CBSE Class 12 Accountancy Syllabus 2024-25: Updated Curriculum

Units 

Units Name

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

Part B 

Financial Statement Analysis

Unit 3. Analysis of Financial Statements

30

12

Unit 4. Cash Flow Statement 

20

8

Part C

Project Work

Project File 

12

Viva Voce

8

                                                                OR

Part B 

Computerised Accounting 

Unit 4. Computerised Accounting

50

20

Part C 

Practical Work

Project File 

12

Viva Voce

8

Part-A Accounting for Partnership Firms and Companies

Unit-I: Accounting for Partnership Firms

• 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- 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 the partner's loan is to be treated as a charge against profits. Goodwill: meaning, factors affecting, need for valuation, calculation methods (average profits, super profits, and capitalisation), adjusted through partners capital/ current account.

Unit-II: 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 the 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, a clear indication should be given regarding the payment thereof.

Unit III: 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 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 (Issue and Redemption of 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 IV: 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)

• Analysis of Financial Statements- Meaning, Significance Objectives, importance and limitations, Comparative statements, common size statements, Ratio analysis, Cash flow analysis

• Accounting Ratios- Meaning, Objectives, Advantages, classification and computation, Types of Ratios

• 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 based on profit before and after tax

Unit V: Cash Flow Statement

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

Note:

(i) Adjustments relating to depreciation and amortisation, profit or loss on sale of assets, including investments, dividend (both final and interim), and tax.

(ii) Bank overdraft and cash credit to be treated as short-term borrowings.

(iii) Current Investments are to be taken as Marketable securities unless otherwise specified.

(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 the 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.

Chapter No

Chapter Name

1

Accounting for Partnership Firms: Basic Concepts

2

Reconstitution of a Partnership Firm: Admission of a Partner

3

Reconstitution of a Partnership Firm: Retirement / Death of a Partner

4

Dissolution of Partnership Firm

Chapter No

Chapter Name

1

Accounting for Share Capital

2

Issue and Redemption of Debentures

3

Financial Statements of a Company

4

Analysis of Financial Statements

5

Accounting Ratios

6

Cash Flow Statements

Part

Deleted Chapters/Topics

Part A: Accounting for Not-profit Organisations, Partnership Firms, and Companies

Financial Statements of Not-profit Organisations (Entire chapter removed)

Part B: Financial Statement Analysis

Comparative statements

Common size statements

Part B: Computerised Accounting

DBMS concepts and features of DBMS

DBMS in Business applications

Generating accounting information payroll

S. No

Important Topic Pages for Class 12 Accountancy

1.

Class 12 Accountancy Analysis of Financial Statements

2.

Class 12 Accountancy Applications and Its Importance

3.

Class 12 Profitability Ratios

4.

Class 12 Accountancy  Debentures

5.

Class 12 Accountancy Share Capital

S. No

Study Materials Links for Class 12 Accountancy 

1.

NCERT Solutions for Class 12 Accountancy

2.

Question Paper with Solutions for Class 12 Accountancy

3.

DK Goel Solutions for Class 12 Accountancy

4.

TS Grewal Solutions for Class 12 Accountancy