Accountancy Commerce (English Medium) Class 12 CBSE Syllabus 2025-26

• Introduction
• Meaning of Not for Profit concern
• Features of Not for Profit concern
• Difference between Profit organisation and Not for Profit organisation
• Need for maintaining books of accounts and preparing final accounts

Meaning and Characteristics of Not-for-Profit Organisation

• Meaning
• Features of Receipts and Payments Account
• Types of Receipts

• i) Capital Receipts
• ii) Revenue Receipts

• Types of Payments

• i) Capital Expenditure
• ii) Revenue Expenditure
• iii) Deferred Revenue Expenditure

• Specimen of Receipts and Payments Account
• Steps in preparation of receipts and payments account
• Meaning and Concept of fund-based and non-fund-based accounting

• Preparation of Income and Expenditure Account from receipt and payment account with additional information

• Preparation of Balance sheet from receipt and payment account with additional information

• Subscription
• Donations

1. Specific Donations
2. General Donations

• Legacies
• Life Membership Fees
• Entrance Fees
• Sale of old asset
• Sale of Periodicals
• Sale of Sports Materials
• Payments of Honorarium
• Endowment Fund
• Government Grant
• Special Funds

• Two or More Persons
• Agreement
• Business
• Mutual Agency
• Sharing of Profit
• Liability of Partnership

• Contents of the Partnership Deed
• Importance of Partnership Deed
• Provisions Relevant for Accounting
• Format of Partnership Deed

• Distinction between Fixed and Fluctuating Capital Accounts

• Profit and Loss Appropriation Account
• Calculation of Interest on Capital
• Interest on Drawings

• relating to interest on capital, interest on drawing, salary and profit sharing ratio

• Rationale of making adjustments at the time of preparing final accounts

• Change in the profit sharing ratio among the existing partners
• Retirement of an existing partner
• Death of a partner

• Effect of admission of a partner

• Meaning of Goodwill
• Nature and Features of Goodwill
• Factors Affecting the Value of Goodwill
• Need for Valuation of Goodwill
• Methods of Valuation of Goodwill

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Methods

• Treatment of Goodwill

1. Premium Method
2. Revaluation Method
3. Hidden Goodwill

• Sacrificing ratio and Gaining ratio

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Method
4. Multiplier Method

1. Premium Method
2. Revaluation Method
3. Hidden Goodwill

• Meaning of Goodwill
• Nature and Features of Goodwill
• Factors Affecting the Value of Goodwill
• Need for Valuation of Goodwill
• Methods of Valuation of Goodwill

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Methods

• Treatment of Goodwill

1. Premium Method
2. Revaluation Method
3. Hidden Goodwill

• Settlement of accounts under Section 48 of The Indian Partnership Act 1932

• Classification of Companies on the Basis of Incorporation
• Classification of Companies on the basis of Membership
• Classification of Companies on the basis of Liability
• Classification of Companies on the Basis of Control
• Classification of Companies on the Basis of Nationality

• Meaning of Share Capital

• preference shares
• equity shares

• Issue of Prospectus
• Receipt of Applications
• Allotment of Shares

• Calls in Arrears
• Calls in Advance
• Over Subscription
• Under Subscription
• Issue at par
• Issue of Shares at a Premium
• Issue of Shares at a Discount
• Issue of Shares for Consideration other than Cash
• In the Books of Drawer/ Promissor
• In the Books of Acceptor/ Promissor

• Ownership
• Return
• Repayment
• Voting Rights
• Security
• Convertibility

• From the Point of view of Security
• From the Point of view of Tenure
• From the Point of view of Convertibility
• From Coupon Rate Point of view
• From the view Point of Registration

• Issue of Debentures for Cash
• Issue of Debentures at a Discount
• Debentures issued at Premium

• To promoters
• To underwriters
• To vendors

• Interest on debentures (with TDS)

• Payment in lump sum
• Payment in instalments
• Purchase in the open market
• By conversion into shares or new debentures

• Meaning of financial statements
• Features of financial statements
• Significance of financial statements
• Limitations of financial statements

• Recorded Facts
• Accounting Conventions
• Postulates
• Personal Judgements

• Finance manager
• Top management
• Trade payables
• Lenders
• Investors
• Labour unions
• Others

• Comparative Statements
• Common Size Statements
• Trend Analysis
• Ratio Analysis
• Cash Flow Analysis

• Meaning of Accounting Ratios
• Objectives of Accounting Ratios
• Classification and Computation of Accounting Ratios

• Helps to understand efficacy of decisions
• Simplify complex figures and establish relationships
• Helpful in comparative analysis
• Identification of problem areas
• Enables SWOT analysis
• Various comparisons

• Limitations of Accounting Data
• Ignores Price-level Changes
• Ignore Qualitative or Non-monetary Aspects
• Variations in Accounting Practices
• Forecasting
• Means and not the End
• Lack of ability to resolve problems
• Lack of standardised definitions
• Lack of universally accepted standard levels
• Ratios based on unrelated figures

• Statement of Profit and Loss Ratios
• Balance Sheet Ratios
• Composite Ratios

Liquidity Ratios

• Current Ratio
• Quick Ratio (Liquidity ratio)

Solvency Ratios

• Debt-Equity Ratio
• Debt to Capital Employed Ratio
• Proprietary Ratio
• Total Assets to Debt Ratio
• Interest Coverage Ratio

Activity (or Turnover) Ratio

• Inventory Turnover Ratio
• Trade Receivables Turnover Ratio
• Trade Payable Turnover Ratio
• Net Assets or Capital Employed Turnover Ratio
• Debtors Turnover Ratio
• Working Capital Turnover Ratio
• Fixed Assets Turnover
• Current Assets Turnover

Profitability Ratios

• Gross Profit Ratio
• Operating Ratio
• Operating Profit Ratio
• Net Profit Ratio
• Return on Capital Employed or Investment
• Return on Shareholders’ Funds
• Earnings per Share
• Book Value per Share
• Dividend Payout Ratio
• Price / Earnings Ratio
• Return on Investment
• Dividend per Share
• Profit Earning Ratio

• Meaning of Cash Flow Statement
• Objectives of Cash Flow Statement
• Importance of Cash Flow Statement
• Preparation of Cash Flow Statement
• (as per AS3 (Revised) (Indirect Method only)

• Cash
  
• Bank
  
• Short term investments
  
• Marketable securities

• Cash from Operating Activities
• Cash from Investing Activities
• Cash from Financing Activities
• Treatment of Some Peculiar Items

• Direct Method
• Indirect Method

• Adjustments related to depreciation,
• Dividend and tax,
• Sale and purchase of non-current assets (as per revised standard issued by ICAI)

• Meaning of Goodwill
• Nature and Features of Goodwill
• Factors Affecting the Value of Goodwill
• Need for Valuation of Goodwill
• Methods of Valuation of Goodwill

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Methods

• Treatment of Goodwill

1. Premium Method
2. Revaluation Method
3. Hidden Goodwill

• Meaning
• Adjustment of accumulated Profits and Losses
• Adjustment of Capitals

• Settlement of accounts under Section 48 of The Indian Partnership Act 1932

• Capital accounts of partners
• Cash and bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

• relating to interest on capital, interest on drawing, salary and profit sharing ratio

• preference shares
• equity shares

• Public Issue of Shares
• Basic Accounting Entries for Issue of Shares
• Issue of Shares at Par, Premium and Discount
• Oversubcription and Undersubscription of shares
• Calls in Arrears and Calls in Advance
• Issue of Shares for Consideration other than cash

• Issue of debentures at par, at premium and at discount under Companies Act 2013.

• To promoters
• To underwriters
• To vendors

• Interest on debentures (with TDS)

• Meaning of financial statements
• Features of financial statements
• Significance of financial statements
• Limitations of financial statements

• Meaning of Financial Statement Analysis
• Objectives of Financial Statement Analysis
• Importance and Limitations of Financial Statement Analysis
• Tools for Financial Statement Analysis

• Meaning of Accounting Ratios
• Objectives of Accounting Ratios
• Classification and Computation of Accounting Ratios

Current Ratio: `"Current Assets"/"Current Liabilities"`

Current Assets = Current Investments + Inventories (excluding Loose Tools and Spare Parts) + Trade Receivables + Cash and Bank Balance + Short-term Loans and Advances + Other Current Assets

Current Liabilities = Short term borrowings + Trade payables + Other Current Liabilities + Short term Provisions.

Quick Ratio / Liquid Ratio : `"Quick Assets"/"Current Liabilities"`

Or

`"All Current Assets- Inventories(excluding Loose Tools and Spare Parts)- Prepaid Expenses"/"Current Liabilities"`

Or

`"Liquid Assets"/"Current Liabilities"`

Debt to Equity Ratio: `"Debt / Long Term Debt"/"Equity / Shareholders' Funds"`

Debt = Long Term Borrowings + Long Term Provisions

Equity / Shareholders’ Funds = Share Capital + Reserves and Surplus

Or

Non Current Assets + (Current Assets – Current Liabilities) - Non Current Liabilities

= Non Current Assets + Working Capital- Non Current Liabilities

= (Tangible Assets + Intangible Assets + Non Current Investments + Long Term Loans and Advances) +  Working Capital – (Long Term Borrowings + Long Term Provisions)

Debt to Total Assets Ratio: Debt/Total Assets

Proprietary Ratio: `"Shareholders Funds/ Equity"/"Total Assets"`

Total Assets = Non Current Assets + Current Assets = Tangible Assets + Intangible Assets + Non Current Investments + Long Term Loans and Advances

+

Current Investments + Inventories (including Loose Tools and Spare Parts) + Trade Receivables + Cash
and Bank Balance + Short-term Loans and Advances + Other Current Assets

Interest coverage ratio = Net profit before interest and taxes/Interest

Interest includes interest on only long term borrowings.

Inventory Turnover Ratio = (Cost of Goods Sold /Cost of Revenue from Operation)/Average Inventory

Cost of goods sold= Opening Stock + Net Purchases + Direct Expenses – Closing Stock

Cost of Revenue from Operations = Revenue from Operations – Gross Profit

Or

Cost of Material Consumed (including direct expenses) + Change in inventories of WIP and Finished Goods

Or

Opening Inventory + Net Purchases+ Direct Expenses – Closing inventory

Average Inventory = (Opening Inventory + Closing Inventory)/2

Trade Receivable Turnover Ratio: = Credit Revenue from Operation/Average Trade Receivable

Credit Revenue from Operation = Revenue from Operation – Cash Revenue from Operation

Average Trade Receivables = Opening Trade Receivable + Closing Trade Receivable/2

Trade Payable Turnover Ratio: = Net Credit Purchases/Average Trade Payable

Average Trade Payables = Opening Trade Payable + Closing Trade Payable  / 2

Working Capital Turnover Ratio = Revenue from Operations/Working Capital

Gross Profit Ratio: `"Gross Profit"/"Revenue from Operations"xx100`

Gross Profit = Revenue from Operations – Cost of Revenue from Operations/ Cost of Goods Sold
Cost of Revenue from Operations = Cost of Material Consumed (including direct expenses) + Change in inventories of WIP and Finished Goods.

Or

Opening Inventory + Net Purchases + Direct Expenses – Closing inventory

Net Profit Ratio = `"Net Profit"/"Revenue from Operations"xx100`

Net Profit = Gross profit + Other Income – Indirect Expenses – Tax

Operating Ratio =``

Operating Expenses = Employee Benefit Expenses + Depreciation and Amortisation Expenses + Selling
and Distribution Expenses+ Office and Administrative Expense

Operating Income = Sale of scrap, trading commission received, cash discount received, revenue from services.

Operating Profit Ratio : ``

Net operating profit = Net Profit after Tax+ Non-Operating Expenses – Non Operating Incomes

Or

Gross Profit – Operating Expenses + Operating Incomes

Non Operating Expenses = Finance Cost (Interest on Borrowings) + Loss on sale of Non Current Assets

Non Operating Incomes = Interest and Dividend Received on Investment + Profit on sale of Non Current Assets

`"Earning per share" = "Net Profit after Tax and Preference Dividend"/"No. of Equity Shares"`

`"Price Earning Ratio" = "Market Value of an Equity share"/"Earning per share"`

Return on Investment = `"Net Pr ofit before Interest and Tax"/"Capital Employed"xx100`

• Basic flow of Accounting Transaction
• Data and Information

1. Simple and Integrated
2. Transparency and Control
3. Accuracy and Speed
4. Scalability
5. Reliability

• Accounting Equation

1. Equity and Liabilities
   i. Shareholder’s Funds
2. Assets
   i. Non-Current Assets
   ii. Current Assets
3. Revenues
4. Expenses

• Security features of CAS Software
  i. Password Security
  ii.  Data Audit
  iii. Data Vault

1.  Cash and Bank Sub-System
2. Sales and Accounts Receivable Sub-System
3.  Inventory Sub-System
4.  Purchase and Accounts Payable Sub-System
5. Payroll Accounting Sub-System
6. Fixed Assets Accounting Sub-System
7.  Expense Accounting Sub-System
8. Tax Accounting Sub-System
9. Final Accounts Sub-System
10. Costing Sub-System
11. Budget Sub-System
12. Management Information System 

• Generic
• Specific
• Tailored.
• Features of computerised accounting system
• Components of Computerised Accounting System

• Adjusting entries, Preparation of financial statements, preparation of balance sheet, profit and loss account with closing entries and opening entries.

• Security of CAS and Security features are generally available in CAS

• The data fill options
• Import/Copy Data from other sources

• Formatting Tools 

• Defining the Print Area 

• One-Variable Data Table
• Two-Variable Data Table 
• Pivot Tables 

• Mark Common Formula Errors

• Data entry, Data validation, and Data verification

• Current payroll period (Month and Year)
• Earnings 
  Basic Pay (BP), Grade Pay (GP), Dearness Pay (DP), Dearness Allowance (DA), House Rent Allowance (HRA), Transport Allowance (TRA), Any Other Earning
• Deductions 
  Professional Tax (Applicable in some states) (PT), Provident Fund (PF), Tax Deduction at Source (TDS), Recovery of Loan Instalment (LOAN), Any Other Deduction

• Basic Pay Earned (BPE), Dearness Allowance (DA), Transport Allowance (TRA), Total Earnings (TE), Provident Fund (PF), Tax Deduction at Source (TDS), Recovery of Loan Instalments (LOAN), Total Deductions (TD), Net Salary (NS) = Total Earnings (TE) – Total Deductions (TD) Net Salary (NS) = Total Earnings (TE) – Total Deductions (TD)

• Loan 
• Calculating Interest and Repayments of Loan

• The chart area, The plot area, The data points, The horizontal (category) and vertical (value) axis, The legend, A chart and axes titles, A data label

• Formatting the Chart (using design option)
• Changing the format of a selected chart element
• Changing the layout of the chart element

• Help to Explore, Help to Present, Help to Convince

• A conceptual understanding of the basic features of the Data Base Management System (DBMS), i.e. data update and retrieval using basic functions and commands of SQL.
• Basic Commands: Select, Where, And, Or, Update, Delete and
• Basic Functions: Avg, Count, Max, Min, Sum.