CBSE Class 12 Board Exam Accountancy Syllabus

Accountancy syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Accountancy in CBSE Class 12 Board Exam, not a summary of it.

1. 1

   Accounting for Partnership Firms

   3 topics

   • Fundamentals of Partnership
     • Partnership deed and profit sharing
     • Profit and Loss Appropriation Account
     • Interest on capital and drawings
   • Reconstitution - Admission of a Partner
     • New profit sharing ratio and sacrificing ratio
     • Goodwill valuation and treatment
     • Revaluation of assets and liabilities
   • Retirement, Death and Dissolution
     • Gaining ratio and amount due to retiring partner
     • Settlement on death of a partner
     • Realisation account and dissolution
2. 2

   Accounting for Companies

   3 topics

   • Accounting for Share Capital
     • Issue of shares at par and premium
     • Calls in arrears and advance
     • Forfeiture and reissue of shares
   • Issue of Debentures
     • Issue at par, premium and discount
     • Issue as collateral security
     • Redemption of debentures
   • Company Financial Statements
     • Balance Sheet as per Schedule III
     • Statement of Profit and Loss
     • Heads and sub-heads classification
3. 3

   Financial Statement Analysis

   3 topics

   • Analysis of Financial Statements
     • Comparative statements
     • Common size statements
   • Accounting Ratios
     • Liquidity and solvency ratios
     • Activity and profitability ratios
   • Cash Flow Statement
     • Operating activities
     • Investing and financing activities

Accountancy flashcards for CBSE Class 12 Board Exam

21 of 51 cards from the Accountancy deck — real questions with worked answers.

1. In the absence of a Partnership Deed, at what rate is interest on a partner's loan to the firm allowed?

   6% per annum.

2. In the absence of a Partnership Deed, how are profits and losses shared among partners?

   Equally, regardless of capital contribution.

3. As per the Indian Partnership Act 1932, what is the maximum number of partners allowed in a firm?

   50 partners (as prescribed under the Companies Act 2013 / Rules).

4. What is the formula for interest on drawings using the average period method when drawings are made at regular intervals?

   Interest = Total Drawings x Rate/100 x Average Period/12, where average period = (months left after first drawing + months left after last drawing)/2.

5. If equal monthly drawings are made at the beginning of each month for a year, what average period is used to calculate interest on drawings?

   6.5 months.

6. If equal monthly drawings are made at the end of each month for a year, what average period is used for interest on drawings?

   5.5 months.

7. What is the purpose of a Profit and Loss Appropriation Account?

   To distribute net profit among partners by recording appropriations like interest on capital, salary, commission and share of profit.

8. How is interest on capital treated when the partnership deed is silent?

   No interest on capital is allowed.

9. Distinguish between Fixed and Fluctuating Capital Accounts.

   Under fixed capital, capital stays unchanged and adjustments go to a separate Current Account; under fluctuating capital, all adjustments are made in one Capital Account whose balance fluctuates.

10. What is Past Adjustment in partnership accounts?

    Rectifying errors or omissions (e.g., interest on capital/drawings, salary, wrong profit ratio) in past years' accounts through a single adjusting journal entry.

11. Define Goodwill.

    The monetary value of a firm's reputation that enables it to earn profits above the normal rate of return; an intangible asset.

12. State the formula for goodwill under the Average Profits Method.

    Goodwill = Average Profit x Number of Years' Purchase.

13. State the formula for goodwill under the Super Profits Method.

    Super Profit = Average Profit - Normal Profit; Goodwill = Super Profit x Number of Years' Purchase.

14. How is goodwill calculated under the Capitalisation of Super Profits Method?

    Goodwill = Super Profit x 100/Normal Rate of Return.

15. What is the formula for Sacrificing Ratio?

    Sacrificing Ratio = Old Ratio - New Ratio.

16. What is the formula for Gaining Ratio?

    Gaining Ratio = New Ratio - Old Ratio.

17. On admission of a partner, why is a Revaluation Account prepared?

    To record changes in the value of assets and liabilities so that the resulting profit or loss is shared by old partners in their old ratio.

18. When a new partner brings in goodwill (premium) in cash, how is it distributed?

    It is shared among the old partners in their sacrificing ratio.

19. How are accumulated reserves and undistributed profits treated at the time of admission of a partner?

    They are distributed among the old partners in their old profit-sharing ratio.

20. What is the treatment of Workmen Compensation Reserve at admission when there is no claim?

    The entire reserve is distributed among old partners in their old profit-sharing ratio.

21. On admission, how is the new profit-sharing ratio of old partners affected if the new partner's share is taken equally from them?

    Each old partner sacrifices an equal portion, and their new shares are their old shares minus the equal sacrifice.

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