Edudel Syllabus Class 12 Accountancy

ANNUAL SYLLABUS

SESSION-2023-24

CLASS-XII

SUBJECT- ACCOUNTANCY (Code-055)
CONTENTS

Part A: Partnership Firms and Companies
Unit 1: 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 partner's loan is to be treated as a charge against profits.
Goodwill: meaning, factors affecting, need for valuation, methods for calculation (average profits,
super profits and capitalization) , adjusted through partners capital/ current account.
Accounting for Partnership firms - Reconstitution and Dissolution.
 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 re- assessment of liabilities, treatment of reserves and accumulated profits and
losses, adjustment of capital accounts and preparation of capital, current account and
balance sheet. 
 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, losses and
reserves, adjustment of capital accounts and preparation of capital, current account
and balance sheet. Preparation of loan account of the retiring partner.
 Calculation of deceased partner’s share of profit till the date of death. Preparation of

deceased partner’s capital account and his executor’s account. 
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 piecemeal
distribution, sale to a company and insolvency of partner(s)).
Note:
(i) If the realized value of tangible assets is not given itshould be considered as realized at book value itself.
(ii) If the realized value of intangible assets is not given it should be considered as nil (zero value).
(ii) In case, the realization expenses are borne by a partner, clear indication should be given regarding the
payment thereof.
Unit-2 Accounting for Companies
Accounting for Share Capital
 Features and types of companies
 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), Sweat Equity
 Accounting treatment of forfeiture and re-issue of shares.
 Disclosure of share capital in the Balance Sheet of a company.

 Completion of the Mid-Term Syllabus by 15th September 2023
 MID TERM EXAM
CONTENTS

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(concept of TDS is excluded).
Writing off discount / loss on issue of debentures.
Note: Discount or loss on issue of debentures to be written off in the year debentures are allotted
from Security Premium Reserve (if it exists) and then fromStatement of Profit and Loss as
Financial Cost (AS 16)

Part B: Financial Statement Analysis
Unit 3: Analysis of Financial Statements
Financial statements of a company :
Meaning, Nature, Uses and importance of financial statement
Statement: Profit and the Loss and Balance Sheet in prescribed form with major headings and
sub headings (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: Meaning, Significance, Objectives, importance and limitations
 Tools for Financial Statement Analysis:
Comparative statements. Common size statements, Ratio analysis, Cash flow analysis.
 Accounting Ratios: Meaning, Objectives, Advantages, 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. Debt to capital employed ratio
 Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade
Payables Turnover Ratio, Fixed Assets Turnover Ratio, Net Assets 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 profit before and after tax.

Unit 4: Cash Flow Statement
 Meaning, objectives, benefits Cash and Cash Equivalents, Classification of Activities
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 declaredby the shareholders.

 PROJECT WORK (As per CBSE guidelines)
 Complete the Annual Syllabus by 15th December 2023
 PRE BOARD EXAM
 Complete Syllabus will be covered in Annual Exam
Revision with Last Year Board Papers and Support Material
Issued By DOE, Delhi

Accountancy (Code No. 055)

Class-XII (2023-24)

Theory: 80 Marks 3 Hours
Project: 20 Marks

Units Periods Marks

Part A Accounting for Partnership Firms and Companies

Unit 1. Accounting for Partnership Firms 105 36
Unit 2. Accounting for Companies 45 24
150 60
Part B Financial Statement Analysis
Unit 3. Analysis of Financial Statements 30 12
Unit 4. Cash Flow Statement 20 8
50 20
Part C Project Work 20 20
Project work will include:

Project File 12 Marks

Viva Voce 8 Marks