CBSE Class 12 Revised Accountancy

Syllabus 2020-21

Accountancy (Code No. 055)

Class-XII (2020-21)
Theory: 80 Marks 3 Hours
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 65 30
Unit 3. Accounting for Companies 25 20
115 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 10 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
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:
and preparation. • 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 making entity.
account and balance sheet from the given • state the meaning of receipts and payments
receipts and payments account with account, and understanding its features.
additional information. • develop the understanding and skill of
Scope: preparing receipts and payments account.
(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 its features.
consumption of consumables, funds and sale of • develop the understanding and skill of
assets/ old material/funds. 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 revenue receipts. organisation with the help of given receipts
(iii) Trading Account of incidental activities is not to be and payments account and additional
prepared. information.

Unit 2: Accounting for Partnership Firms

Units/Topics Learning Outcomes
• Partnership: features, Partnership Deed. After going through this Unit, the students will be
• Provisions of the Indian Partnership Act 1932 able to:
in the absence of partnership deed. • state the meaning of partnership, partnership
• Fixed v/s fluctuating capital accounts. firm and partnership deed.
Preparation of Profit and Loss Appropriation • describe the characteristic features of
account- division of profit among partners, partnership and the contents of partnership
guarantee of profits. 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 of partnership
sharing ratio). deed.
• Goodwill: nature, factors affecting and • differentiate between fixed and fluctuating
methods of valuation - average profit, super capital, outline the process and develop the
profit and capitalization. understanding and skill of preparation of
Profit and Loss Appropriation Account.
Note: Interest on partner's loan is to be treated as a • develop the understanding and skill of
charge against profits. preparation profit and loss appropriation
Goodwill to be adjusted through partners capital/ account involving guarantee of profits.
current account (AS 26) • develop the understanding and skill of
making past adjustments.
Accounting for Partnership firms - Reconstitution • state the meaning, nature and factors affectin
and Dissolution. goodwill
• Change in the Profit Sharing Ratio among • develop the understanding and skill of
the existing partners - sacrificing ratio, valuation of goodwill using different methods.
gaining ratio, accounting for revaluation of • state the meaning of sacrificing ratio, gaining
assets and reassessment of liabilities and ratio and the change in profit sharing ratio
treatment of reserves and accumulated among existing partners.
profits. Preparation of revaluation account • develop the understanding of accounting
and balance sheet. treatment of revaluation assets and
• Admission of a partner - effect of admission reassessment of liabilities and treatment of
of a partner on change in the profit sharing reserves and accumulated profits by
ratio, treatment of goodwill (as per AS 26), preparing revaluation account and balance
treatment for revaluation of assets and re- sheet.
assessment of liabilities, treatment of • explain the effect of change in profit sharing
reserves and accumulated profits ratio on admission of a new partner.
• Retirement and death of a partner: effect of • develop the understanding and skill of
retirement / death of a partner on change in treatment of goodwill as per AS-26, treatment
profit sharing ratio, treatment of goodwill (as of revaluation of assets and re-assessment of
per AS 26), treatment for revaluation of liabilities, treatment of reserves and
assets and reassessment of liabilities, accumulated profits, adjustment of capital
adjustment of accumulated profits and accounts and preparation of balance sheet of
reserves and preparation of balance sheet. the new firm.
• Calculation of deceased partner’s share of • explain the effect of retirement / death of a
profit till the date of death. partner on change in profit sharing ratio.
• Dissolution of a partnership firm: meaning • develop the understanding of accounting
of dissolution of partnership and partnership treatment of goodwill, revaluation of assets
firm, types of dissolution of a firm. Settlement and re-assessment of liabilities and
of accounts - preparation of realization adjustment of accumulated profits and
account, and other related accounts: capital reserves on retirement of a partner.
accounts of partners and cash/bank a/c • develop the skill of calculation of deceased
(excluding memorandum balance sheet, partner's share till the time of his death.
piecemeal distribution, sale to a company • discuss the preparation of the capital
and insolvency of partner(s)). accounts of the remaining partners and the
Note: balance sheet of the firm after retirement /
(i) The realized value of each asset must be given at death of a partner.
the time of dissolution. • understand the situations under which a
(ii) In case, the realization expenses are borne by a partnership firm can be dissolved.
partner, clear indication should be given regarding the • develop the understanding of preparation of
payment thereof. realisation account and other related
accounts.
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 and types. 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 share capital.
shares; issue at par and at premium, calls in • understand the meaning of private placement
advance and arrears (excluding interest), of shares and Employee Stock Option Plan.
issue of shares for consideration other than • explain the accounting treatment of share
cash. capital transactions regarding issue of
• Concept of Private Placement and Employee shares.
Stock Option Plan (ESOP). • develop the understanding of accounting
• Accounting treatment of forfeiture and re- treatment of forfeiture and re-issue of
issue of shares. forfeited shares.
• Disclosure of share capital in the Balance • 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 collateral security- of discount / loss on issue of debentures.
concept, interest on debentures. Writing off • understand the concept of collateral security
discount / loss on issue of debentures. and its presentation in balance sheet.
• develop the skill of calculating interest on
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
16).
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
Note: Exceptional items, extraordinary items and per the prescribed norms / formats.
profit (loss) from discontinued operations are • state the meaning, objectives and limitations
excluded. of financial statement analysis.
• Financial Statement Analysis: Objectives, • discuss the meaning of different tools of
importance and limitations. 'financial statements analysis'.
• Tools for Financial Statement Analysis: • develop the understanding and skill of
Comparative statements, common size preparation of comparative and common size
statements, cash flow analysis, ratio analysis. financial statements.
• Accounting Ratios: Meaning, Objectives, • state the meaning, objectives and
classification and computation. significance of different types of ratios.
• Liquidity Ratios: Current ratio and Quick • develop the understanding of computation of
ratio. current ratio and quick ratio.
• Solvency Ratios: Debt to Equity Ratio, Total • develop the skill of computation of debt equity
Asset to Debt Ratio, Proprietary Ratio and ratio, total asset to debt ratio, proprietary ratio
Interest Coverage Ratio. and interest coverage ratio.
• Activity Ratios: Inventory Turnover Ratio, • develop the skill of computation of inventory
Trade Receivables Turnover Ratio, Trade turnover ratio, trade receivables and trade
Payables Turnover Ratio and Working payables ratio and working capital turnover
Capital Turnover Ratio. ratio.
• Profitability Ratios: Gross Profit Ratio, • develop the skill of computation of gross
Operating Ratio, Operating Profit Ratio, Net profit ratio, operating ratio, operating profit
Profit Ratio and Return on Investment. ratio, net profit ratio and return on investment.

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 (as per After going through this Unit, the students will
AS 3 (Revised) (Indirect Method only) be able to:
• state the meaning and objectives of cash flow
Note: statement.
(i) Adjustments relating to depreciation and • develop the understanding of preparation of
amortization, profit or loss on sale of assets including Cash Flow Statement using indirect method
investments, dividend (both final and interim) and tax. as per AS 3 with given adjustments.
(ii) Bank overdraft and cash credit to be treated as
short term borrowings.
(iii) Current Investments to be taken as Marketable
securities unless otherwise specified.

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

From session 2020-21 onwards, there would be only ONE project (specific) to be prepared.
Note: Kindly refer to the related Guidelines published by the CBSE.

OR
Part B: Computerised Accounting

Unit 3: Computerised Accounting

Overview of Computerised Accounting System

• Introduction: Application in Accounting.
• Features of Computerised Accounting System.
• Structure of CAS.
• Software Packages: Generic; Specific; Tailored.

Accounting Application of Electronic Spreadsheet.

• Concept of electronic spreadsheet.
• Features offered by 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 Computerized Accounting System.

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

Database Management System (DBMS)

• Concept and Features of DBMS.
• DBMS in Business Application.
• Generating Accounting Information - Payroll.

Part C: Practical Work

Please refer to the guidelines published by CBSE.

Prescribed Books:
Financial Accounting -I Class XI NCERT Publication
Accountancy -II Class XI NCERT Publication
Accountancy -I Class XII NCERT Publication
Accountancy -II Class XII NCERT Publication
Accountancy – Computerised Accounting System Class XII NCERT Publication

Guidelines for Project Work in Accounting and Practical work in computerised Accounting Class XII CBSE
Publication
 Suggested Question Paper Design
Accountancy (Code No. 055)
Class XII (2020-21)
Theory: 80 Marks 3 hrs.
Project: 20 Marks

S
N Typology of Questions Marks Percentage
1
Remembering and Understanding:
Exhibit memory of previously learned material by recalling facts, terms, basic concepts,
and answers.
44 55%
Demonstrate understanding of facts and ideas by organizing, comparing, translating,
interpreting, giving descriptions, and stating main ideas

3 Applying: Solve problems to new situations by applying acquired knowledge, facts,

techniques and rules in a different way. 19 23.75%

4
Analysing, Evaluating and Creating:
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
17 21.25%
quality of work based on a set of criteria.
Compile information together in a different way by combining elements in a new pattern
or proposing alternative solutions.

TOTAL 80 100%