ACCOUNTANCY

Accountancy Class XII

Comprehensive Digital Textbook | Session 2025-26

Units	Marks
Part A: Accounting for Partnership Firms and Companies	60 Marks
Part B: Financial Statement Analysis	20 Marks
Total Theory	80 Marks

Unit 1: Accounting for Partnership Firms

36 MARKS

Chapter 1: Partnership Fundamentals

• Features and Partnership Deed Provisions (Act 1932)
• Profit and Loss Appropriation Account
• Fixed vs. Fluctuating Capital Accounts
• Calculation of Interest on Drawings at different situations
• Mastering Interest on Drawings ( in more detailed form)
• Calculation of Interest on Capital at different situations.
• Guarantee of Profits
• Past Adjustments (Interest, Salary, and Profit Sharing)

Chapter 2: Valuation of Goodwill

• Nature and Factors Affecting Goodwill
• Average Profit and Super Profit Methods
• Capitalization Method of Valuation

Chapter 3: Reconstitution of Partnership

• Change in Profit Sharing Ratio (Sacrificing & Gaining Ratios)
• Admission of a New Partner: Goodwill and Revaluation
• Retirement and Death of a Partner: Executor's Account

Chapter 4: Dissolution of a Partnership Firm

• Meaning and Types of Dissolution
• Preparation of Realization Account and Partners' Capital Accounts

Unit 2: Accounting for Companies

24 MARKS

Chapter 5: Accounting for Share Capital

• Issue and Allotment of Equity and Preference Shares
• Over-subscription (Pro-rata) and Under-subscription
• Forfeiture and Re-issue of Shares
• Disclosure of Share Capital in Balance Sheet (Schedule III)

Chapter 6: Accounting for Debentures

• Issue of Debentures: Par, Premium, and Discount
• Issue for Consideration Other than Cash
• Debentures as Collateral Security
• Writing off Discount/Loss on Issue of Debentures

Unit 3: Analysis of Financial Statements

12 MARKS

Chapter 7: Financial Statements of a Company

• Format of Statement of P&L and Balance Sheet (Schedule III)
• Tools for Analysis: Comparative and Common Size Statements

Chapter 8: Accounting Ratios

• Liquidity Ratios: Current and Quick Ratio
• Solvency Ratios: Debt-Equity and Interest Coverage
• Activity Ratios: Inventory and Trade Receivables Turnover
• Profitability Ratios: Gross Profit, Net Profit, and ROI

Unit 4: Cash Flow Statement

08 MARKS

Chapter 9: Cash Flow Analysis

• Classification of Operating, Investing, and Financing Activities
• Preparation of Cash Flow Statement (Indirect Method - AS 3)