CBSE Class 12 Accountancy Syllabus 2024-25 | PDF Download

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CBSE Accountancy Class 12 Syllabus 2024-25

The Accountancy Class 12 Syllabus 2024-25 facilitates students in comprehending the importance of accounting data in the organisation. It aims to develop students' critical thinking, analysis, and decision-making skills. The three sections of the curriculum are A, B, and C. Students can select from two fields in Part B. Students in Class 12 must put in a lot of study time for this topic.

Students should be aware of the most recent CBSE Accounts Syllabus Class 12 2024-25 for Class 12 to begin preparing. The syllabus was released for the 2024 academic year on CBSE’s website and we were prompt about prediction of the changes. Below, we have provided you with a simple analysis of the Class 12 Accountancy Syllabus, along with:

  • PDF download -> 2024-25 (latest) and past year syllabus
  • Competency Focus -> what is new
  • Detailed analysis -> blueprint of all units & chapters

CBSE Accountancy Syllabus Class 12 2024-25

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2023-24 Accountancy Syllabus Class 12 Syllabus

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(for reference purposes)

Accountancy is a tough subject to take time for concept clarity and attempting related questions. For effective and timely Class 12 Syllabus completion, students can club it with the Class 12 English Core Syllabus. English will take less time in comparison to Accountancy so you can plan your chapters with the English core syllabus.

COMPETENCY-BASED QUESTION PAPER DESIGN
S. No. Bloom Typologies (as per NEP 2023) Total %
1 Easy difficulty level:
Demonstrate Knowledge | Understanding
55%
2 Medium difficulty level:
Application-based
23.75%
3 Hard difficulty level:
Analysis | Evaluate | Create
21.25%
TOTAL 100%

CLASS 12 ACCOUNTANCY BLUEPRINT 2024
Parts Units Marks
A Accounting for Partnership Firms and Companies
1 Accounting for Partnership Firms 36
2 Accounting for Companies 24
B Financial Statement Analysis
3 Analysis of Financial Statements 12
4 Cash Flow Statement 08
C PROJECT WORK
Practical File (12) + Viva Voce (08) 20
TOTAL 100

Accounts Class 12th Syllabus 2024-25: Newly Added Chapters

Chapter 1 - Accounting for Partnership Firms

  • Partnership: features, Partnership Deed.
  • Provisions of the Indian Partnership Act 1932 in the absence of a 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).
  • 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.

Chapter 2 - Accounting for Partnership Firms - Reconstitution and Dissolution

  • Change in the Profit Sharing Ratio among the existing partners.
  • Admission of a partner
  • Retirement and death of a partner
  • Calculation of deceased partner’s share of profit till the date of death
  • Dissolution of a partnership firm

Chapter 3 - Accounting for Share Capital

  • Features and types of companies
  • Share and share capital: nature and types
  • Accounting for share capital
  • Concept of Private Placement and Employee Stock Option Plan (ESOP), Sweat Equity
  • Accounting treatment of forfeiture and reissue of shares
  • Disclosure of share capital in the Balance Sheet of a company

Chapter 4: Accounting for Debentures

Debentures: Meaning, types, Issue of debentures at par, at a premium and 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.

Chapter 5: Financial Statements of a Company

  • Meaning, Nature, Uses and importance of financial Statement.
  • Statement of Profit and Loss and Balance Sheet in prescribed form with major headings and subheadings.

Chapter 6: Cash Flow Statement

  • Meaning, objectives Benefits, Cash and Cash Equivalents, Classification of Activities and Preparation

Accountancy Class XII Syllabus 2024-25: Structure 

Part A: Accounting for Partnership Firms and Companies

Unit 1: Accounting for Partnership Firms

The fundamental ideas in partnership accounting are usually covered in Accounting for Partnership Firms in CBSE Class 12 Accounts. These include the nature of partnerships, the components of partnership deeds, the accounting procedures for partner admission, retirement, and death, and the generation of financial statements for partnership firms.

Nature of Partnership: Knowing what a partnership is and what it entails, such as shared revenues and losses, unhindered responsibility, and joint decision.

Partnership Deeds: Examining the contents and significance of a partnership deed, which describes the terms and conditions of the partnership, including capital contributions, obligations, and partner rights and profit-sharing ratios.

Establishing Capital Accounts: Acquiring the knowledge to keep track of each partner's unique capital accounts, as well as to record investments, withdrawals, and adjustments for gains and losses.

Distribution of Profit & Loss: Gaining knowledge of the techniques used to divide earnings among partners, such as interest on capital and fixed and changing ratios, is essential.

Admission of a Partner: Analysing the accounting procedures associated with bringing on a new partner, such as revaluing assets and liabilities, adjusting capital, and calculating new profit-sharing ratios.

Retirement and Partner Death: Acquiring knowledge of the accounting processes related to retiring or deceased partners, such as determining the retiring partner's goodwill share, settling their account, adjusting their assets and liabilities, and managing the deceased partner's profit share until the partner's retirement or death date.

Reconstitution of Partnership: Knowing how to reorganise a partnership when there are adjustments to profit-sharing agreements, partner admissions, retirements, or deaths.

Preparation of Final Accounts: Knowing how to produce the final accounting, such as the balance sheet and the profit and loss appropriation account for partnership businesses, and including the appropriate adjustments for profit sharing, interest on withdrawals, interest on capital, etc.

Unit 2. Accounting for Companies

In Unit 2, the primary focus is on comprehending and using company-specific accounting concepts and processes, such as the issuing of shares and debentures, preparing financial statements, paying managers, distributing dividends, and using financial analysis tools.

Accounting for Share Capitals: Definition of share capital and kinds of shares (preference and equity). Documenting the share issuance at discount, premium, and par. Handling of share reissue and forfeiture.

Accounting of Debentures: Recognising the several forms of debentures, including secured and unsecured and detailing the debenture issue. Debenture redemption, together with the establishment of a reserve for it. You will also learn about Debenture interest and how it is treated in accounting.

Final Accounts of Companies: In compliance with the Companies Act, the trading, profit and loss account, and balance sheet are prepared. You will also learn about the obligations for disclosure set down in Schedule III of the Companies Act. Recognising important terminology such as paid-up capital, issued capital, subscribed capital, and authorised capital.

Managerial Remuneration: The accounting approach and computation of profit-sharing, commission, and salary as different kinds of managerial compensation.

Divisible Profits and Dividends: Divisible earnings are calculated to distribute dividends. Various dividend kinds (equity, preference, final, and interim) and dividend distribution tax are included in the accounting treatment of dividends are included in this chapter.

Accounts of Not-for-Profit Organizations:

Being aware of the accounting practices unique to nonprofit institutions. Balance sheet, income and expenditure account, and receipts and payments account preparation. Handling of gifts, legacies, subscriptions, etc.

Financial Statements Analysis: Fundamental methods of financial analysis, including comparative financial statements and ratio analysis. Analysing financial accounts to evaluate a company's performance and financial standing.

Part B: Financial Statement Analysis

Unit 3. Analysis of Financial Statements

To comprehend a company's financial performance and health, one of the most important topics covered in CBSE Class 12 Accounts is the study of financial statements. 

Introduction to Financial Statement Analysis: Students are introduced to the goal and significance of financial statement analysis in this module. It talks about how financial analysis aids in the decision-making of stakeholders, including creditors, investors, and management.

Tools and Techniques of Financial Analysis:

  • Ratio Analysis: Ratio analysis is the process of computing and analysing a variety of financial ratios to assess the performance of a business in terms of liquidity, profitability, solvency, and efficiency. Notable ratios are the debt-to-equity ratio, the quick and current ratios for liquidity, the gross profit margin and net profit margin for profitability, and the inventory turnover and accounts receivable turnover ratios for activity.
  • Comparative Financial Statements: To find patterns and alterations in the company's financial situation and performance over time, financial statements from several accounting periods are compared.
  • Common-Size Financial Statements: The percentage of each line item in common-size financial statements is expressed concerning a base item, which is typically total assets for the balance sheet and total revenue for the income statement. This makes it easier to compare businesses of various sizes or across time within the same business.

Interpretation and Significance: Students learn how to understand financial analysis data in this module. It highlights how crucial industry standards and context are to understanding ratios and other financial indicators.

Limitations of Financial Statement Analysis: Students are taught about the negative aspects and constraints of financial analysis, including its dependence on past data, the possibility of financial statement manipulation, and the influence of outside variables such as shifts in the status of the economy or changes in business patterns.

Case Studies and Practical Application: Students often find themselves able to apply the principles they have learnt in real-world circumstances through the inclusion of practical activities and case studies. These might entail looking at the financial records of real businesses or speculative situations.

Unit 4. Cash Flow Statement

The Cash Flow Statement, a financial statement which describes a company's cash inflows and outflows over a given period, is usually covered in Unit 4 of Class 12 Accounts. 

Introduction to Cash Flow Statement: One of the financial statements created by businesses to examine the movements of cash over a specific period is the cash flow statement. It aids in determining a company's liquidity and solvency.

Purpose of Cash Flow Statement: The Cash Flow Statement's main objective is to give information on the cash created by financing, investing, and operating activities. It facilitates stakeholder understanding of a company's financial resource management.

Format of Cash Flow Statement: Generally, there are three areas in the cash flow statement: financing activities, investing activities, and operating activities. The cash flows associated with each section's specific operations are described in depth.

Operating Activities: Cash flows from the company's primary business activities, such as sales income, supplier payments, employee wages, etc., are included in this part. It offers information about the company's capacity to make money from its main business activities.

Investing Activities: This section contains cash flows from both financial and long-term asset investments, such as property, plant, and equipment (PP&E). It facilitates stakeholders' comprehension of the business's investment choices.

Financing Activities: Financing operations include cash flows from borrowing, issuing equity, repaying loans, and disbursing dividends. This section describes the company's capital raising and financial liabilities management procedures.

Preparation of Cash Flow Statement: One of the two methods—direct or indirect—is used to create the cash flow statement. While the direct method displays cash revenues and payments from operational operations, the indirect approach starts with net income and adjusts for non-cash items and changes in working capital.

Significance of Cash Flow Analysis: A company's cash position, liquidity, and overall financial health may all be evaluated by analysing its cash flow statement. It also helps in projecting future cash flows and assessing the capacity of the business to fulfil its short- and long-term commitments.

Limitations of Cash Flow Statement: The Cash Flow Statement has certain limitations even though it offers insightful information. For example, it may not accurately reflect a company's real profitability since it ignores non-cash activities like depreciation.

Interpretation and Analysis: To make wise judgements, stakeholders such as creditors, investors, and management examine the Cash Flow Statement. They evaluate the business's cash-generating capacity, financing and investment operations, and overall financial performance.

Project Work

One specific project based on financial statement analysis of a company covering any two aspects from the following:

  1. Comparative and common size financial statements
  2. Accounting Ratios
  3. Segment Reports
  4. Cash Flow Statements

The comprehensive project may contain simple GST calculations.

How to Prepare for CBSE Class 12 Accountancy Using Syllabus

Using the accountancy class 12 syllabus 2024-25 as a guide when preparing for Class 12 Accounts will help you methodically cover all the important material. The following is a methodical way to get ready for CBSE Class 12 Accounts:

Become acquainted with the syllabus: Get a printed copy of the CBSE class 12 accounts syllabus that your school board has recommended. This will guarantee that you cover all the necessary topics and act as a guide for your study.

Arrange Study Materials: Compile notes, reference books, textbooks, and any other materials that your professors or syllabus may suggest. Ensure that you have access to all the tools needed to assist with your education.

Consider the Weightage: Take note of the weights given in the curriculum to each unit and topic. Higher-weighted subjects should receive greater attention because they are likely to receive higher exam scores.

Make a Study Schedule: Make a study plan that allows enough time to cover every syllabus unit. Set reasonable goals for each study session and divide your work into digestible portions.

Start with the Basics: Review the ideas, concepts, and accounting equations that form the foundation of accounting as you get ready. Before going on to more complex subjects, be sure you have a firm grasp of these foundational ideas.

Reread everything carefully: Give yourself enough time to review before tests. Go over all of the important ideas, equations, and methods for solving problems. To increase your competency, concentrate on your weak points and practise more questions.

Take Mock Tests: To replicate the exam atmosphere, attempt mock examinations and question papers from prior years while under exam conditions. This will assist you in evaluating your degree of preparedness and pinpointing areas that require further work.

There are a few things you can do to prepare for the CBSE Accountancy Syllabus Class 12 2025. First and foremost, confirm that you comprehend the content of the curriculum and the marking criteria. Making a routine and studying regularly can keep you organised. For practice sessions, use notes, textbooks, and previous year's papers. Attend every lesson, and if you have any questions, don't be afraid to ask them.

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