Sunday, November 3, 2024

Accounts - XII (Syllabus)

 Class XII Accounts (2024-25) based on the ISC syllabus document:

PAPER - I (THEORY) – 80 Marks

SECTION A – 60 Marks

  1. Partnership Accounts

    • A. Fundamentals of Partnership

      • Definition, meaning, and features of a partnership.
      • Indian Partnership Act, 1932: rules for books of accounts, partnership deed, and division of profit.
      • Preparation of Profit and Loss Appropriation Account and Partners’ Capital and Current Accounts.
      • Concepts like interest on capital, interest on drawings, salaries, and commissions to partners.

    • B. Goodwill

      • Concept, nature, features, and factors affecting goodwill.
      • Valuation methods: Average Profit, Super Profit, and Capitalization.

    • C. Reconstitution of Partnership

      • Admission of a Partner: Calculation of new profit-sharing, sacrificing, and gaining ratios.
      • Goodwill adjustments, Revaluation Account preparation, capital adjustments, and treatment of reserves.
      • Retirement and Death of a Partner: Adjustments related to goodwill, undistributed profits/losses, and capital.
      • Dissolution of a Partnership Firm: Realization Account preparation, settlement of liabilities and assets, and the dissolution process.

  2. Joint Stock Company Accounts

    • A. Issue of Shares

      • Shares issued at par, premium, and calls in arrears.
      • Over and undersubscription, pro-rata allotment, forfeiture, and reissue of shares.

    • B. Issue of Debentures

      • Issued at par, premium, discount, and issued for collateral security.
      • Redemption of debentures and related journal entries, debenture interest.

    • C. Final Accounts of Companies

      • Preparation of the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013.
      • Concepts related to proposed dividend, notes to accounts, changes in Schedule III.

SECTION B – MANAGEMENT ACCOUNTING (20 Marks)

  1. Financial Statement Analysis

    • Comparative Statements and Common Size Statements.
    • Preparation and analysis of Comparative Balance Sheets, Common Size Statements, and Statement of Profit and Loss.

  2. Cash Flow Statement

    • Preparation using the Indirect Method (based on Accounting Standard – 3).
    • Operating, investing, and financing activities and their components.

  3. Ratio Analysis

    • Liquidity Ratios: Current Ratio, Quick Ratio.
    • Solvency Ratios: Debt to Equity Ratio, Proprietary Ratio.
    • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Working Capital Turnover Ratio.
    • Profitability Ratios: Gross Profit Ratio, Net Profit Ratio, Operating Ratio, Return on Investment, Earnings Per Share.

SECTION C – COMPUTERISED ACCOUNTING (20 Marks)

  1. Accounting Application of Electronic Spreadsheet

    • Basics of electronic spreadsheets, creating worksheets, and formatting.
    • Applications: Payroll, profit calculation, charting data, data presentation, sorting, and query filtering.

  2. Database Management System (DBMS)

    • Basic concepts and features of DBMS.
    • Use of SQL commands for database operations: Select, Update, Delete, etc.
    • Application in managing accounting information, such as debits, credits, and bank reconciliation.

PAPER - II (PROJECT WORK) – 20 Marks

Project Topics

  • Project Suggestions:
    • Preparation of journal, ledger, trial balance, and financial statements for a partnership business.
    • Cash Flow Statement preparation from Balance Sheet data.
    • Comparative and Common Size Statements for a company.
    • Ratio analysis of a company over two periods.
    • Employee Salary Sheet: using formulas in a spreadsheet.
    • Database creation and management using DBMS principles.
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Thursday, October 31, 2024

Accounts - XI (Syllabus)

1. Introduction to Accounting

  • Background: Understanding the fundamentals of accounting and accountancy, types of accounts, basic terms, and the Accounting Equation.

    • Evolution of Accounting: The three phases.
    • Basic Terms: Definitions for key concepts like Event, Transaction, Vouchers, Capital, Assets (intangible, tangible, fixed, current, liquid, wasting, fictitious), Liabilities (internal and external – current, long-term, contingent), Trade Debtors, Trade Creditors, Purchases, Sales, Goods traded in, Stock (raw material, work in progress, finished goods), Profit, Loss, Expense, Revenue, Income, Drawings.
    • Accounting Equation: Meaning and usefulness.
    • Definitions: Book-keeping, Accounting, and Accountancy; distinctions between these terms and an overview of the accounting cycle.
    • Users of Accounting Information.
    • Subfields of Accounting: Financial accounting, cost accounting, and management accounting.

Note: No practical problems on Accounting Equation are required.

2. Journal, Ledger, and Trial Balance

  • Journal: Recording entries in a journal with narration.

    • Classification of Accounts: Traditional classification or modern approach.
    • Double Entry System.
    • Rules of Journalizing: Traditional classification or modern approach.
    • Definition: Purpose and advantages of using a journal.
    • Format of Journal.
    • Types of Entries: Simple and compound entries, opening journal entries.
    • GST Entries: Input CGST and SGST/IGST; Output CGST and SGST/IGST, and offsetting Input GST against Output GST.

  • Ledger: Posting entries from journal to ledgers.

    • Definition: Purpose and format of a ledger.
    • Posting Mechanics: Closing/Balancing of accounts; transferring expenses and revenues to Trading/Profit & Loss Account based on direct/indirect nature; carrying down balances of Assets, Liabilities, and Capital.
    • Adjusting and Closing Entries.

  • Sub-divisions of Journal: Cash book, petty cash book, sales day book, purchases day book, sales return day book, purchases return day book, and journal proper.

    • Cash Book: Simple and triple column (cash, bank, discount) cash book, with adjustments.
    • Petty Cash Book: Including analytical and imprest system.
    • Day Books: Sales and purchases day books (simple and columnar).
    • Returns Day Book: Sales return and purchases return day books.
    • Journal Proper.

  • Trial Balance:

    • Definition: Purpose, advantages, and limitations of a Trial Balance.
    • Preparation: Using the balance method from given ledger balances.

3. Depreciation

  • Definition: Importance, causes, objectives, and characteristics of depreciation.
  • Methods of Depreciation: Straight Line and Written Down Value methods; advantages, limitations, and differences.
  • Recording Depreciation: Charging to asset account or creating a provision/accumulated depreciation.
  • Asset Problems: Purchase and sale of assets (with/without asset disposal account), including depreciation under the two methods.

Note: Changing methods from SLM to WDV and vice-versa is not required.

4. Bills of Exchange

  • Introduction to Negotiable Instruments: Key terms and definitions.

    • Types of Negotiable Instruments: Bills of Exchange, promissory note, cheque, including basic terms (e.g., drawer, drawee, payee, endorser, endorsement, etc.).
    • Practical Problems: Involving Journal entries and Ledger accounts for drawer, drawee, and endorsee.

Note: Excludes accommodation bill and recording in bank’s books.

5. Accounting Concepts

  • GAAP: Understanding basic concepts (e.g., Going Concern, Money Measurement, Revenue Recognition, etc.).
  • Basis of Accounting: Cash basis vs. accrual basis.
  • Accounting Standards: Meaning and importance.
  • IFRS: Purpose, fundamental assumptions, and differences from Indian GAAP.

6. Final Accounts and Balance Sheet

  • Capital and Revenue: Differentiating expenditures, receipts, profits/income, and losses.
  • Provisions and Reserves: Definitions, importance, and types.
  • Trading, Profit and Loss Account, Balance Sheet: Preparation (with and without adjustments), marshalling order (permanence/liquidity).
  • Adjustments: Closing stock, expenses, income, and others in the balance sheet.

Note: Excludes provision for doubtful debts.

7. Rectification of Errors

  • Types of Errors: Omission, commission, principle, compensating errors.
  • Error Correction: Using suspense account (if required), or through the Profit and Loss Adjustment Account.

Note: Redrafting of Balance Sheet is not required.

8. Non-Trading Organization

  • Definition and Objectives: Understanding non-trading organizations and specific treatment of items.
  • Books Maintained: Differences between Receipts and Payments Accounts, Income and Expenditure Accounts, and Balance Sheet.
  • Account Preparation: Creating Income and Expenditure Account and Balance Sheet based on receipts and payments.

Note: Receipt/Payment and Income/Expenditure Account preparation from incomplete records is not required.

Paper II – Project Work

20 Marks

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Accounts - XII (Syllabus)

  Class XII Accounts (2024-25) based on the ISC syllabus document: PAPER - I (THEORY) – 80 Marks SECTION A – 60 Marks Partnership Accounts ...

  • Accounts - XI (Syllabus)
    1. Introduction to Accounting Background : Understanding the fundamentals of accounting and accountancy, types of accounts, basic terms, and...
  • Accounts - XII (Syllabus)
      Class XII Accounts (2024-25) based on the ISC syllabus document: PAPER - I (THEORY) – 80 Marks SECTION A – 60 Marks Partnership Accounts ...