WBCHSE Class 12 Syllabus for Accountancy

ACCOUNTANCY (ACCT)
CLASS - XII
Full Marks 100
Financial Accounting-II

Alternatives are given as follows:
a) Part A- 60 marks
b) Part B – 20 marks or Part C - 20 marks
d) Project Work - 20 marks

PART- A

1. Introduction to Partnership (10 marks)
ƒ Meaning: Partnership, partners, firms, partnership deed.
ƒ Provisions of the Indian Partnership Act 1932 affecting accounts in the absence
of Partnership Deed.
ƒ Fixed v/s Fluctuating Capital Accounts, divisions of profit among partners,
guarantee of profits, past adjustments (relating to interest on capital, interest on
drawing, salary and profit sharing ratio), preparation of P & L.
ƒ Appropriation Accounts.
ƒ Goodwill: Nature, factors affecting and methods of valuation – average profit,
super profit, and capitalization.

2. Reconstruction of Partnership (25 marks)
ƒ Change in the profit sharing ratio among the existing partners: Sacrificing
ratio, gaining ratio, accounting for revaluation of assets and re-assessment of
liabilities and distribution of reserves and accumulated profits.
ƒ Admission of a Partner: Effect of admission of a partner on: change in the
profit sharing ratio, treatment of goodwill (as per Accounting Standard 26),
treatment for revaluation of assets and re-assessment of liabilities, treatment of
reserves and accumulated profits, adjustment of capital account and preparation
of balance sheet.

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ƒ Retirement and Death of a Partner: Effect of retirement / death of a partner-
change in profit sharing ratio, treatment of goodwill, treatment for revaluation of
assets and re-assessment of liabilities, adjustment of accumulated profit and
reserves. Calculation of decreased partner’s share of profit till the date of death.
Preparation of decreased partner’s Executor’s account and preparation of Balance
sheet.

3. Accounting for shares Capital (20 marks)
ƒ Share and share capital: Meaning, Nature and Types
ƒ Accounting for share capital: Issue and Allotment of equity shares. Private
placement of shares. Public Subscription of shares – over subscription and under
subscription of shares. Issue at par and Premium, call in advance and arrears,
Issue of shares for consideration other than cash.
ƒ Accounting treatment of forfeiture and re-issue.
ƒ Disclosure of share capital in Company’s Balance sheet (Vertical form)

4. Accounting for Debentures (5 marks)
ƒ Debentures: Meaning, Issue of debentures at par and at premium. Issue of
debentures for consideration other than cash. Debentures as collateral security.
Interested on Debentures.

PART- B

5. Analysis of Financial Statements (12 marks)
ƒ Financial statements of a company: Balance sheet of a company in the
prescribed form with major headings and sub headings (as per schedule VI to
the Companies Act 1956)
ƒ Financial Statement analysis: Meaning, objectives and Limitations.
ƒ Tools for Financial Statement Analysis: comparative statements, common
size statements, cash flow analysis, ratio analysis.
ƒ Accounting Ratios: Meaning, objectives and classification of ratios.
ƒ Liquidity ratios: Current ratio and quick radio.
ƒ Solvency Ratios: Debt to equity ratio, total assets to debt ratio, proprietary
ratio, interest coverage ratio.

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ƒ Activity Ratios: Stock turnover ratio, debtors turnover ratio, creditors turnover
ratio, working capital turnover ratio.
ƒ Profitability Ratios: Gross profit ratio, operating ratio, operating profit ratio, net
profit ratio.

6. Cash Flow Statement (8 marks)
ƒ Meaning, objective and preparation (as per Accounting Standard 3, without
adjustment). (Indirect Method)

PART- C
Application of Computers in financial Accounting (20 marks )

Electronic Spread Sheet
ƒ Concept, data entry text Management and cell formatting, data formatting, output reports,
preparation of reports, using pivot table, common errors in spread sheet.
(4 marks)
ƒ Use of spread sheet in Business Application: Payroll accounting, assets accounting.
(6 marks)
ƒ Graphs and charts for Business: Data graphs and charts, preparation of graphs and
charts using excel, advantages of using graphs and charts.
(4 marks)
ƒ Data Base Management System for Accounting (6 marks)
ƒ Defining database requirements, identification of data to be stored in tables,
structural of data.
ƒ Creating data tables for accounting, using queries, forms and reports for
generating accounting information with the help of Microsoft Access Software.

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PART- D
Project Work (20 marks )
File – 04 marks
Written – 12 marks
Viva – 04 marks

ƒ Comprehensive Problem: From the given set of transactions preparation of
vouchers, books of accounts, trial balance and financial statements of a
proprietorship firm or a partnership firm.
ƒ Analysis: Analysis of given data using analytical tools such as ratio analysis
and cash flow.

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