Revised CBSE Class 12 Accountancy Syllabus 2020-21

Revised CBSE Class 12 Accountancy Syllabus 2020-21

Accountancy as a mandatory subject of class 12th Commerce is one of the most important subjects and CBSE has released the Revised Syllabus of Class 12 Accountancy 2020-21 and deleted topics. Some major changes are made in the syllabus, so students should prepare for exams accordingly. You can find the revised syllabus and deleted topics below.

VidyaSetu Online Classes will help you study the CBSE Class 12th 2020 Accountancy Syllabus. Our teachers will help you understand the topics easily and guide you through the Accounts New Syllabus for Class 12. Join free VidyaSetu Online Classes for all subjects.

TABLE OF CONTENT –

Changes in Class 12 Accountancy Syllabus 2020-21

CBSE had announced the reduction of 30% of the syllabus for the academic year 2020-21. Some topics have been deleted from the chapters. Seeing the list of deleted topics may give you an idea that only 5-10% of the syllabus is reduced. But CBSE has smartly reduced the syllabus for class 12th students. Topics that are difficult or which take a lot of time in practice have been removed or simplified. CBSE has reduced the exam days’ overall preparation time. 

Besides the Deleted Syllabus of Class 12 Accountancy 2020-21, you must see the notes added by CBSE in the updated Class 12 Accountancy Syllabus 2020-21. There are some concepts and adjustments that are always asked in exams in 8 marks questions which are difficult for all students and a good amount of time is invested in practising them. CBSE has removed these tricky and time-consuming topics. The points which confuse students the most are also made simple. CBSE has clearly stated how to deal with those points and adjustments if they are asked in the exam. Now, most of the difficult points are removed/simplified; you should focus on learning the topics that are coming in exams. 

Below we have explained all the changes in the Class 12 Accountancy Syllabus for year 2020-21 for every unit in detail. 

Class 12 Accountancy Syllabus 2020-21

Part A: Accounting for Not-for-Profit Organizations, 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.

Notes: 

  • Adjustments in a question should not exceed 3 or 4 in number and are restricted to subscriptions, consumption of consumables, funds and sale of assets/ old material/funds.
  • Entrance/admission fees and general donations are to be treated as revenue receipts.
  • Trading Account of incidental activities is not to be prepared.

Unit 2: Accounting for Partnership Firms

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

Note: Interest on partner’s loan is to be treated as a charge against profits. Goodwill to be adjusted through partners capital/current account (AS 26)

Deleted Topics

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 deceased partner’s capital account and his executor’s account.

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 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 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 issue of debentures.

Note: Discount or loss on issue of debentures to be written off in the year debentures are allotted from Security Premium Reserve (if it exists) and then from Statement of Profit and Loss as Financial Cost (AS 16). 

Note: Related sections of the Companies Act, 2013 will apply.

Deleted Topics

Accounting for Debentures 

  • Redemption of debentures-Methods: Lump sum, draw of lots.

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 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.

Note: Net Profit Ratio is to be calculated on the basis of profit before and after-tax.  

Unit 5: Cash Flow Statement

  • Meaning, objectives, and preparation (as per AS 3 (Revised) (Indirect Method only)

Note: 

  • Adjustments relating to depreciation and amortization, profit or loss on the sale of assets including investments, dividend (both final and interim), and tax.
  • Bank overdraft and cash credit to be treated as short-term borrowings.
  • Current Investments to be taken as Marketable securities unless otherwise specified.

Note: 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.

Part C: Project Work

For the 2020-21 session, students will be required to make only one CBSE Class 12 Accountancy Project. Students must refer to the CBSE guidelines for more details.

 

Part B: Computerised Accounting 

Unit 4: Computerised Accounting 

Overview of Computerised Accounting System

  • Introduction: Application in Accounting.
  • Features of Computerised Accounting System.
  • Structure of CAS.
  • Software Packages: Generic; Specific; Tailored.

Accounting Application of Electronic Spreadsheet. 

  • Concept of the electronic spreadsheet.
  • Features offered by electronic spreadsheet.
  • Application in generating accounting information – bank reconciliation statement; asset accounting; loan repayment of loan schedule, ratio analysis.
  • Data representation- graphs, charts, and diagrams.

Using Computerized Accounting System. 

  • Steps in the installation of CAS, codification, and Hierarchy of account heads, creation of accounts.
  • Data: Entry, validation, and verification.
  • Adjusting entries, preparation of 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.

Part C: Practical Work

Students must refer to the CBSE guidelines for more details on the Practical work.

Download CBSE Class 12 Accountancy Syllabus 2020-21 (Revised)
Download Deleted CBSE Class 12 Accountancy Syllabus 2020-21

Class 12 Accountancy Marking Scheme & Exam Pattern

Before starting your exam preparation, students must also check the marking scheme and exam pattern of the Accountancy paper. 

The Accountancy exam is divided into two parts: 

  1. Written exam
  2. Project/Practical

The written exam is 80 marks while the project/practical exam is 20 marks.

UnitsMarks
Part A

 

Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

60
Part B 

 

Financial Statement Analysis

20
Part C 

 

Project Work

20
Part B 

 

Computerized Accounting

20
Part C 

 

Practical Work

20

CBSE has given a complete marking structure which you can see on the Class 12 Accountancy Guide.

Class 12 Accountancy Useful Resources

Students can download other study material along with the Class 12 Accountancy Syllabus 2020-21 from VidyaSetu.

Prescribed Books for Class 12 Accountancy: 

Accountancy -I Class XII NCERT Publication 

Accountancy -II Class XII NCERT Publication 

Accountancy – Computerised Accounting System Class XII NCERT Publication 

Students can download Class 12 NCERT Books for Accountancy from VidyaSetu. For exam preparation, students must also check Class 12 Accountancy NCERT Solutions.

After completing the Accounts New Syllabus for Class 12, students should practice the CBSE Class 12 Accountancy Sample Papers and previous year question papers.

If you are looking for the Accountancy Syllabus on another Board, visit VidyaSetu Study Zone.

Preparation Tips for the Class 12 Accountancy Exam 2020-21?

After knowing the complete Class 12 Accountancy Syllabus 2020-21 changes you can find restart your exam preparation. As CBSE has reduced some of the major topics that take a long time in preparation, you can now divide your time better and focus on learning the core topics.

Take online classes for all topics from expert teachers. You can check the Vidyasetu free online classes for Accountancy. Our classes are pre-recorded and always accessible easily so you can study at your convenience. We can help you prepare Class 12 Accountancy Notes and understand Accountancy solutions. With our regular mock tests, you can evaluate your preparation. Our doubt-solving classes will help you understand tough topics without any stress. Vidyasetu has proved its efficiency every year in CBSE class 12 results.  Vidya Setu also provides other subject syllabus like class 12 Economics syllabus .

With VidyaSetu classes, you can understand the CBSE question paper pattern and know what to expect in the exam this year. As per the teachers and CBSE class 12 Toppers, the difficult topics that mostly come in the accountancy exam won’t be there, but CBSE can definitely twist the easy parts of the syllabus in the questions. So our teachers will help you be prepared with a strong conceptual building. You can also find the CBSE class 12 syllabus for other subjects and class 12 Sample Papers for practice as well.

Even though CBSE has reduced the Class 12 Accountancy Syllabus 2020-21, students who really like this subject can study the complete course. It will help you in further studies and exams like CA, CS, etc. 

Class 12 Syllabus of Other Commerce Subjects

Students looking for Syllabus of other Commerce Subjects don’t need to look any further. Click the links below to see the syllabus.

Class 12 Commerce Syllabus

The syllabus for other subjects is also reduced by 30%. Don’t forget to check out the complete syllabus-the revised syllabus and the deleted syllabus. Mark the topics in your books accordingly before preparing. Maths is also a practical subject as Accountancy, students must practice the CBSE class 12 maths sample papers as well. 

Conclusion

Quantity-wise not many changes have been made in the Class 12 Accountancy Syllabus 2020-21, but CBSE has removed a major portion of topics that troubled students in the exams. Not to forget the small notes and instructions that CBSE has added to the syllabus will make things a lot easier for students. Students can see the complete syllabus changes here. VidyaSetu classes can help students prepare according to the new syllabus.

Frequently Asked Questions

Q1. What are the changes in the Class 12 Accountancy Syllabus 2020-21? 

Ans. Yes, CBSE has reduced 30% of the syllabus. You can see the Accounts Reduced Syllabus of Class 12 above.

Q2. List all the deleted topics of CBSE Class 12 Accountancy Syllabus 2020-21?

Ans. The main topics removed from the syllabus are:  

  • 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 deceased partner’s capital account and his executor’s account. 
  • Redemption of debentures-Methods: Lump sum, draw of lots. 

See more details in the syllabus above.

Q3. What is the change in the Accountancy Project syllabus?

Ans. Instead of 2-3 projects, this year students have to do only a single project. The project topic will be given by your school teachers. 

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