CBSE Grade 12 Accounting Fundamentals

Explain the characteristics and features of a partnership firm as per the Partnership Act, 1932.

Distinguish between the Profit and Loss Account and the Profit and Loss Appropriation Account.

Calculate interest on partners' capital under both fixed and fluctuating capital methods.

Calculate interest on partners' drawings using the product method and average period method.

Compute partner's salary and commission as per the partnership agreement.

Prepare a Profit and Loss Appropriation Account with multiple appropriations to determine divisible profit.

Prepare Partners' Capital Accounts under the fluctuating capital method.

Prepare Partners' Capital and Current Accounts under the fixed capital method.

Explain the nature of goodwill and the factors affecting its valuation.

Calculate goodwill using the Average Profits and Super Profits methods.

Calculate goodwill using the Capitalization of Average Profits and Capitalization of Super Profits methods.

Calculate the new profit sharing ratio and sacrificing ratio when a new partner is admitted.

Account for goodwill on admission using the premium method (cash) and adjustment through capital accounts (non-cash).

Apply hidden goodwill calculations based on capital contributions.

Prepare a Revaluation Account for assets and liabilities on admission and distribute the resulting profit or loss.

Adjust for accumulated profits, reserves, and losses on admission of a partner.

Adjust old partners' capitals based on the new partner's capital and new profit-sharing ratio.

Prepare comprehensive Partners' Capital Accounts incorporating all adjustments for goodwill, revaluation, reserves, and capital changes.

Prepare the opening Balance Sheet of the reconstituted firm after a partner's admission.

Solve a comprehensive problem on the admission of a partner involving all major adjustments.

Calculate the new profit sharing ratio and gaining ratio upon a partner's retirement or death.

Account for the outgoing partner's share of goodwill by adjusting it through the continuing partners' capital accounts.

Prepare a Revaluation Account on retirement/death and distribute the profit or loss.

Calculate the deceased partner's share of profit up to the date of death on a time or turnover basis.

Calculate the total amount due to the retiring or deceased partner, including capital, goodwill, revaluation, and accumulated profits.

Record the settlement of the amount due to an outgoing partner either in cash, by transfer to a loan account, or to their executors.

Prepare the capital accounts of the continuing partners after a partner's retirement/death.

Solve a comprehensive problem on the retirement or death of a partner.

Distinguish between the dissolution of a partnership and the dissolution of a partnership firm.

Prepare a Realization Account by recording the transfer, sale, and settlement of all assets and liabilities.

Account for the discharge of liabilities, including unrecorded liabilities and realization expenses.

Calculate and distribute the final profit or loss on realization among all partners.

Prepare Partners' Capital Accounts to ascertain the final settlement (payment or receipt).

Prepare a final Bank/Cash Account to verify the closure of the firm's books.

Distinguish between authorized, issued, subscribed, called-up, and paid-up share capital.

Record journal entries for the issue of shares at par and at a premium, including application, allotment, and call stages.

Account for oversubscription of shares, including pro-rata allotment and partial refunds.

Record journal entries to adjust excess application money towards allotment and future calls (Calls-in-Advance).

Account for undersubscription of shares and its implications.

Record journal entries for Calls-in-Arrears.

Record journal entries for the issue of shares for consideration other than cash (e.g., to vendors or promoters).

Present Share Capital in the company's Balance Sheet as per Schedule III, including Notes to Accounts.

Record journal entries for the forfeiture of shares issued at par for non-payment of allotment or call money.

Record journal entries for the forfeiture of shares originally issued at a premium.

Record journal entries for the reissue of forfeited shares at par, premium, or discount.

Determine the maximum permissible discount on the reissue of forfeited shares.

Calculate the profit on reissue and record its transfer to the Capital Reserve.

Prepare Share Forfeiture Account and Capital Reserve Account.

Solve a comprehensive problem involving oversubscription, pro-rata allotment, forfeiture, and reissue of shares.

Explain the features and types of debentures and distinguish them from shares.

Record journal entries for the issue of debentures at par, premium, and discount.

Account for the issue of debentures for consideration other than cash and as collateral security.

Record journal entries for the issue of debentures with redemption terms (e.g., issued at a discount, redeemable at a premium).

Account for interest on debentures, including the treatment of Tax Deducted at Source (TDS).

Record journal entries for the redemption of debentures by lump sum payment and purchase in the open market for cancellation.

Explain the legal requirements and accounting for Debenture Redemption Reserve (DRR) and Debenture Redemption Investment (DRI).

Present Debentures and related items in the company's Balance Sheet.

Explain the objectives and limitations of financial statement analysis.

Prepare a Comparative Statement of Profit & Loss and a Comparative Balance Sheet.

Prepare a Common-Size Statement of Profit & Loss and a Common-Size Balance Sheet.

Interpret trends and financial structure from comparative and common-size statements.

Calculate and interpret Liquidity Ratios: Current Ratio and Quick (or Liquid) Ratio.

Calculate and interpret Solvency Ratios: Debt-to-Equity Ratio, Total Assets to Debt Ratio, and Proprietary Ratio.

Calculate and interpret Activity (Turnover) Ratios: Inventory Turnover, Trade Receivables Turnover, and Trade Payables Turnover.

Calculate and interpret Profitability Ratios: Gross Profit Ratio, Operating Ratio, Net Profit Ratio, and Return on Investment (ROI).

Classify business activities into Operating, Investing, and Financing activities as per AS-3.

Calculate Net Profit before Tax and Extraordinary Items from the Statement of Profit and Loss.

Adjust net profit for non-cash and non-operating items (e.g., depreciation, profit/loss on sale of assets).

Calculate Cash Flow from Operating Activities by adjusting for changes in current assets and current liabilities.

Calculate Cash Flow from Investing Activities from transactions involving non-current assets and investments.

Calculate Cash Flow from Financing Activities from transactions involving non-current liabilities and shareholders' equity.

Prepare a complete Cash Flow Statement in the prescribed format from comparative balance sheets and additional information.

Verify the final result of the Cash Flow Statement with the change in Cash and Cash Equivalents.