CBSE Syllabus of Accountancy Class-12 for 2022-23 – (Code No. 055) is designed and prepared by CBSE. We are here to help students to find copies of the syllabus easily while visiting our website. Original source of data is https://www.cbse.gov.in/cbsenew/cbse.html
Table of Contents
Rationale
The course in accountancy is introduced at plus two-stage of the senior second of school education, as the formal commerce education is provided after ten years of schooling. With the fast-changing economic scenario, accounting as a source of financial information has carved out a place for itself at the senior secondary stage. Its syllabus content provides students a firm foundation in basic accounting concepts and methodology and also acquaint them with the changes taking place in the preparation and presentation of financial statements in accordance to the applicable accounting standards and the Companies Act 2013.
The course in accounting put emphasis on developing basic understanding about accounting as an information system. The emphasis in Class XI is placed on basic concepts and process of accounting leading to the preparation of accounts for a sole proprietorship firm. The students are also familiarized with basic calculations of Goods and Services Tax (GST) in recording the business transactions. The accounting treatment of GST is confined to the syllabus of class XI.
The increased role of ICT in all walks of life cannot be overemphasized and is becoming an integral part of business operations. The learners of accounting are introduced to Computerized Accounting System at class XI and XII. Computerized Accounting System is a compulsory component which is to be studied by all students of commerce in class XI; whereas in class XII it is offered as an optional subject to Company Accounts and Analysis of Financial Statements. This course is developed to impart skills for designing need based accounting database for maintaining book of accounts.
The complete course of Accountancy at the senior secondary stage introduces the learners to the world of business and emphasize on strengthening the fundamentals of the subject.
Objectives:
- To familiarize students with new and emerging areas in the preparation and presentation of financial statements.
- To acquaint students with basic accounting concepts and accounting standards.
- To develop the skills of designing need based accounting database.
- To appreciate the role of ICT in business operations.
- To develop an understanding about recording of business transactions and preparation of financial statements.
- To enable students with accounting for Not-for-Profit organizations, accounting for Partnership Firms and company accounts.
Course Structure 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 |
CBSE Syllabus of Accountancy Class-12 for 2022-23 – (Code No. 055)
Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
| Units/Topics | Learning Outcomes |
| Partnership: features, Partnership Deed.Provisions of the Indian Partnership Act 1932 in the absence of a partnership deed.Fixed v/s fluctuating capital accounts. Preparation of Profit and Loss Appropriation account- a division of profit among partners, a 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: 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 nil (zero value). (ii) In case, the realization expenses are borne by a partner, a clear indication should be given regarding the payment thereof. | After going through this Unit, the students will be able to: state the meaning of partnership, partnership firm and partnership deed. and describe the characteristic features of a partnership and the contents of partnership deed. and discuss the significance of the provision of the Partnership Act in the absence of partnership deed. differentiate between fixed and fluctuating capital, outline the process and develop the understanding and skill of preparation of Profit and Loss Appropriation Account. develop the understanding and skill of preparing profit and loss appropriation accounts involving guarantee of profits. develop the understanding and skill of making past adjustments. state the meaning, nature and factors affecting goodwill develop the understanding and skill of valuation of goodwill using different methods. state the meaning of sacrificing ratio, gaining ratio and the change in profit sharing ratio among existing partners. develop the understanding of accounting treatment of revaluation assets and reassessment of liabilities and treatment of reserves and accumulated profits by preparing a revaluation account and balance sheet. explain the effect of change in profit sharing ratio on the admission of a new partner. develop the understanding and skill of treatment of goodwill as per AS-26, treatment of revaluation of assets and re-assessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of capital, current account and balance sheet of the new firm. explain the effect of retirement/death of a partner on change in profit sharing ratio. develop the understanding of accounting treatment of goodwill, revaluation of assets and re-assessment of liabilities and adjustment of accumulated profits, losses and reserves on retirement/death of a partner and capital adjustment. develop the skill of calculation of deceased partner’s share till the time of his death and prepare deceased partner’s and executor’s account. discuss the preparation of the capital accounts of the remaining partners and the balance sheet of the firm after the retirement/death of a partner. understand the situations under which a partnership firm can be dissolved. and develop the understanding of the preparation of realisation accounts and other related accounts. |
Unit-3 Accounting for Companies
| Units/Topics | Learning Outcomes |
| 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 a premium, call 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 the 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) | 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 preference shares. Public subscription of shares – over subscription and under subscription of shares; issue at par and at a premium, call 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 the 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
| Units/Topics | Learning Outcomes |
| Financial statements of a Company: Meaning, Nature, Uses and importance of financial Statements. 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. | After going through this Unit, the students will be able to: develop the understanding of major headings and sub-headings (as per Schedule III to the Companies Act, 2013) of balance sheet as per the prescribed norms / formats.state the meaning, objectives and limitations of financial statement analysis.discuss the meaning of different tools of ‘financial statements analysis’.state the meaning, objectives and significance of different types of ratios.develop the understanding of computation of current ratio and quick ratio.develop the skill of computation of debt equity ratio, total asset to debt ratio, proprietary ratio and interest coverage ratio.develop the skill of computation of inventory turnover ratio, trade receivables and trade payables ratio and working capital turnover ratio and others.develop the skill of computation of 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
| Units/Topics | Learning Outcomes |
| 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. | After going through this Unit, the students will be able to: state the meaning and objectives of cash flow statement.develop the understanding of preparation of Cash Flow Statement using indirect method as per AS 3 with given adjustments. |
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.
Note: Kindly refer to the Guidelines published by the CBSE.
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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 |
| 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 of Accountancy (Code No. 055) Class XII (2022-23)
| Theory: 80 Marks | 3 hrs. |
| Project: 20 Marks |
| 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% |
| 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, the validity of ideas, or the 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% |