Central Board of Secondary Education
CBSE Class XII - Accountancy Syllabus
PART A: Accounting for Partnership Firms and Companies
Unit 1. Accounting for Partnership firms - Fundamentals
- Partnership : features, Partnership deed.
- Provisions of the Indian Partnership Act 1932 in the absence of
- Fixed v/s fluctuating capital accounts, division of profit among
partners, guarantee of profits, past adjustments (relating to interest on
capital, interest on drawing, salary and profit sharing ratio), preparation
of P&L Appropriation account.
- Goodwill: nature, factors affecting and methods of valuation - average
profit, super profit, and capitalization
Unit 2. 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
re-assessment of liabilities and distribution of reserves and accumulated
- 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 re - assessment 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, treatment
for revaluation of assets and re - assessment of liabilities, adjustment of
accumulated profits and reserves. calculation of deceased partner's share of
profit till the date of death. Preparation of deceased partner's capital
account, executor's account and preparation of balance sheet
- Dissolution of partnership firms: types of dissolution of firm.
Settlement of accounts - preparation of realization account, and other
related accounts (excluding piecemeal distribution, sale to a company and
insolvency of partner's firm) .
Unit 3. 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, Public subscription of shares - over
subscription and under subscription of shares; Issue at par and at premium
and at discount, calls in advance and arrears, issue of shares for
consideration other than cash.
- Accounting treatment of forfeiture and re-issue of shares.
- Disclosure of share capital in company's Balance Sheet only.
Unit 4. Accounting for Debentures
- Debentures: Issue of debentures at par, `at premium and at discount.
Issue of debentures for consideration other than cash, debentures as
collateral security, interest on debentures
- Redemption of debentures : Lump sum, draw of lots and conversion.
PART B: Financial Statement Analysis
Unit5. Analysis of financial Statements
- Financial statements of a company: balance sheet of a company in the
prescribed form with major headings and sub headings (as per schedule VI to
the Companies Act 1956).
- Financial Statement Analysis: objectives and limitations.
- Tools for Financial Statement Analysis: comparative statements, common
size statements, cash flow analysis, ratio analysis.
- Accounting Ratios: objectives and classification.
- Liquidity ratios: current ratio and quick ratio.
- Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio,
Proprietary Ratio, Interest Coverage Ratio.
- Activity ratios: Stock Turnover Ratio, Debtors Turnover Ratio, Creditors
Turnover Ratio, Working Capital Turnover Ratio.
- Profitability Ratios : Gross Profit Ratio, Operating Ratio, Operating
Profit Ratio, Net
- Profit Ratio and Return on Investment.
Unit 6. Cash Flow Statement
Meaning, objectives and preparation (as per AS 3 revised) (Indirect Method)
Unit7. Project work
- Kindly refer to the Guidelines published by the CBSE.
Part C: Computerised Accounting
Unit 5 Overview of Computerised Accounting System
- Introduction : Application in Accounting
- Features of Computerised Accounting System
- Structure of CAS
- Software Packages:
Unit 6 Accounting Application of Electronic Spread Sheet
- Concept of Electronic Spreadsheet
- Features offered by Electronic Spreadsheet
- Application in Generating Accounting Information I
- Data Presentation
- Graphs, Charts and Diagrams
Unit 7 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
Unit 8 Database Management System (DBMS)
- Concept and Features of DBMS
- DBMS in Business Application
- Generating Accounting Information 1
- Generating Accounting Information 2
- Debtors and Creditors
- Bank Reconciliation Statement
- Asset Accounting
- Inventory Accounting
Unit 9. Practical Work
- Please refer to the guidelines published by CBSE.