Accountancy

The students will learn the following chapters in CBSE class 12 accountancy. The actual notes for CBSE class 12 accountancy is provided in detail and can be viewed by clicking on the links provided. This page gives an overview of the lessons. There are two NCERT recommended books provided for CBSE class 12 Accountancy subject namely
1. Accountancy – I
2. Accountancy Part – II
Accountancy – I
Financial Accounting covers the following chapters.
1. Accounting for Not-for-Profit Organisation: In this chapter, the students will
learn to identify the need for, and nature of accounting records from the perspective of not-for-profit organizations.
get acquainted with the principal financial statements prepared by not-for-profit organizations.
learn to prepare the Receipt and Payment Account and Income and Expenditure Account
learn to prepare the Income and Expenditure Account and Balance Sheet when Receipt and Payment account is provided.
Understand the treatment of certain peculiar items of Recepts and Payments such as subscriptions from members, special funds, legacies, sale of old fixed assets, etc.

2. Accounting for Partnership: Basic Concepts: In this chapter, the students will learn
the definition of partnership and list its essential features
identify the provisions of the Indian partnership Act 1932 that are relevant to accounting.
how to use the fixed and fluctuating capital methods to prepare the partner’s capital account.
how the profit or loss is distributed among the partners and prepare the Profit and Loss appropriation Account.
how to calculate the interest on capital and drawing under various situations.
how the guarantee for a minimum amount of profit affects the distribution of profits among the partners.
how to make required adjustments to rectify the past errors in partners capital accounts.
how to prepare final accounts of a partnership firm.

3. Reconstitution of a Partnership Firm – Admission of a Partner: In this chapter, the students will learn about
the concept of reconstitution of a partnership firm.
identification of the matters that require adjustments in the books of the firm when a new partner is admitted.
determining the new profit sharing ratio and calculate the sacrificing ratio.
goodwill and enuerate the factors that affect the goodwill.
the methods of valuation of goodwill.
the treatment of the goodwill under different situations when a new partner is admitted.
making the required adjustments for revaluation of assets and reassessment of liabilities.
making the required adjustments for accumulated profits and losses
how to determine the capital of each partner, if required according to the new profit sharing ratio and make necessary adjustments.
making necessary adjustments on change in the profit sharing ratio among the existing partners.

4. Reconstitution of a Partnership Firm – Retirement/Death of a Partner: In this chapter, the students will learn about
how to calculate the new profit sharing ratio and gainint ratio of the remaining partners after the retirement/death of a partner.
describing the accounting treatment of goodwill in the event of retirement/death of a partner
making the required entries in respect of unrecorded assets and liabilities
making the necessary adjustment for accumulated profits or losses
how to ascertain the retiring/deceased partner claim against the firm and explain the mode of its settlement.
how to prepare the retiring partner’s loan account, if required.
how to prepare the deceased partner’s executor’s account in the case of death of a partner and the balance sheet of a reconstituted firm.

5. Dissolution of Partnership Firm: In this chapter, the students will learn about
the meaning of dissolution of partnership firm.
differentiating between dissolution of partnership and dissolution of a partnership firm.
the various modes of dissoution of the partnership firm
the various modes of dissolution of the partnership firm
the rules related to settlement of claims among all partners
preparation of realisation account

Accountancy Part – II
1. Accounting for Share Capital: In this chapter, the students will learn about
the basic nature of a joint stock company as a form of business organization and the various types of companies based on the liability of their members.
the types of shares issued by a company
the accounting treatment of shares issued at par, at premium and at discount including oversubscription
the accounting for forfeiture of shares and reissue of forfeited shares under varying situation.
how to workaount the amounts to be transferred to capital reserve when forfeited shares are reissued and preparation of share forfeited account.

2. Issue and Redemption of Debentures: In this chapter, the students will learn about
debentures and explain hte difference between debentures and shares
various types of debentures
recording the journal entries for the issue of debentures at par, at a discount and at premium
he concept of debentures issued for consideration other than cash and the accounting thereof
the concept of issue of debentures as a collateral security and the accounting thereof

3. Financial Stateents of a Company: In this chapter, students will learn about
the nature and objectives of financial statements of a company
the form and content of Statement of Profit and Loss of a company as per schedule III
the form and content of balance sheet of a company as per schedule III
the significance and limitations of financial statements
preparation of the financial statements

4. Analysis of Financial Statements: In this chapter, the students will learn about
the nature and significance of financial analysis
the identification of the objectives of financial analysis
the various tools of financial analysis
the limitations of financial analysis
the preparation of the comparative and common size statements and interpret the data given therein
the calculation of the trend percentages and interpret them.

5. Accounting Ratios: In this chapter, the students will learn about
the meaning, objectives and limitations of accounting ratios
the various types of ratios commonly used
the various ratios to assess solvency, liquidity, efficiency and profitability of the firm.
the interpretation of the various ratios calculated for intra-firm and inter-firm comparisons.



6. Cash Flow Statement: In this chapter, the students will learn about
the purpose and preparation of statement of cash flow statement
how to distinguish between operating activities, investing activities and financing activities
preparation of the statement of cash flows using direct method.
preparation of the cash flow statement using indirect method.