The commerce stream along with Class 12th Accountancy is one of the most favorite choices among the students in leading boards such as the Central Board of Secondary Education (CBSE) and Council of Indian Certificate of Secondary Education (ICSE). Class 12th Accountancy as a subject involves the study of financial information. It educates students about rules, regulations, procedures, concepts, and principles applied in the process of accounting.

Class 12 Accountancy Syllabus 2020-21

Class 12 Accountancy is one of the keys and elemental subjects for the commerce stream. It has gained a lot of popularity in previous years. Preparing for Class 12 Commerce Subjects is one of the major concerns and reasons for worry among a lot of students. We will be discussing a few tricks and tips for Accountancy. The first step towards doing insanely well in the Class 12th Accountancy exam starts with understanding the syllabus thoroughly.

We will be discussing ISC Class 12th Accountancy Syllabus and CBSE Class 12 Accountancy syllabus in the article. The focus of the content will be educating students towards the recent changes in Accountancy under the Class 12 Commerce Syllabus following the recent announcement of National Education Policy 2020.

Accountancy in CBSE

The Aim of the subject under CBSE is to provide students with a good foundation in basic accounting concepts. The subject also intends to acquaint them with methodology and changes taking place in the way we handle financial statements. The students will also be taught about the accounting standards and the Companies Act 2013.

CBSE Accountancy Exam Pattern 2020

Let us have a look at the table below to know the detailed exam pattern of the CBSE.

Class 12 Accountancy Syllabus

Class 12 Accountancy Syllabus

Units Periods Marks
Part A: Financial Accounting
Unit 1: Theoretical Framework 25 12
Unit-2: Accounting Process 105 40
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records 55 20
Unit-4: Computers in Accounting 15 08
Part C: Project Work 20 20

CBSE Class 12 Accountancy Syllabus 2020-21

Candidates can go through the detailed accountancy syllabus for CBSE and plan your preparation accordingly for the exam.

CBSE Class 12 Accountancy Revised Syllabus

The revised CBSE Class 12 Syllabus consists of two parts: Part A and Part B. Check the detailed syllabus of both part A and part B from the post below.

Part A: Accounting for Not for Profit Organisations, Partnership Firms, and Companies

Unit 1: Financial Statements of Not for Profit organizations

  • Not-for-profit organizations: concept.
  • Receipts and Payments Account features and preparation.
  • Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Unit 2: Accounting for Partnership Firms

  • Partnership: features, Partnership Deed.
  • Provisions of the Indian Partnership Act 1932in the absence of partnership deed.
  • Fixed v/s fluctuating capital accounts. Preparation of Profit and Loss Appropriation account-division of profit among partners, a 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.

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; 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
  • reassessment of liabilities,
  • treatment of reserves and accumulated profits,
  • adjustment of capital accounts and preparation of 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 and reserves,
  • adjustment of capital accounts and preparation of balance sheet.
  • Preparation of loan account of the retiring partner.

Calculation of the deceased partner’s share of profit till the date of death.

  • Preparation of the 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)).

Unit 3: Accounting for Companies

Accounting for Share Capital

  • Share and share capital: nature and types.
  • Accounting for share capital: issue and allotment of equity and preference shares; Public subscription of shares – oversubscription of shares; under subscription of shares; the issue at par and at a premium; calls in advance and arrears (excluding interest); the issue of shares for consideration other than cash.
  • Concept of Private Placement and Employee Stock Option Plan (ESOP).
  • Accounting treatment of forfeiture and reissue of shares.
  • Disclosure of share capital in the Balance Sheet of a company. 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; Writing off discount/loss on the issue of debentures.

12th Class Accountancy Syllabus

12th Class Accountancy Syllabus

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Financial statements of a Company: Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and subheadings (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: Objectives, importance, and limitations.
  • Tools for Financial Statement Analysis: Comparative statements; common-size statements; cash flow analysis; ratio analysis.
  • Accounting Ratios: Meaning, Objectives, classification
  • Liquidity Ratios: Current ratio; Quick ratio.
  • Solvency Ratios: Debt to Equity Ratio; Total Asset to Debt Ratio; Proprietary Ratio; Interest Coverage Ratio.
  • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio; Working Capital Turnover Ratio.
  • Profitability Ratios: Gross Profit Ratio; Operating Ratio; Operating Profit Ratio; Net Profit Ratio; Return on Investment. (ROI)

Unit 5: Cash Flow Statement

  • Meaning,
  • objectives and
  • preparation

Part B: Computerized Accounting

Unit 3: Computerized Accounting

Overview of Computerised Accounting System

  • Introduction:
  • Application in Accounting.
  • Features of Computerised Accounting System.
  • Structure of CAS
  • Software Packages: Generic; Specific;
  • Accounting Application of Electronic Spreadsheet- Concept of the electronic spreadsheet; Features offered by electronic spreadsheets; Application in generating accounting information –  bank reconciliation statement; asset accounting; loan repayment of loan schedule; ratio analysis
  • Data representation- graphs, charts
  • Using a Computerized Accounting System. Steps in the installation of CAS- codification; Hierarchy of account heads; creation of accounts; Data: Entry; validation
  • Adjusting entries- Preparation of the balance sheet; profit and loss account with closing entries and opening entries.
  • Need and security features of the system.
  • Database Management System (DBMS)
  • Concept and Features of DBMS.
  • DBMS in Business Application.
  • Generating Accounting Information - Payroll.

Deleted Topics from Class 12 Accountancy Syllabus

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms, and Companies

  • Unit 2: Accounting for Partnership Firms - Accounting for Partnership firms - Reconstitution and Dissolution- Admission of a partner - adjustment of capital accounts and preparation of balance sheet; Retirement and death of a partner: adjustment of capital accounts. Preparation of loan account of the retiring partner; Preparation of the deceased partner’s capital account and his executor’s account.
  • Unit - 3 Accounting for Companies - Accounting for Debentures; Redemption of debentures-Methods: Lump sum, the draw of lots.

Project Work - From session 2020-21 onwards, there would be only ONE project (specific) to be prepared.

CBSE Class 12 Accounts Syllabus PDF (Reduced)

As per the latest notice, the Central Board of Secondary Education has reduced the 30% syllabus for all subjects of class 12. Candidates appearing for the exam must be aware of the reduced syllabus of Class 12 Accountancy and plan their preparation accordingly for the upcoming exam. The reduced syllabus consists of a total of 5 units and project work. To help candidates, we have provided the detailed syllabus PDF of CBSE Class 12 Accountancy Subject for the year 2020-21. Candidates can view or download the syllabus PDF from the post below.

Click here to download the reduced CBSE Class 12 Accountancy Syllabus PDF 2020-21

What are the Best Reference Books for CBSE Class 12 Accountancy?

Books are your only friends when it comes to preparing for exams such as Class XII Boards. As per the experts, books are great resources when it comes to any exam preparation. The Internet can help you understand the concept, Youtube can clear your doubts but it is the books that teach how to you frame your answer while staying within the territories of your syllabus. Class 12 Commerce Books have the best cost-benefit ratio. Go through the table below to know the important books for the preparation of CBSE Class 12 Accountancy Syllabus.

Name of the Book Author
Accountancy (Part A) Vol. I, Class –XII D K Goel and Rajesh Goel
Double Entry Book Keeping: Accounting for Not-for-Profit Organizations and Partnership Firms - ( Vol. 1) T S Grewal
Analysis of Financial Statements: Textbook for CBSE Class 12 T.S. Grewal
CBSE Sample Question Papers Class 12 Economics (For March 2020 Exam) Oswaal
Accountancy For Class Xii BK Bannerjee

Accountancy in ICSE

Class XII Exam Pattern for ISC Accountancy in CISCE

Section A  Part I compulsory Short answer Elementary/fundamental concepts 4 Questions 20 marks
Part II Short answer Elementary/fundamental concepts 4 of 7 Questions 40 marks
Section B/C  Candidates will have a choice of attempting questions either from Section B or Section C. two questions out of three 20 marks

Class 12 Accounts Syllabus PDF

Class 12 Accounts Syllabus PDF

ICSE Class 12 Accountancy Syllabus 2020-21

Here is the detailed ICSE Class 12 Commerce Syllabus explained. Go through the topics and enhance your preparations. 

Joint Venture

  • Recording of transactions in the books of one Co-venturer only.
  • Recording of respective transactions in the books of all Co-venturers (memorandum method).
  • Recording of transactions in a separate set of books

Partnership Accounts

Fundamentals of Partnership

  • Definition, meaning, and features of a Partnership.
  • Provisions of The Indian Partnership Act, 1932, with respect to books of accounts- Meaning and importance; Rules applicable in the absence of a partnership deed.
  • Preparation of Profit and Loss Appropriation Account and Capital Accounts- Profit and Loss Appropriation Account; Partners’ capital accounts: fixed and fluctuating.
  • Goodwill - concept, and mode of valuation; Meaning, nature, and features of Goodwill; Factors affecting the value of goodwill; Mode of Valuation; Average profit method (Simple average, Weighted average method); Super Profit Method; Capitalisation Method - Of Average Profit, Of Super Profit

Reconstitution of Partnership

Admission

  • Calculation of new profit sharing ratio, sacrificing ratio and gaining ratio.
  • Accounting treatment of goodwill on the admission of a partner - The premium for goodwill paid privately; The premium for goodwill paid (in cash or kind) and retained in the business; The premium for goodwill paid and withdrawn by the old partners; When the incoming partner cannot bring a premium for goodwill in cash, adjustments are to be done through the current account; Hidden goodwill; When Goodwill Appears On Balance Sheet
  • Preparation of revaluation Account
  • Accounting Treatment of accumulated profits and losses adjustment of Capitals

Change in profit sharing ratio

  • Calculation of new profit sharing ratio, sacrificing, and gaining ratio.
  • Accounting treatment of goodwill.
  • Accounting treatment of accumulated profits and losses
  • Revaluation of assets and reassessment of liabilities

Retirement and death of a partner

  • Calculation of new profit sharing ratio, gaining ratio and sacrificing ratio.
  • Adjustment with regard to goodwill including hidden goodwill.
  • Adjustment with regard to undistributed profits and losses
  • Adjustment with regard to the share of profits from the date of the last Balance Sheet to the date of retirement or death (on the basis of time or turnover
  • Preparation of Revaluation Account on retirement or death of a partner.
  • Adjustment of capitals - Readjusting the adjusted capital of the continuing partners in the new profit sharing ratio; Adjusting the capitals of the continuing partners on the basis of the total capital of the new firm; When the continuing partners bring in cash to pay off the retiring partners.
  • Calculation and payment of the amount due to the retiring partner.
  • Construction of loan account and executor's account.

Dissolution of a Partnership firm

  1. Meaning of dissolution, modes of settlement of accounts.
  2. Preparation of Realization Account - Paid by the firm – Realization account Dr. To cash account; Paid by the partner on behalf of the firm – Realization account Dr. To partner’s capital account; The firm pays a fixed amount to the partner and the partner has to bear the expenses –
  • Realization account Dr. To partner’s capital account
  • If the amount is paid by the partner from firm’s cash, then only - Partner’s capital account Dr. To cash account
  • Treatment of undistributed profits and losses.
  • Preparation of Cash / Bank Account.
  • Preparation of memorandum balance sheet

Joint Stock Company Assets

Issue of Shares

  • Issue of shares at par, premium, and discount under Companies Act, 1956.
  • Issue of shares for considerations other than cash: To promoters (can be considered either through Goodwill account or Incorporation costs account); To underwriters; To vendors.
  • Calls in arrears, call in advance and interest thereon including the preparation of ledger accounts
  • Over and under subscription

Issue of Debentures

  • Issue of debentures at par, at a premium, and at discount under Companies Act.
  • Issue of debentures as collateral security for a loan.
  • Issue of debentures for considerations other than cash- To promoters; To underwriters; To vendors
  • Accounting entries at the time of issue when debentures are redeemable at par and premium.
  • Interest on debentures
  • Methods and accounting treatment of writing off discount and loss on issue of debentures

Final Accounts of Companies

  • Application of Schedule VI Part I and II of Companies Act, 1956.
  • Schedule VI Part I under Companies Act - Preparation of a Company Balance Sheet. (Horizontal Form).
  • Schedule VI Part II under Companies Act - preparation of a company Profit & Loss Account and Profit & Loss Appropriation Account.
  • Preparation of Final Accounts of a company from a trial balance with or without adjustments.

Financial Statement Analysis

  • Comparative Statements and Common Size Statements.
  • Meaning, significance, and limitations of Comparative Statements and Common Size Statements.
  • Preparation of comparative balance sheet and income statement (inter-firm and intra-firm) relating to two different periods showing absolute change and percentage change.
  • The common size balance sheet to be prepared as a percentage of total assets and total liabilities. Common size income statement to be prepared as a percentage of net sales.

Cash Flow Statement (Only for Non-Financing Companies)

  1. Meaning, importance, and preparation of a Cash Flow Statement
  2. Calculation of net cash flows from operating activities based on Indirect Method only.
  3. Preparation of Cash Flow Statement on the basis of operating, investing and financing activities
  • Issue or redemption of shares and debentures at par, at a premium or at a discount.
  • Interest and dividend paid on debentures, shares, and public deposits.
  • Cash proceeds from public deposits.
  • Any loan (long term, medium-term or short term) whether taken or repaid.
  • Share issue expenses paid
  • Cash purchase of fixed assets.
  • Cash sale of fixed assets.
  • Purchase of shares or debentures or long term investments of other companies.
  • Interest and dividend received on shares or debentures or long term investments of other companies.
  • Sale of shares or debentures or long term investments of other companies

Ratio Analysis

Problems on ratio analysis (excluding interpretation, analysis, comparisons, conclusions, and the preparation of Trading, Profit & Loss Account and Balance Sheet).

  • Liquidity ratio- Current ratio; Acid test Ratio
  • Solvency Ratio - Debt Equity ratio; Total Assets to debt ratio; Proprietary ratio
  • Activity ratios - Debtors turnover ratio; Creditors turnover ratio; Working capital turnover ratio; Stock turnover ratio
  • Profitability ratio - Gross profit ratio; Net profit ratio; Operating ratio; Operating profit ratio; Earnings per share

Accounting Application of Electronic Spread Sheet

  • Concept of Electronics Spreadsheet
  • Features offered by Electronic Spreadsheet - Creating worksheet; entering data into a worksheet, heading information, data, text, dates, alphanumeric values; saving & quitting worksheet. Opening and moving around in an existing worksheet; Toolbars and Menus, keyboard shortcuts; Working with single and multiple workbooks – copying, renaming, moving, adding and deleting, copying entries, and moving between workbooks. Formatting of worksheet- Autoformat, changing - alignment, character styles, column width, date format, borders, and colors. Previewing and Printing worksheet - Page setting, Print titles, Adjusting margins, Page break, headers, and footers. Formulas – summation, subtraction, division, multiplication, average, and percentage.
  • Functions: date, if-then-else, freezing panes.
  • Application of spreadsheets in generating the following accounting information - Payroll; Data Presentation. Graphs and charts; Data creation sorting query and filter. Solve Class 12 Commerce Sample Papers and be exam ready. 

Database Management System (DBMS)

  1. Concept and Features of DBMS.
  2. Types and features of the DBMS system – SQL and ORACLE.
  3. DBMS in Business Application. Database design, tables, fields, relationships, forms reports, and indexing.
  • Accounting Information
  • Debtors and Creditors
  • Bank Reconciliation Statement
  • Asset Accounting

ISC Class 12 Accountancy Syllabus PDF (Reduced)

The ISCE board has reduced the syllabus of Accountancy to 30% for class 12. It is important for candidates to check the reduced syllabus PDF and know the important topics as the exam point of view. The reduced syllabus includes units like partnership accounts, reconstitution of partnership, dissolution of a partnership firm, joint-stock company accounts, issue of debentures, etc. Go through the complete syllabus for ICSE Class 12 Accountancy subject from below and plan accordingly to enhance your preparation.

Click here to download reduced ISC Class 12 Accountancy Syllabus PDF 2020-21

As per the experts, referring to the best ISC books for Accountancy class 12 syllabus will help candidates to boost their preparation and better succeed in the exam. Candidates can go through the few important reference books for Class 12 Accountancy from the table below and start their preparation accordingly.

Book Name Author
ISC Accountancy Rajesh Goel, DK Goel
Oswaal ISC Sample papers Class 12 Oswaal Editorial Board
Model Specimen Paper Oswal Publishers
NIOS Accountancy for Class 12th in Hindi Medium Neeraj Publications
Double Entry Book Keeping: Accounting for Not-for-Profit Organizations and Partnership Firms - ( Vol. 1) T S Grewal

Preparation Tips for Class 12 Accountancy

There is only one way to prepare for any exam. Practise. And even though the syllabus of CBSE and ICSE and CBSE differ in content. The strategy to score ace marks in the exam is very much similar. To ease it off for you we have divided our strategy into three levels of 4 months each. You can divide the time available by giving each level equal importance. Let us look in detail at what these levels demand of you.

First Level

  • Read reference books thoroughly
  • Make short notes of the chapters
  • Get a Previous Year Paper Books
  • Before beginning the chapter, Read the chapter’s questions asked in previous exams
  • Make a mental note of the questions that could be asked in the exam while reading topics

Second Level

  • Read NCERT Books again with along with prepared notes and previous questions
  • Fill the gaps in your notes, if any
  • After revising each chapter through books and notes, Practise questions from the previous years
  • Get your answers reviewed by a teacher
  • Develop an understanding of the model answer that teachers/examiners expect

Third Level

  • Start solving Class 12 Accounts Sample Papers
  • Additionally, Solve One Mock Paper every week
  • Time yourself for every paper
  • Get your paper reviewed by a teacher
  • Understand the model answer and time consumption in answer writing
  • Revise through notes

FAQ's

What is the marking scheme for Class 12 Accountancy? 

The CBSE class 12 Accountancy's theory paper is of 80 marks and 20 marks are allotted for project work/internal assessment. The CBSE class 12 Accountancy theory examination is of three hours duration. The question paper comprises of two sections - A and B. 

Where can I find solutions to Accountancy Sample Papers for Class 12? 

The solutions to Accountancy Sample Papers for Class 12 can be found on our website for a more detailed learning experience.

What are units in CBSE Class 12 Accountancy Syllabus?

There are a total of four units: 

  • Part A: Financial Accounting - Unit 1: Theoretical Framework; Unit-2: Accounting Process
  • Part B: Financial Accounting-II - Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records; Unit-4: Computers in Accounting

Is NCERT Book enough for Class 12 Accountancy preparation?

NCERT Books are the official books prescribed for CBSE Class 12 Board Exams. It is suggested by experts and toppers to study from the NCERT Books. For reference, students can study from other books from different authors. 

Is Class 12 Accountancy subject difficult?

Well, as per the analysis from previous year exams, the Accountancy paper is in the moderate level of difficulty. Students could attempt all the questions asked in the exam.