CBSE Class 12 Accountancy Syllabus for Board Exam 2026-27, Download PDF Here

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 (relating to interest on capital, interest on drawing, salary and profit sharing ratio).

• Goodwill: meaning, 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: meaning, factors affecting, need for valuation, methods for calculation (average profits, super profits and capitalization), adjusted through partners capital/ current account.

Accounting for Partnership firms - Reconstitution and Dissolution.

• Change in the Profit Sharing Ratio among the existing partners - sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves, accumulated profits and losses. Preparation of revaluation account and balance sheet.

• Admission of a partner - effect of admission of a partner on change in the profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves, accumulated profits and losses adjustment of capital accounts and preparation of capital, current account and balance sheet.

• Retirement and death of a partner: effect of retirement / death of a partner on change in profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, adjustment of accumulated profits, losses and reserves, adjustment of capital accounts and preparation of capital, current account and balance sheet. Preparation of loan account of the retiring partner.

• Calculation of deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account and his executor’s account.

• Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts - preparation of realization account, and other related accounts: capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Note:

(i) If the realized value of tangible assets is not given it should be considered as realized at book value itself.

(ii) If the realized value of intangible assets is not given it should be considered as nil (zero value).

(ii) In case, the realization expenses are borne by a partner, clear indication should be given regarding the payment thereof.

After going through this Unit, the students will be able to:

• 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 provision of

Partnership Act in the absence of partnership deed.

• differentiate between fixed and fluctuating

capital, outline the process and develop the

understanding and skill of preparation of

Profit and Loss Appropriation Account.

• develop the understanding and skill of preparation profit and loss appropriation

account involving guarantee of profits.

• develop the understanding and skill of

making past adjustments.

• state the meaning, nature and factors

affecting goodwill

• develop the understanding and skill of

valuation of goodwill using different methods.

• state the meaning of sacrificing ratio, gaining ratio and the change in profit sharing ratio among existing partners.

• develop the understanding of accounting treatment of revaluation assets and reassessment of liabilities and treatment of reserves and accumulated profits by preparing revaluation account and balance sheet.

• explain the effect of change in profit sharing ratio on admission of a new partner.

• develop the understanding and skill of treatment of goodwill as per AS-26, treatment of revaluation of assets and re-assessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of capital, current account and balance sheet of the new firm.

• explain the effect of retirement / death of a

partner on change in profit sharing ratio. 

• develop the understanding of accounting treatment of goodwill, revaluation of assets and re-assessment of liabilities and adjustment of accumulated profits, losses and reserves on retirement / death of a partner and capital adjustment.

• develop the skill of calculation of deceased partner's share till the time of his death and prepare deceased partner's and executor's account.

• discuss the preparation of the capital accounts of the remaining partners and the balance sheet of the firm after retirement / death of a partner.

• understand the situations under which a partnership firm can be dissolved.

• develop the understanding of preparation of realisation account and other related accounts.

Units/Topics

Learning Outcomes

Accounting for Share Capital
• Features and types of companies.
• 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), Sweat Equity.
• Accounting treatment of forfeiture and reissue of shares.
• Disclosure of share capital in the Balance Sheet of a company. Accounting for Debentures
• Debentures: Meaning, types, 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 is excluded). 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)

After going through this Unit, the students will be able to: • state the meaning of share and share capital and differentiate between equity shares and preference shares and different types of share capital.

• understand the meaning of private placement of shares and Employee Stock Option Plan.

• explain the accounting treatment of share capital transactions regarding issue of shares.

• develop the understanding of accounting treatment of forfeiture and re-issue of forfeited shares.

• describe the presentation of share capital in the balance sheet of the company as per schedule III part I of the Companies Act 2013.

• explain the accounting treatment of different categories of transactions related to issue of debentures.

• develop the understanding and skill of writing of discount / loss on issue of debentures.

• understand the concept of collateral security and its presentation in balance sheet.

• develop the skill of calculating interest on debentures and its accounting treatment.

• state the meaning of redemption of debentures.