ISC Class 12 Syllabus 2028 Accountancy

ISC
INDIAN SCHOOL CERTIFICATE
EXAMINATION

YEAR 2028

ACCOUNTANCY
(858)

Developed by:
Research, Development and Curriculum Division (RDCD)
CISCE

January 2026
____________________________________________________________________________________________

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CLASS XII
There will be two papers in the subject:
Paper I - Theory: 3 hours ……80 marks
Paper II- Project Work ……20 marks

PAPER I (THEORY) : 80 MARKS
There will be one paper of 3 hours duration of 80 marks.
S. No. UNIT WEIGHTAGE
1. Accounting for Partnership
A. Fundamentals of Partnership 11 Marks
B. Goodwill
C. Reconstitution of Partnership
15 Marks
I. Admission of a partner
II. Retirement and Death of a Partner
III. Dissolution of a Partnership Firm 8 Marks
2. Accounting for Companies
A. Issue of Shares 12 Marks
B. Issue of Debentures 4 Marks
C. Final Accounts of Companies 7 Marks
3. Financial Statement Analysis 4 Marks
4. Cash Flow Statement 8 Marks
5. Ratio Analysis 8 Marks
6. Application of Electronic Spread Sheet 3 Marks
TOTAL 80 Marks

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1. Accounting for Partnership
A. Fundamentals of Partnership
(i) Introduction: Definition, meaning and features of a Partnership.
(ii) Provisions of The Indian Partnership Act, 1932, with respect to books of accounts.
(a) Meaning and importance.
(b) Rules applicable in the absence of a partnership deed.
(iii) Preparation of Profit and Loss Appropriation Account and Partners’ Capital and Current Accounts.
(a) Profit and Loss Appropriation Account.
(b) Partners’ capital accounts: fixed and fluctuating.
(c) Partners’ Current Accounts when fixed capital method is followed.
Interest on capital, interest on drawings, interest on current accounts (debit and credit) salary,
commission to partners and managers, transfer to reserves, division of profit among partners.
(d) Guarantee of profits
(e) Past adjustments (Relating to interest on capital, interest on drawing, salary and profit-sharing
ratio).
NOTE:
• Interest on loan given by the partner to the firm is to be taken as a charge against profits.
This interest will be debited to the P/L account and credited to his loan account.
• Interest on loan taken by a partner from the firm should be credited to P/L account and
debited to his capital/current account as the case may be.
• Rent due to a partner is a charge against profit and is to be credited to partners’ current
account in case of fixed capital system or to partners’ capital account when capitals are
fluctuating.
• Percentage of Partner’s commission / General Reserve to be calculated only on the correct
trading profit and not on the divisible profit.
• Rectification of errors (past adjustments) through a single journal entry/ adjusting and
closing journal entries.
• Admission of manager as a Partner is excluded from the topic of past adjustments/guarantee
of profits.
B. Goodwill
Concept of goodwill and mode of valuation.
(a) Meaning, nature and features of Goodwill.
(b) Factors affecting the value of goodwill.
(c) Mode of Valuation.
• Average profit method – Meaning and practical application.
− Simple average.
− Weighted average method.
• Super profit method – Meaning and practical application.
• Capitalization method – Meaning and practical application.
− Capitalization of average profit.

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− Capitalization of super profit.
NOTE: Capital Employed/Net assets are Total assets (excluding purchased goodwill, non-trade
investments and fictitious assets) less outside liabilities.
Investments to be taken as non-trade investments unless specified as trade investments.
C. Reconstitution of Partnership
I. Admission of a partner
(i) Calculation of new profit-sharing ratio, sacrificing ratio and gaining ratio.
(ii) Accounting treatment of goodwill on admission of a partner based on Accounting Standard -26.
(a) Premium for goodwill paid (in cash or kind) and retained in the business.
(b) Premium for goodwill paid and withdrawn by the old partners.
(c) When the incoming partner cannot bring premium for goodwill in cash, adjustments are to
be done through his current account.
(d) Hidden goodwill.
(e) When goodwill appears in the old Balance Sheet.
(iii) Preparation of Revaluation Account.
Preparation of a Revaluation Account where changes in the values of assets and liabilities are
reflected in the new Balance Sheet after reconstitution of a partnership firm.
(iv) Accounting treatment of accumulated profits and losses.
General Reserve / Reserve Fund, Workmen Compensation Reserve/ Fund, Investment Fluctuation
Reserve/Fund, Contingency Reserve, Profit and Loss Account (Debit and Credit balance) and
Advertisement Suspense Account/ Deferred Revenue Expenditure.
(v) Adjustment of Capitals.
(a) Adjustment of old partner’s Capital Accounts on the basis of the new partner’s capital.
(b) Calculation of new partner’s capital on the basis of old partner’s adjusted capital.
(vi) Change in Profit-Sharing Ratio.
Change in PSR takes place at the time of admission of a partnership firm.
Accounting treatment of accumulated profits and losses through one journal entry: (Adjustment
of the incoming partner’s share to be done through his current account-similar to the treatment
of goodwill not brought in cash.)
Gaining Partners’ Cap/Current A/c Dr.
To Sacrificing Partners Cap/Current (in case of profits).
Sacrificing Partners’ Cap/Current A/c Dr.
To Gaining Partners Cap/Current (in case of losses)
General Reserve/ Reserve fund, Workmen Compensation Reserve/ Fund, Investment Fluctuation
Reserve/ Fund, Contingency Reserve, Profit and Loss Account (Debit and Credit Balance) and
Advertisement Suspense Account/ Deferred Revenue Expenditure.
NOTE:
- Preparation of Balance Sheet during admission of a partner to be done in Horizontal format.
- Memorandum revaluation account, Joint Life Policy, Individual life policy are excluded from
the syllabus.
- Admission of a partner during an accounting year is excluded from the syllabus.

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II. Retirement and Death of a partner
(i) Calculation of new profit-sharing ratio, gaining ratio and sacrificing ratio.
(ii) Adjustment with regard to goodwill including hidden goodwill.
(iii) Adjustment with regard to undistributed profits and losses.
(iv) Adjustment with regard to share of profits of the retiring or deceased partner from the date of the
last Balance Sheet to the date of retirement or death (on the basis of time or turnover).
Through P & L Suspense A/c (in case of no change in PSR of remaining partners).
Through Gaining Partners capital/ current A/c (in case of change in PSR of remaining partners).
(v) Preparation of Revaluation Account on retirement or death of a partner.
(vi) Adjustment of capitals.
(a) Readjusting the adjusted capital of the continuing partners in the new profit-sharing ratio.
(b) Adjusting the capitals of the continuing partners on the basis of the total capital of the new
firm.
(c) When the continuing partners bring in cash to pay off the retiring partners.
(vii) Calculation and payment of amount due to retiring partner.
(viii) Preparation of retiring partner’s loan accounts and deceased partner’s executor’s loan account
(with interest on loan accrued and due and interest on loan accrued but not due).
(ix) Change in Profit-Sharing Ratio.
Change in PSR takes place at the time of retirement / death of a partnership firm.
Accounting treatment of accumulated profits and losses through one journal entry:
Gaining Partners’ Cap Current A/c Dr.
To Sacrificing Partners’ Cap/Current (in case of profits).
Sacrificing Partners’ Cap/Current A/c Dr.
To Gaining Partners’ Cap/Current (in case of losses)
General Reserve/ Reserve fund, Workmen Compensation Reserve/ Fund, Investment Fluctuation
Reserve/ Fund, Contingency Reserve, Profit and Loss Account (Debit and Credit Balance) and
Advertisement Suspense Account/ Deferred Revenue Expenditure.
NOTE:
− Preparation of Balance Sheet during retirement / death of a partner to be done in Horizontal
format only.
− Memorandum Revaluation Account, Joint Life Policy, Individual life policy are excluded from
the syllabus.
III. Dissolution of a Partnership firm.
(i) Meaning of dissolution and settlement of accounts under Section 48 of The Indian Partnership
Act 1932.
(ii) Preparation of Realisation Account, Partner’s Loan Account, Partner’s Capital Account and
Cash/Bank Account.
When an asset or a liability is taken to the realisation account any corresponding/related fund or
reserve is also transferred to realisation account and not to the partners’ capital accounts.

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When accounts are prepared on a fixed capital basis, partners’ current account balances are to
be transferred to capital account. No adjustments are required to be passed through current
account.
Bank overdraft is to be taken to the Bank/Cash A/c and not to be transferred to realisation account
but bank loan must be transferred to realisation account.
• If question is silent about the payment of a liability, then it has to be paid out in full.
• If the question is silent about the realised value of tangible assets and investments it should
be considered as realised at book value itself.
• If the question is silent about the realised value of intangible assets, accrued income and
prepaid expenses it should be considered as nil (zero value).
• Loan taken from a partner will be passed through cash or bank account even if the partner’s
capital account has a debit balance.
• Loan given to a partner will be transferred (debited) to his Capital account.
• Realisation expenses – paid by the firm; paid by a partner; borne by a partner; to be borne
by a partner but paid by the firm on his behalf; partner reimbursed by the firm for the
realisation expenses paid by him with an asset of the firm.
Note: Admission cum retirement, amalgamation of firms and conversion/sale to a company
together with piecemeal distribution and insolvency of a partner / partners not required.

2. Accounting for Companies
A. Issue of Shares
Practical problems on issue of shares.
(a) Issue of shares at par and premium under the Companies Act, 2013.
(b) Issue of shares for considerations other than cash:
• To promoters (can be considered either through Goodwill account or Incorporation costs
account).
• To underwriters.
• To vendors.
(c) Calls in arrears, calls in advance and interest thereon.
(d) Over and undersubscription (including pro-rata allotment).
(e) Preparation of Journal; Cash Book and Journal Proper; Ledger Accounts.
NOTE: In pro-rata allotment when shares are issued at a premium, excess money received on application
will first be adjusted towards the share capital. Any excess thereon will be utilized towards the Securities
Premium.
When allotment or any call money is due, it is to be transferred to the calls in arrears account, on which
interest, if provided in the Articles of Association, will be calculated.
(f) Forfeiture and reissue of shares at par, premium or discount.
(g) Disclosure of Share capital in the company’s Balance Sheet.
NOTE: Issue of bonus and rights shares, private placement of shares, sweat equity shares, employees’
stock option scheme, reservations for small individual participants and minimum tradable lots are
excluded.

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B. Issue of Debentures
Practical problems on issue of debentures (at par, at premium and at discount.)
Practical problems on issue of debentures to include:
(a) Issue of debentures at par, at premium and at discount under Companies Act 2013.
(b) Issue of debentures as collateral security for a loan.
(c) Issue of debentures for considerations other than cash.
• To promoters.
• To underwriters.
• To vendors
(d) Accounting entries at the time of issue when debentures are redeemable at par and premium.
(e) Calls in arrears, calls in advance and interest thereon.
(f) Interest on debentures (with TDS).
(g) Disclosure of Debentures in the company’s Balance Sheet.
NOTE: All capital losses to be written off in the year in which they occur. The sequence for writing off
such losses will be first from Securities Premium and then from Statement of Profit and Loss.
C. Final Accounts of Companies
Preparation of the Balance Sheet of a company (along with notes to accounts) as per Schedule III Part I
of Companies Act 2013.
Amendments:
1. As per the amendment made in Accounting Standard 4, dividend proposed for a year is not a liability
till it has been approved by the shareholders. Thus, proposed dividend is not shown as a short-term
provision in the current Balance Sheet of a company but disclosed in Notes to Accounts under
Contingent Liabilities.
2. Schedule III of the Companies Act, 2013, has been amended whereby:
(I) The sub-head ‘Fixed Assets’ under Non-Current Assets is replaced with ‘Property, Plant and
Equipment and Intangible Assets.’
(II) Tangible Assets under Fixed Assets is replaced with ‘Property, Plant and Equipment.’
3. Current maturities of long-term borrowings to be shown under the Head - Current Liabilities Sub
head- Short Term Borrowing.
4. Securities Premium Reserve to be replaced with Securities Premium.
All capital losses to be written off in the year in which they occur unless otherwise mentioned.
NOTE: Schedule III Part II of Companies Act 2013 (Statement of Profit and Loss) is not required for
the purpose of preparing final accounts of a Company.
3. Financial Statement Analysis
Comparative Statements and Common Size Statements.
Meaning, significance and limitations of Comparative Statements and Common Size Statements.
Preparation of Comparative Balance Sheet and Statement of Profit and Loss (inter-firm and intra-firm)
showing absolute change and percentage change.
Common size Balance Sheet to be prepared as a percentage of total assets and total liabilities.
Common size Statement of Profit and Loss to be prepared as a percentage of Revenue from operations.

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NOTE: Preparation of comparative statements and common size statements to be made from the Balance
Sheets and Statements of P/L without notes to accounts.
4. Cash Flow Statement (Only for Manufacturing Companies)
(i) Meaning, importance and preparation of a Cash Flow Statement.
NOTE: Based on Accounting Standard – 3 (revised) issued by the Institute of Chartered Accountants of
India.
(ii) Calculation of net cash flows from operating activities based on Indirect Method only.
Preparation of a Cash Flow Statement from two consecutive years’ Balance Sheet with or without
adjustments.
Preparation of complete/partial cash flow statement from extracts of Balance Sheets and Statements of
P/L with or without adjustments.
NOTE: Any adjustment or an item in the Balance Sheet relating to extraordinary items and refund of tax
are not required.
(iii) Preparation of Cash Flow Statement on basis of operating, investing and financing activities.
The following items are to be taken when calculating net cash flows from financing activities:
• Issue of shares at par and premium, issue of debentures at par, premium and discount.
• Redemption of preference shares and debentures at par.
• Interest paid on Long-Term and Short- Term Borrowings.
• Dividend– interim and final- paid on shares.
• Long-term borrowings and Short-term borrowings – bank overdraft, cash credit and short-term loan.
whether taken or repaid.
• Share issue expenses / underwriting commission paid.
The following items are to be taken when calculating net cash flows from investing activities:
• Cash purchase of Property, Plant & Equipment & intangible assets.
• Cash sale of Property, Plant & Equipment & intangible assets.
• Purchase and proceeds from the sale of shares or debentures or long- term investments of other
companies.
• Loans and advances given (whether short-term or long-term).
• Repayment of Loans and advances given (whether short-term or long-term).
• Interest and dividend received on shares or debentures or long- term investments of other companies.
• Interest received on Loans and advances given (whether short-term or long-term).
The following items are to be taken for cash and cash equivalents:
• Cash
• Bank
• Short term investments
• Marketable securities

NOTE:
(i) Adjustments relating to provision for taxation, proposed dividend, interim dividend, amortization of
intangible assets, profit or loss on sale of fixed assets including provision for/accumulated depreciation
on them, Profit or loss on sale of investment, uses of Securities Premium as per Companies Act, 2013.

14

(ii) Treatment of proposed dividend:
(a) Dividend proposed for the previous year will be an outflow for cash, unless otherwise stated, on the
assumption that the proposed amount has been approved by the shareholders in the AGM.
(b) No effect is given to Proposed Dividend for the current year as it is not provided for and is a
contingent liability.
(c) Any unpaid dividend is transferred to Dividend Payable Account / Unpaid Dividend Account which
is shown in the Balance Sheet of the current year as Other Current Liabilities under Current
Liabilities.
(iii) Treatment of provision for doubtful debts- Provision for doubtful debts can be treated as a charge against
profits or as part of the working capital changes. In case of good debtors, the provision will be treated as
an appropriation of profit.
(iv) To calculate cash flow from operating activities the Adjusted Profit and Loss Account is not acceptable
as per AS-3.
(v) Calculation of Net Profit before Tax has to be shown as a Working Note.
(vi) Excluded: Any transaction pertaining to Capital Reserve.

5. Ratio Analysis
A. Liquidity Ratios:
(i) Current Ratio:
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿

Current Assets = Current Investments + Inventories (excluding Loose Tools and Spare Parts) + Trade
Receivables + Cash and Bank Balance + Short-term Loans and Advances + Other Current Assets
Current Liabilities = Short term borrowings + Trade payables + Other Current Liabilities + Short term
Provisions
(ii) Quick Ratio / Liquid Ratio / Acid Test Ratio:
𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿
OR
𝐴𝐴𝐴𝐴𝐴𝐴 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 − 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 (𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 & 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃) − 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿
OR
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿

B. Solvency Ratios:
(a) Debt to Equity Ratio:
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷⁄𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
=
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸⁄𝑆𝑆ℎ𝑎𝑎𝑎𝑎𝑎𝑎ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑠𝑠 ′ 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹
Debt = Long Term Borrowings + Long Term Provisions
Equity / Shareholders’ Funds = Share Capital + Reserves and Surplus

15

OR
= Non-Current Assets + (Current Assets – Current Liabilities) – Non-Current Liabilities
OR
= Non-Current Assets + Working Capital – Non-Current Liabilities
OR
= (Property, Plant & Equipment + Intangible Assets + Non-Current Investments + Long Term Loans
and Advances)
+ Working Capital – (Long Term Borrowings + Long Term Provisions)

(b) Proprietary Ratio:
𝑆𝑆ℎ𝑎𝑎𝑎𝑎𝑎𝑎ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹⁄𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
=
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴

Total Assets = Non-Current Assets + Current Assets
= Property, Plant & Equipment + Intangible Assets + Non- Current Investments + Long Term Loans
and Advances + Current Investments + Inventories (including Loose Tools and Spare Parts) + Trade
Receivables + Cash and Bank Balance + Short-term Loans and
Advances + Other Current Assets

(c) Debt to Total Assets Ratio:
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
=
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
(d) Interest coverage ratio:
𝑁𝑁𝑁𝑁𝑁𝑁 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑎𝑎𝑎𝑎𝑎𝑎 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡
=
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝐶𝐶ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎

Fixed Interest Charges includes interest on only long-term borrowings.

C. Activity Ratios:
(i) Trade Receivables Turnover Ratio:
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
=
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅

Credit Revenue from Operations = Revenue from Operation – Cash Revenue from Operation
Average Trade Receivables:
𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
=
2
(ii) Trade Payables Turnover Ratio :
𝑁𝑁𝑁𝑁𝑁𝑁 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎
=
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃

16

Average Trade Payables:
𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
=
2
(iii) Working Capital Turnover Ratio :
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
=
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶

(iv) Inventory Turnover Ratio :
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑜𝑜𝑜𝑜 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
=
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
Cost of Revenue from Operations = Revenue from Operations – Gross Profit
OR
Cost of Material Consumed (including direct expenses) + Change in inventories of WIP and Finished
Goods
OR
Opening Inventory + Net Purchases+ Direct Expenses – Closing inventory
Average Inventory:
𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
=
2
D. Profitability Ratios:
(i) Gross Profit Ratio:
𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
= × 100
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂

Gross Profit = Revenue from Operations – Cost of Revenue from Operations/ Cost of Goods Sold
Cost of Revenue from Operations = Cost of Material Consumed (including direct expenses) + Change
in inventories of WIP and Finished Goods.
OR
Opening Inventory + Net Purchases + Direct Expenses – Closing inventory

(ii) Net Profit Ratio:
𝑁𝑁𝑁𝑁𝑁𝑁 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
= × 100
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂

Net Profit = Gross profit + Other Income – Indirect Expenses – Provision for Tax

(iii) Operating Ratio:
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑜𝑜𝑜𝑜 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 + 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
= × 100
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂

17

OR
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑜𝑜𝑜𝑜 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 + 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 − 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
× 100
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
Operating Expenses = Employee Benefit Expenses + Depreciation of Tangible Assets + Selling and
Distribution Expenses+ Office and Administrative Expenses.

Operating Income = Commission received, Cash discount received.

(iv) Operating Profit Ratio:
𝑁𝑁𝑁𝑁𝑁𝑁 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
= × 100
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
Net operating profit = Net Profit after Tax+ Provision for Tax +Non-Operating Expenses –
Non-Operating Incomes
OR
Gross Profit – Operating Expenses + Operating Incomes
Non-Operating Expenses = Finance Cost (Interest on Long-term Borrowings) + Loss on sale of Non-
Current Assets + Amortisation of Intangible Assets + Writing off capital
losses

Non-Operating Incomes = Interest and Dividend Received on Investment + Profit on sale of Non-
Current Assets.
(v) Earning per share:
𝑁𝑁𝑁𝑁𝑁𝑁 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑇𝑇𝑇𝑇𝑇𝑇 𝑎𝑎𝑎𝑎𝑎𝑎 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
=
𝑁𝑁𝑁𝑁. 𝑜𝑜𝑜𝑜 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑆𝑆ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎

(vi) Price Earning Ratio:
𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑜𝑜𝑜𝑜 𝑎𝑎𝑎𝑎 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑆𝑆ℎ𝑎𝑎𝑎𝑎𝑎𝑎
=
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑝𝑝𝑝𝑝𝑝𝑝 𝑠𝑠ℎ𝑎𝑎𝑎𝑎𝑎𝑎
(vii) Return on Investment:
𝑁𝑁𝑁𝑁𝑁𝑁 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝑎𝑎𝑎𝑎𝑎𝑎 𝑇𝑇𝑇𝑇𝑇𝑇
= × 100
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

NOTE:
1. Current Ratio includes Net Debtors (Gross Debtors – Provision for doubtful debts) while Trade
Receivables Turnover Ratio includes Gross Debtors.
2. Other Current Assets’ is restricted to Prepaid Expenses and Accrued Income.
3. Capital employed = Shareholders’ Funds + Non-current Liabilities – Non-trade Investments
OR
Non-current Assets (excluding Non-trade Investments) + Working Capital
OR
Property, Plant & Equipment & Intangible Assets + Trade Investments + Working Capital

18

4. Investments to be taken as non-trade investments unless specified as trade investments.
5. In Return on Investments Ratio- Net Profit before interest and tax will not include interest on non-trade
investments.
6. Revenue from operations (for a manufacturing company)
• Net Sales
For a manufacturing company
• Sale of scrap
Other Income: (for a manufacturing company)
• Rent received (non- operating)
• Commission received (operating)
• Interest and Dividend Received (non- operating)
• Profit from Sale of Fixed Assets (non- operating)
• Cash discount received (operating)
7. Problems on effect of transactions on ratios to be restricted to Current Ratio, Quick Ratio and Debt-
Equity Ratio.
8. Net Profit Ratio is to be calculated on ‘Net Profit after Tax’.

6. Application of Electronic Spread Sheet
(i) Concept and features of Electronic Spreadsheet.
Meaning, features, utility, merits and demerits of Electronic spreadsheets.
(ii) Electronic spreadsheets: Creating graphs and charts.
Creating worksheets and entering data, basic steps in creating graphs and charts (Bar and pie charts)
using Excel.

PAPER II (PROJECT WORK) : 20 MARKS
Candidates will be expected to have completed two projects from any topic covered in Theory.
The project work will be assessed by the teacher and a Visiting Examiner appointed locally and approved
by CISCE.
Mark allocation for each Project [10 marks]:
Overall format 1 mark
Content 4 marks
Findings 2 marks
Viva-voce based on the Project only 3 marks

19

A list of suggested Projects is given below:
1. Accounting for a Partnership Firm
Preparation of Journal, Ledger, Trial Balance, and Financial Statements (including the Trading Account,
Profit and Loss Account, Profit and Loss Appropriation Account, and Balance Sheet) for a partnership
business through a comprehensive case study.
(a) Case Study Development:
Create a case study where two or more individuals come together to form a partnership firm with a specific
capital contribution.
(b) Partnership Deed Preparation:
Draft a Partnership Deed covering aspects like:
• Capital contribution
• Partner's salary
• Commission
• Interest on capital
• Interest on drawings
• Interest on partner’s loan
• Rent paid to a partner
(c) Transaction Recording:
Document detailed transactions for the year, including:
• Purchases and sales (cash and credit)
• Expenses
• Fixed asset purchases
• Depreciation
• Accrued income
• Bills of exchange (drawn and accepted)
• Outstanding/prepaid expenses
• Bills payable
(d) Journal and Ledger Work:
Using the data from your case study (minimum of 15 transactions), perform the following:
• Journalise the entries.
• Post them into the ledger.
• Prepare the Trial Balance.
• Draft the Trading Account, Profit and Loss Account, Profit and Loss Appropriation Account, and the
Balance Sheet.
(e) Data Presentation:
• Represent various expenses using bar diagrams and pie charts for comparison.
• Present data in both tabular and graphical formats for clarity.
(f) Ratio Analysis:
• Calculate key accounting ratios (liquidity, solvency, activity, and profitability).
• Provide formulas and computations.
• Compare these ratios with industry standards (if possible).
• Include these insights in the viva-voce presentation.

20

2. Preparation of a Cash Flow Statement
The preparation of a Cash Flow Statement may be undertaken using audited, unaudited, or hypothetical
(imaginary) Balance Sheets of a company. These should pertain to either two consecutive accounting years
or two successive quarters within the same accounting year.
In addition to the Balance Sheets, at least five supplementary pieces of financial information must be provided.
These may include:
(a) Depreciation
(b) Purchase or sale of fixed assets
(c) Dividends paid or proposed
(d) Taxes paid or proposed
(e) Amortization of intangible assets
(f) Profit or loss on the sale of fixed assets (including provisions for depreciation)
(g) Profit or loss on the sale of investments
This information is essential for the accurate classification of cash flows under operating, investing, and
financing activities.
Furthermore, the results of these activities can be effectively presented using graphical and/or pictorial
formats. This may include the use of bar diagrams and pie charts to enhance clarity and facilitate comparative
analysis.
3. Preparation of Common Size and Comparative Financial Statements:
To help the candidates to understand and analyse a Company’s financial performance by preparing Common
Size and Comparative Income Statement and Balance Sheets using financial data from different time periods.
Candidates are Prepare a Common Size and Comparative Income Statement and Balance Sheet for a company
using financial data that is audited, unaudited, or even hypothetical (imaginary).
The data should cover either:
Two consecutive quarters within the same financial year, or
Two consecutive financial years.
The comparison must be presented in the form of Common Size and Comparative Income Statements and
Balance Sheets.
Additionally, the comparison may include visual representations such as bar diagrams or pie charts to make
the analysis more engaging and easier to understand.
4. Ratio Analysis
Prepare a comprehensive project on Ratio Analysis using the financial data of any company. Select at least
five key financial ratios, calculate and interpret each one, and present the findings with the help of appropriate
visual aids such as bar graphs or pie charts.
The project should include the following components:
(a) An introduction to ratio analysis.
(b) The objectives of conducting ratio analysis.
(c) Detailed calculations and interpretations of the selected financial ratios.
(d) Visual representation of data.
(e) A conclusion summarizing your insights on the company’s financial health.
The objective of this project is to understand and analyse the financial performance of a company through the
application of ratio analysis, enabling the interpretation of key financial metrics and assessment of the
company’s overall financial health.

21

5. Admission of a New Partner in a Partnership Firm
Prepare a project to understand the process and accounting implications involved when a new partner is
admitted into a partnership firm.
The project may include:
(a) Rationale for Admitting a New Partner:
• Business expansion needs
• Infusion of additional capital
• Bringing in new expertise or skills
• Sharing of workload and responsibilities
(b) Decision-making Regarding Reconstitution:
• Determination of new profit-sharing ratio
• Sacrifice ratio of existing partners
• Capital contribution by the incoming partner
• Adjustments to existing capital balances
• Major considerations behind these decisions
(c) Revaluation of Assets and Liabilities:
• Reasons for revaluation (to reflect current market value)
• Process of revaluation and its effect on partners’ capital accounts
• Preparation of Revaluation Account
(d) Calculation and Adjustment of Goodwill:
Need for valuing goodwill when a new partner is admitted into the partnership.
Methods for calculating goodwill (Average Profit Method, or Super Profit Method)
The project could be prepared in the form of a
creative and engaging role play or presentation demonstrating the admission process through PPT or
Visual Aid.
Or
Through Documentation (Written report) including preparation of Revaluation account, Partners’ Capital
account, and Balance Sheet (post-admission)
6. In the corporate world, the issuance and allotment of shares play a crucial role in raising capital for business
growth and expansion. When a company offers its shares to the public and receives applications for more
shares than it has offered—known as oversubscription—it must follow a structured and transparent process
to allot shares fairly and legally. This process is guided by the Companies Act, 2013, SEBI regulations, and
stock exchange guidelines. A key step in this procedure is the convening of a Board Meeting, where the board
of directors formally approves the basis of allotment and ensures compliance with all legal requirements. This
project aims to explore the detailed procedure followed by companies during such board meetings, with a
focus on the allotment of shares in oversubscribed scenarios.
More specifically, the objective is to:
(a) Study the share allotment process in detail.
(b) Understand the handling of oversubscription—how shares are distributed fairly.
(c) Examine the role of the Board of Directors in approving allotments.
(d) Learn about regulatory filings such as PAS-3 and the coordination with stock exchanges.

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(e) Explore practical implications through examples or case studies of real companies.
For this project the candidates are expected to prepare a PowerPoint presentation or a detailed report
explaining how shares are allotted to the public on a pro-rata basis in cases where the issue is
oversubscribed.
7. Project on Financial Statement of a Company
Prepare a project to create the Balance Sheet of a company along with notes to accounts. To accomplish this,
the following information should be collected or is required:
(a) Balances of various assets and liabilities, including balances from the Statement of Profit & Loss.
(b) Share capital details, including calls in arrears, share forfeiture, and balances.
(c) Any five subheads should contain more than one item to enable the preparation of notes to accounts
accordingly.
(d) At least one item on contingent liability.
8. Dissolution of a Firm
Prepare a project on the topic “Dissolution of a Firm” containing journal entries for all transactions and all
the relevant ledger accounts (Realisation A/c, Capital / Current A/c of Partners, Partners’/ Partner’s Loan A/c).
The project should cover the following points:
(a) Balance Sheet of the Firm on the date of dissolution.
(b) Loans: Loans taken by a partner, Loans given by a partner, Interest accrued on both types of loans.
(c) Partners' Capital and Current Account Balances.
(d) Treatment of Tangible and Intangible Assets where no information is available regarding their sale value.
(e) Treatment of Workmen Compensation Reserve, Deferred Revenue Expenditure and Investment
Fluctuation Reserve.
(f) Adjustment for Set-Off.
(g) Partners Taking Over Assets or Liabilities.
9. Project on “Issue of Debentures”
Prepare a project on the topic “Issue of Debentures.” The project should cover the following points:
(a) Normal Issue of Debentures with Conditions for Redemption
(Include the types of debentures, terms of issue, and methods of redemption.)
(b) Issue of Debentures for Consideration Other Than Cash
(Include cases such as purchase of assets or acquisition of a business.)
(c) Interest on Debentures
(Explain how interest is calculated, due dates, and its accounting treatment.)
Include suitable explanations with dates on the bases of which journal entries, and related ledger accounts
need to be prepared.

NOTE: No question paper for Project work will be set by CISCE.

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For the preparation of Comparative and Common Size Income Statements (Section B – Unit 4: Financial
Statement Analysis), the extent and format of the Statement of Profit and Loss as per Schedule III Part II
of the Companies Act 2013 to be studied is as follows:

Statement of Profit and Loss of ……
For the year ended……………..
Particulars Note No. Figures for the Figures for the
Current reporting Previous reporting
period period
I Revenue from operations
II Other Income
III Total Revenue (I + II)
IV Expenses:
Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of finished
goods
Work-in-progress and Stock-in
Trade
Employee benefits expense
Finance costs
Depreciation and amortization
expense
Other expenses
Total expense
V Profit before tax (III-IV)
VI Less Tax
VII Profit after Tax (V-VI)

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Disclosure of Share capital in the company’s Balance Sheet

Balance Sheet of ……
As at …….
Particulars Note Figures at the end of Figures at the end of
No. the current the previous
reporting period reporting period
1 2 3 4
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 xxxxy

Notes to Accounts: 1
Particulars Amount (₹)
(a) Share Capital
Authorised Capital
...... shares of ₹..... each aaa
Issued Capital
..... shares of ₹..... each
(of the above shares…..shares are allotted as fully paid up pursuant to a contract
without payment being received in cash) bbb
Subscribed Capital
Subscribed and fully paid up
..... shares of ₹.... each
(of the above shares…..shares are allotted as fully paid up pursuant to a contract
without payment being received in cash) xxx
Subscribed but not fully paid up
..... shares of ₹.... each, .... ₹ Called up x x x
Less calls –in- arrear (xx) x
xxxx
Shares Forfeited A/c y
xxxxy
1. Equity Share Capital and Preference Share Capital to be shown separately.
2. If the Authorised / Issued Capital is not mentioned in the question it has to be shown in the notes to accounts.
However, no figures will be shown as illustrated above.
3. Balance of Shares Forfeited Account is shown as a separate item under Share Capital in the Notes to Account. In
other words: Subscribed Capital + Balance of Shares Forfeited A/c = Share Capital

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Format of the Balance Sheet of a Joint Stock Company
PART-1

Balance Sheet of ……
As at …….
Particulars Note Figures at the end of the Figures at the end of the
No. current reporting period previous reporting period
1. 2 3 4.
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital
(b) Reserves and Surplus
(c) Money received against share
warrants
2. Share application money pending
allotment
3. Non- Current Liabilities
(a) Long- term borrowings
(b) Deferred tax liabilities (Net)
(c) Other Long term liabilities
(d) Long-term provisions
4. Current Liabilities
(a) Short term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short term provisions
TOTAL
II. ASSETS
1. Non- Current Assets
(a) Property, Plant & Equipment &
Intangible Assets
(i) Property, Plant &
Equipment
(ii) Intangible Assets
(iii) Capital work-in-progress
(iv) Intangible assets under
development
(b) Non-current Investments
(c) Deferred Tax Assets (Net)
(d) Long term loans and advances
(e) Other non-current assets
2. Current Assets
(a) Current Investments
(b) Inventories
(c) Trade Receivables
(d) Cash and Bank Balance
(e) Short-term loans and advances
(f) Other current assets
TOTAL

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SAMPLE TABLE FOR PRACTICAL WORK
S. Unique PROJECT 1 PROJECT 2 TOTAL
No. Identification MARKS
Number A B C D E F G H I J
(Unique ID) of Teacher Visiting Average Viva- Total Teacher Visiting Average Viva- Total (E + J)
the candidate Examiner Marks Voce by Marks Examiner Marks Voce by Marks
(A + B ÷ Visiting (C + (F + G ÷ Visiting (H + I)
2) Examiner D) 2) Examiner
7 7 Marks* 7 Marks 3 Marks 10 7 7 Marks* 7 Marks 3 Marks 10 20 Marks
Marks* Marks Marks* Marks
1

2

3

4

5

6

7

8

9

10

*Breakup of 7 Marks to be awarded separately by
Name of Teacher:
the Teacher and the Visiting Examiner is as follows:
Signature: Date
Overall Format 1 Mark
Content 4 Marks Name of Visiting Examiner
Findings 2 Marks
Signature: Date
NOTE: VIVA-VOCE (3 Marks) for each Project is to be conducted only by the Visiting Examiner, and should be based on the Project only

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