Class 12 Accountancy Study Notes Previous year question papers , sample paper , NCERT Solutions, and all other study material for Accountancy subject of class 12th are present here for students and teachers.
Class 12 Accountancy
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.
CBSE Class 12 Accountancy consists of the following textbook ( published by NCERT)
Resource ( Study Material )
|CBSE Class 12 Accountancy Syllabus|
|CBSE Class 12 Accountancy NCERT Solutions|
|CBSE Class 12 Accountancy Previous Year Question Papers|
CBSE Class 12th Accountancy Syllabus
Part A: Accounting for Partnership Firms and Companies
Unit 1: Accounting for Partnership Firms
Partnership: features, Partnership Deed.
Provisions of the Indian Partnership Act 1932 in the absence of partnership deed.
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.
Note: Interest on partner’s loan is to be treated as a charge against profits.
Goodwill: meaning, factors affecting, need for valuation, methods for calculation (average profits, super profits and capitalization) , adjusted through partners capital/ current account or by raising and writing off goodwill (AS 26)
Accounting for Partnership firms – Reconstitution and Dissolution.
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 reassessment 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 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)).
(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).
(iii) In case, the realization expenses are borne by a partner, clear indication should be given regarding the payment thereof.
Unit-3 Accounting for Companies
Accounting for Share Capital
Features and types of companies
Share and share capital: nature and types.
Accounting for share capital: issue and allotment of equity and preferences shares. Public subscription of shares – over subscription and under subscription of shares; issue at par and at 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 reissue of shares.
Disclosure of share capital in the Balance Sheet of a company.
Accounting for Debentures
Debentures: Meaning, types, 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. Writing off discount / loss on issue of debentures.
Note: Discount or loss on issue of debentures to be written off in the year debentures are allotted from Security Premium Reserve (if it exists) and then from Statement of Profit and Loss as Financial Cost (AS 16)
Part B: Financial Statement Analysis
Unit 4: Analysis of Financial Statements
Financial statements of a Company:
Meaning, Nature, Uses and importance of financial Statement. Statement of Profit and Loss and Balance Sheet in prescribed form with major headings and sub headings (as per Schedule III to the Companies Act, 2013)
Note: Exceptional items, extraordinary items and profit (loss) from discontinued operations are excluded.
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.
Liquidity Ratios: Current ratio and Quick ratio.
Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio. Debt to Capital Employed Ratio.
Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, Fixed Asset Turnover Ratio, Net Asset Turnover Ratio and Working Capital Turnover Ratio.
Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment
Unit 5: Cash Flow Statement
Meaning, objectives Benefits, Cash and Cash Equivalents, Classification of Activities and preparation (as per AS 3 (Revised) (Indirect Method only)
(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 to be taken as Marketable securities unless otherwise specified.
Note: Kindly refer to the Guidelines published by the CBSE. The comprehensive project may contain simple GST calculations.
Part B: Computerised Accounting
Unit 4: 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
Part C: Practical Work
Please refer to the guidelines published by CBSE
Reference : CBSE Academics
CBSE Class 12 Accountancy NCERT Solutions
NCERT Text Book Accountancy Class 12- “FINANCIAL ACCOUNTING – I”
NCERT Solutions Chapter 1 ( Accounting for Not-for-Profit Organisation )
NCERT Solutions Chapter 2 ( Accounting for Partnership : Basic Concepts )
NCERT Solutions Chapter 3 ( Reconstitution of a Partnership Firm – Admission of a Partner )
NCERT Solutions Chapter 4 ( Reconstitution of a Partnership Firm – Retirement/Death of a Partner )
NCERT Solutions Chapter 5 ( Dissolution of Partnership Firm )
NCERT Text Book Accountancy Class 12- “FINANCIAL ACCOUNTING – II”
NCERT Solutions Chapter 1 ( Accounting for Share Capital )
NCERT Solutions Chapter 2 ( Issue and Redemption of Debentures )
NCERT Solutions Chapter 3 ( Financial Statements of a Company )
NCERT Solutions Chapter 4 ( Analysis of Financial Statements )
NCERT Solutions Chapter 5 ( Accounting Ratios )
NCERT Solutions Chapter 6 ( Cash Flow Statement )
NCERT Text Book Accountancy Class 12- “Computerised Accounting System“
NCERT Solutions Chapter 1 ( OVERVIEW OF COMPUTERISED ACCOUNTING SYSTEM )
NCERT Solutions Chapter 2 ( SPREADSHEET )
NCERT Solutions Chapter 3 ( USE OF SPREADSHEET IN BUSINESS APPLICATIONS )
NCERT Solutions Chapter 4 ( GRAPHS AND CHARTS FOR BUSINESS DATA )
NCERT Solutions Chapter 5 ( DATA BASE MANAGEMENT SYSTEM FOR ACCOUNTING )
CBSE Class 12 Accountancy Previous Year Question Papers
CBSE Class 12 Accountancy Question Paper 2021
CBSE Class 12 Accountancy Question Paper 2020
CBSE Class 12 Accountancy Question Paper 2019
CBSE Class 12 Accountancy Question Paper 2018
CBSE Class 12 Accountancy Question Paper 2017
CBSE Class 12 Accountancy Question Paper 2016
CBSE Class 12 Accountancy Question Paper 2015
CBSE Class 12 Accountancy Question Paper 2014
CBSE Class 12 Accountancy Question Paper 2013