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12 Accountancy

The Accountancy syllabus at the CBSE Class 12 level gives students a firm foundation in basic accounting principles and methodology and also acquaints them with the changes taking place in the presentation and analysis of accounting information, keeping in view the development of accounting standards and use of computers.

Against this background, the course puts emphasis on developing basic understanding about the nature and purpose of the accounting information and its use in the conduct of business operations. This is done to help to develop logical reasoning, careful analysis and considered judgment among students.

Accounting as an information system aids in providing financial information. In class XII, Accounting for Not for Profit Organisations, Partnership Firms and companies are taught as a compulsory part. Students will also be given an opportunity to understand about Computerized Accounting System, as an optional course to Analysis of Financial Statements.


CBSE Class 12 Accountancy - Syllabus


Allocation of unit-wise marks of CBSE Class 12 Accountancy:

Part A

Unit No.

 Unit Name



 Accounting for Not-for-profit Organisations



Accounting for Partnership Firms - I



Accounting for Partnership Firms - II



Accounting for Share Capital
and Debenture Share Capital


Part B

 Unit No.

 Unit Name



 Analysis of Financial Statements



 Cash Flow Statement



Project Work in Accounting


Part C

 Unit No.

 Unit Name



 Overview of Computerized Accounting System



 Accounting using Database Management System (DBMS)Concept of DBMS Objects in DBMS

0 8


Accounting Applications of Electronic Spreadsheet



Practical Work in Computerised Accounting


 Part A: Accounting for Not-For-Profit Organisations, Partnership Firms and Companies.

Unit 1: Accounting for Not-for-profit Organisations

Meaning and features of not for profit organisations, Meaning and features of fundbased accounting, Receipts and payments Account, Preparation of Income and Expenditure Account and Balance Sheet from Receipt and Payment Account with additional information.

Unit 2: Accounting for Partnership Firms - I

Nature of Partnership firm, Partnership Deed-meaning, importance, Partners' Capital Accounts : Fixed vs Fluctuating Capital, Division of Profit among partners, Profit and Loss Appropriation Account including past adjustments.

Unit 3: Accounting for Partnership Firms - II

Changes in Profit Sharing Ratio among the existing partners-Sacrificing Ratio and Gaining Ratio, Accounting for Revaluation of Assets and Liabilities and distribution of reserves(Accumulated Profits), Goodwill: Nature, Factors affecting and methods of valuation: Average profit, Super profitand Capitalisation methods.Admission of a Partner: Effect of Admission of Partner, Change in Profit Sharing Ratio, Accounting Treatment for Goodwill (as per AS 10), Revaluation of Assets and Liabilities, Adjustment of Capitals.Retirement/Death of a Partner: Change in Profit Sharing ratio, accounting treatment ofGoodwill, Revaluation of Assets and Liabilities, Adjustment of Capitals. Dissolution of a partnership firm. (excluding Garner Vs Murrey and Peace Meal System).

Unit 4: Accounting for Share Capital and Debenture Share Capital

Meaning and Types. Accounting for share capital: Issue and Allotment of Equity and Preference Shares;public subscription of shares : over subscription and under subscription; issue at par, premium and at discount; calls in advance, calls in arrears, issue of shares for consideration other than cash, Meaning of Private placement of shares and employee stock option plan, Forfeiture of shares : accounting treatment, re-issue of forfeited shares.Presentation of Share Capital in company’s Balance Sheet.

Issue of debentures at par and Premium; writing of loss on issue of debentures; Issue ofdebentures as collatoral security; issue of debentures for consideration other than cash, Redemption of debentures; sources : out of profits - debenture redemption reserve; out ofcapital-methods: lump sum payment, draw by lots, purchase in the open market and conversion (excluding cum-interest and ex-interest).
Part B: Financial Statement Analysis

Unit 5: Analysis of Financial Statements

Financial Statements of a Company: preparation of simple balance sheet of a company in the prescribed form with major headings only, Financial Statement Analysis: meaning, significance, limitations, Tools for Financial Statement Analysis: Comparative Statements, Common Size Statements,Accounting Ratios: meaning and objectives,

types of ratios:
Liquidity Ratios: Current Ratio, Liquid Ratio
Solvency Ratios: Debt to Equity, Total Assets to Debt, Proprietary Ratio
Activity Ratios: Inventory Turnover, Debtors Turnover, Payable Turnover,Working Capital Turnover, Fixed Assets Turnover,
Profitability Ratio: Gross Profit, Operating, Net Profit, Return on Investment, Earning per Share, Dividend per Share, Price Earning Ratio

Unit 6: Cash Flow Statement

Cash Flow Statement: Meaning and objectives, preparation, adjustments related todepreciation, dividend and tax, sale and purchase of non-current assets (as per revisedstandard issued by ICAI)