Subodh Public SchoolRambagh

Session:-2019-2020
Subject-Accountancy
Subject Code –055
Scholars-2
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 classXI.

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 ofaccounts.

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.

Scholars -2 Subject- Accountancy Session 2019-20 1

 Objectives:
1. To familiarize students with new and emerging areas in the preparation and presentation
of financialstatements.
2. To acquaint students with basic accounting concepts and accountingstandards.
3. To develop the skills of designing need based accountingdatabase.
4. To appreciate the role of ICT in businessoperations.
5. To develop an understanding about recording of business transactions and preparation
of financialstatements.
6. To enable students with accounting for Not-for-Profit organizations, accounting for
Partnership Firms and companyaccounts.
School Exam Syllabus
Name of Book :Accountancy part – 1 & 2
Author/Publisher : NCERT
Ref. Book : Accountancy
Author/Publisher : D.K. Goel, T.S. Grewal
Name of Felicitator :
Mr. N. K. Pareek 9414335810
Mr. Pradeep Gupta 9413195913
Ms. Swarna Jain 9660030844
Unit Test 1 [25 Marks]
S. Name of Topic Activity No. of Periods Weightage
No.
1 Fundamental of Preparation of source 13 15
Partnership Documents
2 Reconstitution of 05 10
Partnership Firm :-
a) Change in profit sharing
Ratio
b) Admission of New
partner

Half Yearly Exam - Theory [80 Marks]

S. No. Name of Topic Activity No. of Weightage
Periods
1 Fundamental of Partnership Preparation of source 13 18
Documents
2 Reconstitution of Partnership Firm :- 05 17
Change in profit sharing Ratio
3 Reconstitution of Partnership Firm Preparation of Bankers 15 15
a) Admission of New partner Cheque, Pay- in-slip,
15
b) Retirement & Death of Partner Withdrawal form
4 Dissolution of Firm 11 10

5 Analysis of Financial Statement 06 08

6. Cash Flow Statements 10 12

Scholars -2 Subject- Accountancy Session 2019-20 2

 Half Yearly Exam - Practical [20 Marks]

S. No. Name of Topic Weightage

1 Written Test 12
2 Project File 04
3 Viva- Voice 04

Pre-board - Theory [80 Marks]

Marks distribution as per CBSE Curriculum 2019-20 attached.

Pre-board - Practical [20 Marks]

Marks distribution as per CBSE Curriculum 2019-20 attached.

CBSE Curriculum 2019-20

Class-XII (2019-20)
Theory:80 Marks 3Hours
Project: 20 Marks
Units Periods Marks

Part A Accounting for Not-for-Profit Organizations, Partnership Firms and

Companies
Unit 1. Financial Statements of Not-for-Profit Organizations 25 10
Unit 2. Accounting for Partnership Firms 90 30
Unit 3. Accounting for Companies 35 20
150 60
Part B Financial Statement Analysis
Unit 4. Analysis of Financial Statements 30 12
Unit 5. 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

Scholars -2 Subject- Accountancy Session 2019-20 3

 Practical work will include:

Practical File 4 Marks

Practical Examination 12 Marks (One Hour)

Viva Voce 4 Marks

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

Unit 1: Financial Statements of Not-for-Profit Organizations

Units/Topics Learning Outcomes
 Not-for-profit organizations:concept. After going through this Unit, the students will be
 Receipts and Payments Account: features able to:
andpreparation.  state the meaning of a Not-for-profit
 Income and Expenditure Account: features, organisation and its distinction from a profit
preparation of income and expenditure makingentity.
account and balance sheet from the given  state the meaning of receipts and payments
receipts and payments account with account, and understanding itsfeatures.
additionalinformation.  develop the understanding and skill of
Scope: preparing receipts and paymentsaccount.
(i) Adjustments in a question should not exceed 3 or 4  state the meaning of income and expenditure
in number and restricted to subscriptions, account and understand itsfeatures.
consumption of consumables and sale of assets/ old  develop the understanding and skill of
material. preparing income and expenditure account
(ii) Entrance/admission fees and general donations and balance sheet of a not-for-profit
are to be treated as revenuereceipts. organisation with the help of given receipts
(iii) Trading Account of incidental activities is not to be and payments account andadditional
prepared. information.

Scholars -2 Subject- Accountancy Session 2019-20 4

 Unit 2: Accounting for Partnership Firms
Units/Topics Learning Outcomes

 Partnership: features, PartnershipDeed. After going through this Unit, the students will be
 Provisions of the Indian Partnership Act 1932 able to:
in the absence of partnershipdeed.  state the meaning of partnership, partnership
 Fixed v/s fluctuating capital accounts. firm and partnershipdeed.
Preparation of Profit and Loss Appropriation  describe the characteristic features of
account- division of profit among partners, partnership and the contents of partnership
guarantee ofprofits. deed.
 Past adjustments (relating to interest on  discuss the significance of provision of
capital, interest on drawing, salary and profit Partnership Act in the absence ofpartnership
sharingratio). deed.
 Goodwill: nature, factors affecting and  differentiate between fixed and fluctuating
methods of valuation - average profit,super capital, outline the process and developthe
profit andcapitalization. understanding and skill of preparation of
Profit and Loss AppropriationAccount.
Note: Interest on partner's loan is to be treated as a  develop the understanding and skillof

Scholars -2 Subject- Accountancy Session 2019-20 5

 charge against profits. preparation profit and loss appropriation
Goodwill to be adjusted through partners capital/ account involving guarantee of profits.
current account or by raising and writing off goodwill  develop the understanding and skillof
(AS 26) making pastadjustments.
 state the meaning, nature and factors affectin
Accounting for Partnership firms - Reconstitution goodwill
and Dissolution.  develop the understanding and skill of
 Change in the Profit Sharing Ratio among valuation of goodwill using differentmethods.
the existing partners - sacrificing ratio,  state the meaning of sacrificing ratio,gaining
gaining ratio, accounting for revaluation of ratio and the change in profit sharing ratio
assets and reassessment of liabilities and among existingpartners.
treatment of reserves and accumulated  develop the understanding of accounting
profits. Preparation of revaluation account treatment of revaluation assets and
and balance sheet. reassessment of liabilities and treatmentof
 Admission of a partner - effect of admission reserves and accumulated profits by
of a partner on change in the profit sharing preparing revaluation account and balance
ratio, treatment of goodwill (as per AS 26), sheet.
treatment for revaluation of assets and re-  explain the effect of change in profit sharing
assessment of liabilities, treatment of ratio on admission of a newpartner.
reserves and accumulated profits,adjustment  develop the understanding and skill of
of capital accounts and preparation of treatment of goodwill as per AS-26, treatment
balancesheet. of revaluation of assets and re-assessmentof
 Retirement and death of a partner: effect of liabilities, treatment of reserves and
retirement / death of a partner on change in accumulated profits, adjustment of capital
profit sharing ratio, treatment of goodwill (as accounts and preparation of balance sheet of
per AS 26), treatment for revaluation of the newfirm.
assets and reassessment of liabilities,  explain the effect of retirement / death of a
adjustment of accumulated profits and partner on change in profit sharingratio.
reserves, adjustment of capital accounts and  develop the understanding of accounting
preparation of balance sheet. Preparation of treatment of goodwill, revaluation of assets
loan account of the retiringpartner. and re-assessment of liabilities and
 Calculation of deceased partner’s share of adjustment of accumulated profits and
profit till the date of death. Preparation of reserves on retirement / death of a partner
deceased partner’s capital account and his and capitaladjustment.
executor’saccount.  develop the skill of calculation of deceased
 Dissolution of a partnership firm: meaning partner's share till the time of his death and
of dissolution of partnership and partnership prepare deceased partner's executor's
firm, types of dissolution of a firm. Settlement account.
of accounts - preparation ofrealization  discuss the preparation of thecapital

Scholars -2 Subject- Accountancy Session 2019-20 6

 account, and other related accounts: capital accounts of the remaining partners and the
accounts of partners and cash/bank a/c balance sheet of the firm after retirement /
(excluding piecemeal distribution, sale to a death of a partner.
company and insolvency of partner(s)).  understand the situations under which a
Note: partnership firm can bedissolved.
(i) The realized value of each asset must be given at  develop the understanding of preparation of
the time ofdissolution. realisation account and other related
(ii) In case, the realization expenses are borne by a accounts.
partner, clear indication should be given regardingthe
payment thereof.

Unit-3 Accounting for Companies

Units/Topics Learning Outcomes

Accounting for Share Capital After going through this Unit, the students will be
 Share and share capital: nature andtypes. able to:
 Accounting for share capital: issue and  state the meaning of share and share capital
allotment of equity and preferences shares. and differentiate between equity shares and
Public subscription of shares - over preference shares and different types of
subscription and under subscription of sharecapital.
shares; issueat par and at premium, calls in  understand the meaning of privateplacement
advance and arrears (excluding interest), of shares and Employee Stock OptionPlan.
issue of shares for consideration other than  explain the accounting treatment ofshare
cash. capital transactions regarding issue of
 Concept of Private Placement and Employee shares.
Stock Option Plan(ESOP).  develop the understanding ofaccounting
 Accounting treatment of forfeiture andre- treatment of forfeiture and re-issue of
issue ofshares. forfeitedshares.
 Disclosure of share capital in theBalance  describe the presentation of share capital in
Sheet of a company. the balance sheet of the company as per
schedule III part I of the Companies Act
Accounting for Debentures 2013.
 Debentures: Issue of debentures at par, at a  explain the accounting treatment of different
premium and at a discount. Issue of categories of transactions related to issue of
debentures for consideration other than cash; debentures.
Issue of debentures with terms of  develop the understanding and skill of writing
redemption; debentures as collateralsecurity- of discount / loss on issue ofdebentures.
concept, interest on debentures. Writing off  understand the concept of collateral security
discount / loss on issue ofdebentures. and its presentation in balancesheet.
 develop the skill of calculating intereston

Scholars -2 Subject- Accountancy Session 2019-20 7

 Note: Discount or loss on issue of debentures to be debentures and its accounting treatment.
written off in the year debentures are allotted from  state the meaning of redemption of
Security Premium Reserve (if it exists) and then from debentures.
Statement of Profit and Loss as Financial Cost (AS  develop the understanding of accounting
16). treatment of transactions related to
 Redemption of debentures-Methods:Lump redemption of debentures by lump sum, draw
sum, draw oflots. of lots and Creation of Debenture
 Creation of Debenture RedemptionReserve. RedemptionReserve.
Note: Related sections of the Companies Act, 2013
will apply.

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Units/Topics Learning Outcomes
Financial statements of a Company: After going through this Unit, the students will be
Statement of Profit and Loss and Balance Sheet in able to:
prescribed form with major headings and sub  develop the understanding of major headings
headings (as per Schedule III to the Companies Act, and sub-headings (as per Schedule III to the
2013) Companies Act, 2013) of balance sheet as
per the prescribed norms /formats.
Note: Exceptional items, extraordinary items and  state the meaning, objectives and limitations
profit (loss) from discontinued operations are of financial statementanalysis.
excluded.  discuss the meaning of different toolsof
 Financial Statement Analysis:Objectives, 'financial statementsanalysis'.
importance and limitations.  develop the understanding and skill of
 Tools for Financial Statement Analysis: preparation of comparative and common size
Comparative statements, common size financialstatements.
statements, cash flow analysis, ratioanalysis.  state the meaning, objectives and
 Accounting Ratios: Meaning,Objectives, significance of different types ofratios.
classification andcomputation.  develop the understanding of computationof
 Liquidity Ratios: Current ratio and Quick current ratio and quickratio.
ratio.  develop the skill of computation of debt equity
 Solvency Ratios: Debt to Equity Ratio, Total ratio, total asset to debt ratio, proprietary ratio
Asset to Debt Ratio, Proprietary Ratio and and interest coverageratio.
Interest CoverageRatio.  develop the skill of computation ofinventory
 Activity Ratios: Inventory TurnoverRatio, turnover ratio, trade receivables and trade
Trade Receivables Turnover Ratio,Trade payables ratio and working capitalturnover

Scholars -2 Subject- Accountancy Session 2019-20 8

 Payables Turnover Ratio and Working ratio.
Capital Turnover Ratio.  develop the skill of computation of gross
 Profitability Ratios: Gross Profit Ratio, profit ratio, operating ratio, operating profit
Operating Ratio, Operating Profit Ratio, Net ratio, net profit ratio and return oninvestment.
Profit Ratio and Return onInvestment.

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 and preparation (asper After going through this Unit, the students will
AS 3 (Revised) (Indirect Methodonly) be able to:
 state the meaning and objectives of cashflow
Note: statement.
(i) Adjustments relating to depreciation and  develop the understanding of preparationof
amortization, profit or loss on sale of assets including Cash Flow Statement using indirectmethod
investments, dividend (both final and interim) andtax. as per AS 3 with givenadjustments.
(ii) Bank overdraft and cash credit to be treated as
short termborrowings.
(iii) Current Investments to be taken as Marketable
securities unless otherwisespecified.

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 3: Computerised Accounting

Overview of Computerised Accounting System

 Introduction: Application inAccounting.
 Features of ComputerisedAccountingSystem.
 Structure ofCAS.
 Software Packages: Generic; Specific;Tailored.

Scholars -2 Subject- Accountancy Session 2019-20 9

 Accounting Application of ElectronicSpreadsheet.
 Concept of electronicspreadsheet.
 Features offered by electronicspreadsheet.
 Application in generating accounting information- bank reconciliation statement; asset accounting;
loan repayment of loan schedule, ratioanalysis
 Data representation- graphs, charts anddiagrams.

Using Computerized Accounting System.

 Steps in installation of CAS, codification and Hierarchy of account heads, creation ofaccounts.
 Data: Entry, validation andverification.
 Adjusting entries, preparation of balance sheet, profit and loss account with closing entriesand
openingentries.
 Need and security features of thesystem.

Database Management System (DBMS)

 Concept and Features ofDBMS.
 DBMS in BusinessApplication.
 Generating Accounting Information -Payroll.

Part C: Practical Work

Please refer to the guidelines published by CBSE.

Prescribed Books:
FinancialAccounting-I ClassXI NCERTPublication
Accountancy-II ClassXI NCERTPublication
Accountancy-I ClassXII NCERTPublication
Accountancy-II ClassXII NCERT Publication
Accountancy – Computerised Accounting System ClassXII NCERTPublication

Guidelines for Project Work in Accounting and Practical work in computerised Accounting Class XII CBSE
Publication

Suggested Question PaperDesign

Accountancy (Code No. 055)
Class XII(2019-20)
Theory:80 Marks 3hrs.
Project: 20 Marks

S Objective Short Short Long Long

N Typology of Questions Type/ MCQ Answer I Answer II Answer I Answer II Marks
1 Mark 3 Marks 4 Marks 6 Marks 8 Marks
1 Remembering: Exhibit memory of 5 1 1 1 - 18
previously learned material by
recalling facts, terms, basic
concepts, and answers.
2 Understanding: Demonstrate 5 1 1 1 1 26
understanding of facts and ideas
by organizing, comparing,
translating, interpreting, giving
descriptions, and statingmain
ideas

Scholars -2 Subject- Accountancy Session 2019-20 10

 3 Applying: Solve problems to new 5 - 2 1 - 19
situations by applying acquired
knowledge, facts, techniques and
rules in a different way.
4 Analysing and Evaluating: 5 - 1 - 1 17
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.

Creating: Compile information

together in a different way by
combining elements in a new
pattern or proposing alternative
solutions.

TOTAL 20x1=20 2x3=6 5x4=20 3x6=18 2x8=16 80 (32)

There will be internal choice in questions of 3 marks, 4 marks, 6 marks and 8 marks. All questions carrying
8 marks will have an internalchoice.

Note: The Board has introduced Learning Outcomes in the syllabus to motivate students to constantly explore
all levels of learning. However these are only indicative. These do not in any way restrict the scope of questions
asked in the examinations. The examination questions will be strictly based on the prescribed question paper
design and syllabus.

Scholars -2 Subject- Accountancy Session 2019-20 11