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CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

CBSE Class 12 Commerce Accountancy Syllabus : CBSE board has been offering a robust, holistic school education to students since its inception. The board first analyzes students’ learning requirements and according to that, it prepares suitable syllabus for each class. Additionally, the board designs appropriate question papers to evaluate students’ subject knowledge at the end of each academic session. Moreover, to keep students stress free during exams, the board also designs sample papers for each class. The CBSE board conducts research to get to know the current educational requirements and based on that, it chooses suitable subjects and their relevant topics. Hence, students, who are pursuing their studies under this board, get updated information and keep them prepared for any competitive exam

CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

CBSE Class 12 Commerce Accountancy Syllabus : The Accountancy syllabus at the CBSE Class 12 level gives students a firm foundation in basic accounting principles and methodology and also acquaints them with the changes taking place in the presentation and analysis of accounting information, keeping in view the development of accounting standards and use of computers.

Against this background, the course puts emphasis on developing basic understanding about the nature and purpose of the accounting information and its use in the conduct of business operations. This is done to help to develop logical reasoning, careful analysis and considered judgment among students.

Accounting as an information system aids in providing financial information. In class XII, Accounting for Not for Profit Organisations, Partnership Firms and companies are taught as a compulsory part. Students will also be given an opportunity to understand about Computerized Accounting System, as an optional course to Analysis of Financial Statements.

CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

CBSE Class 12 Commerce Accountancy Syllabus :  Download CBSE class-12 Accountancy Syllabus 2017-18 in PDF file format. It is issued by CBSE, New Delhi for the session 2017-2018. Keep in touch with CBSE official site or my cakart.in website for latest updates and modifications in CBSE syllabus 2017-2018.

Course Structure

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: 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 reassessment 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, executor‟s account and preparation of balance sheet.

Dissolution of a 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)).

Unit-2 Accounting for Companies

Accounting for Share Capital

Share and share capital: nature and types.

Accounting for share capital: issue and allotment of equity shares, private placement of shares, Employee Stock Option Plan (ESOP). 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 company‟s Balance Sheet.

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.

Redemption of debentures: Lump sum, draw of lots and purchase in the open market (excluding ex-interest and cum-interest). Creation of Debenture Redemption Reserve.

Conversion method.

Note: Related sections of the Indian Companies Act, 2013 will apply.

Part B: Financial Statement Analysis

Unit 3: Analysis of Financial Statements

Financial statements of a company: Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and sub headings (as per Schedule III to the Companies Act, 2013).

Financial Statement Analysis: Objectives, importance and limitations.

Tools for Financial Statement Analysis: Comparative statements, common size statements, cash flow analysis, ratio analysis.

Accounting Ratios: 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.

Unit 4: Cash Flow Statement

Meaning, objectives and preparation (as per AS 3 (Revised) (Indirect Method only)

Part B: Computerised Accounting

Unit 3: Computerized Accounting

Overview of Computerized Accounting System.

  • Introduction: Application in Accounting.
  • Features of Computerized 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.

Download here CBSE Class 12 Commerce Accountancy Syllabus in pdf format 

CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

CBSE Class 12 Commerce Accountancy Syllabus : Accountancy is the process of managing the income and expenses of a business and The process of recording and summarizing financial transactions is known as ‘bookkeeping’. When the data is produced in reports for the use of individuals or companies outside the organisation, the process is called ‘financial accounting’.

Accounting or accountancy is the measurement, processing and communication of financial information about economic entities such as businesses and corporations. The modern field was established by the Italian mathematician Luca Pacioli in 1494. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms “accounting” and “financial reporting” are often used as synonyms.

Accounting can be divided into several fields including financial accounting, management accounting, external auditing, tax accounting and cost accounting.  Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization’s financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system

Reports in accounting

Three reports are typically generated in financial accounting and cover a specific, predetermined accounting period:

  1. Balance sheet: summaries the firm’s assets and liabilities at a given point in time – usually at the end of an accounting period. This report provides a clear idea of the company’s financial standing.
  2. Income statement: reports the firm’s gross proceeds, expenses, and profit or loss. This report addresses the income and expenses that are produced both by regular operating activities, or by ‘non-operating’ activities – income or expenses that are not directly produced by the business. This is probably the most important of the three types of accounting reports, as it is commonly used by management to help determine financial standing and decision-making.
  3. Statement of cash flows: analyses the flow of cash into and out of the business. This report deals only with the cash that moves in and out of the company through various business activities. It also includes income and loss from any investments made in the company name. Keep in mind that ‘cash’ also includes credit payments after the payment is completed.

CBSE Class 12 Commerce Accountancy Syllabus For 2017-2018 Sections Exam

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