Revised #AccountancySyllabus Class XII CBSE 2020-21
Channel: EZ Debit Credit in Accountancy
Date: 09/11/2020

Revised syllabus for accountancy class XII as given by CBSE in its latest notification.

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies 
Unit 1: Financial Statements of Not-for-Profit Organization

 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.

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 
• 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 and preparation of balance sheet. 
• Calculation of deceased partner’s share of 
profit till the date of death. 
• 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 memorandum balance sheet, 
piecemeal distribution, sale to a company 
and insolvency of partner(s)).

Accounting for Share Capital 
• 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). 
• Accounting treatment of forfeiture and re-
issue 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 issue of debentures.
Financial statements of a Company: 
Statement of Profit and 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: Objectives, 
importance and limitations. 
• Tools for Financial Statement Analysis:
Comparative statements, common size 
statements, cash flow analysis, ratio analysis. 
• Accounting Ratios: Meaning, Objectives, 
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. 
• Activity Ratios: Inventory Turnover Ratio, 
Trade Receivables Turnover Ratio, Trade 
Payables Turnover Ratio and Working 
Capital Turnover Ratio. 
• Profitability Ratios: Gross Profit Ratio, 
Operating Ratio, Operating Profit Ratio, Net 
Profit Ratio and Return on Investment.
Cash Flow Statement
• Meaning, objectives and preparation (as per 
AS 3 (Revised) (Indirect Method only)
 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 declared 
by the shareholders.

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