The course in accountancy is introduced at plus two stage of senior second of school education,
as the formal commerce education is provided after ten years of schooling. With the fast
changing economic scenario, accounting as a source of financial information has carved out a
place for itself at the senior secondary stage. Its syllabus content provide students a firm
foundation in basic accounting concepts and methodology and also acquaint them with the
changes taking place in the preparation and presentation of financial statements in accordance
to the applicable accounting standards and the Companies Act 2013.
The course in accounting put emphasis on developing basic understanding about accounting as
an information system. The emphasis in Class XI is placed on basic concepts and process of
accounting leading to the preparation of accounts for a sole proprietorship firm. The students
are also familiarized with basic calculations of Goods and Services Tax (GST) in recording the
business transactions. The accounting treatment of GST is confined to the syllabus of class XI.
The increased role of ICT in all walks of life cannot be overemphasized and is becoming an
integral part of business operations. The learners of accounting are introduced to Computerized
Accounting System at class XI and XII. Computerized Accounting System is a compulsory
component which is to be studied by all students of commerce in class XI; whereas in class XII
it is offered as an optional subject to Company Accounts and Analysis of Financial Statements.
This course is developed to impart skills for designing need based accounting database for
maintaining book of accounts.
The complete course of Accountancy at the senior secondary stage introduces the learners to
the world of business and emphasize on strengthening the fundamentals of the subject.
Objectives:
1. To familiarize students with new and emerging areas in the preparation and presentation
of financial statements.
2. To acquaint students with basic accounting concepts and accounting standards.
3. To develop the skills of designing need based accounting database.
4. To appreciate the role of ICT in business operations.
5. To develop an understanding about recording of business transactions and preparation
of financial statements.
6. To enable students with accounting for Not-for-Profit organizations, accounting for
Partnership Firms and company accounts.
| Units/Topics | Learning Outcomes |
| Recording of Business Transactions · Voucher and Transactions: Source documents and Vouchers, Preparation of Vouchers, Accounting Equation Approach: Meaning and Analysis, Rules of Debit and Credit. · Recording of Transactions: Books of Original Entry- Journal · Special Purpose books: · Cash Book: Simple, cash book with bank column and petty cashbook · Purchases book · Sales book · Purchases return book · Sales return book · Journal proper Note: Including trade discount, freight and cartage expenses for simple GST calculation. · Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts Bank Reconciliation Statement: · Need and preparation, Bank Reconciliation Statement Depreciation, Provisions and Reserves · Depreciation: Meaning, Features, Need, Causes, factors · Other similar terms: Depletion and Amortisation · Methods of Depreciation: i. Straight Line Method (SLM) ii. Written Down Value Method (WDV) Note: Excluding change of method · Difference between SLM and WDV; Advantages of SLM and WDV · Method of recoding depreciation i. Charging to asset account ii. Creating provision for depreciation/accumulated depreciation account · Treatment of disposal of asset · Provisions, Reserves, Difference Between Provisions and Reserves. · Types of Reserves: i. Revenue reserve ii. Capital reserve iii. General reserve iv. Specific reserve v. Secret Reserve · Difference between capital and revenue reserve Trial balance and Rectification of Errors · Trial balance: objectives, meaning and preparation (Scope: Trial balance with balance method only) · Errors: classification-errors of omission, commission, principles, and compensating; their effect on Trial Balance. · Detection and rectification of errors; (i) Errors which do not affect trial balance (ii) Errors which affect trial balance · preparation of suspense account. | After going through this Unit, the students will be able to: · explain the concept of accounting equation and appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of accounting equation. · explain the effect of a transaction (increase or decrease) on the assets, liabilities, capital, revenue and expenses. · appreciate that on the basis of source documents, accounting vouchers are prepared for recording transaction in the books of accounts. · Develop the understanding of recording of transactions in journal and the skill of calculating GST. · Explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book. · describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books . · appreciate that at times bank balance as indicated by cash book is different from the bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared. · develop understanding of preparing bank reconciliation statement. · appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting. · explain the necessity of providing depreciation and develop the skill of using different methods for computing depreciation. · understand the accounting treatment of providing depreciation directly to the concerned asset account or by creating provision for depreciation account. · appreciate the method of asset disposal through the concerned asset account or by preparing asset disposal account. · appreciate the need for creating reserves and also making provisions for events which may belong to the current year but may happen in next year. · appreciate the difference between reserve and reserve fund. · state the need and objectives of preparing trial balance and develop the skill of preparing trial balance. · appreciate that errors may be committed during the process of accounting. · understand the meaning of different types of errors and their effect on trial balance. · develop the skill of identification and location of errors and their rectification and preparation of suspense account. |
Unit 3: Financial Statements of Sole Proprietorship
| Units/Topics | Learning Outcomes |
| Financial Statements Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure. Opening journal entry. Trading and Profit and Loss Account: Gross Profit, Operating profit and Net profit. Preparation. Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation. Adjustments in preparation of financial statements with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, Abnormal loss, Goods taken for personal use/staff welfare, interest on capital and managers commission. Preparation of Trading and Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments. | After going through this Unit, the students will be able to: · state the meaning of financial statements the · purpose of preparing financial statements. · state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account. · explain the need for preparing balance sheet. · understand the technique of grouping and marshalling of assets and liabilities. · appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial statements. · develop the understanding and skill to do adjustments for items and their presentation in financial statements like depreciation, closing stock, provisions, abnormal loss etc. · develop the skill of preparation of trading and profit and loss account and balance sheet. |
