ISC Class 12 Syllabus 2027 Accountancy

ISC YEAR 2027

INDIAN SCHOOL CERTIFICATE
EXAMINATION

ACCOUNTANCY
(858)

February 2025
____________________________________________________________________________________________

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endeavours, empowering them to contribute towards
a humane, just and pluralistic society, promoting
introspective living, by creating exciting learning
opportunities, with a commitment to excellence.

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Minimum monitoring.
Allowing schools to evolve their own niche.
Catering to the needs of the children.
Giving freedom to experiment with new ideas
and practices.
Diversity and plurality - the basic strength for
evolution of ideas.
Schools to motivate pupils towards the
cultivation of:
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experience.
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of the educational experience.
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aspirations.

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 11 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
8 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

ISC Examination Year 2027 6

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.
(d) Guarantee of profits
(e) 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

ISC Examination Year 2027 7

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

ISC Examination Year 2027 8

Balance Sheet to the date of retirement To Gaining Partners’ Cap/Current (in
or death (on the basis of time or case of losses)
turnover). General Reserve/ Reserve
Through P & L Suspense A/c (in case fund, Workmen Compensation
of no change in PSR of remaining Reserve/ Fund, Investment
partners). Fluctuation Reserve/ Fund,
Contingency Reserve, Profit and Loss
Through Gaining Partners capital/ Account (Debit and Credit Balance)
current A/c (in case of change in PSR and Advertisement Suspense Account/
of remaining partners). Deferred Revenue Expenditure.
(v) Preparation of Revaluation Account NOTE:
on retirement or death of a partner.
− Preparation of Balance Sheet during
Self-Explanatory. retirement / death of a partner to be done in
(vi) Adjustment of capitals. Horizontal format only.
(a) Readjusting the adjusted capital − Memorandum Revaluation Account, Joint
of the continuing partners in the Life Policy, Individual life policy are
new profit-sharing ratio. excluded from the syllabus.
(b) Adjusting the capitals of the
III. Dissolution of a Partnership firm.
continuing partners on the basis
of the total capital of the new firm. (i) Meaning of dissolution and settlement of
accounts under Section 48 of The Indian
(c) When the continuing partners
Partnership Act 1932.
bring in cash to pay off the
retiring partners. Self- Explanatory
(vii) Calculation and payment of amount (ii) Preparation of Memorandum Balance
due to retiring partner. Sheet, Realization Account, Partner’s
Loan Account, Partner’s Capital Account
Self-Explanatory.
and Cash/Bank Account.
(viii) Preparation of retiring partner’s loan
accounts and deceased partner’s Self-explanatory.
executor’s loan account (with interest NOTE:
on loan accrued and due and interest
When an asset or a liability is taken to the
on loan accrued but not due). realization account any corresponding/related
Self-explanatory. fund or reserve is also transferred to realization
(ix) Change in Profit-Sharing Ratio. account and not to the partners’ capital
accounts.
Change in PSR takes place at the time
of retirement / death of a partnership When accounts are prepared on a fixed capital basis,
firm. partners’ current account balances are to be
transferred to capital account. No adjustments are
Accounting treatment of accumulated required to be passed through current account.
profits and losses through one journal
entry: Bank overdraft is to be taken to the Bank/Cash A/c and
not to be transferred to realization account but bank
Gaining Partners’ Cap Current A/c loan must be transferred to realization account.
Dr.
• If question is silent about the payment of a liability,
To Sacrificing Partners’ Cap/Current then it has to be paid out in full.
(in case of profits).
• If the question is silent about the realized value of
Sacrificing Partners’ Cap/Current A/c tangible assets and investments it should be
Dr. considered as realized at book value itself.

ISC Examination Year 2027 9

• If the question is silent about the realized value of (f) Forfeiture and reissue of shares at par,
intangible assets, accrued income and prepaid premium or discount.
expenses it should be considered as nil (zero
Self-explanatory.
value).
(g) Disclosure of Share capital in the
• Loan taken from a partner will be passed through
company’s Balance Sheet.
cash or bank account even if the partner’s capital
account has a debit balance. NOTE: Issue of bonus and rights shares, private
placement of shares, sweat equity shares,
• Loan given to a partner will be transferred
employees’ stock option scheme, reservations for
(debited) to his Capital account.
small individual participants and minimum
• Realization expenses – paid by the firm; paid by a tradable lots are not required.
partner; borne by a partner; to be borne by a
B. Issue of Debentures
partner but paid by the firm on his behalf; partner
reimbursed by the firm for the realization expenses Problems on issue of debentures (at par, at
paid by him with an asset of the firm. premium and at discount.)
• Admission cum retirement, amalgamation of firms Problems on issue of debentures to include:
and conversion/sale to a company together with
(a) Issue of debentures at par, at premium and
piecemeal distribution and insolvency of a partner
at discount under Companies Act 2013.
/ partners not required.
(b) Issue of debentures as collateral security
2. Joint Stock Company Accounts
for a loan.
A. Issue of Shares
(c) Issue of debentures for considerations
Problems on issue of shares. other than cash.
(a) Issue of shares at par and premium under • To promoters.
Companies Act, 2013. • To underwriters.
(b) Issue of shares for considerations other • To vendors
than cash:
(d) Accounting entries at the time of issue
• To promoters (can be considered
either through Goodwill account or when debentures are redeemable at par
Incorporation costs account). and premium.
• To underwriters. (e) Calls in arrears, calls in advance and
• To vendors. interest thereon.
(c) Calls in arrears, calls in advance and (f) Interest on debentures (with TDS).
interest thereon. (g) Disclosure of Debentures in the
(d) Over and undersubscription (including company’s Balance Sheet.
pro-rata allotment).
NOTE: All capital losses to be written off in the year
(e) Preparation of Journal; Cash Book and
in which they occur. The sequence for writing off such
Journal Proper; Ledger Accounts.
losses will be first from Securities Premium, then from
NOTE: In pro-rata allotment when shares are
Statement of Profit and Loss and lastly from Capital
issued at a premium, excess money received on
application will first be adjusted towards the Reserve.
share capital. Any excess thereon will be utilized C. Redemption of Debentures
towards the Securities Premium.
• Creation of Debenture Redemption
When allotment or any call money is due, it is to
Reserve (wherever applicable)
be transferred to the calls in arrears account, on
which interest, if provided in the Articles of • Redemption of debentures out of profits.
Association, will be calculated. • Redemption of debentures out of capital.
• Redemption of debentures in a lump sum.

ISC Examination Year 2027 10

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

ISC Examination Year 2027 11

disclosed in Notes to Accounts under 4. Cash Flow Statement (Only for Manufacturing
Contingent Liabilities. Companies)
2. Schedule III of the Companies Act, 2013, has (i) Meaning, importance and preparation of a
been amended whereby: Cash Flow Statement.
(I) The sub-head ‘Fixed Assets’ under Non- NOTE: Based on Accounting Standard – 3
Current Assets is replaced with ‘Property, (revised) issued by the Institute of Chartered
Accountants of India.
Plant and Equipment and Intangible
Assets.’ (ii) Calculation of net cash flows from operating
activities based on Indirect Method only.
(II) Tangible Assets under Fixed Assets is
replaced with ‘Property, Plant and Preparation of a Cash Flow Statement from
Equipment.’ two consecutive years’ Balance Sheet with or
without adjustments.
3. Current maturities of long-term borrowings
to be shown under the Head - Current Preparation of complete/partial cash flow
statement from extracts of Balance Sheets and
Liabilities Sub head- Short Term Borrowing.
Statements of P/L with or without adjustments.
4. Securities Premium Reserve to be replaced
with Securities Premium. NOTE: Any adjustment or an item in the Balance
Sheet relating to extraordinary items and refund of
All capital losses to be written off in the year tax are not required.
in which they occur unless otherwise (iii) Preparation of Cash Flow Statement on basis
mentioned. of operating, investing and financing
NOTE: Schedule III Part II of Companies Act activities.
2013 (Statement of Profit and Loss) is not The following items are to be taken when
required for the purpose of preparing final calculating net cash flows from financing
accounts of a Company. activities:
• Issue of shares at par and premium, issue
of debentures at par, premium and
SECTION B discount.
MANAGEMENT ACCOUNTING • Redemption of preference shares and
3. Financial Statement Analysis debentures at par.
• Interest paid on Long-Term and Short-
Comparative Statements and Common Size
Term Borrowings.
Statements.
• Dividend– interim and final- paid on
Meaning, significance and limitations of shares.
Comparative Statements and Common Size • Long-term borrowings and Short-term
Statements. borrowings – bank overdraft, cash credit
Preparation of Comparative Balance Sheet and and short-term loan. whether taken or
Statement of Profit and Loss (inter-firm and intra- repaid.
firm) showing absolute change and percentage • Share issue expenses / underwriting
change. commission paid.
The following items are to be taken when
Common size Balance Sheet to be prepared as a
calculating net cash flows from investing
percentage of total assets and total liabilities.
activities:
Common size Statement of Profit and Loss to be
• Cash purchase of Property, Plant &
prepared as a percentage of Revenue from
Equipment & intangible assets.
operations.
• Cash sale of Property, Plant & Equipment
NOTE: Preparation of comparative statements and
& intangible assets.
common size statements to be made from the
Balance Sheets and Statements of P/L without • Purchase and proceeds from the sale of
notes to accounts. shares or debentures or long- term
investments of other companies.

ISC Examination Year 2027 12

• Loans and advances given (whether short- the proposed amount has been approved
term or long-term). by the shareholders in the AGM.
• Repayment of Loans and advances given (b) No effect is given to Proposed Dividend
(whether short-term or long-term). for the current year as it is not provided
for and is a contingent liability.
• Interest and dividend received on shares (c) Any unpaid dividend is transferred to
or debentures or long- term investments of Dividend Payable Account / Unpaid
other companies. Dividend Account which is shown in the
• Interest received on Loans and advances Balance Sheet of the current year as Other
given (whether short-term or long-term). Current Liabilities under Current
The following items are to be taken for cash Liabilities.
and cash equivalents: (iii) Treatment of provision for doubtful debts-
• Cash Provision for doubtful debts can be treated as
• Bank a charge against profits or as part of the
working capital changes. In case of good
• Short term investments
debtors, the provision will be treated as an
• Marketable securities appropriation of profit.
NOTE: (iv) To calculate cash flow from operating
(i) Adjustments relating to provision for taxation, activities the Adjusted Profit and Loss
proposed dividend, interim dividend, Account is not acceptable as per AS-3.
amortization of intangible assets, profit or loss (v) Calculation of Net Profit before Tax has to be
on sale of fixed assets including provision shown as a Working Note.
for/accumulated depreciation on them, Profit (vi) Excluded: Any transaction pertaining to
or loss on sale of investment, uses of Securities Capital Reserve.
Premium as per Companies Act, 2013.
(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

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

ISC Examination Year 2027 13

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
= 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

ISC Examination Year 2027 14

Average Trade Receivables:
𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
=
2
(ii) Trade Payables Turnover Ratio :
𝑁𝑁𝑁𝑁𝑁𝑁 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎
=
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
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

ISC Examination Year 2027 15

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 − 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

ISC Examination Year 2027 16

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
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 alignment, character styles, column width,
Sheet date format, borders and colours. Previewing
and Printing worksheet - Page setting, Print
(i) Concept of Electronic Spreadsheet. titles, Adjusting margins, Page break, headers
Meaning, utility, merits and demerits of and footers. Formulas – summation,
Electronic spreadsheets. subtraction, division, multiplication, average
and percentage. Functions: date, if-then- else,
(ii) Features offered by Electronic Spreadsheet. freezing panes.
An understanding of basic features of (iii) Application of spreadsheets in generating the
electronic spreadsheets such as: Creating following accounting information:
worksheet, entering data into worksheet,
heading information, data, text, dates, 1. Payroll
alphanumeric values, saving & quitting Components of payroll – Basic, HRA, DA
worksheet. Opening and moving around in an and TA, CCA, CTC deduction for PF and
existing worksheet. Toolbars and Menus, income tax.
keyboard shortcuts. Working with single and
multiple workbooks - copying, renaming, 2. Sale of goods - finding profit on sales; cost
moving, adding and deleting, copying entries / commission of salesmen.
and moving between workbooks. Formatting
of worksheet- Auto format, changing -

ISC Examination Year 2027 17

3. Marks obtained by students - Total marks / A list of suggested Projects is given below:
average marks. 1. Preparation of Journal / sub-division of journal,
4. Business transactions - Journal Ledger, Trial balance and Financial Statements of
(iv) Data Presentation a partnership form of business on the basis of a
case study.
Graphs and charts- using wizards, various
charts type, formatting grid lines and • Develop a case study showing how two or
legends, previewing & printing charts more friends decide to come together and start
Database - creation, sorting, query and a business with a certain amount of capital.
filtering a database. • Prepare their Partnership Deed including
interest on capital, partner’s salary,
7. Database Management System (DBMS) commission, interest on drawings, interest on
(i) Concept and Features of DBMS. partner’s loan and rent paid to a partner.
Types and features of DBMS. • Write in detail, their transactions during the
A conceptual understanding of the basic year: purchases - cash and credit, sales - cash
features of Data Base Management System and credit, expenses, purchase of fixed assets
(DBMS), i.e. data update and retrieval using and depreciation charged on them, any
basic functions and commands of SQL. outstanding expenses, prepaid expenses,
Basic Commands: Select, Where, And, Or, accrued income, drawing bills of exchange,
Update, Delete and accepting bills payable etc.
Basic Functions: Avg, Count, Max, Min, Sum. • From this case study developed (which should
(ii) DBMS in Business Application. have at least 15 transactions), pass the journal
entries, post them into the ledger, prepare a
Database design, tables, fields, relationships, Trial Balance and the Trading and Profit and
forms reports and indexing. Loss Account, Profit and Loss Appropriation
The following examples of DBMS in business Account and Balance Sheet.
application: • The various expenses, for comparison
• Accounting Information purposes, could be depicted in the form of bar
• Debtors and Creditors diagrams and pie charts.
• Bank Reconciliation Statement • Calculate relevant accounting ratios like
liquidity, solvency, activity and profitability
• Asset Accounting
giving their formulae and computation
PAPER II – PROJECT WORK – 20 MARKS (all this could be part of the viva-voce).
Candidates will be expected to have completed two • The ratios could also be shown graphically
projects from any topic covered in Theory. and/ or pictorially (bar diagrams and pie
charts) and if possible, could be compared
The project work will be assessed by the teacher with the ratios of the industry.
and a Visiting Examiner appointed locally and
approved by CISCE. 2. Preparation of a Cash Flow Statement with the
help of audited / unaudited / imaginary Balance
Mark allocation for each Project [10 marks]: Sheets of a company for two consecutive
Overall format 1 mark accounting years or two consecutive quarters of an
accounting year could be taken along with at least
Content 4 marks five additional information (depreciation,
Findings 2 marks purchase/ sale of fixed assets, dividend paid/
proposed, tax paid/ proposed, amortization of
Viva-voce based on the Project only 3 marks intangible assets, profit or loss on sale of fixed
assets including provision for depreciation on them
and profit or loss on sale of investment).

ISC Examination Year 2027 18

• The results of the operating, investing and Income Tax (IT) is deducted @ 10% of (Basic
financing activities could be shown Salary + DA + HRA + CCA)
graphically and/ or pictorially (bar diagrams Net Salary is summation of Basic Salary + DA
and pie charts). + HRA + CCA less PF and IT
3. Preparation of Common Size and Comparative (ii) Save your worksheet on the desktop as
Income Statement and Balance Sheet of a Employee_Salary.
company by taking into account its audited,
(iii) Print a Hard Copy of your work and close the
unaudited / imaginary financial results of two
consecutive quarters of an accounting year or of file.
two consecutive accounting years. 6. Revenue and Commission Statement
• The comparison has to be made in the form of Prepare a Spreadsheet for a certain Company,
Common Size and Comparative Income which pays a commission based upon books sold.
Statement and Balance Sheet. Prepare a revenue and commission statement
• The comparison could also be shown based upon the following information:
graphically and/ or pictorially (bar diagrams Number of Number of
and pie charts). Name of
Soft Cover Hard Cover
Salesperson
4. Taking the audited/ unaudited / imaginary Books sold Books sold
financial results of any leading company, its Suresh Mehta 1546 360
liquidity, solvency, activity and profitability ratios
of two consecutive accounting years or of two Gladstone David 1788 315
consecutive quarters of an accounting year should Manish Arora 1340 294
be calculated and the comparison of the ratios of
Manmeet Singh 990 450
both the years or quarters should be shown
graphically and/ or pictorially (bar diagrams and Vineet Saighal 1105 689
pie charts).
5. Employee Salary Sheet: Assumption:
(i) Design a spreadsheet using the following Price of Hard Cover Books: @Rs. 34.45 per Book
fields: Price of Soft Cover Books: @ Rs. 22.05 per Book
Employee’s Name: String Variable of Commission on Hard Cover Books: 9.0%
maximum size of 40 characters
Commission on Soft Cover Books: 12%
Date of Joining: Date in English U.K. format
Prepare a spreadsheet showing your calculation to
Basic Salary: upto 2 places after decimal determine:
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.

ISC Examination Year 2027 19

7. Spreadsheet on Outstanding Report (iv) Create a Report as per the format given below:
Prepare and Present a Spreadsheet for a list of Employee Loan Details:
outstanding notes receivable each month. The Emp. Emp. Loan Loan Amount Balance
information for a particular month is as follows: No. Name Amount Date Paid Amount
Use the following financial information: Decide tables, relationships etc. on your own.
Face Interest Other details 9. Database Management:
Value Rate (i) Create an Accounts Table by following the
0 10.8% Late Penalty: 11% steps given below:
(a) Click on the new button and highlight
500 9.2% Report date: July 30, Design View in the dialog box that
2011 appears.
1000 8.96% Days / Year: 365 (b) Click the OK button and the Table Design
View will appear.
(c) Fill in the Field Name, Data Type and
Note Face Period Description for each column/field in the
Issue Date
Number Value Days Account Table.
1 Rs. 525 90 7/2/2011 Field Name Data Description
Type
2 Rs. 612 60 14/3/2011
CustomerID Number The Unique Identifier
3 Rs. 210 45 19/5/2011 for a Customer
4 Rs. 800 120 10/6/2011 AccountNo Number The Unique Identifier
for a Bank Account
5 Rs. 1469 30 24/6/2011
AccountType Text The type of account
(Checking, Saving etc.)
Show the Interest rate, Days outstanding, Interest
DateOpened Date The date the account
earned, Late penalty and Total due.
was opened
Use appropriate Lines and Shading to make the Balance Number The current balance
report interesting and easy to read. Use two places (money) in this account.
after the decimals where appropriate.
Prepare a chart to show the above information. (ii) Define a Primary Key for the Accounts table.
Click on the Account Number field with the
8. Database Management right mouse button and choose Primary Key
(i) Create a Database with at least 10 records with from the pop-up menu.
each record having the following fields: (iii) Save the new Accounts Table.
Employees Details: PAN Number, Name,
10. Selection Grade Card
Address and Phone Number
(ii) Sort the names in alphabetical order. (i) Make a Spreadsheet of a Selection Grading
Chart using the following details:
(iii) The Employee database has another table
called Loan Details that stores the details of Candidate’s Name: String type
loan taken by various employees. Create a Test 1: Integer type
query that gives a list of employees names
Test 2: Integer type
along with loan details.
Test 3: Integer type
The loan details table has following fields:
Test 4: Integer type
Loan Amount, Loan Date, Interest Rate,
Amount Paid and Amount Balance. The Worksheet format is as follows:

ISC Examination Year 2027 20

Test-1 Test-2
Test- Test- (ii) Compute the percentage for each candidate’s
Name of 3 4 total. Show the total score and the percentage
(Max (Max
S.N. the (Max (Max for each candidate.
25 25
Candidate 25 25
Mks) Mks) (iii) Create a Header for the Chart. Include your
Mks) Mks)
Alfred name.
1 24 22 18 23
Gomes (iv) Save your work on the desktop as
Shankar Merit_Project.
2 17 20 17 20
Pandey
(iv) Print a hard copy of your work and close the
Ali file.
3 Hassan 22 19 20 14
Raza
NOTE: No question paper for Practical work will
P. Subba
4
Rao
20 19 19 17 be set by CISCE.

Sushanto
5 19 21 24 22
Mukerjee

ISC Examination Year 2027 21

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)

ISC Examination Year 2027 22

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

ISC Examination Year 2027 23

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

ISC Examination Year 2027 24

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

ISC Examination Year 2027 25