CBSE Accountancy Class 12

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Accountancy Class 12

Accountancy is one of the major commerce subjects, whether you are pursuing Commerce with Maths or Commerce without Maths, and has been bifurcated into 3 parts. It deals with a comprehensive understanding of the systematic and detailed recording of financial transactions of a business. Accounting plays an important role in running a business – track income and expenditure, provide investors, management and government with financial information and ensure statutory compliance. Through this blog, we will take a look at the Accountancy class 12 syllabus to help you thoroughly prepare for the upcoming exam.

Course Objective

The coursework of Accountancy class 12 allows Commerce students to become familiar with the world of business and lays emphasise to strengthen the basics of different topics. Besides these the aim of the course is to:

  1. Familiarise students with the emerging areas in financial statements.
  2. Acquaint them with the fundamentals of accounting concepts and standards.
  3. Develop skills essential to design need-based account-related databases.
  4. Recognize the role of ICT in business operations.
  5. Enable students with accounting for not-for-profit firms, partnership organization and company accounts.

Also Read: Commerce Subjects in Class 11

Accountancy Class 12 Course Structure 2021

Part A  Accounting for Non-for-Profit Organisations, Partnership Firm and Companies

Unit 1Financial Statements for Not-for-Profit Organisations2510
Unit 2Accounting for Partnership Firms9030
Unit 3Accounting for Companies3520

Part BFinancial Statement Analysis

Unit 4Analysis of Financial Statements3012
Unit 5Cash Flow Statements208

Total 5020
Part CProject Work

Project File

Written Test
12 (one hour)

Viva Voce



Part BComputerised Accounting

Unit 4Computerised Accounting5020
Part CPractical Work

Practical File

Practical Examination
12 (one hour)

Viva Voce 

Total 2020

Accountancy Class 12 Part I Accounting for Non-for-Profit Organisations and Partnership Firms

Chapter 1 Accounting for Not-for-Profit Organisation

Meaning and Characteristics for Not-for-Profit Organisation; Accounting Records; Receipt and Payment Account; Income and Expenditure Account; Balance Sheet; Some Peculiar Items; Income and Expenditure Account Based on Trial Balance; Incidental Trading Activity.

Chapter 2 Accounting for Partnership Firms: Basic Concepts

Nature of Partnership; Partnership Deed; Special Aspects of Partnership Accounts; Maintenance of Capital Accounts of Partners; Distribution of Profit among Partners; Guarantee of Profit to a Partner; Past Adjustments; Final Accounts.

Chapter 3 Reconstitution of a Partnership Firm – Admission of a Partner 

Modes of Reconstitution of a Partnership Firm; New Profit Sharing Ratio; Admission of a New Partner; Goodwill; Sacrificing Ratio; Adjustment for Accumulated Profits and Losses; Revaluation of Assets and Reassessment of Liabilities; Change in Profit Sharing Ratio among the Existing Partners; Adjustment of Capitals.

Chapter 4  Reconstitution of a Partnership Firm – Retirement or Death of a Partner

Ascertaining the Amount Due to Retiring/Deceased Partner; New Profit Sharing Ratio; Gaining Ratio; Treatment of Goodwill; Adjustment for Revaluation of Assets and Liabilities; Adjustment of Accumulated Profits and Losses; Disposal of Amount due to Retiring Partner; Adjustment of Partner’s Capital; Death of a Partner.

Chapter 5 Dissolution of a Partnership Firm 

Dissolution of Partnership; Dissolution of a Firm; Settlement of Accounts; Accounting Treatment.

Accountancy Class 12 Part II Company Accounts and Analysis of Financial Statement 

Chapter 1 Accounting for Share Capital

Features of a Company; Kinds of a Company; Share Capital of a Company; Nature and Classes of Shares; Issue of Shares; Accounting Treatment; Forfeiture of Share.

Chapter 2 Issue and Redemption of Debentures

Meaning of Debentures; Distinction between Shares and Debentures; Types of Debentures; Issue of Debentures; Over Subscription; Issue of Debentures for Consideration other than cash; Issue of Debentures as a Collateral Security; Terms of Issue of Debentures; Interest on Debentures; Writing off Discount/Loss on Issue of Debentures; Redemption of Debentures; Redemption by Payment in Lump Sum; Redemption by Purchase in Open Market; Redemption by Conversion; Sinking Fund Method.

Chapter 3 Financial Statements of a Company

Meaning of Financial Statements: Nature of Financial Statements; Objectives of Financial Statement; Types of Financial Statements; Form and Contents of Income Statement; Form and Contents of Balance Sheet; Some Peculiar Items; Uses and Importance of Financial Statements; Limitations of Financial Statement.

Chapter 4 Analysis of Financial Statements

Meaning of Financial Analysis, Significance of Financial Analysis; Objectives of Financial Analysis; Tools of Financial Analysis; Comparative Statements; Common Size Statement; Trend Analysis; Limitations of Financial Analysis.

Chapter 5 Accounting Ratios

Meaning of Accounting Ratios; Objectives of Ratio Analysis; Advantages of Ratio Analysis; Limitations of Ratio Analysis; Types of Ratios; Liquidity Ratios; Solvency Ratios; Activity (or turnover) Ratios; Profitability Ratios.

Chapter 6 Cash Flow Statement

Nature of Cash Flow Statement; Benefits of Cash Flow Statement; Cash and Cash Equivalents; Cash Flows; Classification of Activities for the Preparation of Cash Flow Statement; Ascertaining Cash Flow from Operating Activities; Ascertainment of Cash Flow from Investing and Financing Activities; Preparation of Cash Flow Statement. 

Over the years, accounting has been limited to the monetary record-storing activities of the Accountant, but the emerging trade environment has compelled the professionals to amend their representation and functions within the establishment and the association. Students are opting for professional courses after 12th Commerce stream to gain proficiency in e-commerce Marketing, Financial Planning, Environmental Accounting, Cost and Management Accounting, Forensic Accounting, etc. 

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Hopefully, you have an insight into the Accountancy class 12 syllabus and this would help you prepare well for the CBSE board examinations 2021. Are you planning to pursue advanced Accounting courses from one of the leading business schools abroad? Then, get in touch with our Leverage Edu experts, who will, in turn, help you in selecting a university that suits you the best!

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