Syllabus of Higher Secondary
Standard - 11 & 12
(General Stream - English Medium)
Implemented From June - 2004 in Standard - 11,
Implemented From June - 2005 in Standard - 12

Element of Account (154)

Standard: 11

UNIT - 1 INTRODUCTION TO ACCOUNTING

• Accounting : Meaning, objectives, Accounting information - its types & forms, Advantages & Limitations.

• Qualitative characteristics of Accounting information Reliability, Relevance, understandability, comparability.

• Basic Accounting terms : Economic transaction, Capital, Drawings, Liabilities, Debts, Assets, Revenue, Income, Expenditure & Expense (capital & revenue nature) purchases, sales, goods, stock, Debtors, Receivables, creditors, payables.

UNIT - 2 ACCOUNTING CONCEPTS, PRINCIPLES & CONVENTION

• Basic concept : Accounting entity, money measurement, going concern, Accounting period.

• Basic Principles Dual Aspect, Verifiability, objectivity, Historical cost – Revenue Recognition, matching, Full Disclosure.

• Practical approach in applying principles Materiality, Consistency, Prudence, Timeline, substance over form, variations in accounting practices,

UNIT - 3 (GENERATION OF VOUCHERS AND RECORDING OF TRANSACTIONS)

• Origin of a transaction, original documents & vouchers, preparation of vouchers.

• Accounting Equation Meaning and analysis of accounting transaction using accounting equation.

• Rules of Debit & Credit : For assets, Debts & liabilities, for capital, for Incomes & Expenses.

• Book keeping by double entry system : Book for writing original entry :- meaning, for matson for writing transaction : Journal
  Books for special purpose : Meaning, Utility, form & writing of entries in it.
  (i) cash book : Simple, with bank column and petty cash-book.
  (ii) Purchase Book, Sales Book, Return Books, Bills receivable and Bills payable book

• Posting : Meaning, Utility, Formation, Posting from Journal, cash-book and from Journal Proper, to find out balances of accounts.

• Bank Reconciliation statement : Meaning, Utility and preparation of B.R.S. from cash book & pass book of same period, also preparation of B.R.S. from correct cash balance.

UNIT 4 (Trial Balance and Rectification of Errors)

• Trial Balance : Meaning, Objectives and preparation of Trial Balance.

• Errors : Types of Errors, Errors affecting trial balance & errors not affecting trial balance.

• To find Errors & its rectification.

• Suspense Account : Meaning, utility, preparation of suspense account and accounting effect of balance of suspense a/c.

UNIT 5 : (Depreciation, Provisions and Reserves)

• Depreciation : Meaning, need for calculating dep. (objects or necessity of dep.), factors or causes of dep., methods of calculating dep., straight line method, reducing balance method. (Except change of method), other methods of dep. (without practical problems), effect of different methods on asset, account of accumulated dep., Disposal of Asset a/c., Provision for dep. a/c.

• Reserves & Provisions : Meaning & objects, Need for creating reserve for doubtful debts, provision for discount reserve on debtors.
  Difference between General reserve and provision.
  Types of Reserve :
  General reserve, Capital reserve, Revenue reserve, Special reserve and provision.

UNIT - 6 (Bills of Exchange)

• Bill of Exchange and Promissory note : definition, characteristics, Parties to it, specimen and difference.

• Important terms : Period of bill and days of grace, maturity date,

• Demand bill or sight bill, term bill. Negotiation, Endorsement, discounting of bill, dishonour of bill, noting charges, Insolvency of drawee, disposal and renewal of a bill.

• Journal entries relating to bills.

UNIT - 7 (Financial Statements)

• Financial Statements Meaning & Class of people using it.

• Profit & Loss Account Gross profit, Operating profit & Net profit.

• Balance Sheet Need, Group headings, Marshalling of assets & Liabilities in proper order.

• Following types of adjustments for preparing financial statements. Closing stock, unpaid expenses, prepaid expenses, Income due but not received, Income received in advance, dep., provision for doubtful debts, discount reserve on debtors, managers com., abnormal toss, goods sent on sales or return basis, goods in transist.

• Preparation of profit & Loss a/c. and Balance Sheet for sole proprietorship firm.

UNIT - 8 (Financial statements of Non trading Concern)

• Non-trading firm : meaning and examples.

• Receipt-Payment account, Income & Expenditure account: Meaning and explanation of accounts of capital fund & non permanent fund.

• Preparation of Income & Exp. & Balance Sheet form given receipt and payment account & additional information. maximum additional information should be from opening balance sheet, Income & Exp. account & in form of small adjustments.

UNIT - 9 Accounting from Incomplete Records
(with concept of single entry system)

• Meaning, uses & limitations.

• Ascertainment of profit/loss by statement of affairs method i.e. (comparison of capitals method.)

Standard: 12

Financial Accounts - Accountancy II (Partnership and company Accounts)
UNIT - 1 PARTNERSHIP ACCOUNTS

• Form of partnership firm - partnership Deed - Meaning and Impact.

• Special features of partnership final accounts : Fixed v/s fluctuating capital accounts, distribution of profit amongst partners.
  Adjustments of 11th Std. and relating to Guarantee of profits, Joint life Policy (only explanation relating to accounting entries of Joint life Policy.

UNIT - 2 RECONSTRUCTION OF PARTNERSHIP - (Changes in partnership)

• Charges in P. & L. ratio of existing partners - sacrifice ratio & Gain or benefit ratio.

• Revaluation of Assets & Liabilities, Distribution of accumulated profit & Reserves - Goodwill - Factors affecting valuation of goodwill and methods of valuation of goodwill :
  Average Profit (Simple and weighted), Super Profit (only Explanation of concept of super profit), method of capitalising it (only Explanation), Accounting Treatment of Goodwill)

• Admission of a partner : Problems Arising on Admission of a partner, New Profit sharing ratio after Admission of a Partner - Sacrifice ratio, Entries for goodwill on Admission, accounting entries for revaluation of Assets and Liabilities, accounting entries for distribution of accumulated profits, Adjustment of capital Accounts.

• Retirement or Death of Partner : New profit-sharing ratio after retirement, Gain ratio, Treatment of Goodwill on retirement, Accounting entries for revaluation of Assets & Liabilities, Distribution of Accumulated Profit or Reserve, Adjustments for Joint life Policy and Capital Accounts.
  (Note : Examples of Retirement and Admission together is not included.)

UNIT - 3 DISSOLUTION OF PARTNERSHIP FIRM

• Meaning, mode of settlement of Accounts : Entries on Dissolution Realisation Account and Preparation of necessary accounts and also Profit & Loss in Realisation A/c.
  (Piecemeal Distribution,, sale to company & Insolvency of Partnership is not Included.)

UNIT - 4 SHARE CAPITAL TRANSACTION

• Share & Share Capital : Meaning and types.

• Accounting of Share Capital
  Issue of Equity & Preference shares, its Allotment, Private placement and public subscription, over subscription and under subscription, to issue share, at par, at premium and at discount, calls received in advance, calls-in-arrears, issue of shares for consideration other than cash.

• Share forfeiture : Accounting entries, reissue of forfeited shares.

• Disclosure of share capital in company's Balance sheet.

UNIT - 5 ACCOUNTING FOR DEBENTURES

• Issue of Debentures : Meaning of Debenture, Issue of debentures at par and at premium, issue of debentures for consideration other than cash, Debentures issued as collateral security.

• Redemption of Debenture : Meaning, consideration for Redemption of debentures,
  (A) Repayment on a specified date
  (i) Sinking Fund
  (ii) Accumulated Profits. and
  (iii) From Capital obtained through issue of new shares and debentures.

UNIT - 6 ANALYSIS OF FINANCIAL STATEMENTS

• Financial statement of company
  - Structure of Balance Sheet : With only Main Headings.

• Analysis and interpretation of financial statement : Meaning, importance, objectives & Limitations.

• Methods used in analysis of financial statements
  (a) Comparative Financial and Operating Statements,
  (b) Common size statements

• Accounting Ratio : Meaning and objectives, types of ratios.
  Liquidity ratios Current ratio,
  Liquid ratio.
  Solvency ratios Debt - Equity ratio total assets to debt, Proprietary ratio.
  (Debt - equity-ratio)
  Activity Ratios : Turnover ratio, Debtors Turnover, Creditors Turnover, working capital turnover ratio.
  Profitability Ratios : Gross Profit ratio, Net profit ratio, operating ratio.
  (Note : only the calculation of the above ratios from given information is included.)

UNIT : 7 DESHI NAMA SYSTEM

• Different books : Rojmel, Bethomel, Peta Nondh - (Jama Nondh & Udhar Nondh), Preparation of Khatavahi.

• Utaro (Trial Balance)

• Havala mel or Achad mel

• Preparation of final accounts
  2 methods
  (i) Kharid - Vakra Khata Method
  (ii) Vatav Khata Method

• To prepare Sarvaiyun (B/S.)

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