Term – 2 Accounts Class 12 ISC Syllabus 2021-22
Looking for Term – 2 Accountancy class 12 Syllabus of ISC Board 2021-22 Board.
for 2021-22, ISC Board has reduced its syllabus due to the covid situation. The below-mentioned syllabus is the reduced syllabus for class 12 Accountancy for the 2021-22 session.
Accountancy Term – 2 syllabus CBSE Board 2021-22
Theory: 40 Marks
Project: 10 Marks
Duration:- 1.5 Hour
Units/Topics
| Parts | Unit | Marks |
| Part A | ACCOUNTING FOR PARTNERSHIP FIRMS: 3. RETIREMENT OF A PARTNER 4. DISSOLUTION OF PARTNERSHIP FIRMS COMPANY ACCOUNTS: 1. ACCOUNTING FOR DEBENTURES Issue of Debentures Redemption of Debentures | 26 |
| PART B | ANALYSIS OF FINANCIAL STATEMENTS: 1 Financial Statement Analysis (Complete Unit) 2 Cash Flow Statement (Complete Unit) | 14 |
| or | ||
| Part C | COMPUTERISED ACCOUNTING Database Management System (DBMS) (Complete Unit) | 14 |
| Total | 40 | |
| PROJECT (PART – 2): 10 MARKS |
Retirement of a partner
(i) Calculation of new profit sharing ratio, gaining ratio, and sacrificing ratio.
Self Explanatory.
(ii) Adjustment with regard to goodwill including hidden goodwill.
Self Explanatory.
(iii) Adjustment with regard to undistributed profits and losses.
Self Explanatory.
(iv) Preparation of Revaluation Account on the retirement of a partner.
Self Explanatory.
(v) Adjustment of capitals.
(a) Readjusting the adjusted capital of the continuing partners in the new
profit sharing ratio.
(b) Adjusting the capitals of the continuing partners on the basis of the total capital of the new firm.
(c) When the continuing partners bring in cash to pay off the retiring partners.
(vi) Calculation and payment of the amount due to retiring partner.
Self Explanatory.
NOTE:
− Preparation of Balance Sheet in Partnership Accounts to be done in Horizontal format only.
− Memorandum Revaluation Account, Joint Life Policy, Individual life policy are excluded from the syllabus.
− Retirement of a partner during an accounting year is excluded for the Examination Year 2022.
Dissolution of a Partnership firm
(i) Meaning of dissolution and settlement of accounts under Section 48 of The Indian
Partnership Act 1932.
Self Explanatory
(ii) Preparation of Realization Account, Partner’s Loan Account, Partner’s Capital Account and Cash/Bank Account.
Self-explanatory.
NOTE:
1. Preparation of Memorandum Balance Sheet is excluded for the Examination Year 2022.
2. Important points:
When an asset or a liability is taken to the realization account any corresponding/related fund
or reserve is also transferred to the realization account and not to the partners’ capital accounts.
When accounts are prepared on a fixed basis, partners’ current account balances are to be
transferred to capital accounts. No adjustments are required to be passed through the current account.
Bank overdraft is to be taken to the bank/cash A/c and not to be transferred to realization account but
bank loan must be transferred to realization account.
- If question is silent about the payment of a liability, then it has to be paid out in full.
- If the question is silent about the realization of an asset, its value is assumed to be nil.
- Loan taken from a partner will be passed through cash or bank account even if thepartner’s capital account has a debit balance.
- The loan given to a partner will be transferred (debited) to his Capital account.
- Admission cum retirement, an amalgamation of firms, and conversion/sale to a company together with piecemeal distribution and insolvency of a partner/partners not required.
Joint Stock Company Accounts
A. Issue of Shares
Problems on the issue of shares.
(a) Issue of shares at par and premium under Companies Act, 2013.
(b) Issue of shares for considerations other than cash:
- To promoters (can be considered either through Goodwill account or Incorporation costs account).
- To underwriters.
- To vendors.
(c) Calls in arrears, calls in advance, and interest thereon including the preparation of ledger accounts.
(d) Over and under subscription (including pro-rata allotment).
NOTE:-
In pro-rata allotment when shares are issued at a premium, excess money received on application will first be adjusted towards the share capital. Any excess thereon will be utilized towards the Securities Premium
Reserve.
When allotment or any call money is due, it is to be transferred to the calls in arrears account, on which interest if, provided in the Articles of Association will be calculated.
(e) Forfeiture and reissue of shares at par, premium or discount.
Self-explanatory.
(f) Disclosure of Share capital in the company’s Balance Sheet.
NOTE:-
Issue of bonus and rights shares, private placement of shares, sweat equity shares, employees’ stock option scheme, reservations for small individual participants, and minimum tradable lots are not required.
Part – B
Issue of Debentures
Problems on the issue of debentures (at par, at premium and at discount.)
Problems on issue of debentures to include:
(a) Issue of debentures at par, at premium and at discount under Companies Act
2013.
(b) Issue of debentures as collateral security for a loan.
(c) Issue of debentures for considerations other than cash.
• To promoters.
• To underwriters.
• To vendors
(d) Accounting entries at the time of issue when debentures are redeemable at par and premium.
(e) Calls in arrears, calls in advance, and interest thereon.
(f) Interest on debentures (with TDS).
(g) Disclosure of Debentures in the company’s Balance Sheet.
(h) Methods of writing off discount/loss on issue of debentures- when debentures are redeemable in a lump sum at the end of a specified period; when debentures are redeemable in installments.
(i) Disclosure of discount on issue of debentures in the company’s Balance Sheet when debentures are redeemed in installments.
Redemption of Debentures
• Creation of Debenture Redemption Reserve (wherever applicable)
• Redemption of debentures out of profits.
• Redemption of debentures out of capital.
• Redemption of debentures in a lump sum.
• Redemption of debentures in annual installments by draw of lots.
Self-Explanatory.
NOTE:
I. Calculation of ex-interest and cum-interest is not required.
II. In case of redemption of debentures in annual installments by draw of lots:
(i) The entire DRI purchased for the redemption of the installment of debentures are not sold at the end of the year but sold/further purchased to the extent to maintain 15% of the face value of the debentures to be redeemed in the next installment. In case of redemption in equal installments, DRI purchased for the first installment remains invested till the last installment.
(ii) Wherever applicable, DRR is transferred to General Reserve in proportion to the debentures redeemed.
III. Rules relating to the creation of Debenture Redemption Reserve (DRR):
(i) Listed companies including NBFCs registered with RBI and HFCs registered with National Housing Bank
(NHB) both public issues as well as private placements do not require the creation of a DRR of 25 percent of the value of outstanding non-convertible debentures.
(ii) Unlisted NBFCs registered with RBI and HFCs registered with National Housing Bank (NHB) both for public issues as well as private placements do not require the creation of a DRR of 25 percent of the value of outstanding non-convertible debentures.
(iii) For unlisted companies (other than NBFCs and HFCs), DRR is reduced from the present level of 25 per cent to 10 per cent of the outstanding debentures.
Rules regarding Debenture Redemption Investment (DRI)
• Unlisted NBFCs and HFCs need not deposit any amount of its debentures maturing during the year with scheduled banks or invest it in specified government securities.
• The following companies will continue to invest or deposit, on or before 30th April in each year, a sum which shall not be less than 15 per cent, of the amount of its debentures maturing during the year, ending on 31st March of the next year, in deposits with any scheduled bank, free from any charge or lien / in unencumbered securities of the Central Government or any State Government / in unencumbered
securities mentioned in Section 20 of the Indian Trusts Act, 1882/ in unencumbered bonds issued by any
other company notified under Section 20 of the Indian Trusts Act, 1882:
(i) Listed companies including NBFCs registered with RBI, HFCs National Housing Bank (NHB) and unlisted companies (other than NBFCs and HFCs).
(ii)Unlisted companies (other than NBFCs and HFCs). Basically, All India Financial Institutions regulated by RBI, Banking Companies for both public as well as privately placed debentures, other Financial Institutions
within the meaning of Section 2(72) of the Companies Act, 2013 and unlisted NBFCs registered with RBI and HFCs registered with National Housing Bank (NHB) are exempted both, from creating DRR and from making a DRI
D – Final Accounts of Companies
Preparation of the Balance Sheet of a company (along with notes to accounts) as per Schedule III Part I of Companies Act 2013.
As per the amendment made in Accounting Standard 4, the dividend proposed for a year is not a liability till it has been approved by the shareholders. Thus, the proposed dividend is not shown as a short-term provision in the current Balance Sheet of a company but disclosed in Notes to Accounts under Contingent Liabilities.
All capital losses are to be written off in the year in which they occur unless otherwise mentioned.
NOTE: Schedule III Part II of Companies Act 2013 (Statement of Profit and Loss) is not required for the purpose of preparing final accounts of a Company.
However, for the preparation of Comparative and Common Size Income Statements (Section B – Unit 4: Financial Statement Analysis), the extent and format of the Statement of Profit and Loss as per Schedule III Part II of the Companies Act 2013 to be studied is as follows:
SECTION B
MANAGEMENT ACCOUNTING
Financial Statement Analysis
Comparative Statements and Common Size Statements.
Meaning, significance, and limitations of Comparative Statements and Common Size Statements.
Preparation of Comparative Balance Sheet and Statement of Profit and Loss (inter-firm and intra-firm) showing absolute change and percentage change.
Common Size Balance Sheet to be prepared as a percentage of total assets and total liabilities.
Common size Statement of Profit and Loss to be prepared as a percentage of revenue from
operations.
NOTE: Preparation of comparative statements and common size statements to be made from the Balance Sheets and Statements of P/L without notes to accounts.
Cash Flow Statement (Only for Manufacturing Companies)
(i) Meaning, importance, and preparation of a Cash Flow Statement.
NOTE: Based on Accounting Standard – 3 (revised) issued by the Institute of Chartered Accountants of India.
(ii) Calculation of net cash flows from operating activities based on Indirect Method only.
Preparation of a Cash Flow Statement from two consecutive years’ Balance Sheet with or without adjustments.
Preparation of complete/partial cash flow statement from extracts of Balance Sheets and Statements of P/L with or without adjustments.
NOTE: Any adjustment or an item in the Balance Sheet relating to the issue of bonus shares, extraordinary items, and refund of tax are not required.
(iii) Preparation of Cash Flow Statement on basis of operating, investing, and financing activities.
The following items are to be taken when calculating net cash flows from financing activities:
Issue or redemption of shares at par, issue of debentures at par and discount, the redemption of debentures at par.
• Interest paid on Long Term and Short Term Borrowings and dividend – interim and proposed/paid on shares.
• Long term borrowings and Short term borrowings – bank overdraft, cash credit, and short-term loan. whether taken or repaid.
• Share issue expenses/underwriting commission paid.
The following items are to be taken when calculating net cash flows from investing activities:
• Cash purchase of fixed assets.
• Cash sale of fixed assets.
• Purchase of shares or debentures or long-term investments of other companies.
• Interest and dividend received on shares or debentures or long-term investments of other companies.
Sale of shares or debentures or long-term investments of other companies.
The following items are to be taken for cash and cash equivalents:
• Cash
• Bank
• Short term investments
• Marketable securities
NOTE:
(i) Adjustments relating to provision for taxation, proposed dividend, interim dividend, amortization of intangible assets, profit or loss on sale of fixed assets including provision for/accumulated depreciation on them, Profit or loss on sale of investment are also included.
(ii) Treatment of proposed dividend:
(a) Dividend proposed for the previous year will be an outflow for cash, unless otherwise stated, on the assumption that the proposed amount has been approved by the shareholders in the AGM.
(b) No effect is given to the Proposed Dividend for the current year as it is not provided for and is a contingent liability.
(c) Any unpaid dividend is transferred to Dividend Payable Account / Unpaid Dividend Account which is
shown in the Balance Sheet of the current year as Other Current Liabilities under Current Liabilities.
(iii)Treatment of provision for doubtful debts. provision for doubtful debts can be treated
as a charge against profits or as part of the working capital changes. In the case of good
debtors, the provision will be treated as an appropriation of profit.
(iv) To calculate cash flow from operating activities the Adjusted Profit and Loss Account is not acceptable as per AS-3.
(v) Calculation of Net Profit before Tax has to be shown as a Working Note.
(vi) Excluded: Any transaction pertaining to Capital Reserve.
