AccountancySyllabus Of Grade XII - ACCOUNTANCY (AC1210)
The Grade XII Accountancy syllabus is divided into two compulsory parts - Part A: Accounting for Partnership Firms and Companies and Part B: Financial Statement Analysis. Separate marks are allocated to each unit and together they form a 3-hour examination of 100 marks.
Focus areas: partnership accounts (fundamentals, reconstitution and dissolution), company accounts (share capital and debentures), analysis of company financial statements, cash flow statements and structured practical work.
Part A: 60 MarksPart B: 40 MarksTotal: 100 Marks · Time: 3 Hours
Instructions: This syllabus is organised into Part A and Part B. Separate marks are given with each unit. The summary table below lists all units and marks, followed by detailed unit-wise content.
Summary of Units in Part A & Part B
Part / Unit
Area Covered
Marks
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Unit 1
Part A - Accounting for Partnership Firms and Companies
Part A - Accounting for Partnership Firms and Companies
Grade XII · Accountancy · Unit 1
Unit 1 · Accounting for Partnership Firms - Fundamentals (10 Marks)
10 Marks
Partnership - key features and the idea of a partnership deed.
Main provisions of the Indian Partnership Act, 1932 that apply when there is no written partnership deed.
Fixed versus fluctuating capital accounts; division of profits among partners; treatment of guaranteed profits; past adjustments (interest on capital and drawings, salary, profit-sharing ratio) and preparation of Profit & Loss Appropriation Account.
Goodwill - nature, factors affecting value and basic methods of valuation: average profit, super profit and capitalisation methods.
Grade XII · Accountancy · Unit 2
Unit 2 · Accounting for Partnership Firms - Reconstitution and Dissolution (25 Marks)
25 Marks
Change in profit-sharing ratio among existing partners - sacrificing and gaining ratios, revaluation of assets and reassessment of liabilities, and distribution of reserves and accumulated profits.
Admission of a partner - impact on profit-sharing ratio, treatment of goodwill (as per AS-26), revaluation of assets and liabilities, treatment of reserves and accumulated profits, capital adjustments and preparation of the revised balance sheet.
Retirement and death of a partner - change in profit-sharing ratio, treatment of goodwill, revaluation of assets and liabilities, adjustment of accumulated profits and reserves, calculation of deceased partner’s share of profit to date, preparation of deceased partner’s capital account and executor’s account, and preparation of the balance sheet.
Dissolution of a partnership firm - basic types of dissolution and settlement of accounts through preparation of realization account and other related accounts (excluding piecemeal distribution, sale to a company and insolvency of partners).
Grade XII · Accountancy · Unit 3
Unit 3 · Accounting for Share Capital (18 Marks)
18 Marks
Shares and share capital - nature and broad types.
Accounting for share capital - issue and allotment of equity shares, public subscription and private placement; over-subscription and under-subscription; issue of shares at par, at premium and at discount; calls in advance and calls in arrears; issue of shares for consideration other than cash.
Accounting treatment of forfeiture and re-issue of shares.
Presentation of share capital in the company’s Balance Sheet (disclosure only).
Grade XII · Accountancy · Unit 4
Unit 4 · Accounting for Debentures (07 Marks)
7 Marks
Debentures - issue at par, at premium and at discount; issue for consideration other than cash; debentures given as collateral security; interest on debentures.
Basic methods for redemption of debentures - lump sum payment, draw of lots and conversion into shares or new debentures (as prescribed).
Part B - Financial Statement Analysis
Grade XII · Accountancy · Unit 1
Unit 1 · Analysis of Financial Statements (12 Marks)
12 Marks
Financial statements of a company - balance sheet format with major headings and sub-headings (as per the prescribed Companies Act schedule).
Financial statement analysis - purpose, scope and limitations.
Tools for analysis - comparative statements, common-size statements, cash-flow analysis and ratio analysis.
Accounting ratios - objectives, basic classification and interpretation.
Liquidity ratios - current ratio and quick ratio.
Solvency ratios - debt to equity ratio, total assets to debt ratio, proprietary ratio and interest coverage ratio.
Activity ratios - stock turnover ratio, debtors turnover ratio, creditors turnover ratio and working capital turnover ratio.
Profitability ratios - gross profit ratio, operating ratio, operating profit ratio, net profit ratio and return on investment.
Grade XII · Accountancy · Unit 2
Unit 2 · Cash Flow Statement (08 Marks)
8 Marks
Cash flow statement - meaning, objectives and preparation as per AS-3 (revised) using the indirect method.
Grade XII · Accountancy · Unit 3
Unit 3 · Practical Work (20 Marks)
20 Marks
Project file - structured practical project work related to the syllabus (4 Marks).
Written test - practical-oriented written examination (12 Marks).
Viva voce - oral examination based on the project and practical work (4 Marks).
