ACCOUNTANCY PROJECT WORKBOOK

As per the Latest Syllabus & guidelines Issued by CBSE for Project Work in Accounting

AUTHOR
Dr. VINOD KUMAR
M.Com., B.Ed, Doctorate in Commerce

Name of the Student........................................................................................

Name of the School.........................................................................................

Class ........................................... Roll No. ......................................................

XII
CBSE

Chandigarh–Bengaluru–Delhi–Guwahati–Hyderabad–Indore
Jammu–Jodhpur–Kolkata–Lucknow–Mumbai–Patna–Ranchi
 Preface
I am feeling great pleasure in putting the Accountancy Project Workbook for
class XII in the hands of Honorable Academic Community. The main
purpose of writing this project workbook is to provide the practical
knowledge of accounting to the students. I am confident that this project
workbook will be certainly helpful to the students and the teaching
fraternity.
Contents
I am extremely grateful to the entire team of Vishvas Publications for CBSE Guidelines 6 8
providing wings to my ideas. Part-B :
I would also like to thank to the students, teachers, lecturers and Chartered Financial Statement Analysis
Accountants across the country for appreciating my work in the field of PROJECT 1 9 32
accountancy.
Part-A : Comprehensive Problem
Why this project workbook is valuable for the students?
Part-B : Project on Segement Analysis
 They will learn the meaning of project work and how to prepare a
Part-C : Cash Flow Statement
good project?
 They will understand the value of project work in their real life. PROJECT 2 33 52
 They will learn that how to identify, collect, and analyse the financial Part-A : Comprehensive Problem
data for the project work. Part-B : Project on Segement Analysis
 They will understand the concept of Analysis and Interpretation. Part-C : Cash Flow Statement
 They will understand the concept of Cash Flow Statement.
Computerized Accounting (Part-C)
 They will understand the concept of Ratio Analysis.
This project workbook is designed as per the latest syllabus issued by Project 3 53 55
C.B.S.E. Payroll Mate Software
In this book Four Solved Sample Projects have been given to assist the
students to develop a good project. Project 4 56 61
Topics covered under this project work are : Easy Accounts
1. Analysis and Interpretation of Financial Statements. Viva Questions (Part B) 62 66
2. Ratio Analysis Viva Questions (Part C) 67 68
3. Cash Flow Statement
Students and teachers may directly contact to the Author to clear their
doubts or for any suggestion for the improvement.
Vinod Kumar (Accountancy Guru) Author
www.accountancybook.com E-mail : [email protected]

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 VALIDITY CERTIFICATE
This is to certify that this Accountancy Project Workbook belongs to

Name ......................................................................................................................

Roll No ............................ Class .................................... Section .............................

Session ................................... of ..............................................................................

The Projects recorded in this Project Workbook have been done by the candidate in
the school and the signatures affixed on recorded projects are genuine.

 The student's initiative, cooperation and participation during the practical

classes is Excellent/Good/Average.

 His/Her aesthetic presentation, visual appeal, expression and neatness is

Excellent/Good/Average.

 His/Her content accuracy, creativity, originality and analysis of different

perception is Excellent/Good/Average.

Date : ..................... Teacher-Incharge

 Acknowledgement
I would like to convey my heartfelt thanks to

Mr/Mrs................................................ my Accountancy

teacher, who always gave valuable suggestions and guidance

for completion of my project. He/She helped me to

understand and remember important details of the project

that I would have otherwise lost. My project has been a

success only because of his guidance.

Name of Project................................................................

Name of Student..............................................................

Class................Roll No....................... Section.................

School Name....................................................................

5 Project–1
 CBSE GUIDELINES FOR PROJECT WORK IN ACCOUNTING FOR CLASS XII
The Board has introduced Project Work in Accounting for Class-XII in the Optional Part B :
'Financial Statement Analysis'. It is expected that the Project Work will help the students in
developing the skills to comprehend, analyse and interpret accounting data of the business firms
and make it meaningful for taking business decisions.

Part B : Financial Statement Analysis Part C : Computerzised Accounting

Project Work Practical Work
Duration: 1:30 Min Marks: 20 Unit-1 File : 4 Marks
Unit-1 Project File 4 Marks : As per requirement (given below) Unit-2 Practical
Unit-2 Written Test 12 Marks : One hour Examination : 12 Marks-1hr.
Unit-3 Viva Voce 4 Marks : As per requirement (given below) Unit-3 Viva Voce : 4 Marks

Objectives
l To enable a student to complete the accounting process in real life business situations and
apply the tools of analysis as per the syllabus for a comprehensive project.
l To develop the competence of reading accounting data from quarterly or half yearly or annual
reports of business firms and interpreting the information on the basis of given guidelines to
present the desirable information in required format in the Project File for Specific Projects.
Guidelines for Teachers
During the academic session the students will work on at least three types of projects out of which
one will be of Comprehensive nature. The comprehensive project will involve the students from the
initial stage of accounting to the preparation and analysis of financial statements. The data
provided or the Project Statement will be as close to the real life situations as possible. The project
statement should cover all important aspects like investments, financing, operating, adjustments
to final accounts, etc. in a condensed form. The situations given in these problems will require a
student to derive meaningful conclusion for taking decisions for the purposes of investment,
expansion, financing, etc.
Two projects will be of specific nature using atleast one tool of analysis in each. The data for these
will be drawn mainly from quarterly or half yearly or annual reports of corporate sector. Students
will analyze the information given in the financial statements as follows:
(a) Performance of Segments keeping in mind their three parameters Revenue, Net Profit and
Capital Employed of companies on quarterly or half yearly or annual basis. This is widely
published and reported by the companies. It can be picked up either from the newspapers or
from the websites of the companies.
(b) Comparison of Revenue, Net Profit and Earning Per Share (EPS) on quarterly or half yearly or
annual basis with the help of comparative or common size statements. The Projects given in
these guidelines are on sample areas of business activities like Segment Reporting, etc. The
teachers and students are free to explore more such areas of business activities for specific
projects.
There are four tools of analysis given in the syllabus for the analysis of Financial Statements,
namely (i) Comparative Statement, (ii) Common Size Statements, (iii) Ratios and (iv) Cash Flow
Statement. Any one or more of these tools are to be used to derive conclusions. No project is to
be prepared on the tools, but these tools are to be used to achieve the object of the project. For
instance, there will not be any project on the 'Ratios' as such, but ratios will be used in the
development of the project to reach a conclusion.

Vishvas Accountancy Project Workbook XII 6

Scope
For the purpose of Project Work, the following ratios will be included :
Liquidity Ratios : Current Ratio, Liquidity Ratio.
Solvency Ratios : Debt to Equity; Total Assets to Debt, Proprietary Ratio.
Activity Ratios : Inventory Turnover, Debtors Turnover, Payables Turnover, Working Capital
Turnover, Fixed Assets Turnover, Current Assets Turnover.
Profitability Ratio : Gross Profit Ratio, Operating Ratio, Net Profit Ratio, Return on Investment,
Earning Per Share Price Earnings Ratio.
A few projects have been given in detail at the end of the guidelines for practice. The student is
expected to analyze the facts, and present the information in a meaningful manner for
interpretation. Teachers are expected to discuss these problems thoroughly with the students and
encourage them to come out with solutions. They are also expected to collect the quarterly or half
yearly or annual Segment reports and Revenue and Net Profit reports of companies from
newspapers or from the websites of the companies and formulate their own problems for Project
Work.

UNIT-1: PROJECT FILE

Students will prepare a Project File to record their work related to the problems attempted by them
in the following format :
1. First page of the file should describe title of work, identity of student, school, and the teacher
concerned.
2. Index to indicate columns for title of work, page no., date, teacher's remarks and signature.
3. The format for Project Work will be :
l Statement of the problem/Name of the Project
l Objectives
l Period of Study
l Source Material
l Tools of Analysis used
l Processing and Tabulation of data
l Diagrammatic/graphic presentation- pie-diagrams, bar diagrams and graphs.
l Derivations, Interpretation and Conclusion.
l Assumptions (if any)
Project File should be neatly handwritten and presentable with page numbers. Each step of the
solution needs to be highlighted. Conclusions drawn should be placed in boxes at the end.
Evaluation
Guidelines for the Examiner
While evaluating the Project File, marks are to be awarded out of four, based on :
l Content
l Coverage
l Presentation
l Interpretation and Conclusion
l Originality and Quality of work

7 Project–1
 UNIT-2: WRITTEN TEST
Objectives
l To give them exposure to analyse the financial statements of business firms and help them to
derive meaningful information and conclusions therefrom.
l To know how effectively the students can derive conclusions and express them.

Guidelines for Teachers

Teachers will discuss with students the sample questions for this test and develop question papers
for the purpose in their house examinations.

Guidelines for Examiners

Students will be given 2 application-oriented problems of 6 marks each covering the tools for
analysis of financial statements. The question paper will be set in consultation with the school
teacher. No question similar to the question given in the 3 hour question paper of the Board,
should be asked here. Only such questions, relating to financial statements of companies should
be asked which encourage thinking on practical lines. The external examiner will discuss with the
internal examiner all the projects completed during the year and set the questions accordingly. On
the day of the examination both should come prepared with atleast 10 questions each. Both the
internal and external examiners must agree on the nature and scope of questions asked. It must
be ensured that multiple sets of papers are prepared. Marks will be awarded on the steps taken,
data identified and solution arrived at.

UNIT-3: VIVA VOCE

Objectives
l To assess whether the student has understood the topic covered and is able to express.
l To assess whether the Project File presented by the student is genuine and prepared by him
only.
Guidelines for Teachers
l During the course of the academic year, the teacher must give thorough practice to the
students on Viva Voce examination on each aspect of the Project report and file.
l During all internal examinations 'Viva Voce' examination should form an integral part of the
practical examination.
l Wherever possible, the teacher may invite a colleague/expert from another school for asking
questions. This will rehearse the students for the final examination.
Guidelines for Examiners
l The work done by the students in Project file will form the basis of asking questions. The
external examiner may ask 2-3 questions to test the authenticity of the work done in the files.
Marks will be awarded out of 4 in consultation with the school teacher.
Viva Questions
l Should relate only to the Project.
(a) To check the authenticity of the work and
(b) To check that the student understands the idea behind the Project.

Vishvas Accountancy Project Workbook XII 8

 EASY ACCOUNTS

PROJECT – 4
Complete Accounting & Inventory Package
This is an accounts software with Inventory management and has rich set of features. Data entry is easy
and there is no need for accounts knowledge to use the package.
Features: The user interface is easy to
use. Even complete beginners can get
productive very quickly. It is able to
manage its functions through several
modules that are named company,
Suppliers, Customers, Accounts,
Payroll, Job Work, Utilities, Accounts
Reports and Inventory Reports. Some of
the company wide features supported
include creation of unlimited number of
companies, all the interactive screen are
controlled by user rights, so that only
appropriate accesses take place. Year-
end processes are done automatically
without interrupting normal processing
of the businesses. Data can be exported
in Excel mode from all the operating modules. Stock maintenance features include unlimited items that
can be created. All product and/or services prices can be changed at one place. You get low stock alert as
the application powers up. Kit master preparation, kit production maintenance, daily stock usage entry
etc., are maintained.
Employee wages report keyed to their
production rate are made available. In
the inventory functions, purchase order
mechanisms are included. All the
applicable taxes are managed.
Payments are also tracked. Statements
related to suppliers and their
outstanding bill amounts are available.
It manages customer related functions
easily. These include customer name,
contact details, sales bills, agency
commission and taxes applicable, bills
printing, monthly statements of all
sales to a customer etc., are available.
All the account functions are taken care
of that include the general ledger and
any number of other ledgers. Accounts
management and year end account book preparations are handled too. Payroll preparation, job work and
various return preparations are included in the package.

Vishvas Accountancy Project Workbook XII 56

General Features
 High look Graphical User Interface
 NET based New Technology Package
 Wide variety sections like Company, Suppliers, Customers, Accounts, Payroll, Auditor Desk, Outward
Job Work, Inward Job Work, Utilities, Accounts Reports and Inventory Reports, Help etc.
 Online Support & Customer Care
 Online & Offline Video help

Company Features
 Unlimited number of Company Creation
 Company & Particular Year Deletion Option
 Any number of User Account Creation
 User Rights in each and every screen activity

57 Project–4
 Unit Master - Create own unit of measurements  Multi Calendar create option
 Automatic Year end process - No need manual  Reminder facility in main screen to follow some
interruption jobs without fail using schedule manager
 Excel export facility in all screen  Budget Screen for creating pre-budget in
 Dos mode print in most screen business
 Back-up facility  Cost Centre Screen for using in expense, daily
item usage entry screen

Stock Maintenance  Price List for periodically update your items

prices. Keep old item prices also. You can select
 Single Stock System/Company wise Stock
any Price list in Sales Bill
System maintenance option
 Stock Ledger View for particular period. You
 Allow Negative Stock Maintenance
can see last month stock position also
 Unlimited Item Creation
 Single Item Stock T racking screen for
 Kit Master - Very useful for Manufacturing Unit particular period - To find particular in item all
like Grinder Assembling unit, Garment Unit transactions.
 Daily Kit Production Entry - Employee wise -  Low Stock Alert Report window at application
Only input number of finished products. Its start up
raw material automatically deduct from stock
 Change all product/service price in one place
 Employee wages Report as per their production
 Unlimited Number of Godown Creation
based
 Stock Transfer between godowns
 Daily Item Usage Entry for manufacturing/
assembling unit  Date wise Stock Transfer report between
godowns

Vishvas Accountancy Project Workbook XII 58

Supplier  Current Stock Information, Supplier Balance,
 Supplier Purchase Order - Print in your letter Total Purchase of month Details in Purchase
head Bill
 Purchase Delivery Challan  In Purchase Bill, adding Agent Commission in
 Purchase Bill - Direct, DC, Purchase Order Journal made optional
based Purchase Bill  Agent Commission in Purchase Bill

 Any number of Tax, Any type of Tax, Expense Sales Bill

entry in Purchase Bill  Sales Bill Voucher Name wise Billing Facility
 Bill to Bill Payment  Price include Tax option - While typing Item
 All Supplier list with address, Total Purchase of Price, Press Ctrl + Q for Price include Tax box
year, their current balance  Current Stock Information, Customer Balance,
 Purchase Price Group facility Total Sales of month Details in Sales Bill
 Maintenance Purchase Group added in P&L,  Previous Sold Item price Display of every
applied in purchase bill to purchase Customer in Sales Bill
maintenance items  Agent Commission in Sales Bill
 Supplier Payment Bill- wise Part payment  Sales Executive Selection in Sales Bill for their
facility incentive amount
 Supplier Bill Due Days - 30/60/90 Days  Any number of Tax, Any type of Tax, Expense
Format Display entry in Sales Bill
Customer  Three types of Sales Bill Printing - Dos mode
 Customer Order Entry Print, A4 dos mode print, Rich Windows Report
 Sales Delivery Challan Print
 Sales Bill - Direct, DC, Customer Order based  Retail Sales Bill for fast Bill Entry

59 Project–4
 Customer Monthly Balance Statement - Agent company. For example computer service for
wise, Line wise, Customer Place wise List with AMC - Annual Maintenance Contract, Warranty
their pending Bill Details (In Excel, Dos Mode based monthly/yearly service
print format)  Client's forthcoming service list report for
particular period to maintain service perfectly
 Customer Bill to Bill Receipt Entry
 Reminder for Service Contract Ending to renew
 Customer Pending Bill Due days list - the service
30/60/90 Days Format Display
 In Sales Bill, adding Agent Commission in
 Customer Price Group facility Journal made optional
 All Customer list with address, Total Sales of  Inventory Voucher Type System - By this option
year, their current balance in every inventory screen, you can filter
 Customer Call Register added for registering displaying Items list by Item Code
customer call for complaints, material  3 type of Sales Bill type - Material Bill, Service
requirement and other customer related entry Bill, Rental Bill
 New Material Rental Bill Screen added for  3 types of Sales Bill prefix
lending the material like computer, machinery
 No of Bill Payment Due Days option for
etc. You can give material rent for particular
Customer/Supplier and applied in
period from this screen
Sales/Purchase Bill
 New Service Contract Screen for Service based

Accounts  Ledger Balance as on Entry Date/Closing Date

 Any number of Ledger Creation option
 Any number of Group Creation  Journal, Contra, Sales, Sales Return, Purchase,
 Ledger Sorting option for Ordered Output in Purchase Return, Payment, Receipt, Debit
Print Outs Note, Credit Note - Available Voucher types
 Group Sorting option for Ordered Output in
 Single Entry system for Cash Payment, Cash
Receipt
Print Outs
 Account Cash Adjustment Entry facility
 Voucher Type Structure Creation
 Cash Book, Day Book, Ledger, Trial Balance,
 All Ledgers Opening change in one place
Profit & Loss Statement, Balance Sheet -
 Optional All Ledger Print out in year end Excel/Dos Mode Print out option
 While Inventory Section Entry, Automatic  All Ledger List
posting of Purchase, Sales, Payment, Receipt  Voucher Monthly break up report
Entry in Accounts. No need repeat entry in  Bill- wise settlement added in Accounts Entry
accounts also

Vishvas Accountancy Project Workbook XII 60

Payroll  Pending Bill due days list
 Employee Master  Receipt for Customer Payment
 Different types of Salary Structure  All Contractor list with Total Job Work of year,
 Daily Attendance their current balance
 Job Work Receivable Bills list
 Employee Permission Entry
Utilities
 Attendance Summary
 Cheque Print
 Leave Entry
Accounts Reports
 Monthly Salary Statement
 All Accounts Report in Excel/Dos Print format
 Employee Debit Entry
Inventory Reports
 Pay slip Print
 Date to Date Purchase Report
 Sales Executive Tour Info
 Date to Date Purchase Return Report
Job work Outward  Sales Order Reports
 Job Work Order  Last Sold/Purchase Price List of
 Raw Material Output Entry Customer/Supplier Reports
 Raw Material Return Entry  Date to Date Sales Reports
 Finished Product Input Entry  Date to Date Sales Return Reports
 Job Work Bill  Material Movement Chart

 Job Work Bill to Bill Payment  Party-wise Turn over report

 Pending Bill due days list  Material Usage Report

 Kit Production Report
 All Contractor list with Total Job Work of year,
 Job work full Process Report
their current balance
 Sales Executive Incentive Report
Job work Inward
 Date to Date Profit Report
 Raw Material Inward
 Monthly VAT Return Report
 Job Card Entry
 Various General Reports
 Daily Item Usage Entry
Conclusion: It is a nice and handy utility for
 Daily Finished Production Entry
accounts and inventory management. It takes care
 Output DC Entry of customer related functions as well as payroll etc.
 Customer Job Work Bill Entry

61 Project–4