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.	17	21.25%
	Total	80	100%

CBSE Sample Paper 2023-24

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