The CISCE board has released the revised ISC Accounts syllabus Class 12 on their website. The ISC Class 12 Accounts syllabus offers an in-depth exploration of accounting principles and practices. This curriculum is designed to prepare students for both higher education in commerce and real-world financial management and covers a wide range of topics. It also opens up vast career aspects, such as chartered accounting and entrepreneurship.
Accounting is often referred to as the language of business; it involves clarifying, summarising, recording, and interpreting financial information. Understanding these processes is important for making business decisions. The ISC accountancy syllabus for Class 12 aims to equip students with the necessary skills.
Complete ISC Syllabus Class 12 Accounts and Exam Pattern
The total marks for ISC Class 12 Accounts are 100, and there will be two exams for ISC Accounts Class 12:
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Paper I: Theory: 3 hours (80 marks)
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Paper II: Project Work (20 marks)
Paper 1 theory is of a duration of 3 hours, and 80 marks are divided into three sections: A, B, and C. All candidates must attempt all questions in Section A. Candidates also get a choice of attempting questions either from Section B or Section C. Let us have a detailed view of the sections:
Paper 1- Theory ( 80 marks)
Section A ( 60 marks)
Unit 1: Partnership Accounts (33 marks)
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Fundamentals of Partnership: Definition, meaning, and features of a partnership; provisions of the Indian Partnership Act, 1932; preparation of profit and loss appropriation accounts; and partners’ capital and current accounts.
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Goodwill: Concept of goodwill and mode of valuation; meaning, nature, and features of goodwill mode of valuation (average profit method, super profit method, capitalization method).
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Reconstitution of Partnership: Calculation of the new profit-sharing ratio, sacrificing ratio, and gaining ratio; change in profit-sharing ratio; calculation of the new profit-sharing ratio, gaining ratio, and sacrificing ratio; preparation of the retiring partner’s loan accounts and the deceased partner’s executor’s loan accounts; change in profit-sharing ratio; meaning of dissolution and settlement of accounts under Section 48 of the Indian Partnership Act 1932; partner’s capital account; and cash/bank account.
Unit 2: Joint Stock Company Accounts ( 27 marks)
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Issue of Shares: Issue of shares at par and premium under the Companies Act, 2013, issue of shares for considerations other than cash, Over and under subscription, cash book and journal proper, ledger accounts.
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Issue of Debentures: Issue of debentures at par, premium, and at a discount under the Companies Act 2013, Issue of debentures as collateral security for a loan, accounting entries at the time of issue when debentures are redeemable at par and premium, Calls in arrears, calls in advance, and interest thereon, Interest on debentures.
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Redemption of Debentures: Creation of debenture redemption reserve, redemption of debentures out of profits, redemption of debentures out of capital, redemption of debentures in annual instalments by draw of lots.
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Final Accounts of Companies: Preparation of the Balance Sheet of a company as per Schedule III, Part I of the Companies Act 2013.
Section B (20 marks)
Unit 3: Financial Statement Analysis ( 4 marks)
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Unit 3 includes comparative statements and common size statements, meaning, significance, and limitations of comparative statements and common size statements, preparation of a comparative balance sheet and statement of profit and loss (inter-firm and intrafirm) showing absolute change and percentage change, a common size balance sheet to be prepared as a percentage of total assets and total liabilities, and a and a common size statement of profit and loss to be prepared as a percentage of revenue from operations.
Unit 4: Cash Flow Statement (only for manufacturing companies) (8 marks)
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Unit 4 explains concepts such as the meaning, importance, and preparation of a cash flow statement, the calculation of net cash flows from operating activities based on indirect method only, and investing, and financing activities.
Unit 5: Ratio Analysis (8 marks)
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Liquidity Ratios: Current ratio, quick ratio, liquid ratio, acid test ratio.
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Solvency Ratios: debt to equity ratio, proprietary ratio, debt to total assets ratio, interest coverage ratio.
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Activity Ratios: trade receivables turnover ratio, trade payables turnover ratio, working capital turnover ratio, inventory turnover ratio.
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Profitability Ratios: Gross profit ratio, net profit ratio, operating ratio, operating profit ratio, earning per share, price earning ratio, return on investment.
Section C (20 marks)
Unit 6: Accounting Application of Electronic Spreadsheet (10 marks)
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Unit 6 includes topics like the concept of electronic spreadsheets, their meaning, utility, merits and demerits, and the application of spreadsheets in generating accounting information such as payroll, sales of goods, marks obtained by students, business transactions, and data presentations.
Unit 7: Database Management System (DBMS) (10 marks)
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Concepts and features of DBMS, types and features of DBMS, DBMS in business applications, database design, tables, fields, relationships, forms, reports, and indexing.
Paper 2: Project work (20 marks)
Every student has to submit two projects on any topic of their choice from the ISC Class 12 Accountancy Syllabus. The project work will be checked by the teacher and a visiting examiner appointed by the board. The mark allocation for each project is 10 marks: 1 mark for the format, 4 marks for the content, 2 marks for findings, and 3 marks for the viva taken by the examiner based on the project.
ISC Class 12 Accountancy Books
While the book prescribed by your school should be your foremost priority, here are some additional books that will help you in preparation:
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An Aid to Accountancy, ISC XII, by T.S. Grewal, H.S. Grewal, G.S. Grewal, and R.K. Kholsa.
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ISC Accountancy for Class 12 ( Parts A and B) by Balbir Singh.
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New ISC Accountancy Class 12 ( Volumes 1 and 2) by D.K. Goel, and Rajesh Goel.
The ISC Class 12 Accounts syllabus is made to provide students with the best understanding of the concepts of accounting principles. By covering essential topics such as partnership accounts, company accounts, financial statements, and DBMS, the ISC Class 12 accountancy syllabus ensures that students are well-prepared for further education and careers in accounting and finance. With strategic study habits, regular practice, and a clear understanding of concepts, achieving success is in our hands.