CBSE Class 12 Accountancy Syllabus 2023-24(Latest Syllabus)

Accountancy is a very important subject for commerce students. CBSE has designed class 12th accounts syllabus in such a way that it covers fundamentals of accounting information and its uses in business operations. For scoring good marks in the board exam, the students must make themselves familiar with CBSE Class Accountancy syllabus 2023 for term 1 and term 2. In addition to the board exam, the accountancy syllabus of CBSE class 12th is also helpful in many entrance exams in the field of commerce. The complete details about term-wise CBSE class 12 syllabus 2023-24 of Accountancy are provided in this post.

CBSE Class 12 Accountancy Syllabus 2023-24 Updated Now

We have provided below the new CBSE class 12 Accountancy syllabus 2023-24. Please go through the marking scheme and unit-wise syllabus for Accountancy.

Units Periods Marks
Part A Accounting for Partnership Firms and Companies
Unit 1. Accounting for Partnership Firms 105 36
Unit 2. Accounting for Companies 45 24
150 60
Part B Financial Statement Analysis
Unit 3. Analysis of Financial Statements 30 12
Unit 4. 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
Practical work will include:
Practical File 4 Marks
Practical Examination 12 Marks (One Hour)
Viva Voce 4 Marks

Part A: Accounting for Partnership Firms and Companies

Unit 1: Accounting for Partnership Firms

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 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 re-

assessment of liabilities, treatment of

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 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 preparation profit and loss appropriation account involving guarantee of profits.

·         develop the understanding and skill of making past adjustments.

·         state the meaning, nature and factors affectin 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 reassessment 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

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)).

Note:

(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).

(ii) In case, the realization expenses are borne by a

partner, clear indication should be given regarding the payment thereof.

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 capital, current account and 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, losses 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 and 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 partnership firm can be dissolved.

·         develop the understanding of preparation of realisation account and other related accounts.

 Unit-3 Accounting for Companies

Units/Topics Learning Outcomes
Accounting for Share Capital

·         Features and types of companies

After going through this Unit, the students will be

able to:

·         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 re- issue 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)

·         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.

 Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Units/Topics Learning Outcomes
Financial statements of a Company:

Meaning, Nature, Uses and importance of financial Statement.

After going through this Unit, the students will be able to:

·         develop the understanding of major headings

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.

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’.

·         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 and others.

·         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 of profit before and after tax.

Unit 5: Cash Flow Statement

Units/Topics Learning Outcomes
·         Meaning, objectives Benefits, Cash and Cash Equivalents, Classification of Activities and preparation (as per AS 3 (Revised) (Indirect Method only) 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

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.

Cash Flow Statement using indirect method as per AS 3 with given adjustments.

CBSE Class 12th Revised Accountancy Syllabus 2023-24: Download PDF

Note: For project and practical work, the candidates should refer to the guidelines published by the CBSE.

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5 Comments

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  1. Tannu

    This syllabus is right for session 2022-23 or not ??

    1. Apoorv Rana

      2022-23 ka hi hn kya

  2. rahul nellore

    Is this information is correct or not ,if there will be wrong information I will sue you.

    1. Geeta Rani

      VERY good

  3. Priyanshu Tendulkar

    It’s very important

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