CBSE Class 12 Accountancy Syllabus 2025-26: Download PDF & Full Exam Pattern

Updated CBSE Class 12 Accountancy Syllabus for 2025-26 – Get the latest chapter-wise syllabus, marking scheme, and study tips. Download the official PDF at the end!

Overview of CBSE Class 12 Accountancy Syllabus 2025-26

The Class 12 CBSE syllabus for Accountancy plays a crucial role in board exams and competitive exams like CUET. This year, CBSE has introduced competency-based questions and a revised weightage system to encourage conceptual learning over rote memorization.

Board	CBSE
Class	12
Session	2025-26
Subject	Accountancy
Content-Type	Syllabus/Curriculum
Official Website	https://cbseacademic.nic.in

ACCOUNTANCY (CODE 055) - CLASS XII (2025-26)

Theory: 80 Marks | Time: 3 Hours
Practical/Project: 20 Marks

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Course Structure

Part A: Accounting for Partnership Firms & Companies (60 Marks)

Unit	Topic	Marks
1	Accounting for Partnership Firms	36
2	Accounting for Companies	24
	Total	60

Part B: Financial Statement Analysis (20 Marks)

Unit	Topic	Marks
3	Analysis of Financial Statements	12
4	Cash Flow Statement	8
	Total	20

OR

Part B: Computerized Accounting (20 Marks)

Unit	Topic	Marks
4	Computerized Accounting	20

Part C: Practical Work/Project (20 Marks)

Component	Marks
Project File/Practical File	12
Viva Voce	8

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Part A: Accounting for Partnership Firms & Companies (60 Marks)

Unit 1: Accounting for Partnership Firms (36 Marks)

1. Fundamentals of Partnership

Key Concepts:

• Essential Features: Mutual agency, unlimited liability, voluntary agreement
• Partnership Deed Contents:
  ✓ Profit-sharing ratio
  ✓ Interest on capital/drawings
  ✓ Partner remuneration clauses
• Partnership Act 1932: Default provisions when deed is silent

Capital Accounts:

Fixed Capital	Fluctuating Capital
Remains unchanged	Changes frequently
Requires separate current account	Single account for all transactions

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2. Profit Distribution

Profit & Loss Appropriation Account Flow:

1. Start with net profit
2. Deduct: Interest on capital, partner salaries
3. Distribute remaining profit as per PSR

Special Cases:

• Past Adjustments: Rectify errors in interest/salary calculations
• Guaranteed Profits: Minimum assured amount to a partner

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3. Goodwill Valuation Methods

Method	Calculation	Example
Average Profits	(Total profits/No. of years) × Purchase years	5-year avg: ₹2L → 3 years = ₹6L
Super Profits	(Actual Profit - Normal Profit) × Years	Actual ₹3L, Normal ₹2L → SP ₹1L × 3 = ₹3L
Capitalization	(Super Profit × 100)/Normal Rate	SP ₹1L @10% = ₹10L

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4. Partnership Reconstitution

A. Change in Profit Ratio

• Sacrificing Ratio = Old Share - New Share
• Journal Entries:
  • Revaluation A/c Dr.
    • To Asset A/c (for increase)
  • Liability A/c Dr.
    • To Revaluation A/c (for decrease)

B. Admission of Partner

1. Goodwill treatment (AS 26) → Adjust via partners' capital
2. Revalue assets/liabilities
3. Capital adjustment formula:
   • New Partner's Capital = (Total Adjusted Capitals × New Ratio)

C. Retirement/Death

• Key Calculations:
  ✓ Gaining ratio = New share - Old share
  ✓ Deceased partner's profit share = Last year's profit × (Days/365) × PSR

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5. Dissolution Process

Realisation Account Format:

Debit Side	Credit Side
Asset book values	Asset sale values
Liabilities paid	Liabilities taken over

Important Notes:

1. Assume book value for tangible assets if sale price not given
2. Treat intangible assets as zero value unless specified
3. Clearly show realization expenses paid by partners

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Unit 3: Accounting for Companies (24 Marks)

A. Accounting for Share Capital

1. Fundamental Concepts

Term	Definition
Company	Separate legal entity with perpetual succession
Equity Share	Voting rights, variable dividends
Preference Share	Fixed dividend, priority in repayment

2. Share Issue Accounting

Key Transactions:

• At Par: Issue price = Face value
  • Bank A/c Dr. [Amount received] To Share Application A/c
• At Premium: Additional amount over face value
  • Securities Premium Reserve A/c (Credit)

Special Cases:

• Forfeiture:
  • Share Capital A/c Dr. [Called-up amount]
  • To Share Forfeiture A/c [Paid-up]
  • To Calls-in-Arrears A/c [Unpaid]
• ESOP/Sweat Equity: Shares issued to employees at discount

3. Balance Sheet Presentation

As per Schedule III:

• Equity Share Capital (Authorized/Issued/Subscribed)
• Reserves & Surplus (Securities Premium, P&L)

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B. Accounting for Debentures

1. Key Features

Type	Characteristic
Convertible	Can be changed into shares
Redeemable	Repayable after fixed period
Collateral Security	Secondary security for loans

2. Accounting Treatment

Issue Scenarios:

Scenario	Journal Entry
At Discount (10%)	Discount on Issue A/c Dr. [10% of face value]
With Redemption Terms	Create DRR (Debenture Redemption Reserve)

Interest Calculation:

Annual Interest = Face Value × Rate%  

(Note: TDS not covered)

3. Redemption Process

• Sources:
  ✓ Profits → DRR creation
  ✓ Fresh issue → Capital inflow

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Learning Outcomes Checklist

✔ Differentiate equity vs preference shares
✔ Prepare journal entries for share forfeiture & reissue
✔ Calculate debenture interest and write off discount
✔ Present share capital as per Companies Act 2013

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Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements (12 Marks)

A. Financial Statements of a Company

Key Features (Schedule III Compliance):

1. Balance Sheet Structure
   • Equity & Liabilities: Shareholders' funds, non-current/current liabilities
   • Assets: Non-current/current assets (with sub-classifications)
2. Statement of Profit & Loss
   • Revenue from operations
   • Other income → Finance costs → Tax expenses

Note: Excludes extraordinary items and discontinued operations

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B. Financial Statement Analysis

1. Purpose & Limitations

Objectives	Limitations
Assess solvency	Historical data
Evaluate profitability	Qualitative factors ignored
Predict future performance	Window dressing possible

2. Analysis Tools

Comparative Statements

• Horizontal comparison (YoY changes)
  Common Size Statements
• Vertical analysis (% of base figure)
  Cash Flow Analysis
• Operating/Investing/Financing activities

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C. Accounting Ratios

1. Liquidity Ratios

Ratio	Formula	Ideal
Current Ratio	Current Assets/Current Liabilities	2:1
Quick Ratio	(CA - Inventory)/CL	1:1

2. Solvency Ratios

Ratio	Formula	Purpose
Debt-Equity	Debt/Equity	≤2:1
Interest Coverage	EBIT/Interest	>3 times

3. Activity Ratios

Ratio	Formula	Interpretation
Inventory Turnover	COGS/Avg Inventory	Higher = Better
Receivables Turnover	Credit Sales/Avg Receivables	Measures collection efficiency

4. Profitability Ratios

Ratio	Formula	Calculation Basis
Gross Profit	GP/Revenue × 100	Before operating costs
Net Profit	NP/Revenue × 100	Before & after tax

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Learning Outcomes Checklist

✔ Prepare Schedule III-compliant financial statements
✔ Compute 12+ ratios across 4 categories
✔ Analyze trends using comparative/common-size statements
✔ Interpret ratio results for decision-making

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Unit 5: Cash Flow Statement (8 Marks)

Key Concepts

• Purpose & Benefits
  • Tracks cash inflows/outflows
  • Assesses liquidity position
• Classification of Activities

Activity	Examples
Operating	Receipts from customers, Payments to suppliers
Investing	Purchase/sale of fixed assets
Financing	Issue of shares, Dividend payments

• Preparation (Indirect Method)
  Format:

Cash from Operating Activities:  
Net Profit before Tax  
+ Depreciation  
- Profit on Sale of Assets  
± Working Capital Changes  

Special Adjustments

• Dividend: Previous year's proposed dividend only
• Tax: Include paid amounts, exclude provisions
• Bank Overdraft: Treated as short-term borrowing

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Question Paper Design (2025-26)

Theory Exam (80 Marks | 3 Hours)

Typology	Marks	Weightage	Sample Questions
Remembering & Understanding	32	40%	Define cash equivalents, List financing activities
Applying	24	30%	Prepare Cash Flow from Operating Activities
Analysing/Evaluating/Creating	24	30%	Compare two years' cash flows, Diagnose liquidity issues

Project Work (20 Marks)

• Components:
  ✓ Practical file (12 marks)
  ✓ Viva voce (8 marks)

Download CBSE Class 12 Accountancy Syllabus 2025-26 PDF

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CBSE Class 12 Syllabus – All Subjects

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