UK Board Class 12 Accountancy Syllabus 2025-26: Download FREE PDF

Units/Topics

Learning Outcomes

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 (interest on capital, drawings, salary, profit-sharing ratio).

• State the meaning of partnership, partnership firm, and partnership deed.

• Describe the characteristic features of partnership and the contents of partnership deed.

• Discuss the significance of the Partnership Act provisions in the absence of a partnership deed.

• Differentiate between fixed and fluctuating capital accounts.

• Develop understanding and skills for preparing Profit and Loss Appropriation Account and handling profit guarantees.

• Understand and make past adjustments related to interest, salary, and drawings.

Goodwill: meaning, nature, factors affecting, and methods of valuation – average profit, super profit, and capitalization.

• State the meaning, nature, and factors affecting goodwill.

• Develop understanding and skills in valuation of goodwill using average profit, super profit, and capitalization methods.

Change in Profit-Sharing Ratio among existing partners: sacrificing ratio, gaining ratio, accounting for revaluation of assets, reassessment of liabilities, and treatment of reserves and accumulated profits/losses.

• Explain the meaning of sacrificing ratio and gaining ratio.

• Understand and record accounting treatment of revaluation of assets, reassessment of liabilities, and adjustment of reserves/profits/losses.

• Prepare revaluation account and revised balance sheet.

Admission of a Partner: effect of admission on profit-sharing ratio, treatment of goodwill (as per AS 26), revaluation of assets and liabilities, treatment of reserves and accumulated profits/losses, adjustment of capital accounts, and preparation of new balance sheet.

• Explain the effect of admission of a new partner on profit-sharing ratio.

• Apply accounting treatment of goodwill, revaluation of assets/liabilities, and adjustment of reserves and profits.

• Develop the skill to adjust capital accounts and prepare a new balance sheet after admission.

Retirement and Death of a Partner: change in profit-sharing ratio, treatment of goodwill (AS 26), revaluation, reserves, accumulated profits/losses, adjustment of capital accounts, preparation of loan account, calculation of deceased partner’s profit share, preparation of deceased partner’s capital and executor’s account.

• Explain the effect of retirement or death of a partner on the profit-sharing ratio.

• Understand the accounting treatment of goodwill, revaluation, and adjustments related to accumulated profits/losses.

• Prepare loan account, deceased partner’s account, and executor’s account.

• Prepare the balance sheet after retirement/death of a partner.

Dissolution of a Partnership Firm: meaning and types of dissolution, settlement of accounts, preparation of realization account, partners’ capital accounts, and cash/bank account (excluding piecemeal distribution, sale to a company, and insolvency of partners).

• Understand situations leading to dissolution of partnership and firm.

• Develop skills to prepare realization account and other related accounts at the time of dissolution.

• Apply rules for settlement of accounts among partners.

Units/Topics

Learning Outcomes

Accounting for Share Capital

• Features and types of companies.

• Share and share capital: nature and types.

• Issue and allotment of equity and preference shares.

• Public subscription of shares – over-subscription and under-subscription, issue at par and premium, calls in advance and arrears (excluding interest), issue of shares for consideration other than cash.

• Concept of Private Placement, Employee Stock Option Plan (ESOP), and Sweat Equity.

• Accounting treatment of forfeiture and reissue of shares.

• Disclosure of share capital in the Balance Sheet of a company.

• State the meaning of share and share capital.

• Differentiate between equity shares, preference shares, and types of share capital.

• Understand the meaning and concept of private placement, ESOP, and Sweat Equity.

• Explain the accounting treatment of share capital transactions related to issue, allotment, and calls.

• Develop understanding and skills for accounting treatment of forfeiture and reissue of shares.

• Describe how share capital is presented in the Balance Sheet as per Schedule III Part I of the Companies Act, 2013.

Accounting for Debentures

• Meaning and types of 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 (concept of TDS excluded).

• Writing off discount/loss on issue of debentures (as per AS 16).

• Explain the meaning of debentures and different types of debentures.

• Understand the accounting treatment for issue of debentures at par, premium, and discount.

• Develop skills in recording debentures issued for consideration other than cash and those issued with redemption terms.

• Explain the concept of debentures as collateral security and its presentation in the balance sheet.

• Develop the skill of calculating and accounting for interest on debentures.

• Understand the method of writing off discount/loss on issue of debentures as per Accounting Standard (AS 16).

• State the meaning and accounting treatment of redemption of debentures.

Units/Topics

Learning Outcomes

Unit 4: Analysis of Financial Statements

Financial Statements of a Company

• Meaning, Nature, Uses and Importance of Financial Statements.

• 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.

• Develop understanding of major headings and sub-headings in financial statements.

• Appreciate the significance, objectives, importance, and limitations of financial statement analysis.

Tools for Financial Statement Analysis

• Comparative statements

• Common size statements

• Ratio analysis

• Cash flow analysis

• Understand and apply different tools for financial statement analysis.

Accounting Ratios

• Meaning, Objectives, Advantages, Classification, and Computation.

• Liquidity Ratios: Current ratio, Quick ratio.

• Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio, Interest Coverage Ratio, Debt to Capital Employed Ratio.

• Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, Fixed Asset Turnover Ratio, Net Asset Turnover Ratio, Working Capital Turnover Ratio.

• Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, Return on Investment.

• Explain the meaning, objectives, and advantages of accounting ratios.

• Develop the skill to compute and interpret liquidity, solvency, activity, and profitability ratios.

Unit 5: Cash Flow Statement

Cash Flow Statement

• Meaning, objectives, benefits, cash and cash equivalents.

• Classification of activities and preparation (as per AS 3 Revised, Indirect Method only).

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

• State the meaning and objectives of a cash flow statement.

• Develop the skill of preparing cash flow statements using the indirect method as per AS 3 with given adjustments.

Parts

Units

Marks

Part A: Accounting for Partnership Firms and Companies

Unit 1: Accounting for Partnership Firms

36

Unit 2: Accounting for Companies

24

Total

60

Part B: Financial Statement Analysis

Unit 3: Analysis of Financial Statements

12

Unit 4: Cash Flow Statement

8

Total

20

Part C: Project Work

Project Work and Viva

15

Continuous Assessment (Unit Test)

5

Total

20

OR

Part B: Computerized Accounting

Unit 4: Computerized Accounting

20

Part C: Project Work

Project Work and Viva

15

Continuous Assessment (Unit Test)

5

Total

20

UK Board Class 12 Accountancy Syllabus 2025-26: Download Free PDF