Accountancy (Code No.

055)
Class-XII (2022-23)

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 4 Marks
Written Test 12 Marks (One Hour)

Viva Voce 4 Marks

Or
Part B Computerized Accounting

Unit 4. Computerized Accounting 50 20

Part C Practical Work 20 20
Practical work will include:
Practical File 4 Marks
Practical Examination 12 Marks (One Hour)
Viva Voce 4 Marks
Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
Units/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 or by raising and writing off goodwill (AS 26)

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 re-assessment 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:
(i) If the realized value of tangible assets is not given it 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-2 Accounting for Companies

Units/Topics
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 re- issue 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 (AS16)
Part B: Financial Statement Analysis

Unit 3: Analysis of Financial Statements

Units/Topics
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:
Cash flow analysis, ratio 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 4: Cash Flow Statement

Units/Topics
 Meaning, objectives Benefits, Cash and Cash Equivalents, Classification of Activities and preparation (as per AS 3
(Revised) (Indirect Method only)
Note:
 Adjustments relating to depreciation and amortization, profit or loss on sale of assets including investments,
dividend (both final and interim) and tax.
 Bank overdraft and cash credit to be treated as short term borrowings.
 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.
(i)

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

Note: Kindly refer to the Guidelines published by the CBSE.

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.

Part C: Practical Work

Please refer to the guidelines published by CBSE.

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

Guidelines for Project Work in Accounting and Practical work in computerised Accounting Class XII CBSE Publication
 Suggested Question Paper Design
Accountancy (Code No. 055)
Class XII (2022-23)
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 quality
17 21.25%
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%