Accountancy – Class 12 Curriculum

Part A: Accounting for Partnership Firms and Companies

🧩 Unit 1: Accounting for Partnership Firms

Topics Covered:

• Introduction to Partnership:

  • Features, Partnership Deed, Indian Partnership Act (in absence of a deed)

  • Fixed vs. Fluctuating Capital Accounts

  • Profit & Loss Appropriation Account (incl. Guarantee of Profits)

  • Past Adjustments (Interest, Salary, Profit Sharing)

  • Goodwill: Meaning, Factors, Valuation Methods (Average, Super Profit, Capitalization)

• Reconstitution & Dissolution:

  • Change in Profit Sharing Ratio (Sacrificing/Gaining)

  • Revaluation of Assets & Liabilities, Treatment of Reserves

  • Preparation of Revaluation A/C and Balance Sheet

Learning Outcomes:

• Understand the concept and features of partnership & deed

• Differentiate between capital types & prepare P&L Appropriation

• Value goodwill using different methods

• Account for reconstitution, reserves, and revaluation

• Prepare relevant statements after changes in partnership

👥 Unit 2: Admission, Retirement, Death & Dissolution of a Partner

Topics Covered:

• Admission of a Partner:

  • Profit-sharing ratio, Goodwill (AS 26), Revaluation, Capital Adjustments, Balance Sheet

• Retirement/Death of a Partner:

  • Profit-sharing adjustments, Goodwill, Revaluation, Capital Adjustments

  • Deceased Partner’s Share of Profit

  • Executor’s and Partner’s Account

• Dissolution of Firm:

  • Meaning, Types

  • Settlement via Realization A/C, Capital A/C, Cash/Bank A/C

Learning Outcomes:

• Handle admission, goodwill treatment, capital account adjustment

• Process retirement/death and related profit distribution

• Understand & prepare realization and final accounts during dissolution

📊 Unit 4: Analysis of Financial Statements

Part B: Financial Statement Analysis

Topics Covered:

• Financial Statements of a Company (as per Schedule III)

• Tools for Analysis:

  • Comparative & Common-Size Statements

  • Ratio Analysis

  • Cash Flow Analysis

• Accounting Ratios:

  • Liquidity: Current, Quick Ratio

  • Solvency: Debt to Equity, Total Asset to Debt, Proprietary, Interest Coverage

  • Activity: Inventory Turnover, Trade Receivables/Payables Turnover, Working Capital Turnover, Fixed/Net Asset Turnover

  • Profitability: Gross Profit, Operating Profit, Net Profit, Return on Investment

Learning Outcomes:

• Analyze statements using tools & ratios

• Calculate and interpret liquidity, solvency, activity, and profitability ratios

Part C: Project Work (Choose Any One)

📁 Project Work (Option 1 – Manual Accounting)

Choose any two of the following aspects:

• Comparative & Common Size Statements

• Accounting Ratios

• Segment Reports

• Cash Flow Statements

Marks Distribution:

• Project File: 12 Marks

• Viva Voce: 8 Marks

🏢 Unit 3: Accounting for Companies

Topics Covered:

• Share Capital:

  • Features, Types, Equity vs Preference

  • Issue at Par/Premium, Oversubscription/Undersubscription

  • Calls in Advance/Arrears, Issue for Non-cash

  • Private Placement, ESOP, Sweat Equity

  • Forfeiture & Re-issue of Shares

  • Disclosure of Share Capital (as per Companies Act Schedule III)

• Debentures:

  • Meaning, Types, Issue at Par/Premium/Discount

  • For Non-Cash Consideration, Collateral Security

  • Interest (excluding TDS), Writing off Discount/Loss

  • Redemption of Debentures

Learning Outcomes:

• Understand share types, issue processes, and accounting

• Record debenture-related transactions and interest

• Present share and debenture info as per Schedule III

💸 Unit 5: Cash Flow Statement

Topics Covered:

• Meaning, Objectives, Benefits

• Cash & Cash Equivalents

• Preparation as per AS-3 (Indirect Method)

Learning Outcomes:

• Understand & prepare Cash Flow Statement using indirect method

💻 Option 2 – Computerised Accounting (Alternative to Manual Project)

Unit 4: Computerised Accounting

Topics Covered:

• Overview:

  • Features, Structure of CAS, Software types: Generic, Specific, Tailored

• Electronic Spreadsheet:

  • Concepts, features, accounting uses: BRS, loan repayment, asset accounting, ratio analysis

  • Data presentation using graphs/charts

• System Implementation:

  • CAS installation, codification, account creation

  • Data entry, validation, adjusting entries

  • Final Accounts generation (Balance Sheet & P&L)

Marks Distribution:

• Practical File: 12 Marks

• Viva Voce: 8 Marks