CBSE Class 12 Accountancy Syllabus, Unit by Unit

Class 12 accountancy syllabus: unit wise marks

Most schools teach option I. If yours offers computerised accounting, the theory still has Part A unchanged, and the practical file in Part C is done on a computer.

Unit 1: Accounting for partnership firms (36 marks)

• Fundamentals: meaning and features of partnership, the partnership deed, and the provisions of the Indian Partnership Act, 1932 that apply when there is no deed.
• Capital and profit sharing: fixed and fluctuating capital accounts, the profit and loss appropriation account, interest on capital and on drawings, partners' salary and commission, guarantee of profit, and past adjustments.
• Goodwill: its nature, the factors behind it, and valuation by the average profit, super profit and capitalisation methods.
• Change in profit sharing ratio: sacrificing and gaining ratios, revaluation of assets and reassessment of liabilities, and how reserves and accumulated profits or losses are treated.
• Admission of a partner: new and sacrificing ratios, goodwill treatment as per AS 26, adjustment of capitals.
• Retirement and death: new and gaining ratios, amount due to a retiring partner, loan account, deceased partner's dues and the executor's account.
• Dissolution: modes of dissolving a firm, the realisation account and settling the accounts.

Unit 2: Accounting for companies (24 marks)

• Share capital: features of a company, types of shares, and the kinds of share capital shown in the balance sheet.
• Issue of shares: equity and preference shares at par and premium, over and under subscription, calls in advance and calls in arrears, issue for consideration other than cash.
• Special issues: private placement, employee stock option plan (ESOP) and sweat equity, at concept level.
• Forfeiture and reissue of shares, with the capital reserve transfer.
• Disclosure: presenting share capital in the balance sheet under Schedule III of the Companies Act.
• Debentures: issue at par, premium and discount, issue as collateral security, interest on debentures, writing off discount or loss on issue, and redemption as listed in the current file.

The idea of TDS on debenture interest is left out. Journal entries in this unit look long, but the marks come from getting the share premium, calls and forfeiture amounts right, so practise the working notes as hard as the entries.

Part B, option I: analysing statements and cash flow

Unit 3: Analysis of financial statements (12 marks)

• Financial statements of a company in the Schedule III format: balance sheet and statement of profit and loss, with major headings and subheadings.
• Meaning, objectives, importance and limitations of analysis.
• Tools: comparative statements, common size statements, ratio analysis and cash flow analysis.
• Accounting ratios: liquidity, solvency, activity (turnover) and profitability ratios.

Unit 4: Cash flow statement (8 marks)

• Meaning, objectives, benefits, cash and cash equivalents.
• Classifying activities as operating, investing or financing.
• Preparing the statement by the indirect method only, as per AS 3 (revised).

Part B, option II: computerised accounting

Schools choosing this option replace units 3 and 4 with a 20 mark computerised accounting unit, taught from NCERT's Computerised Accounting System book. It covers:

• An overview of computerised accounting systems: features, structure, and generic, specific and tailored software.
• Spreadsheet uses in accounting: bank reconciliation, asset accounting, loan repayment schedules, ratio analysis and charts.
• Using a computerised accounting system: installation, codification and account hierarchy, data entry, validation and verification, adjusting, opening and closing entries, preparing the profit and loss account and balance sheet, and data security features.

Project work and the paper design

For Part C under option I, you analyse the financial statements of a company and work on any two aspects, such as comparative and common size statements, accounting ratios, segment reports or the cash flow statement. The file carries 12 marks and the viva voce 8. Pick a listed company whose annual report is easy to read, and be ready to explain every ratio you computed.

So 60 percent of the paper asks you to apply or analyse, which is why reading solutions is not enough; you need to solve full questions with adjustments.

Month wise plan for the session

1. April to July: partnership fundamentals, goodwill, change in ratio and admission. Do every NCERT question with adjustments.
2. August to September: retirement, death and dissolution, then a full partnership revision test.
3. October to November: share capital, forfeiture and reissue, debentures.
4. December: Part B (ratios, comparative and common size statements, cash flow) and the project file.
5. January to the board exam: past board papers and sample papers under 3 hour timing.

Use the official sample paper and marking scheme from the board alongside our CBSE class 12 previous papers guide. If you plan a commerce degree, the CUET commerce syllabus builds on this subject, and the companion business studies syllabus shares the commerce timetable.