CBSE Class 11 Accountancy Syllabus

CBSE Syllabus for Class 11 Accountancy Term (I & II) 2023-24

The CBSE Accountancy course at the plus two levels of school focuses on strengthening basic accounting concepts and preparation of financial statements. The objective is to introduce young learners to the world of finance and familiarise them with the essential concepts used in business and finance.

CBSE Class XI Accountancy Syllabus Term (I & II) 2023-2024

CBSE syllabus for Class 11 Commerce Accountancy in the PDF format can be accessed here.

Class 11 CBSE Syllabus for Accountancy Term (I & II) 2023-24

Accountancy (CBSE Code No. 055) has a total of 80 marks for the theory section and 20 marks for practical or project work, divided into two terms. The CBSE syllabus for Class 11 Accountancy covers the following topics:

Term I (MCQ-based question Paper)

Theory: 40 marks

Time: 90 minutes

Unit Topic Marks
Part A: Financial Accounting 1
Unit 1 Theoretical Framework 12
Unit 2 Accounting Process 40
Part B: Financial Accounting 2
Unit 3 Financial Statements of Sole Proprietorship from Complete and Incomplete Records 20
Unit 4 Computers in Accounting  08
Part C: Project Work 10

Important Topics in Accountancy 

Accountancy in Class 11 forms a strong base for a career in accounting as accountants and auditors. Accounts play a crucial role in any business organisation, and their demand in various positions like managing payroll, auditing and financial management is constantly increasing. Hence, for bright career prospects, students must study this subject thoroughly. The important chapters in CBSE Class 11 Accountancy syllabus 2023-24 are as follows:

  1. Depreciation
  2. Financial statement of sole proprietorship
  3. Journal entry
  4. Adjustment in preparation of financial statement
  5. Accounting for a bill of exchange

What is a balance sheet?

A company’s financial statement is presented on the balance sheet. At the conclusion of the accounting period, following the creation of the trade and profit and loss accounts, the balance sheet records the assets and liabilities of the company.

Some Important Points of a Balance Sheet 

A balance sheet has the following characteristics: 

  1. It is regarded as the last step in the production of final accounts. 
  2. It is not an account but a statement. 
  3. It comprises transactions on both asset and liability sides: assets to the left side and liabilities to the right. 
  4. The sum of the two sides, i.e., assets and liabilities, must always be equal. 
  5. The balance sheet details a company’s financial situation at a given time.
  6. It is generally prepared along with a profit and loss statement for the company.

What is the importance of a balance sheet?

Many details about a company’s finances at a given time can be inferred from its balance sheet. Here are a few of the key features of a balance sheet: 

  1. Creditors, investors, and other stakeholders use this financial statement to assess a company’s financial health. 
  2. It is used to compare the company’s present and past finances to analyse its growth. 
  3. A company must provide its balance sheet to the bank when requesting a business loan. 
  4. Analysis of a company’s balance sheet helps estimate its future profits and business expansion plans.

Accounts Syllabus Class 11 CBSE 2023-24

The CBSE syllabus for Class 11 Accountancy theoretical framework is given below. .

Part A: Financial Accounting – I

For the ease of learners, the following topics are included in Part A of CBSE Class 11 Accountancy syllabus 2023-24  have been provided unit-wise:

Unit 1- Theoretical Framework

  • Accounting- concept, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Qualitative Characteristics of Accounting Information. Role of Accounting in Business.
  • Basic Accounting Terms- Business Transaction, Capital, Drawings. Liabilities (Non-Current and Current). Assets (Non-Current, Current); Fixed assets (Tangible and Intangible), Expenditure (Capital and Revenue), Expense, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount (Trade discount and Cash Discount)
  • Fundamental accounting assumptions: GAAP Concept
  • Business Entity, Money Measurement, Going Concerned, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism, Materiality and Objectivity
  • System of Accounting. Basis of Accounting: cash basis and accrual basis
  • Accounting Standards: Applicability in IndAS
  • Goods and Services Tax (GST): Characteristics and Objective.

Unit 2- Accounting Process

  • Voucher and Transactions: Source documents and Vouchers, Preparation of Vouchers, Accounting Equation Approach: Meaning and Analysis, Rules of Debit and Credit.
  • Recording of Transactions: Books of Original Entry- Journal
  • Special Purpose books:
  • Cash Book: Simple, cash book with bank
  • Column and petty cash book
  • Purchases book
  • Sales book
  • Purchases return book
  • Sales return book

Note: Including trade discount, freight, and cartage expenses for simple GST calculation.

  • Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts

Bank Reconciliation Statement:

  • Need and preparation, Bank Reconciliation Statement with Adjusted Cash Book

Depreciation, Provisions and Reserves

  • Depreciation: Concept, Features, Causes, factors
  • Other similar terms: Depletion and Amortisation
  • Methods of Depreciation:
    • Straight Line Method (SLM)
    • Written Down Value Method (WDV)

Note: Excluding change of method

  • Difference between SLM and WDV; Advantages of SLM and WDV
  • Accounting treatment of depreciation 
    • Charging to asset accounts
    • Creating provisions for depreciation/accumulated depreciation accounts
    • Treatment for disposal of assets
  • Provisions and Reserves: Difference
  • Types of Reserves: 
    • Revenue reserve 
    • Capital reserve 
    • General reserve 
    • Specific reserve
    • Secret reserve

 Difference between capital and revenue reserve

Term II

Theory: 40 Marks

Part A

Unit 2 Accounting Process

i)Accounting for Bills of Exchange

  • Bill of exchange and Promissory Note: Definition, Specimen, Features, Parties
  • Difference between Bill of Exchange and Promissory Note
  • Terms in Bill of Exchange:
    • Term of Bill
    • Accommodation bill (concept)
    • Days of Grace
    • Date of maturity
    • Discounting of bill
    • Endorsement of bill
    • Bill after due date
    • Negotiation
    • Bill sent for collection
    • Dishonour of bill
  • Accounting Treatment

Note: excluding accounting treatment for accommodation bill

  1. ii) Trial balance and Rectification of Errors

  • Trial balance: objectives and preparation
  • Errors: types-errors of omission, commission, principles and compensating; their effect on Trial Balance
  • Detection and rectification of errors; preparation of suspense account

Part B: Financial Accounting – II

In Part B of the CBSE syllabus for Class 11 Accountancy, the following topics are included:

Unit 3- Financial Statements of Sole Proprietorship from Complete and Incomplete Records

Financial Statements

  • Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure.
  • Trading and Profit and Loss Account: Gross Profit, Operating Profit and Net profit. Preparation. Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation. 
  • Adjustments in preparation of financial statements with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, abnormal loss, goods taken for personal use/staff welfare, interest on capital and managers’ commission.
  • Preparation of Trading, Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments.

Incomplete Records

  • Features, reasons and limitations. Ascertainment of Profit/Loss by the Statement of Affairs method.

Course Structure for CBSE Class 11 Accountancy Term I

Unit Marks
1 Theoretical Framework 12
Introduction to Accounting

Theory Base of Accounting

2 Accounting Process 28
Recording Of Business Transactions,

Bank Reconciliation Statement,

Depreciation, Provisions and Reserves

Total Theory 40
Project Work (Part -1) 10

Course Structure for CBSE Class 11 Accountancy Term II 

Unit Marks
Unit 2 Accounting Process 12
Accounting For Bills of Exchange

Trial Balance And Rectification of Errors

Unit 3,4 Part B: Financial Accounting-II 28
Financial Statements of Sole Proprietorship from Complete and Incomplete Records

Computers In Accounting

Total Theory 40
Project Work (Part -2) 10

Project Work for CBSE Class XI Accountancy Term I

It is advisable to start this project after finishing the section on financial statement preparation. The student(s) may choose any company or create a fake commercial transaction for the purpose of the project. By going through the chapters and applying them practically, the project will become an interesting activity. The trial balance and the financial statements are to be prepared by the pupils in the following stage.

Project Work for CBSE Class XI Accountancy Term II

Part C Project Work Marks
Project Work Term I 10
Project Work Term II 10
Total 20

Benefits of Accountancy Class XI Syllabus PDF

It’s important for every student to know the syllabus before they begin their preparation. They can get the syllabus from the Extramarks website. 

The syllabus contains essential data regarding marks distribution across two terms. The curriculum includes all instructions for project work, submission procedures and presentations. Information about the viva voce is also included in the syllabus. 

Following the curriculum helps avoid memorising extraneous passages that students frequently have a tendency to do in order to pass exams. It also offers a bird’s eye view of the syllabus.

ACCOUNTANCY (Code No. 055)

Rationale

The course in accountancy is introduced at plus two stage of 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 provide 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:

  1. To familiarize students with new and emerging areas in the preparation and presentation of financial statements.
  2. To acquaint students with basic accounting concepts and accounting
  3. To develop the skills of designing need based accounting database.
  4. To appreciate the role of ICT in business
  5. To develop an understanding about recording of business transactions and preparation of financial statements.
  6. To enable students with accounting for Not-for-Profit organizations, accounting for Partnership Firms and company accounts.

Accountancy (Code No.055)

Course Structure Class-XI (2022-23)

Theory: 80 Marks 3 Hours

Project: 20 Marks

Units Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 12
Unit-2: Accounting Process 115 44
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship 60 24
Part C: Project Work 20 20

PART A: FINANCIAL ACCOUNTING – I

Unit-1: Theoretical Frame Work

Units/Topics Learning Outcomes
Introduction to Accounting

· Accounting- concept, meaning, as a source of information, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Qualitative Characteristics of Accounting Information. Role of Accounting in Business.

· Basic Accounting Terms- Entity, Business Transaction, Capital, Drawings. Liabilities (Non Current and Current). Assets (Non Current, Current); Expenditure (Capital and Revenue), Expense, Revenue, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount (Trade discount and Cash Discount)

 

Theory Base of Accounting

· Fundamental accounting assumptions: GAAP: Concept

· Basic accounting concept : Business Entity,

After going through this Unit, the students will be able to:

· describe the meaning, significance, objectives, advantages and limitations of accounting in the modem economic environment with varied types of business and non-business economic entities.

· identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.

· explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and revenue.

· give examples of terms like business transaction, liabilities, assets, expenditure and purchases.

· explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.

Money Measurement, Going Concern, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism, Materiality and Objectivity

· System of Accounting. Basis of Accounting: cash basis and accrual basis

· Accounting Standards: Applicability in IndAS

· Goods and Services Tax (GST): Characteristics and Advantages.

· differentiate among income, profits and gains.

· state the meaning of fundamental accounting assumptions and their relevance in accounting.

· describe the meaning of accounting assumptions and the situation in which an assumption is applied during the accounting process.

· explain the meaning, applicability, objectives, advantages and limitations of accounting standards.

· appreciate that various accounting standards developed nationally and globally are in practice for bringing parity in the accounting treatment of different items.

· acknowledge the fact that recording of accounting transactions follows double entry system.

· explain the bases of recording accounting transaction and to appreciate that accrual basis is a better basis for depicting the correct financial position of an enterprise.

· Explain the meaning, advantages and

characteristic of GST.

Unit-2: Accounting Process

Units/Topics Learning Outcomes
Recording of Business Transactions

· Voucher and Transactions: Source documents and Vouchers, Preparation of Vouchers, Accounting Equation Approach: Meaning and Analysis, Rules of Debit and Credit.

· Recording of Transactions: Books of Original Entry- Journal

· Special Purpose books:

· Cash Book: Simple, cash book with bank column and petty cashbook

After going through this Unit, the students will be able to:

· explain the concept of accounting equation and appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of accounting equation.

· explain the effect of a transaction (increase or decrease) on the assets, liabilities, capital,

revenue and expenses.

· Purchases book

· Sales book

· Purchases return book

· Sales return book

· Journal proper

Note: Including trade discount, freight and cartage expenses for simple GST calculation.

· Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts

 

Bank Reconciliation Statement:

· Need and preparation, Bank Reconciliation Statement

Depreciation, Provisions and Reserves

· Depreciation: Meaning, Features, Need, Causes, factors

· Other similar terms: Depletion and Amortisation

· Methods of Depreciation:

i. Straight Line Method (SLM)

ii. Written Down Value Method (WDV)

Note: Excluding change of method

· Difference between SLM and WDV; Advantages of SLM and WDV

· Method of recoding depreciation

i. Charging to asset account

ii. Creating provision for depreciation/accumulated depreciation account

· Treatment of disposal of asset

· Provisions, Reserves, Difference Between Provisions and Reserves.

· Types of Reserves:

i. Revenue reserve

ii. Capital reserve

iii. General reserve

iv. Specific reserve

v. Secret Reserve

· Difference between capital and revenue reserve

· appreciate that on the basis of source documents, accounting vouchers are prepared for recording transaction in the books of accounts.

· develop the understanding of recording of transactions in journal and the skill of calculating GST.

· explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book.

· describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books .

· appreciate that at times bank balance as indicated by cash book is different from the bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared.

· develop understanding of preparing bank reconciliation statement.

· appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting.

· explain the necessity of providing depreciation and develop the skill of using different methods for computing depreciation.

· understand the accounting treatment of providing depreciation directly to the concerned asset account or by creating provision for depreciation account.

· appreciate the method of asset disposal through the concerned asset account or by preparing asset disposal account.

· appreciate the need for creating reserves and

Trial balance and Rectification of Errors

· Trial balance: objectives, meaning and preparation

(Scope: Trial balance with balance method only)

· Errors: classification-errors of omission, commission, principles, and compensating; their effect on Trial Balance.

· Detection and rectification of errors;

(i) Errors which do not affect trial balance

(ii) Errors which affect trial balance

· preparation of suspense account.

also making provisions for events which may belong to the current year but may happen in next year.

· appreciate the difference between reserve and reserve fund.

· state the need and objectives of preparing trial balance and develop the skill of preparing trial balance.

· appreciate that errors may be committed during the process of accounting.

· understand the meaning of different types of errors and their effect on trial balance.

· develop the skill of identification and location of errors and their rectification and

preparation of suspense account.

Part B: Financial Accounting – II

Unit 3: Financial Statements of Sole Proprietorship

Units/Topics Learning Outcomes
Financial Statements

Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure. Opening journal entry. Trading and Profit and Loss Account: Gross Profit, Operating profit and Net profit. Preparation. Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation. Adjustments in preparation of financial statements with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, Abnormal loss, Goods taken for personal use/staff welfare, interest on capital and managers commission. Preparation of Trading and Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments.

After going through this Unit, the students will be able to:

· state the meaning of financial statements the

· purpose of preparing financial statements.

· state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account.

· explain the need for preparing balance sheet.

· understand the technique of grouping and marshalling of assets and liabilities.

· appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial statements.

· develop the understanding and skill to do adjustments for items and their presentation in financial statements like depreciation, closing stock, provisions, abnormal loss etc.

· develop the skill of preparation of trading and

profit and loss account and balance sheet.

Part C: Project Work (Any One)

  1. Collection of source documents, preparation of vouchers, recording of transactions with the help of vouchers.
  2. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to twenty-five
  3. Comprehensive project of any sole proprietorship business. This may state with journal entries and their ledgering, preparation of Trial balance. Trading and Profit and Loss Account and Balance Sheet. Expenses, incomes and profit (loss), assets and liabilities are to be depicted using pie chart / bar

PROJECT WORK

It is suggested to undertake this project after completing the unit on preparation of financial statements. The student(s) will be allowed to select any business of their choice or develop the transaction of imaginary business. The project is to run through the chapters and make the project an interesting process. The amounts should emerge as more realistic and closer to reality.

Specific Guidelines for Teachers

Give a list of options to the students to select a business form. You can add to the given list:

1. A beauty parlour 10. Men’s wear 19. A coffee shop
2. Men’s saloon 11. Ladies wear 20. A music shop
3. A tailoring shop 12. Kiddies wear 21. A juice shop
4. A canteen 13. A Saree shop 22. A school canteen
5. A cake shop 14. Artificial jewellery shop 23. An ice cream parlour
6. A confectionery shop 15. A small restaurant 24. A sandwich shop
7. A chocolate shop 16. A sweet shop 25. A flower shop
8. A dry cleaner 17. A grocery shop
9. A stationery shop 18. A shoe shop

After selection, advise the student(s) to visit a shop in the locality (this will help them to settle on a realistic amounts different items. The student(s) would be able to see the things as they need to invest in furniture, decor, lights, machines, computers etc.

A suggested list of different item is given below.

  1. Rent Wages and Salary
  2. Advance rent [approximately three months] Newspaper and magazines
  3. Electricity deposit Petty expenses
  4. Electricity bill Tea expenses
  5. Electricity fitting Packaging expenses
  6. Water bill Transport
  7. Water connection security deposit Delivery cycle or a vehicle purchased
  8. Water fittings Registration
  9. Telephone bill Insurance
  10. Telephone security deposit Auditors fee
  11. Telephone instrument Repairs & Maintenance
  12. Furniture Depreciations
  13. Computers Air conditioners
  14. Internet connection Fans and lights
  15. Stationery Interior decorations
  16. Advertisements Refrigerators
  17. Glow sign Purchase and sales
  18. Rates and Taxes

At this stage, performas of bulk of originality and ledger may be provided to the students and they may be asked to complete the same.

In the next step the students are expected to prepare the trial balance and the financial statements.

Suggested Question Paper Design Accountancy (Code No. 055) Class XI (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.

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, validity of ideas, or 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%

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 Learning Outcomes
· 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

After going through this Unit, the students will be able to:

· state the meaning of partnership, partnership firm and partnership deed.

· describe the characteristic features of partnership and the contents of partnership deed.

· discuss the significance of provision of 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 preparation profit and loss appropriation account involving guarantee of profits.

· develop the understanding and skill of making past adjustments.

· state the meaning, nature and factors affectin 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 revaluation account and balance sheet.

· explain the effect of change in profit sharing ratio on admission of a new partner.

· develop the understanding and skill 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.

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 retirement / death of a partner.

· understand the situations under which a partnership firm can be dissolved.

· develop the understanding of preparation of realisation account and other related accounts.

Unit-3 Accounting for Companies

Units/Topics Learning Outcomes
Accounting for Share Capital

· Features and types of companies

After going through this Unit, the students will be

able to:

· 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 (AS

16)

· state the meaning of share and share capital and differentiate between equity shares and preference shares and different types of share capital.

· understand the meaning of private placement of shares and Employee Stock Option Plan.

· explain the accounting treatment of share capital transactions regarding issue of shares.

· develop the understanding of accounting treatment of forfeiture and re-issue of forfeited shares.

· describe the presentation of share capital in the balance sheet of the company as per schedule III part I of the Companies Act 2013.

· explain the accounting treatment of different categories of transactions related to issue of debentures.

· develop the understanding and skill of writing of discount / loss on issue of debentures.

· understand the concept of collateral security and its presentation in balance sheet.

· develop the skill of calculating interest on debentures and its accounting treatment.

· state the meaning of redemption of debentures.

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 Statement.

After going through this Unit, the students will be able to:

· develop the understanding of major headings

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.

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) 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

Note:

(i) Adjustments relating to depreciation and amortization, 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 to be taken as Marketable securities unless otherwise specified.

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.

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
  • Features of Computerised Accounting
  • Structure of CAS.
  • Software Packages: Generic; Specific;

Accounting Application of Electronic Spreadsheet.

  • Concept of electronic
  • Features offered by electronic
  • Application in generating accounting information – bank reconciliation statement; asset accounting; loan repayment of loan schedule, ratio analysis
  • Data representation- graphs, charts and

Using Computerized Accounting System.

  • Steps in installation of CAS, codification and Hierarchy of account heads, creation of accounts.
  • Data: Entry, validation and
  • Adjusting entries, preparation of balance sheet, profit and loss account with closing entries and opening
  • 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.

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, validity of ideas, or 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%

Please register to view this section

FAQs (Frequently Asked Questions)

1. Where can I find important CBSE Accountancy resources?

A repository of resources which includes CBSE previous year question papers, CBSE sample papers, CBSE extra questions, CBSE revision notes, CBSE important questions and various formulas can be found on the Extramarks website and app.

2. What should I do in my project work?

In both terms, project work is worth 10 marks each. Students may adhere to the CBSE curriculum. It entails submitting a file, a written test and a viva.