CBSE Syllabus Class 12 Accountancy

On July 5, 2021, CBSE had announced that the Syllabus for Class 12 Board Exams will be reduced as per a Term-based Examination System and on July 22, 2021, they finalised the reduced syllabus as well by providing updated PDFs.

CBSE Class 12 Syllabus has undergone drastic changes since the previous 2020-21 session. Due to the COVID-19 pandemic, the education system has been challenging for both teachers and students.

So, similar to the 30% reduction in the last session, CBSE decided to reduce the overall syllabus according to the Term-based Board Examination for the 2021-22 session again.

We, at Educart, were prompt about it and have updated the changes in all the subjects for you. Here, you can find:

  • freely-downloadable PDF links to the latest reduced Class 12 Accountancy Syllabus for 2021-22 academic session; and
  • simple analysis of all the deleted topics/ chapters for 2021-22 Term-based Board Exam.

With all this information in hand, both teachers and students will have a defined structure to begin the learning process on time and efficiently.


Class 12 Accountancy Reduced Syllabus for 2021-22 (Reduced)

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We have also provided the syllabus for the 2021-22 session that was previously restored so that you can compare the deleted and added topics.

Class 12 Accountancy Reduced Syllabus for 2021-22 (Restored Previously)

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Now, let us take a look at the syllabus for Term I and Term II Board Exams in detail and try to understand what changes have been made.


<red> Marked in red: <red> Topics <red> removed <red> for 2021-22

Term I

Parts Unit Marks
A Unit 2: Accounting for Partnership Firms 18
Unit 3: Accounting for Companies 12
B Unit 4: Analysis of Financial Statements 10
OR
B Unit 4: Computerised Accounting 10
Internal Assessment
Written Test based on Project – Accounting Ratios (06) +
Practical File (02) +
Viva (Ratio Analysis) (02)
10
TOTAL 50

Part A

Unit 2: 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 a partner's loan is to be treated as a charge against profits. Goodwill to be adjusted through partners capital/ current account (AS 26).

NOTE: Raising and writing off goodwill is excluded.

Accounting for Partnership firms - Reconstitution

  • 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, <red> adjustment of capital accounts and preparation of balance sheet. <red>

Unit 3: Accounting for Companies

Accounting for Share Capital

  • Share and share capital: nature and types.
  • Accounting for share capital: issue and allotment of equity and preferences shares. 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 reissue of shares.
  • Disclosure of share capital in the Balance Sheet of a company.

Part B

Unit 4: Analysis of Financial Statements

Financial Statements of a Company:

Statement of Profit and Loss and Balance Sheet in prescribed form with major headings and subheadings (as per Schedule III to the Companies Act, 2013)

NOTE: Exceptional items, extraordinary items and profit (loss) from discontinued operations are excluded.

  • Financial Statement Analysis: Objectives, importance and limitations.
  • Accounting Ratios: Meaning, 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.

NOTE: Net Profit Ratio is to be calculated on the basis of profit before and after tax.

OR

Unit 4: Computerised Accounting

Overview of Computerised Accounting System

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

Term II

Parts Unit Marks
A Unit 2: Accounting for Partnership Firms 18
Unit 3: Accounting for Companies 12
B Unit 4: Analysis of Financial Statements 10
OR
B Unit 4: Computerised Accounting 10
Internal Assessment
Written Test based on Project – Accounting Ratios (06) +
Practical File (02) + Viva (Ratio Analysis) (02)
10
TOTAL 50

Part A

Unit 1: Accounting for Non-for-Profit Organizations

  • Not-for-profit organizations: concept.
  • Receipts and Payments Account: features and preparation.
  • Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information. 

Scope:

  • Adjustments in a question should not exceed 3 or 4 in number and are restricted to subscriptions, consumption of consumables, funds and sale of assets/ old material/funds.
  • Entrance/admission fees and general donations are to be treated as revenue receipts.
  • Trading Account of incidental activities is not to be prepared

Unit 2: Accounting for Partnership Firms

Accounting for Partnership firms - Reconstitution and Dissolution

  • 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, and preparation of balance sheet. <red> Adjustment of capital accounts and preparation of loan accounts of the retiring partner. <red>
  • Calculation of deceased partner’s share of profit till the date of death. <red> Preparation of deceased partner’s capital account and his executor’s account. <red>
  • Dissolution of a partnership firm: meaning of dissolution of partnership and 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 memorandum balance sheet, piecemeal distribution, sale to a company and insolvency of partner(s)).

NOTE:

(i) If the realized value of an asset is not given, it is to be presumed that it has not released any amount.

(ii) If a partner has borne and/ or paid the realisation expenses, it should be stated.

Unit 3: Accounting for Companies

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. Writing off discount / loss on issue of debentures.

NOTE:

(i) Discount or loss on issue of debentures to be written off in the year debentures are allotted from Security Premium Reserve/ Capital Reserve/ Statement of Profit and Loss as Financial Cost (AS 16) in that order.

(ii) Related sections of the Companies Act, 2013 will apply.

(iii) Concept of Tax Deducted at Source (TDS) is excluded

Part B

Unit 4: Analysis of Financial Statements

Financial Statements of a Company:

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

Unit 5: Cash Flow Statement

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

NOTE:

(i) Adjustments relating to depreciation and amortization, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.

(ii) Bank overdraft and cash credit to be treated as short term borrowings.

(iii) Current Investments to be taken as Marketable securities unless otherwise specified.

NOTE: Previous years’ Proposed Dividend to be given effect, as prescribed in AS-4, Events occurring after the Balance Sheet date. Current years’ Proposed Dividend will be accounted for in the next year after it is declared by the shareholders.

OR

Unit 4: Computerised Accounting

Using a 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.

Project Work

Students would prepare only ONE project in the entire academic session, which is divided into two terms i.e. Term – I and Term – II.

Detailed guidelines for project work are as follows-

Students need to create one specific project only in which they would be required to cover the company profile, assessment of financial statements, and specific report analysis. The main objective of preparing the project report is for the following reason:

  1. Students are able to state the meaning, objectives, and limitations of financial statement analysis.
  2. Study the proper use of different tools of ‘financial statements analysis’ like comparative analysis, Ratios and Cash flow statements.
  3. Capable of creating Comparative Statements and Common Size Statements.
  4. Understand the Meaning, objective, advantage, and limitation of Accounting Ratios.


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Any other information regarding CBSE curriculum, paper pattern, study material, and notifications is available below in the supporting links.