ISC Class 12 Syllabus 2024 Accounts

ISC
Syllabus

2024

Revised

Syllabus

ACCOUNTS (858)
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 divided into three Sections A, B and C.
It will be compulsory for all candidates to attempt Section A. Candidates will have a choice of attempting
questions either from Section B or Section C.
S. No. UNIT TOTAL WEIGHTAGE
SECTION A: 60 Marks
1. Partnership Accounts
A. Fundamentals of Partnership 10 Marks
B. Goodwill
C. Reconstitution of Partnership
15 Marks
I. Admission
II. Retirement and Death of a Partner
III. Dissolution of a Partnership Firm 8 Marks
2. Joint Stock Company Accounts
A. Issue of Shares 11 Marks
B. Issue of Debentures
9 Marks
C. Redemption of Debentures
D. Final Accounts of Companies 7 Marks
SECTION B (MANAGEMENT ACCOUNTING): 20 Marks
3. Financial Statement Analysis 4 Marks
4. Cash Flow Statement 8 Marks
5. Ratio Analysis 8 Marks
OR
SECTION C (COMPUTERISED ACCOUNTING): 20 Marks
6. Accounting Application of Electronic Spread Sheet 10 Marks
7. Database Management System (DBMS) 10 Marks

TOTAL 80 Marks

1

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

2

Self-Explanatory Accounting treatment of accumulated
profits and losses through one journal
(ii) Accounting treatment of goodwill on
entry: (Adjustment of the incoming
admission of a partner.
partner’s share to be done through his
Based on Accounting Standard -26 issued current account-similar to the treatment of
by the Institute of Chartered Accountants goodwill not brought in cash.)
of India in the context of Intangible Assets.
Gaining Partners’ Cap/Current A/c Dr.
(a) Premium for goodwill paid privately.
To Sacrificing Partners Cap/Current (in
(b) Premium for goodwill paid (in cash or case of profits).
kind) and retained in the business.
Sacrificing Partners’ Cap/Current A/c Dr.
(c) Premium for goodwill paid and
withdrawn by the old partners. To Gaining Partners Cap/Current (in case
of losses)
(d) When the incoming partner cannot
bring premium for goodwill in cash, General Reserve/ Reserve fund, Workmen
adjustments are to be done through Compensation Reserve/ Fund, Investment
his current account. Fluctuation Reserve/ Fund, Contingency
Reserve, Profit and Loss Account (Debit
(e) Hidden goodwill. and Credit Balance) and Advertisement
(f) When goodwill appears in the old Suspense Account/ Deferred Revenue
Balance Sheet. Expenditure.
(iii)Preparation of Revaluation Account. NOTE:
- Preparation of Balance Sheet during
Preparation of a Revaluation Account
admission of a partner to be done in
where changes in the values of assets and
liabilities are reflected in the new Balance Horizontal format.
Sheet after reconstitution of a partnership - Memorandum revaluation account, Joint
firm. Life Policy, Individual life policy are
excluded from the syllabus.
(iv) Accounting treatment of accumulated - Admission of a partner during an
profits and losses. accounting year is excluded from the
General Reserve / Reserve Fund, syllabus.
Workmen Compensation Reserve/ Fund,
Investment Fluctuation Reserve/Fund, II. Retirement and death of a partner
Contingency Reserve, Profit and Loss (i) Calculation of new profit-sharing
Account (Debit and Credit balance) and ratio, gaining ratio and sacrificing
Advertisement Suspense Account/ ratio.
Deferred Revenue Expenditure.
Self-Explanatory.
(v) Adjustment of Capitals.
(ii) Adjustment with regard to goodwill
(a) Adjustment of old partner’s Capital including hidden goodwill.
Accounts on the basis of the new
partner’s capital. Self-Explanatory.

(b) Calculation of new partner’s capital (iii) Adjustment with regard to
on the basis of old partner’s adjusted undistributed profits and losses.
capital. Self-Explanatory.
(vi) Change in Profit-Sharing Ratio. (iv) Adjustment with regard to share of
Change in PSR takes place at the time of profits of the retiring or deceased
admission of a partnership firm. partner from the date of the last
Balance Sheet to the date of retirement
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or death (on the basis of time or General Reserve/ Reserve
turnover). fund, Workmen Compensation
Reserve/ Fund, Investment
Through P & L Suspense A/c (in case
Fluctuation Reserve/ Fund,
of no change in PSR of remaining
Contingency Reserve, Profit and Loss
partners).
Account (Debit and Credit Balance)
Through Gaining Partners capital/ and Advertisement Suspense Account/
current A/c (in case of change in PSR Deferred Revenue Expenditure.
of remaining partners). NOTE:
(v) Preparation of Revaluation Account
− Preparation of Balance Sheet during
on retirement or death of a partner. retirement / death of a partner to be done in
Self-Explanatory. Horizontal format only.
(vi) Adjustment of capitals. − Memorandum Revaluation Account, Joint
(a) Readjusting the adjusted capital Life Policy, Individual life policy are
of the continuing partners in the excluded from the syllabus.
new profit-sharing ratio. III. Dissolution of a Partnership firm.
(b) Adjusting the capitals of the
(i) Meaning of dissolution and settlement of
continuing partners on the basis
accounts under Section 48 of The Indian
of the total capital of the new firm.
Partnership Act 1932.
(c) When the continuing partners
Self- Explanatory
bring in cash to pay off the
retiring partners. (ii) Preparation of Memorandum Balance
(vii) Calculation and payment of amount Sheet, Realization Account, Partner’s
Loan Account, Partner’s Capital Account
due to retiring partner.
and Cash/Bank Account.
Self-Explanatory.
Self-explanatory.
(viii) Preparation of retiring partner’s loan
accounts and deceased partner’s NOTE:
executor’s loan account (with interest When an asset or a liability is taken to the
on loan accrued and due and interest realization account any corresponding/related
on loan accrued but not due). fund or reserve is also transferred to realization
Self-explanatory. account and not to the partners’ capital
accounts.
(ix) Change in Profit-Sharing Ratio.
When accounts are prepared on a fixed capital basis,
Change in PSR takes place at the time partners’ current account balances are to be
of retirement / death of a partnership transferred to capital account. No adjustments are
firm. required to be passed through current account.
Accounting treatment of accumulated Bank overdraft is to be taken to the Bank/Cash A/c and
profits and losses through one journal not to be transferred to realization account but bank
entry: loan must be transferred to realization account.
Gaining Partners’ Cap Current A/c • If question is silent about the payment of a liability,
Dr. then it has to be paid out in full.
To Sacrificing Partners’ Cap/Current • If the question is silent about the realized value of
(in case of profits). tangible assets and investments it should be
Sacrificing Partners’ Cap/Current A/c considered as realized at book value itself.
Dr. • If the question is silent about the realized value of
To Gaining Partners’ Cap/Current (in intangible assets, accrued income and prepaid
case of losses)
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expenses it should be considered as nil (zero (g) Disclosure of Share capital in the
value). company’s Balance Sheet.
• Loan taken from a partner will be passed through NOTE: Issue of bonus and rights shares, private
cash or bank account even if the partner’s capital placement of shares, sweat equity shares,
account has a debit balance. employees’ stock option scheme, reservations for
small individual participants and minimum
• Loan given to a partner will be transferred
tradable lots are not required.
(debited) to his Capital account.
B. Issue of Debentures
• Realization expenses – paid by the firm; paid by a
partner; borne by a partner; to be borne by a Problems on issue of debentures (at par, at
partner but paid by the firm on his behalf; partner premium and at discount.)
reimbursed by the firm for the realization expenses
Problems on issue of debentures to include:
paid by him with an asset of the firm.
(a) Issue of debentures at par, at premium and
• Admission cum retirement, amalgamation of firms
at discount under Companies Act 2013.
and conversion/sale to a company together with
piecemeal distribution and insolvency of a partner (b) Issue of debentures as collateral security
/ partners not required. for a loan.
2. Joint Stock Company Accounts (c) Issue of debentures for considerations
other than cash.
A. Issue of Shares
• To promoters.
Problems on issue of shares.
• To underwriters.
(a) Issue of shares at par and premium under
Companies Act, 2013. • To vendors
(b) Issue of shares for considerations other (d) Accounting entries at the time of issue
than cash: when debentures are redeemable at par
• To promoters (can be considered and premium.
either through Goodwill account or (e) Calls in arrears, calls in advance and
Incorporation costs account). interest thereon.
• To underwriters.
(f) Interest on debentures (with TDS).
• To vendors.
(g) Disclosure of Debentures in the
(c) Calls in arrears, calls in advance and company’s Balance Sheet.
interest thereon.
NOTE: All capital losses to be written off in the
(d) Over and undersubscription (including
pro-rata allotment). year in which they occur.
(e) Preparation of Journal; Cash Book and C. Redemption of Debentures
Journal Proper; Ledger Accounts. • Creation of Debenture Redemption
NOTE: In pro-rata allotment when shares are Reserve (wherever applicable)
issued at a premium, excess money received on • Redemption of debentures out of profits.
application will first be adjusted towards the
share capital. Any excess thereon will be utilized • Redemption of debentures out of capital.
towards the Securities Premium. • Redemption of debentures in a lump sum.
When allotment or any call money is due, it is to • Redemption of debentures in annual
be transferred to the calls in arrears account, on instalments by draw of lots.
which interest, if provided in the Articles of
Association, will be calculated. Self-Explanatory.
(f) Forfeiture and reissue of shares at par, NOTE:
premium or discount. I. All capital losses to be written off in the year
Self-explanatory. in which they occur.

5

II. Calculation of ex-interest and cum-interest are of the next year, in deposits with any
not required. scheduled bank, free from any charge
or lien / in unencumbered securities of
III. In case of redemption of debentures in annual the Central Government or any State
instalments by draw of lots: Government / in unencumbered
(i) The entire DRI purchased for the securities mentioned in Section 20 of
redemption of the instalment of the Indian Trusts Act, 1882/ in
debentures is not sold at the end of the year unencumbered bonds issued by any
but sold/further purchased to the extent to other company notified under Section
maintain 15% of the face value of the 20 of the Indian Trusts Act, 1882:
debentures to be redeemed in the next (i) Listed companies including
instalment. In case of redemption in equal NBFCs registered with RBI HFCs
instalments, DRI purchased for the first National Housing Bank (NHB) and
instalment remains invested till the last unlisted companies (other than
instalment. NBFCs and HFCs).
(ii) Wherever applicable, DRR is transferred (ii) Unlisted companies (other than
to General Reserve in proportion to the NBFCs and HFCs).
debentures redeemed.
IV. Rules relating to creation of Basically, All India Financial Institutions
regulated by RBI, Banking Companies for both
Debenture Redemption Reserve (DRR): public as well as privately placed debentures,
(i) Listed companies including NBFCs other Financial Institutions within the
registered with RBI and HFCs registered meaning of Section 2(72) of the Companies
with National Housing Bank (NHB) both Act, 2013 and unlisted NBFCs registered with
for public issue as well as private RBI and HFCs registered with National
placements do not require the creation of Housing Bank (NHB) are exempted both, from
any DRR. creating DRR and from making a DRI.
(ii) Unlisted NBFCs registered with RBI and D. Final Accounts of Companies
HFCs registered with National Housing
Bank (NHB) both for public issue as well Preparation of the Balance Sheet of a company
as private placements do not require the (along with notes to accounts) as per Schedule
creation of any DRR. III Part I of Companies Act 2013.
(iii) For unlisted companies (other than Amendments:
NBFCs and HFCs), DRR is created to the 1. As per the amendment made in Accounting
extent of 10 per cent of the outstanding Standard 4, dividend proposed for a year is
debentures. not a liability till it has been approved by the
Rules regarding Debenture Redemption shareholders. Thus, proposed dividend is
Investment (DRI) not shown as a short-term provision in the
current Balance Sheet of a company but
• Unlisted NBFCs and HFCs need not disclosed in Notes to Accounts under
deposit any amount of its debentures Contingent Liabilities.
maturing during the year with
scheduled banks or invest it in specified 2. Schedule III of the Companies Act, 2013, has
government securities. been amended whereby:
(I) The sub-head ‘Fixed Assets’ under Non-
• The following companies will continue
to invest or deposit, on or before 30th Current Assets is replaced with ‘Property,
April in each year, a sum which shall Plant and Equipment and Intangible
not be less than 15 per cent, of the Assets.’
amount of its debentures maturing
during the year, ending on 31st March

6

(II) Tangible Assets under Fixed Assets is Work-in-
replaced with ‘Property, Plant and progress and
Equipment.’ Stock-in Trade
3. Current maturities of long-term borrowings Employee
to be shown under the Head - Current benefits
Liabilities Sub head- Short Term Borrowing. expense
4. Securities Premium Reserve to be replaced
Finance costs
with Securities Premium.
Depreciation
All capital losses to be written off in the year and
in which they occur unless otherwise amortization
mentioned. expense
NOTE: Schedule III Part II of Companies Act
Other
2013 (Statement of Profit and Loss) is not
expenses
required for the purpose of preparing final
accounts of a Company. Total expense
However, for the preparation of Comparative and V Profit before
Common Size Income Statements (Section B – tax (III-IV)
Unit 4: Financial Statement Analysis), the extent
and format of the Statement of Profit and Loss as VI Less Tax
per Schedule III Part II of the Companies Act VII Profit after
2013 to be studied is as follows: Tax (V-VI)
Statement of Profit and Loss for the year
ended:……………..
SECTION B
Particulars Note Figures Figures MANAGEMENT ACCOUNTING
No. for the for the
3. Financial Statement Analysis
Current Previous
reporting reporting Comparative Statements and Common Size
period period Statements.
Meaning, significance and limitations of
I Revenue from Comparative Statements and Common Size
operations Statements.
II Other Income Preparation of Comparative Balance Sheet and
Statement of Profit and Loss (inter-firm and intra-
III Total Revenue
firm) showing absolute change and percentage
(I + II) change.
IV Expenses: Common size Balance Sheet to be prepared as a
Cost of percentage of total assets and total liabilities.
materials Common size Statement of Profit and Loss to be
consumed prepared as a percentage of Revenue from
operations.
Purchases of
Stock-in-Trade NOTE: Preparation of comparative statements and
common size statements to be made from the
Changes in Balance Sheets and Statements of P/L without
inventories of notes to accounts.
finished goods 4. Cash Flow Statement (Only for Manufacturing
Companies)
(i) Meaning, importance and preparation of a
Cash Flow Statement.
7

NOTE: Based on Accounting Standard – 3 • Sale of shares or debentures or long- term
(revised) issued by the Institute of Chartered investments of other companies.
Accountants of India. The following items are to be taken for cash
(ii) Calculation of net cash flows from operating and cash equivalents:
activities based on Indirect Method only. • Cash
Preparation of a Cash Flow Statement from • Bank
two consecutive years’ Balance Sheet with or • Short term investments
without adjustments. • Marketable securities
Preparation of complete/partial cash flow NOTE:
statement from extracts of Balance Sheets and (i) Adjustments relating to provision for taxation,
Statements of P/L with or without adjustments. proposed dividend, interim dividend,
amortization of intangible assets, profit or loss
NOTE: Any adjustment or an item in the Balance on sale of fixed assets including provision
Sheet relating to extraordinary items and refund of for/accumulated depreciation on them, Profit
tax are not required. or loss on sale of investment, uses of Securities
(iii) Preparation of Cash Flow Statement on basis Premium Reserve as per 52 (2) of the
of operating, investing and financing Companies Act, 2013, (including issue of
activities. bonus shares), issue of shares/debentures for
The following items are to be taken when consideration other than cash are also
calculating net cash flows from financing included.
activities: (ii) Treatment of proposed dividend:
(a) Dividend proposed for the previous year
• Issue of shares at par and premium, issue will be an outflow for cash, unless
of debentures at par, premium and otherwise stated, on the assumption that
discount. the proposed amount has been approved
• Redemption of preference shares and by the shareholders in the AGM.
debentures at par. (b) No effect is given to Proposed Dividend
• Interest paid on Long-Term and Short- for the current year as it is not provided
Term Borrowings. for and is a contingent liability.
• Dividend– interim and final- paid on (c) Any unpaid dividend is transferred to
shares. Dividend Payable Account / Unpaid
• Long-term borrowings and Short-term Dividend Account which is shown in the
borrowings – bank overdraft, cash credit Balance Sheet of the current year as Other
and short-term loan. whether taken or Current Liabilities under Current
repaid. Liabilities.
• Share issue expenses / underwriting (iii) Treatment of provision for doubtful debts-
commission paid. Provision for doubtful debts can be treated as
The following items are to be taken when a charge against profits or as part of the
calculating net cash flows from investing working capital changes. In case of good
activities: debtors, the provision will be treated as an
• Cash purchase of Property, Plant & appropriation of profit.
Equipment & intangible assets. (iv) To calculate cash flow from operating
• Cash sale of Property, Plant & Equipment activities the Adjusted Profit and Loss Account
& intangible assets. is not acceptable as per AS-3.
(v) Calculation of Net Profit before Tax has to be
• Purchase of shares or debentures or long- shown as a Working Note.
term investments of other companies. (vi) Excluded: Any transaction pertaining to
• Interest and dividend received on shares Capital Reserve.
or debentures or long- term investments of
other companies.

8

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 𝑇𝑇𝑇𝑇𝑜𝑜𝑙𝑙𝑙𝑙 & 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃) − 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿
OR
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
=
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿

B. Solvency Ratios:
(i) 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
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)

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

Total Assets = Non-Current Assets + Current Assets

9

= 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

(iii) Debt to Total Assets Ratio:
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
=
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
(iv) 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
Average Trade Payables:
𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑔𝑔 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
=
2
(iii) Working Capital Turnover Ratio :
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
=
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶

10

(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
OR
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑜𝑜𝑜𝑜 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 + 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 − 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑖𝑖𝑖𝑖𝑖𝑖 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.

11

(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
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

12

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’.

SECTION C

COMPUTERISED ACCOUNTING

6. Accounting Application of Electronic Spread 2. Sale of goods - finding profit on sales; cost
Sheet / commission of salesmen.
(i) Concept of Electronic Spreadsheet. 3. Marks obtained by students - Total marks /
average marks.
Meaning, utility, merits and demerits of
Electronic spreadsheets. 4. Business transactions - Journal
(iv) Data Presentation
(ii) Features offered by Electronic Spreadsheet.
Graphs and charts- using wizards, various
An understanding of basic features of charts type, formatting grid lines and
electronic spreadsheets such as: Creating legends, previewing & printing charts
worksheet, entering data into worksheet,
heading information, data, text, dates, Database - creation, sorting, query and
alphanumeric values, saving & quitting filtering a database.
worksheet. Opening and moving around in an 7. Database Management System (DBMS)
existing worksheet. Toolbars and Menus,
keyboard shortcuts. Working with single and (i) Concept and Features of DBMS.
multiple workbooks - copying, renaming, Types and features of DBMS.
moving, adding and deleting, copying entries A conceptual understanding of the basic
and moving between workbooks. Formatting features of Data Base Management System
of worksheet- Auto format, changing - (DBMS), i.e. data update and retrieval using
alignment, character styles, column width, basic functions and commands of SQL.
date format, borders and colours. Previewing
and Printing worksheet - Page setting, Print Basic Commands: Select, Where, And, Or,
titles, Adjusting margins, Page break, headers Update, Delete and
and footers. Formulas – summation, Basic Functions: Avg, Count, Max, Min, Sum.
subtraction, division, multiplication, average
(ii) DBMS in Business Application.
and percentage. Functions: date, if-then- else,
freezing panes. Database design, tables, fields, relationships,
forms reports and indexing.
(iii) Application of spreadsheets in generating the
following accounting information: The following examples of DBMS in business
application:
1. Payroll
• Accounting Information
Components of payroll – Basic, HRA, DA
and TA, CCA, CTC deduction for PF and • Debtors and Creditors
income tax. • Bank Reconciliation Statement
• Asset Accounting
13

PAPER II – PROJECT WORK – 20 Marks • The ratios could also be shown graphically
Candidates will be expected to have completed two and/ or pictorially (bar diagrams and pie
projects from any topic covered in Theory. charts) and if possible, could be compared
with the ratios of the industry.
The project work will be assessed by the teacher 2. Preparation of a Cash Flow Statement with the
and a Visiting Examiner appointed locally and help of audited / unaudited / imaginary Balance
approved by CISCE. Sheets of a company for two consecutive
Mark allocation for each Project [10 marks]: accounting years or two consecutive quarters of an
accounting year could be taken along with at least
Overall format 1 mark five additional information (depreciation,
Content 4 marks purchase/ sale of fixed assets, dividend paid/
proposed, tax paid/ proposed, amortization of
Findings 2 marks intangible assets, profit or loss on sale of fixed
Viva-voce based on the Project only 3 marks assets including provision for depreciation on them
and profit or loss on sale of investment).
A list of suggested Projects is given below: • The results of the operating, investing and
1. Preparation of Journal / sub-division of journal, financing activities could be shown
Ledger, Trial balance and Financial Statements of graphically and/ or pictorially (bar diagrams
a partnership form of business on the basis of a and pie charts).
case study. 3. Preparation of Common Size and Comparative
• Develop a case study showing how two or Income Statement and Balance Sheet of a
more friends decide to come together and start company by taking into account its audited,
a business with a certain amount of capital. unaudited / imaginary financial results of two
consecutive quarters of an accounting year or of
• Prepare their Partnership Deed including
two consecutive accounting years.
interest on capital, partner’s salary,
commission, interest on drawings, interest on • The comparison has to be made in the form of
partner’s loan and rent paid to a partner. Common Size and Comparative Income
Statement and Balance Sheet.
• Write in detail, their transactions during the
year: purchases - cash and credit, sales - cash • The comparison could also be shown
and credit, expenses, purchase of fixed assets graphically and/ or pictorially (bar diagrams
and depreciation charged on them, any and pie charts).
outstanding expenses, prepaid expenses, 4. Taking the audited/ unaudited / imaginary
accrued income, drawing bills of exchange, financial results of any leading company, its
accepting bills payable etc. liquidity, solvency, activity and profitability ratios
• From this case study developed (which should of two consecutive accounting years or of two
have at least 15 transactions), pass the journal consecutive quarters of an accounting year should
entries, post them into the ledger, prepare a be calculated and the comparison of the ratios of
Trial Balance and the Trading and Profit and both the years or quarters should be shown
Loss Account, Profit and Loss Appropriation graphically and/ or pictorially (bar diagrams and
Account and Balance Sheet. pie charts).
• The various expenses, for comparison 5. Employee Salary Sheet:
purposes, could be depicted in the form of bar (i) Design a spreadsheet using the following
diagrams and pie charts. fields:
• Calculate relevant accounting ratios like Employee’s Name: String Variable of
liquidity, solvency, activity and profitability maximum size of 40 characters
giving their formulae and computation Date of Joining: Date in English U.K. format
(all this could be part of the viva-voce).
Basic Salary: upto 2 places after decimal

14

Calculate their net salary using the (i) Revenue (Hard Cover Books and Soft Cover
Employee’s data. [Feed in random data for 20 Books)
to 25 employees] (ii) Total Revenue
Some of the instructions are given below: (iii) Commission (Hard Cover Books and Soft
Important Instructions: Cover Books)
Dearness Allowance (DA) is paid @ 45% of (iv) Total Commission
Basic Salary. (v) Create a Chart (any style) showing the above
House Rent Allowance (HRA) is paid @ 15% information.
of (Basic Salary + DA) Open the original page (with lines and shading) as
City Compensatory Allowance (CCA) is paid well as a formula page. (The entire formula must
@ 8.3% of (Basic Salary + DA + HRA) been shown)
Provident Fund (PF) is deducted @ 12% of Use “=round (.0)” where applicable so that all
(Basic Salary + DA) columns add correctly.
Income Tax (IT) is deducted @ 10% of (Basic 7. Spreadsheet on Outstanding Report
Salary + DA + HRA + CCA)
Prepare and Present a Spreadsheet for a list of
Net Salary is summation of Basic Salary + DA outstanding notes receivable each month. The
+ HRA + CCA less PF and IT information for a particular month is as follows:
(ii) Save your worksheet on the desktop as
Use the following financial information:
Employee_Salary.
(iii) Print a Hard Copy of your work and close the Face Interest Other details
file. Value Rate
6. Revenue and Commission Statement 0 10.8% Late Penalty: 11%
Prepare a Spreadsheet for a certain Company,
500 9.2% Report date: July 30,
which pays a commission based upon books sold.
2011
Prepare a revenue and commission statement
based upon the following information: 1000 8.96% Days / Year: 365
Number of Number of
Name of
Soft Cover Hard Cover
Salesperson Note Face Period
Books sold Books sold Issue Date
Number Value Days
Suresh Mehta 1546 360
1 Rs. 525 90 7/2/2011
Gladstone David 1788 315
Manish Arora 1340 294 2 Rs. 612 60 14/3/2011

Manmeet Singh 990 450 3 Rs. 210 45 19/5/2011
Vineet Saighal 1105 689 4 Rs. 800 120 10/6/2011
5 Rs. 1469 30 24/6/2011
Assumption:
Price of Hard Cover Books: @Rs. 34.45 per Book
Show the Interest rate, Days outstanding, Interest
Price of Soft Cover Books: @ Rs. 22.05 per Book earned, Late penalty and Total due.
Commission on Hard Cover Books: 9.0% Use appropriate Lines and Shading to make the
Commission on Soft Cover Books: 12% report interesting and easy to read. Use two places
Prepare a spreadsheet showing your calculation to after the decimals where appropriate.
determine: Prepare a chart to show the above information.

15

8. Database Management (ii) Define a Primary Key for the Accounts table.
(i) Create a Database with at least 10 records with Click on the Account Number field with the
each record having the following fields: right mouse button and choose Primary Key
from the pop-up menu.
Employees Details: PAN Number, Name,
Address and Phone Number (iii) Save the new Accounts Table.
(ii) Sort the names in alphabetical order. 10. Selection Grade Card
(iii) The Employee database has another table (i) Make a Spreadsheet of a Selection Grading
called Loan Details that stores the details of Chart using the following details:
loan taken by various employees. Create a
query that gives a list of employees names Candidate’s Name: String type
along with loan details. Test 1: Integer type
The loan details table has following fields: Test 2: Integer type
Loan Amount, Loan Date, Interest Rate, Test 3: Integer type
Amount Paid and Amount Balance. Test 4: Integer type
(iv) Create a Report as per the format given below: The Worksheet format is as follows:
Employee Loan Details:
Test- Test-
Test-1 Test-2
Emp. Emp. Loan Loan Amount Balance Name of 3 4
(Max (Max
No. Name Amount Date Paid Amount S.N. the (Max (Max
25 25
Candidate 25 25
Decide tables, relationships etc. on your own. Mks) Mks)
Mks) Mks)
9. Database Management: Alfred
1 24 22 18 23
(i) Create an Accounts Table by following the Gomes
steps given below: 2
Shankar
17 20 17 20
Pandey
(a) Click on the new button and highlight
Design View in the dialog box that Ali
appears. 3 Hassan 22 19 20 14
Raza
(b) Click the OK button and the Table Design
View will appear. P. Subba
4 20 19 19 17
Rao
(c) Fill in the Field Name, Data Type and
Description for each column/field in the Sushanto
5 19 21 24 22
Mukerjee
Account Table.
Field Name Data Description (ii) Compute the percentage for each candidate’s
Type total. Show the total score and the percentage
CustomerID Number The Unique Identifier for each candidate.
for a Customer
(iii) Create a Header for the Chart. Include your
AccountNo Number The Unique Identifier name.
for a Bank Account
(iv) Save your work on the desktop as
AccountType Text The type of account Merit_Project.
(Checking, Saving etc.)
(iv) Print a hard copy of your work and close the
DateOpened Date The date the account
file.
was opened
Balance Number The current balance
NOTE: No question paper for Practical work will
(money) in this account.
be set by CISCE.

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*EXPLANATION AND PRESENTATION OF ITEMS UNDER SHAREHOLDERS’ FUNDS

Share Capital

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 xxx

Notes to Accounts: 1.
Particulars Amount (`)
(a) Share Capital
Authorised Capital
...... shares of `..... each xxx

Issued Capital
xxx
..... 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 Capital
Subscribed and fully paid up xxx
..... shares of `.... each
(of the above shares…..shares are allotted as fully paid up pursuant to a contract
without payment being received in cash)
Subscribed but not fully paid up
xxx
..... shares of `.... each, .... ` Called up xxx
Less calls –in- arrear (xx) xx
Shares Forfeited A/c

TOTAL xxx
Points to be noted:
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 Accounts.

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4. **FORMAT OF THE BALANCE SHEET OF A JOINT STOCK COMPANY
PART-1
BALANCE SHEET
Name of the Company....................
Balance Sheet as at.........................
(Rupees in ................)
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

18

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

19