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. 

COURSE STRUCTURE : 

              Unit-1: Theoretical Framework                                       12

              Unit-2: Accounting Process                                            40

             Unit-3: Financial Statements of Sole                               20                                                

             Proprietorship from Complete and Incomplete

             Records

             Unit-4: Computers in Accounting                                     08

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.

Learning Outcomes : 

• describe the meaning, significance, objectives, advantages and limitations of accounting in the modem economic environment with varied            types of business and non-business economic entities.

• identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.

• explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and                  revenue.

• give examples of terms like business transaction, liabilities, assets, expenditure and purchases.

• explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.

• explain the meaning and objectives of accounting standards.

• appreciate that various accounting standards developed nationally and globally are in practice for bringing parity in the accounting                        treatment of different items.

• acknowledge the fact that recording of accounting transactions follows double entry system.

• Understand the need of IFRS

• Explain the meaning, objective and characteristic of GST.

• 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.

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.

• 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.

• 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.

• acquire the knowledge of using bills of exchange and promissory notes for financing business transactions;

• understand the meaning and distinctive features of these instruments and develop the skills of their preparation.

• state the meaning of different terms used in bills of exchange and their implication in accounting.

• explain the method of recording of bill transactions.

• 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.

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. 

• Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of                        computer system)

• Introduction to operating software, utility software and application software. Introduction to accounting information system (AIS) as a part of          Management Information System. 

• Automation of accounting process: meaning

• Stages in automation: (a) Accounting process in a computerised environment; comparison between manual accounting process and                    computerised accounting process, (b) Sourcing of accounting software; kinds of software: readymade software; customized software and            tailor-made software; generic considerations before sourcing accounting software (c) creation of account groups and hierarchy (d)                        generation of reports – trial balance, profit and loss account and balance sheet.

• state the meaning of a computer, describe its components, capabilities and limitations.

• state the meaning of accounting information system.

• appreciate the need for use of computers in accounting for preparing accounting reports.

• develop the understanding of comparing the manual and computerized accounting process and appreciate the advantages and limitations          of automation.

• understand the different kinds of accounting software.