Course Details

Standard 12 GSEB (NCERT) 4 subjects Combo Pack

Accountancy, Economics, Statistics, Organisation of Commerce & Management

Language

English

Videos

English

Inclusion

Q&A

Videos

Notes

Reference

Accountancy

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.

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.

COURSE STRUCTURE :

Unit Marks

Part A: Accounting for Not-for-Profit

Organizations, Partnership Firms and Companies

Unit 1. Financial Statements of Not-for-

Profit Organizations 10

Unit 2. Accounting for Partnership Firms 30

Unit 3. Accounting for Companies 20

Part B: Financial Statement Analysis

Unit 4. Analysis of Financial Statements 12

Unit 5. Cash Flow Statement 08

What you will learn

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

Unit 1: Financial Statements of Not-for-Profit Organizations

• Not-for-profit organizations: concept.

• Receipts and Payments Account: features and preparation.

• Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Scope:

(i) Adjustments in a question should not exceed 3 or 4 in number and restricted to subscriptions, consumption of consumables and sale of assets/ old material.

(ii) Entrance/admission fees and general donations are to be treated as revenue receipts.

(iii) Trading Account of incidental activities is not to be prepared.

Learning Outcomes :

• state the meaning of a Not-for-profit organisation and its distinction from a profit making entity.

• state the meaning of receipts and payments account, and understanding its features.

• develop the understanding and skill of preparing receipts and payments account.

• state the meaning of income and expenditure account and understand its features.

• develop the understanding and skill of preparing income and expenditure account and balance sheet of a not-for-profit organisation with the help of given receipts and payments account and additional information.

Unit 2: Accounting for Partnership Firms

• Partnership: features, Partnership Deed.

• Provisions of the Indian Partnership Act 1932 in the absence of partnership deed.

• Fixed v/s fluctuating capital accounts. Preparation of Profit and Loss Appropriation account- division of profit among partners, guarantee of profits.

• Past adjustments (relating to interest on capital, interest on drawing, salary and profit sharing ratio).

• Goodwill: nature, factors affecting and methods of valuation - average profit, super profit and capitalization.

Accounting for Partnership firms – Reconstitution and Dissolution.

• Change in the Profit Sharing Ratio among the existing partners - sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits. Preparation of revaluation account and balance sheet.

• Admission of a partner - effect of admission of a partner on change in the profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of balance sheet.

• Retirement and death of a partner: effect of retirement / death of a partner on change in profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, adjustment of accumulated profits and reserves, adjustment of capital accounts and preparation of balance sheet. Preparation of loan account of the retiring partner.

• Calculation of deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account and his executor’s account.

• Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts - preparation of realization account, and other related accounts: capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Learning Outcomes :

• state the meaning of partnership, partnership firm and partnership deed.

• describe the characteristic features of partnership and the contents of partnership deed.

• discuss the significance of provision of Partnership Act in the absence of partnership deed.

• differentiate between fixed and fluctuating capital, outline the process and develop the understanding and skill of preparation of Profit and Loss Appropriation Account.

• develop the understanding and skill of preparation profit and loss appropriation account involving guarantee of profits.

• develop the understanding and skill of making past adjustments.

• state the meaning, nature and factors affecting goodwill

• develop the understanding and skill of valuation of goodwill using different methods.

• state the meaning of sacrificing ratio, gaining ratio and the change in profit sharing ratio among existing partners.

• develop the understanding of accounting treatment of evaluation assets and reassessment of liabilities and treatment of reserves and accumulated profits by preparing revaluation account and balance sheet.

• explain the effect of change in profit sharing ratio on admission of a new partner.

• develop the understanding and skill of treatment of goodwill as per AS-26, treatment of revaluation of assets and re-assessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of balance sheet of the new firm.

• explain the effect of retirement / death of a partner on change in profit sharing ratio.

• develop the understanding of accounting treatment of goodwill, revaluation of assets and re-assessment of liabilities and adjustment of accumulated profits and reserves on retirement / death of a partner and capital adjustment.

• understand the situations under which a partnership firm can be dissolved.

• develop the understanding of preparation of realisation account and other related accounts.

Unit-3 Accounting for Companies

Accounting for Share Capital :

• Share and share capital: nature and types.

• Accounting for share capital: issue and allotment of equity and preferences shares. Public subscription of shares – over subscription and under subscription of shares; issue at par and at premium, calls in advance and arrears (excluding interest), issue of shares for consideration other than cash.

• Concept of Private Placement and Employee Stock Option Plan (ESOP).

• Accounting treatment of forfeiture and reissue of shares.

• Disclosure of share capital in the Balance Sheet of a company.

Accounting for Debentures

• Debentures: Issue of debentures at par, at a premium and at a discount. Issue of debentures for consideration other than cash; Issue of debentures with terms of redemption; debentures as collateral security concept, interest on debentures. Writing off discount / loss on issue of debentures.

Note: Discount or loss on issue of debentures to be written off in the year debentures are allotted from Security Premium Reserve (if it exists) and then from Statement of Profit and Loss as Financial Cost (AS 16).

• Redemption of debentures-Methods: Lump sum, draw of lots.

• Creation of Debenture Redemption Reserve.

Note: Related sections of the Companies Act, 2013 will apply.

Learning Outcomes :

• state the meaning of share and share capital and differentiate between equity shares and preference shares and different types of share capital.

• understand the meaning of private placement of shares and Employee Stock Option Plan.

• explain the accounting treatment of share capital transactions regarding issue of shares.

• develop the understanding of accounting treatment of forfeiture and re-issue of forfeited shares.

• explain the accounting treatment of different categories of transactions related to issue of debentures.

• develop the understanding and skill of writing of discount / loss on issue of debentures.

• state the meaning of redemption of debentures. develop the understanding of accounting treatment of transactions related to

• redemption of debentures by lump sum, draw of lots and Creation of Debenture Redemption Reserve.

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

Financial statements of a Company:

Statement of Profit and Loss and Balance Sheet in prescribed form with major headings and sub headings (as per Schedule III to the Companies Act, 2013)

Note: Exceptional items, extraordinary items and profit (loss) from discontinued operations are excluded.

• Financial Statement Analysis: Objectives, importance and limitations.

• Tools for Financial Statement Analysis: Comparative statements, common size statements, cash flow analysis, ratio analysis.

• Accounting Ratios: Meaning, Objectives, classification and computation.

• Liquidity Ratios: Current ratio and Quick ratio.

• Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.

• Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Working Capital Turnover Ratio.

• Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

Learning Outcomes :

• develop the understanding of major headings and sub-headings (as per Schedule III to the Companies Act, 2013) of balance sheet as per the prescribed norms / formats.

• state the meaning, objectives and limitations of financial statement analysis.

• discuss the meaning of different tools of 'financial statements analysis'.

• develop the understanding and skill of preparation of comparative and common size financial statements.

• state the meaning, objectives and significance of different types of ratios.

• develop the understanding of computation of current ratio and quick ratio.

• develop the skill of computation of debt equity ratio, total asset to debt ratio, proprietary ratio and interest coverage ratio.

• develop the skill of computation of inventory turnover ratio, trade receivables and trade payables ratio and working capital turnover ratio.

• develop the skill of computation of gross profit ratio, operating ratio, operating profit ratio, net profit ratio and return on investment.

Note: Net Profit Ratio is to be calculated on the basis of profit before and after tax.

Unit 5: Cash Flow Statement

Meaning, objectives and preparation (as per AS 3 (Revised) (Indirect Method only)

Note:

(i) Adjustments relating to depreciation and amortization, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.

(ii) Bank overdraft and cash credit to be treated as short term borrowings.

(iii) Current Investments to be taken as Marketable securities unless otherwise specified.

Learning Outcomes :

• state the meaning and objectives of cash flow statement.

• develop the understanding of preparation of Cash Flow Statement using indirect method as per AS 3 with given adjustments.

Note: Previous years’ Proposed Dividend to be given effect, as prescribed in AS-4, Events occurring after the Balance Sheet date. Current years’ Proposed Dividend will be accounted for in the next year after it is declared by the shareholders.

Economics

Economics is one of the social sciences, which has great influence on every human being. As economic life and the economy go through changes, the need to ground education in children’s own experience becomes essential. While doing so, it is imperative to provide them opportunities to acquire analytical skills to observe and understand the economic realities.

At senior secondary stage, the learners are in a position to understand abstract ideas, exercise the power of thinking and to develop their own perception. It is at this stage, the learners are exposed to the rigour of the discipline of economics in a systematic way.

The economics courses are introduced in such a way that in the initial stage, the learners are introduced to the economic realities that the nation is facing today along with some basic statistical tools to understand these broader economic realities. In the later stage, the learners are introduced to economics as a theory of abstraction.

The economics courses also contain many projects and activities. These will provide opportunities for the learners to explore various economic issues both from their day-to-day life and also from issues, which are broader and invisible in nature. The academic skills that they learn in these courses would help to develop the projects and activities. The syllabus is also expected to provide opportunities to use information and communication technologies to facilitate their learning process.

Objectives:

Understanding of some basic economic concepts and development of economic reasoning which the learners can apply in their day-to-day life as citizens, workers and consumers.
Realisation of learners’ role in nation building and sensitivity to the economic issues that the nation is facing today.
Equipment with basic tools of economics and statistics to analyse economic issues. This is pertinent for even those who may not pursue this course beyond senior secondary stage.
Development of understanding that there can be more than one view on any economic issue and necessary skills to argue logically with reasoning.

COURSE STRUCTURE :

Units Title Marks

Part A: Introductory Macroeconomics

1. National Income and Related Aggregates 10

2. Money and Banking 06

3. Determination of Income and Employment 12

4. Government Budget and the Economy 06

5. Balance of Payments 06

Part B: Indian Economic Development

6. Development Experience (1947-90)

and Economic Reforms since 1991 12

7. Current Challenges facing Indian Economy 22

8. Development Experience of India – A 06

Comparison with Neighbours

What you will learn

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates

What is Macroeconomics?

Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

Circular flow of income (two sector model); Methods of calculating National Income - Value Added or Product method, Expenditure method, Income method.

Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) - at market price, at factor cost; Real and Nominal GDP.

GDP and Welfare.

Unit 2: Money and Banking

Money - meaning and supply of money - Currency held by the public and net demand deposits held by commercial banks.

Money creation by the commercial banking system.

Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit 3: Determination of Income and Employment

Aggregate demand and its components.

Propensity to consume and propensity to save (average and marginal). Short-run equilibrium output; investment multiplier and its mechanism.

Meaning of full employment and involuntary unemployment.

Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply.

Unit 4: Government Budget and the Economy

Government budget - meaning, objectives and components. Classification of receipts - revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure.

Measures of government deficit - revenue deficit, fiscal deficit, primary deficit their meaning.

Unit 5: Balance of Payments

Balance of payments account - meaning and components; balance of payments deficitmeaning.

Foreign exchange rate - meaning of fixed and flexible rates and managed floating.

Determination of exchange rate in a free market.

Part B: Indian Economic Development

Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:

A brief introduction of the state of Indian economy on the eve of independence.

Common goals of Five Year Plans.

Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy, etc.), industry (industrial licensing, etc.) and foreign trade.

Economic Reforms since 1991:

Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST.

Unit 7: Current challenges facing Indian Economy

Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment;

Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; alternative farming - organic farming

Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India

Employment: Formal and informal growth; problems and policies.

Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies- A critical assessment;

Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming.

Unit 8: Development Experience of India:

A comparison with neighbours

India and Pakistan

India and China

Issues: growth, population, sectoral development and other Human Development Indicators.

Statistics

the learners are expected to acquire skills in collection, organisation and presentation of quantitative and qualitative information pertaining to various simple economic aspects systematically. It also intends to provide some basic statistical tools to analyse, and interpret any economic information and draw appropriate inferences. In this process, the learners are also expected to understand the behaviour of various economic data.

What you will learn

Index Number

Definition and Meaning of Index Number, Characteristics of Index Number, Use of Index Number, Base Year, Fixed Base Method, Chain Base Method, Conversion of Fixed Base to China Base and Chain Base to Fixed Base, Computation of Index Number, Laspeyre’s Formula, Paasche’s Formula, Fischer’s Formula, Cost of Living Index Number, Explanation and Construction, Use and Limitations

Linear Correlation

Introduction, Meaning and Definition of Linear Correlation, Positive Correlation, Negative Correlation, Correlation and Coefficient of Correlation, Scatter Diagram Method, Karl Pearson’s Product Moment Method, Properties of Coefficient of Correlation, Interpretation of the Value of Correlation Coefficient, Spearman’s Rank Correlation Method, Precautions in the interpretation of Correlation Coefficient

Linear Regression

Introduction, Linear Regression Model, Fitting of Regression Line, Utility of the study of Regression, Regression Coefficient from Covariance and Correlation Coefficient, Coefficient of Determination, Properties of Regression Coefficient, Precautions while using Regression

Time Series

Introduction, Meaning of Time Series, Importance of Time Series, Definition of Time Series, Components of time series, Long-term Component or Trend, Seasonal Component, Cyclical Component, Random or Irregular Component

Probability

Introduction, Random Experiment and Sample Space, Events : Certain Event, Impossible Event, Special Event , Mathematical Definition of Probability, Law of Addition of Probability, Conditional Probability, Independent Events, Law of Multiplication of Probability, Selection with or without Replacement, Statistical Definition of Probability

Random Variable and Discrete Probability Distribution

Random Variable, Discrete Random Variable, Continuous Random Variable, Discrete Probability Distribution, Binomial Probability Distribution

Normal Distribution

Normal Distribution : Introduction, Probability Density Function, Standard Normal Variable and Standard Normal Distribution, Method of Finding Probability (area) from the tables of Standard Normal Curve, Properties of Normal Distribution, Properties of Standard Normal Distribution, Illustrations

Limit

Introduction, Real Line and its Interval, Modulus, Neighbourhood, Limit of a Function, Working Rules of Limit, Standard Forms of Limit

Differentiation

Introduction, Definition : Differentiation and derivative, Some Standard Derivative, Working rules of Differentiation, Second order differentiation, Increasing and decreasing function, Maximum and minimum value of function, Marginal Income and Marginal cost, Elasticity of demand, Minimization of cost function and maximization of revenue function and profit function

Organisation of Commerce & Management