CBSE (Central Board of Secondary Education) has released the subject wise syllabus for senior secondary students under the board. Accountancy syllabus has also been made available on the website of the board for the students. Check CBSE Class 12 Accountancy Syllabus and download PDF from the link given at the end of this article.
CBSE Class 12th Accountancy Course Structure 2023-24
CBSE Class 12th Accountancy Detailed Syllabus 2023-24
Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
- 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 a 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 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:
- If the realized value of tangible assets is not given it should be considered as realized at book value itself.
- If the realized value of intangible assets is not given it should be considered as nil (zero value).
- 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 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 (concept of TDS is excluded). 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 subheadings (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:
- 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.
Project Work
One specific project based on financial statement analysis of a company covering any two aspects from the following:
- Comparative and common size financial statements
- Accounting Ratios
- Segment Reports
- 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 a 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
CBSE Class 12th Accountancy Prescribed Books
- Accountancy -I Class XII NCERT Publication
- Accountancy -II Class XII NCERT Publication
- Accountancy – Computerised Accounting System Class XII NCERT Publication
CBSE Class 12th Accountancy Question Paper Structure 2023-24
Frequently Asked Questions(FAQ’s)
- How can I prepare for the CBSE Class 12th Accountancy Syllabus for 2023?
To prepare for the CBSE Class 12th Accountancy Syllabus for 2023, you should: Familiarize yourself with the syllabus and marking scheme, Study regularly and create a schedule Use textbooks, notes, and previous year papers to practice, Attend all classes and ask questions, Prepare notes and summaries for revision, Practice with sample papers and mock tests and Focus on understanding the concepts rather than memorization. - Is it necessary to join coaching classes to score well in the CBSE Class 12th Accountancy exam?
No, it is not necessary to join coaching classes to score well in the CBSE Class 12th Accountancy exam. However, if you feel that you need additional help, you can join coaching classes. - What are the books that can help me prepare for the CBSE Class 12th Accountancy Syllabus for 2023?
Some of the recommended books for the CBSE Class 12th Accountancy Syllabus for 2023 are: Accountancy for Class XII by TS Grewal, Double Entry Book Keeping by TS Grewal, Accountancy: Analysis of Financial Statements by NCERT and Accountancy: Company Accounts and Analysis of Financial Statements by NCERT. - What is the exam pattern for the CBSE Class 12th Accountancy Syllabus for 2023?
The CBSE Class 12th Accountancy exam for 2023 will consist of one theory paper and one practical paper. The theory paper will be of 80 marks and will be three hours long. The practical paper will be of 20 marks and will be of 20 hours duration. - What is the CBSE Class 12th Accountancy Syllabus for 2023?
The CBSE Class 12th Accountancy Syllabus for 2023 includes the following topics: Partnership Accounts, Company Accounts and Financial Statements Analysis, Accounting for Not-for-Profit Organizations and Partnership Firms, Accounting for Share Capital and Debentures, Analysis of Financial Statements and Cash Flow Statement. - What are the marking schemes for the CBSE Class 12th Accountancy Syllabus for 2023?
The CBSE Class 12th Accountancy Syllabus for 2023 has a total of 80 marks. The theory paper is for 80 marks, while the practical paper is for 20 marks. - What are the important topics to focus on in the CBSE Class 12th Accountancy Syllabus for 2023?
All topics are important in the CBSE Class 12th Accountancy Syllabus for 2023, but some of the most important topics include Financial Statements Analysis, Accounting for Share Capital and Debentures, and Analysis of Financial Statements.
