Syllabus - Accountancy, Class 12 - Commerce PDF Download

 Page 1


 
Accountancy (Code No. 055) 
Class-XII (2018-19) 
One Paper Theory: 80 Marks 
3 Hours 
 
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 35 
 
Unit 3. Accounting for Companies 35 15 
  
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 40 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 26 20 
 
Practical work will include: 
  
 
Practical File 4 Marks 
  
 
Practical Examination 12 Marks (One Hour) 
  
 
Viva Voce’ 4 Marks 
  
 
 
 
 
 
 
 
 
Page 2


 
Accountancy (Code No. 055) 
Class-XII (2018-19) 
One Paper Theory: 80 Marks 
3 Hours 
 
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 35 
 
Unit 3. Accounting for Companies 35 15 
  
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 40 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 26 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 
 60 Marks 150 Periods  
Unit 1: Financial Statements of Not-for-Profit Organizations 25 Periods 
 
Units/Topics Learning Outcomes 
? Not-for-profit organizations: concept. 
? Receipts and Payments Account: features and 
preparation. 
? Income and Expenditure Account: features, 
preparation of income and expenditure account 
and balance sheet from the given receipts and 
payments account with additional information. 
Scope: 
(i) Adjustments in a question should not exceed 3 or 4 in 
number and restricted to subscriptions, consumption 
of consumables and sale of assets/ old material. 
(ii) Entrance/admission fees and general donations are 
to be treated as revenue receipts. 
(iii) Trading Account of incidental activities is not to be 
prepared. 
After going through this Unit, the students will be able 
to: 
? state the meaning of a Not-for-profit 
organisation and its distinction from a profit 
making entity. 
? state the meaning of receipts and payments 
account, and understanding its features. 
? develop the understanding and skill  of preparing 
receipts and payments account. 
? state the meaning of income and expenditure 
account and understand its features. 
? develop the understanding and skill  of preparing 
income and expenditure account and balance 
sheet of a not-for-profit organisation with the 
help of given receipts and payments account 
and additional information. 
 
Unit 2: Accounting for Partnership Firms 90 periods 
 
Units/Topics Learning Outcomes 
? 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 
After going through this Unit, the students will be able 
to: 
? state the meaning of partnership, partnership 
firm and partnership deed. 
? describe the characteristic features of partnership 
and the contents of partnership deed. 
? discuss the significance of provision of Partnership 
Act in the absence of partnership  
Page 3


 
Accountancy (Code No. 055) 
Class-XII (2018-19) 
One Paper Theory: 80 Marks 
3 Hours 
 
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 35 
 
Unit 3. Accounting for Companies 35 15 
  
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 40 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 26 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 
 60 Marks 150 Periods  
Unit 1: Financial Statements of Not-for-Profit Organizations 25 Periods 
 
Units/Topics Learning Outcomes 
? Not-for-profit organizations: concept. 
? Receipts and Payments Account: features and 
preparation. 
? Income and Expenditure Account: features, 
preparation of income and expenditure account 
and balance sheet from the given receipts and 
payments account with additional information. 
Scope: 
(i) Adjustments in a question should not exceed 3 or 4 in 
number and restricted to subscriptions, consumption 
of consumables and sale of assets/ old material. 
(ii) Entrance/admission fees and general donations are 
to be treated as revenue receipts. 
(iii) Trading Account of incidental activities is not to be 
prepared. 
After going through this Unit, the students will be able 
to: 
? state the meaning of a Not-for-profit 
organisation and its distinction from a profit 
making entity. 
? state the meaning of receipts and payments 
account, and understanding its features. 
? develop the understanding and skill  of preparing 
receipts and payments account. 
? state the meaning of income and expenditure 
account and understand its features. 
? develop the understanding and skill  of preparing 
income and expenditure account and balance 
sheet of a not-for-profit organisation with the 
help of given receipts and payments account 
and additional information. 
 
Unit 2: Accounting for Partnership Firms 90 periods 
 
Units/Topics Learning Outcomes 
? 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 
After going through this Unit, the students will be able 
to: 
? state the meaning of partnership, partnership 
firm and partnership deed. 
? describe the characteristic features of partnership 
and the contents of partnership deed. 
? discuss the significance of provision of Partnership 
Act in the absence of partnership  
 
       sharing ratio). 
? Goodwill: 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. 
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 and accumulated profits. 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 and 
accumulated profits, adjustment of capital 
accounts and preparation of 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 and reserves, adjustment of 
capital accounts and preparation of 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)). 
Note: 
(i) The realized value of each asset must be given at the 
time of dissolution. 
(ii) In case, the realization expenses are borne by a 
      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 
prepration profit and loss appropriation account 
involving 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 and re- 
assessment of liabilities and treatment of 
reserves and accumulated profits by preparing 
revaluation account and balance sheet. 
? explain the effect of change in profit sharing 
ratio on admission of a new partner. 
? develop the understanding and skill of 
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 balance sheet of 
the new firm. 
? explain the effect of retirement / death of a 
partner on change in profit sharing ratio. 
? develop the understanding of accounting 
treatment of goodwill, revaluation of assets and 
re-assessment of liabilities and adjustment of 
accumulated profits and reserves on retirement 
/ death of a partner and capital adjustment. 
? develop the skill of calculation of deceased 
partner's share till the time of his death and 
prepare deceased partner's executor's account. 
? discuss the preparation of the capital accounts 
of the remaining partners and the balance sheet 
of the firm after retirement / death of a 
partner. 
? understand the situations under which a 
Page 4


 
Accountancy (Code No. 055) 
Class-XII (2018-19) 
One Paper Theory: 80 Marks 
3 Hours 
 
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 35 
 
Unit 3. Accounting for Companies 35 15 
  
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 40 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 26 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 
 60 Marks 150 Periods  
Unit 1: Financial Statements of Not-for-Profit Organizations 25 Periods 
 
Units/Topics Learning Outcomes 
? Not-for-profit organizations: concept. 
? Receipts and Payments Account: features and 
preparation. 
? Income and Expenditure Account: features, 
preparation of income and expenditure account 
and balance sheet from the given receipts and 
payments account with additional information. 
Scope: 
(i) Adjustments in a question should not exceed 3 or 4 in 
number and restricted to subscriptions, consumption 
of consumables and sale of assets/ old material. 
(ii) Entrance/admission fees and general donations are 
to be treated as revenue receipts. 
(iii) Trading Account of incidental activities is not to be 
prepared. 
After going through this Unit, the students will be able 
to: 
? state the meaning of a Not-for-profit 
organisation and its distinction from a profit 
making entity. 
? state the meaning of receipts and payments 
account, and understanding its features. 
? develop the understanding and skill  of preparing 
receipts and payments account. 
? state the meaning of income and expenditure 
account and understand its features. 
? develop the understanding and skill  of preparing 
income and expenditure account and balance 
sheet of a not-for-profit organisation with the 
help of given receipts and payments account 
and additional information. 
 
Unit 2: Accounting for Partnership Firms 90 periods 
 
Units/Topics Learning Outcomes 
? 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 
After going through this Unit, the students will be able 
to: 
? state the meaning of partnership, partnership 
firm and partnership deed. 
? describe the characteristic features of partnership 
and the contents of partnership deed. 
? discuss the significance of provision of Partnership 
Act in the absence of partnership  
 
       sharing ratio). 
? Goodwill: 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. 
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 and accumulated profits. 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 and 
accumulated profits, adjustment of capital 
accounts and preparation of 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 and reserves, adjustment of 
capital accounts and preparation of 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)). 
Note: 
(i) The realized value of each asset must be given at the 
time of dissolution. 
(ii) In case, the realization expenses are borne by a 
      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 
prepration profit and loss appropriation account 
involving 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 and re- 
assessment of liabilities and treatment of 
reserves and accumulated profits by preparing 
revaluation account and balance sheet. 
? explain the effect of change in profit sharing 
ratio on admission of a new partner. 
? develop the understanding and skill of 
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 balance sheet of 
the new firm. 
? explain the effect of retirement / death of a 
partner on change in profit sharing ratio. 
? develop the understanding of accounting 
treatment of goodwill, revaluation of assets and 
re-assessment of liabilities and adjustment of 
accumulated profits and reserves on retirement 
/ death of a partner and capital adjustment. 
? develop the skill of calculation of deceased 
partner's share till the time of his death and 
prepare deceased partner's executor's account. 
? discuss the preparation of the capital accounts 
of the remaining partners and the balance sheet 
of the firm after retirement / death of a 
partner. 
? understand the situations under which a 
 
partner, clear indication should be given regarding the 
payment thereof. 
partnership firm can be dissolved. 
? develop the understanding of preparation of 
realisation account and other related accounts. 
 
Unit-3 Accounting for Companies 35 Periods 
 
Units/Topics Learning Outcomes 
Accounting for Share Capital 
? 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). 
? Accounting treatment of forfeiture and re-issue of 
shares. 
? Disclosure of share capital in the Balance Sheet of a 
company. 
Accounting for Debentures 
? Debentures: 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. Writting 
off discount / loss on issue of debentures. 
? Redemption of debentures-Methods: Lump sum, 
draw of lots.  
Creation of Debenture Redemption Reserve. 
Note: Related sections of the Companies Act, 2013 will 
apply. 
After going through this Unit, the  students will be able 
to: 
? 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 Plan. 
? explain the accounting treatment of share 
capital transactions regarding issue of shares. 
? develop the 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 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 balance sheet. 
? develop the skill of calculating interest on 
debentures and its accounting treatment. 
? state the meaning of redemption of  debentures. 
? develop the understanding of accounting 
treatment of transactions related to 
redemption of debentures by lump sum, draw 
of lots and Creation of Debenture Redemption 
Reserve. 
Part B: Financial Statement Analysis 20 Marks 
Unit 4: Analysis of Financial Statements 30 Periods 
 
 Financial 
Statement 
Sheet in 
statements of 
Profit and the 
prescribed 
of a 
Loss 
form 
company: 
and Balance 
with major 
After going through this Unit, the students will be able to: 
? develop the understanding of major headings 
Page 5


 
Accountancy (Code No. 055) 
Class-XII (2018-19) 
One Paper Theory: 80 Marks 
3 Hours 
 
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 35 
 
Unit 3. Accounting for Companies 35 15 
  
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 40 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 26 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 
 60 Marks 150 Periods  
Unit 1: Financial Statements of Not-for-Profit Organizations 25 Periods 
 
Units/Topics Learning Outcomes 
? Not-for-profit organizations: concept. 
? Receipts and Payments Account: features and 
preparation. 
? Income and Expenditure Account: features, 
preparation of income and expenditure account 
and balance sheet from the given receipts and 
payments account with additional information. 
Scope: 
(i) Adjustments in a question should not exceed 3 or 4 in 
number and restricted to subscriptions, consumption 
of consumables and sale of assets/ old material. 
(ii) Entrance/admission fees and general donations are 
to be treated as revenue receipts. 
(iii) Trading Account of incidental activities is not to be 
prepared. 
After going through this Unit, the students will be able 
to: 
? state the meaning of a Not-for-profit 
organisation and its distinction from a profit 
making entity. 
? state the meaning of receipts and payments 
account, and understanding its features. 
? develop the understanding and skill  of preparing 
receipts and payments account. 
? state the meaning of income and expenditure 
account and understand its features. 
? develop the understanding and skill  of preparing 
income and expenditure account and balance 
sheet of a not-for-profit organisation with the 
help of given receipts and payments account 
and additional information. 
 
Unit 2: Accounting for Partnership Firms 90 periods 
 
Units/Topics Learning Outcomes 
? 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 
After going through this Unit, the students will be able 
to: 
? state the meaning of partnership, partnership 
firm and partnership deed. 
? describe the characteristic features of partnership 
and the contents of partnership deed. 
? discuss the significance of provision of Partnership 
Act in the absence of partnership  
 
       sharing ratio). 
? Goodwill: 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. 
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 and accumulated profits. 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 and 
accumulated profits, adjustment of capital 
accounts and preparation of 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 and reserves, adjustment of 
capital accounts and preparation of 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)). 
Note: 
(i) The realized value of each asset must be given at the 
time of dissolution. 
(ii) In case, the realization expenses are borne by a 
      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 
prepration profit and loss appropriation account 
involving 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 and re- 
assessment of liabilities and treatment of 
reserves and accumulated profits by preparing 
revaluation account and balance sheet. 
? explain the effect of change in profit sharing 
ratio on admission of a new partner. 
? develop the understanding and skill of 
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 balance sheet of 
the new firm. 
? explain the effect of retirement / death of a 
partner on change in profit sharing ratio. 
? develop the understanding of accounting 
treatment of goodwill, revaluation of assets and 
re-assessment of liabilities and adjustment of 
accumulated profits and reserves on retirement 
/ death of a partner and capital adjustment. 
? develop the skill of calculation of deceased 
partner's share till the time of his death and 
prepare deceased partner's executor's account. 
? discuss the preparation of the capital accounts 
of the remaining partners and the balance sheet 
of the firm after retirement / death of a 
partner. 
? understand the situations under which a 
 
partner, clear indication should be given regarding the 
payment thereof. 
partnership firm can be dissolved. 
? develop the understanding of preparation of 
realisation account and other related accounts. 
 
Unit-3 Accounting for Companies 35 Periods 
 
Units/Topics Learning Outcomes 
Accounting for Share Capital 
? 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). 
? Accounting treatment of forfeiture and re-issue of 
shares. 
? Disclosure of share capital in the Balance Sheet of a 
company. 
Accounting for Debentures 
? Debentures: 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. Writting 
off discount / loss on issue of debentures. 
? Redemption of debentures-Methods: Lump sum, 
draw of lots.  
Creation of Debenture Redemption Reserve. 
Note: Related sections of the Companies Act, 2013 will 
apply. 
After going through this Unit, the  students will be able 
to: 
? 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 Plan. 
? explain the accounting treatment of share 
capital transactions regarding issue of shares. 
? develop the 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 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 balance sheet. 
? develop the skill of calculating interest on 
debentures and its accounting treatment. 
? state the meaning of redemption of  debentures. 
? develop the understanding of accounting 
treatment of transactions related to 
redemption of debentures by lump sum, draw 
of lots and Creation of Debenture Redemption 
Reserve. 
Part B: Financial Statement Analysis 20 Marks 
Unit 4: Analysis of Financial Statements 30 Periods 
 
 Financial 
Statement 
Sheet in 
statements of 
Profit and the 
prescribed 
of a 
Loss 
form 
company: 
and Balance 
with major 
After going through this Unit, the students will be able to: 
? develop the understanding of major headings 
 
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: Objectives, 
importance and limitations. 
? Tools for Financial Statement Analysis: 
Comparative statements, common size 
statements, cash flow analysis, ratio 
analysis. 
? Accounting Ratios: Meaning, Objectives, 
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. 
Activity Ratios: Inventory Turnover Ratio, Trade 
Receivables Turnover Ratio, Trade Payables Turnover 
Ratio and Working Capital Turnover Ratio. 
Profitability Ratios: Gross Profit Ratio, Operating Ratio, 
Operating Profit Ratio, Net Profit Ratio and Return on 
Investment. 
and sub-headings (as per Schedule III to the 
Companies Act, 2013) of 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'. 
? develop the understanding and skill of 
preparation of comparative and common size 
financial statements. 
? state the meaning, objectives and significance  of 
different types of ratios. 
? develop the understanding of computation of 
current ratio and quick ratio. 
? develop the skill of computation of debt equity 
ratio, total asset to debt ratio, proprietary ratio 
and interest coverage ratio. 
? develop the skill of computation of inventory 
turnover ratio, trade receivables and trade 
payables ratio and working capital turnover ratio. 
? develop the skill of computation of gross profit 
ratio, operating ratio, operating profit ratio, net 
profit ratio and return on investment. 
 
Note: Net Profit Ratio is to be calculated on the basis profit before and after tax. 
 
Unit 5: Cash Flow Statement 20 Periods 
 
Project Work 20 Marks 40 Periods 
Note: Kindly refer to the Guidelines published by the CBSE. 
OR 
Part B: Computerised Accounting 20 Marks 50 Periods 
Unit 3: Computerised Accounting 
After going through this Unit, the students will  
be able to: 
? state the meaning and objectives of cash 
flow statement. 
? develop the understanding of preparation 
of Cash Flow Statement using indirect 
method as per AS 3 with given 
adjustments. 
? Meaning, objectives 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 to be taken as Marketable 
securities unless otherwise specified.