Accountancy - XII

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

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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.

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SECTION B – MANAGEMENT ACCOUNTING (20 Marks)

3. 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.

4. Cash Flow Statement

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

5. 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.

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SECTION C – COMPUTERISED ACCOUNTING (20 Marks)

6. 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.

7. 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.

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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.