class 12 accountancy syllabus

Check the Revised And Updated Class 12 Accountancy Syllabus

The CBSE class 12 accountancy syllabus majorly focuses on enhancing the student’s knowledge in the accounting sector. The entire curriculum is designed to make the student understand the importance of accounting. It also enhances the ability of students to perform accounting tasks. But recently, CBSE has reduced 30% of the class 12 syllabus of accountancy for the academic year 2021-22. This deduction is made considering the less time remains with the student for the preparation. Even some topics are simplified instead of a deduction. So, all the students must look at the new revised syllabus before going for the exam.

For the timely completion of the syllabus, one can join Class 12 Accounts Online Classes. For now, let us discuss the revised accountancy syllabus.

Class 12 Accountancy syllabus

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

Unit 1: Financial Statements of Not-for-Profit Organizations

  • Not-for-profit organizations: concept.
  • Receipts and Payments Account features and preparation.
  • Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Unit 2: 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- the division of profit among partners, guarantee of profits.
  • Past adjustments (relating to interest on capital, interest on drawing, salary and profit-sharing ratio).
  • Goodwill: nature, factors affecting and methods of valuation – average profit, super profit and capitalization.

Deleted Topics (Accounting for Partnership firms – Reconstitution and Dissolution.)

  • Admission of a partner – adjustment of capital accounts and preparation of balance sheet.
  • Retirement and death of a partner: adjustment of capital accounts. Preparation of loan account of the retiring partner.
  • Preparation of deceased partner’s capital account and his executor’s account.

Unit 3 Accounting for Companies

Accounting for Share Capital

  • 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, 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).
  • Accounting treatment of forfeiture and reissue of shares.
  • Disclosure of share capital in the Balance Sheet of a company.

Accounting for Debentures

  • Debentures: Issue of debentures at par, at a premium and 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.

Deleted Topics (Accounting for Debentures)

  • Redemption of debentures-Methods: Lump sum, the draw of lots.

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Financial statements of a Company:

Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and subheadings (as per Schedule III to the Companies Act, 2013)

  • Financial Statement Analysis: Objectives, importance and limitations.
  • Tools for Financial Statement Analysis: Comparative statements, common-size statements, cash flow analysis, ratio analysis.
  • Accounting Ratios: Meaning, Objectives, 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.
  • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, and Working Capital Turnover Ratio.
  • Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment.

Unit 5: Cash Flow Statement

  • Meaning, objectives, and preparation (as per AS 3 (Revised) (Indirect Method only)
  • Adjustments relating to depreciation and amortization, profit or loss on the sale of assets including investments, dividend (both final and interim), and tax.
  • Bank overdraft and cash credit are to be treated as short-term borrowings.
  • Current Investments are to be taken as Marketable securities unless otherwise specified.

Part C: Project Work

For the 2021-22 session, students will be required to make only one CBSE Class 12 Accountancy Project. Students must refer to the CBSE guidelines for more details.

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 the 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 the installation of CAS, codification, 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.

Database Management System (DBMS)

  • Concept and Features of DBMS.
  • DBMS in Business Application.
  • Generating Accounting Information – Payroll.

Part C: Practical Work

Students must refer to the CBSE guidelines for more details on the Practical work.

Complete class 12 Accountancy syllabus with online classes

If you are worried about completing your entire syllabus of class 12 accountancy, then here is the best solution for you. Often due to the lengthy syllabus, students cannot complete the whole course on time. In this case, students can join the online classes by Vidya Setu. Here you can meet all the class 12 accountancy syllabus with the help of online courses that are also free of cost. The significant benefits you will acquire from these online classes include,

  • Best Faculty: You will get the online classes from the best faculty at Vidyasetu. They will cover all the topics in the most simplified and understandable format.
  • Get the Recorded Video Lectures: You will get video lectures that you can watch anytime and anywhere at your convenience.
  • Doubt Solving Facility: Vidyasetu offers you the online doubt solving facility so you can ask your doubts online and get them solved.
  • Modes of Learning: You can access these online classes from any device such as mobile, laptop, or tablet.

Conclusion

Therefore, there was detailed information regarding the revised syllabus of the class 12 accountancy paper. Make sure you are known of every topic before starting your preparation. Go through all the topics and watch the online videos for accountancy by Vidyasetu to clear your problems. You can also practice further by appearing in the mock test given by the Vidyasetu.

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