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.

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. 

              Unit-1: Theoretical Framework                                       12

              Unit-2: Accounting Process                                            44

             Unit-3: Financial Statements of Sole                               24                                                

             Proprietorship from Complete and Incomplete

             Records

Part C : Project Work                                                                   20

Introduction to Accounting: 

Accounting- concept, objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Qualitative Characteristics of Accounting Information. Role of Accounting in Business.

Basic Accounting Terms- Business Transaction, Capital, Drawings. Liabilities (Non Current and Current). Assets (Non Current, Current); Fixed assets (Tangible and Intangible), Expenditure (Capital and Revenue), Expense, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount (Trade discount and Cash Discount)

• Fundamental accounting assumptions: GAAP: Concept 

• Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism, Materiality and Objectivity 

• System of Accounting. Basis of Accounting: cash basis and accrual basis 

• Accounting Standards: Applicability in IndAS 

• Goods and Services Tax (GST): Characteristics and Objective.

• Voucher and Transactions: Source documents and Vouchers, reparation 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

• Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts

• Need and preparation, Bank Reconciliation Statement with Adjusted Cash Book

• Depreciation: Concept, Features, Causes, factors

• Other similar terms: Depletion and Amortisation

• Methods of Depreciation: 

(i) Straight Line Method (SLM) 

(ii) Written Down Value Method (WDV)

• Difference between SLM and WDV; Advantages of SLM and WDV

• Accounting treatment of depreciation

    i. Charging to asset account 

    ii. Creating provision for depreciation/accumulated depreciation account

   iii. Treatment for disposal of asset

• Provisions and Reserves: Difference

• Types of Reserves:  

   i. Revenue reserve  

   ii. Capital reserve 

   iii. General reserve 

   iv. Specific reserve

   v. Secret reserve

• Bill of exchange and Promissory Note: Definition, Specimen, Features, Parties.  

• Difference between Bill of Exchange and Promissory Note 

• Terms in Bill of Exchange: 

(i) Term of Bill  

(ii) Accommodation bill (concept) 

(iii) Days of Grace 

(iv) Date of maturity 

(v) Discounting of bill 

(vi) Endorsement of bill  

(vii) Bill after due date  

(viii) Negotiation  

(ix) Bill sent for collection 

(x) Dishonour of bill 

(xi) Retirement of bill 

(xii) Renewal of bill 

• Accounting Treatment 

Note: excluding accounting treatment for accommodation bill

• Trial balance and Rectification of Errors Trial balance: objectives and preparation (Scope: Trial balance with balance method only) 

• Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance. 

• Detection and rectification of errors; preparation of suspense account.

Meaning, objectives and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure; Deferred Revenue expenditure.

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. 

Features, reasons and limitations. 

Ascertainment of Profit/Loss by Statement of Affairs method.

Difference between accounts from incomplete records and Statement of Affairs. Preparation of Trading, Profit and Loss account and Balance Sheet.

• 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. 

• state the meaning of incomplete records and their uses and limitations. 

• develop the understanding and skill of computation of profit / loss using the statement of affairs method.