CBSE Class 12 Accountancy Syllabus 2023-24

CBSE Class 12 Accountancy Syllabus for Term (1&2) 2023-24

The CBSE accountancy course is offered at senior secondary school plus two levels. The CBSE Class 12 Accountancy  Syllabus focuses on solidifying basic accounting concepts and preparation and presentation of financial statements. To score good marks in the board exams, it is expected that students will be well versed with the Class 12 CBSE Accountancy Syllabus.

CBSE Accountancy Class 12 Syllabus 2023-24

The CBSE Syllabus for Class 12 Accountancy can be accessed here. Students can also access CBSE Important Questions which will be beneficial for preparing and acing the examination. CBSE Extra Questions have also been provided here for further practice for students who want to incorporate joyful learning experiences through the Extramarks repository and get excellent results.

CBSE Class 12 Syllabus for Other Subjects:

The CBSE Class 12 curriculum covers a broad range of topics, including maths, physics, chemistry, biology, English, Hindi, political science, and more. There is a distinct syllabus for each course that outlines the themes, ideas, and theories that students must study and comprehend. In order to give students a thorough and well-rounded education that would equip them for further study and future employment, the curriculum was created.

Accountancy Syllabus Class 12 CBSE 2023-24 – An Overview

Accountancy (Code No.055) has 80 marks for the theory section and 20 marks for practical or project work divided into two terms. Given below are the details of the CBSE Class 12 Accountancy Syllabus –

There are three parts in the Class 12 CBSE Accountancy Syllabus – Part A is Accounting for Partnership Firms and Companies which is made of two units and has a weighted average of 60 marks. Part B consists of two options – either Financial Statement Analysis or Computerised Accounting which accounts for 20 marks, and the remaining 20 marks are for Part C which is Project Work or Practical Work. 

Part A, Accounting for Partnership Firms and Companies consists  of two units – 

• Unit 1: Accounting for Partnership Firms (35 marks)
• Unit 2: Accounting for Companies (25 marks)

Part B is Financial Statement Analysis consists of two units, namely – 

• Unit 3: Analysis of Financial Statements (12 marks)
• Unit 4: Cash Flow Statement (8 marks)

As Part B has two options to choose from, if you choose Computerised Accounting, then the same has one unit – 

• Unit 3: Computerised Accounting (20 marks)

Part C which is the Project Work or Practical Work includes: 

• Practical File (4 marks)
• Written Examination (12 marks) and 
• Viva Voice (4 marks)

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 a partnership deed.
• Fixed v/s fluctuating capital accounts.
• Preparation of Profit and Loss Appropriation accounts- 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: nature, factors affecting, and methods of valuation – average profit, super profit, and capitalisation.

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 and accumulated profits. Preparation of revaluation accounts and balance sheets.
• 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 and accumulated profits and losses, adjustments of capital accounts and preparation of capital, current accounts and balance sheets.
• 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 accounts and balance sheets. Preparation of loan account of the retiring partner. Calculation of the 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 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)).

Unit 2: 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; the 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).
• Accounting treatment of forfeiture and reissue 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.

Part B: Financial Statement Analysis

Unit 3: Analysis of Financial Statements

Meaning, Nature, Uses, and Importance of financial statements. 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 4: Cash Flow Statement

• Meaning, objectives, benefits, cash and cash equivalents, classification of activities and preparation (as per AS 3 (Revised) (Indirect Method only)

OR

Unit 3: Computerised Accounting

Overview of Computerised Accounting System

• Introduction: Application in accounting.
• Features of a computerized accounting system.
• Structure of CAS.
• Software Packages: Generic; specific; tailored.

Accounting Application of Electronic Spreadsheet.

• Concept of the electronic spreadsheet.
• Features offered by an 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 Computerised Accounting Systems

• Steps in the installation of CAS, codification, the hierarchy of account heads, and creation of accounts.
• Data: Entry, validation, and verification.
• Adjusting entries, preparation of balance sheets, profit and loss accounts with closing entries, and opening entries.
• Need and security features of the system.

Part C: Project Work

• There will be project work in both Term I and Term II worth 10 marks each. The project work will include a project file, practical file, written examination, and viva voice, and the corresponding marks distribution is as given above.