CBSE Class 12th Accountancy Syllabus 2023-24: Download PDF

Partnership: Features and Partnership Deed.

Provisions of the Indian Partnership Act 1932 in the absence of partnership deeds.

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.

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 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.

State the meaning of partnership, partnership firm, and partnership deed.

Describe the characteristic features of the partnership and the contents of the partnership deed.

Discuss the significance of the provision of the Partnership Act in the absence of a 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 preparing profit and loss appropriation accounts involving the guarantee of profits.

Develop the understanding and skill of making past adjustments.

State the meaning, nature, and factors affecting 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, reassessment of liabilities, and treatment of reserves and accumulated profits by preparing revaluation accounts and balance sheets.

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

Develop understanding and skills in the 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 an understanding of accounting treatment of goodwill, revaluation of assets and re-assessment of liabilities, adjustment of accumulated profits, losses, and reserves on retirement/death of a partner, and capital adjustment.

Develop the skill of calculating of deceased partner's share till the time of his death and prepare the 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 the retirement/death of a partner.

Understand the situations under which a partnership firm can be dissolved.

Develop an understanding of the preparation of the realization account and other related accounts.

Features and types of companies

Share and share capital: nature and types.

Accounting for share capital: issues and allotment of equity and preference shares. Public subscription of shares - over subscription and under subscription of shares; the issue at par and at a 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.

Debentures: Meaning, type, 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. Write off discount/loss on the issue of debentures.

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 Plans.

Explain the accounting treatment of share capital transactions regarding the issue of shares.

Develop an 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 the 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 the balance sheet.

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

State the meaning of redemption of debentures.

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.

Current ratio and Quick ratio.

Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio, and Interest Coverage Ratio. Debt to Capital Employed Ratio.

Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, Fixed Asset Turnover Ratio, Net Asset Turnover Ratio and Working Capital Turnover Ratio.

Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment.

Develop an understanding of the major headings and sub-headings (as per Schedule III of the Companies Act, 2013) of the 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 an understanding of the computation of current ratio and quick ratio.

Develop the skill of computation of debt-equity ratio, a total asset-to-debt ratio, a proprietary ratio, and interest coverage ratio.

Develop the skill of computation of inventory turnover ratio, trade receivables, and trade payables ratio 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.

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 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 are to be taken as Marketable securities unless otherwise specified.