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Accountancy

Marking Scheme


Unit Topic Period Marks
PartA: Accounting for Partnership Firm and Companies
1 Accounting for Partnership Firm 90 35
2 Accounting for Companies 60 25
Total 150 60
Part B : Final Statement Analysis
3 Analysis of Final Statement 30 12
4 Cash Flow Statement 20 8
Total 50 20
PartC: Project Work 40 20

Introduction


PARTA :Accounting for Partnership Firms and Companies


Unit 1 :Accounting for Partnership Firms - Fundamentals


1. Partnership : features, Partnership deed.

2. Provisions ofthe IndianPartnershipAct 1932 in the absence of partnership deed.

3. Fixed v/s fluctuating capital accounts, division of profit among partners, guarantee of profits, past, adjustment(relating to interest on capital, interest on drawing, salary and profit sharing ratio), preparation of P & L Appropriation account.

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

Unit 2 : Accounting for Partnership firms : Reconstitution and Dissolution


1. Change in theProfit sharing Ratio among the existing partners-sacrificing ratio, gaining ratio. Accounting for revaluation of assets and re-assessment of liabilities and distribution of reserves and accumulated profits.

2. 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 re assessment of liabilities, treatment of reserves and accumulated profits, adjustment of capital accounts and preparation of balance sheet.

3. Retirement and death of a partner : effect of retirement/death of a partner on change in profit sharing ratio, treatment of goodwill, treatment for revaluation of assets and reassessment of liabilities, adjustment of accumulated profits and reserves, calculation of deceased partner's share of profit tilldate of death. Preparation ofdeceades partner's capitalaccount, executors's account and preparation of balance sheet.

4. Dissolution of partnership firms: types of dissolution of firm. Settlement of accounts-preparation of realization account, and other related accounts (excluding piecemeal distribution, sale to a company and insolvency of partner's firm).

Unit 3: Accounting for Share Capital


1. Share and share capital : nature and types.

2. Accounting forshare capital: issues and allotment of equity shares, private placement of shares, Public subscription of shares-oversubscription and undersubscription ofshares; Issue at par and at premium and at discount, calls in advance and arrears, issue of shares for consideration other than cash.

3. Accounting treatment of forfeiture and re-issue of shares.

4. Disclosure of share capital in company's Balance Sheet only.

Unit 4 : Accounting for Debentures


1. Debentures: Issue of debentures at par, at premium and at discount. Issue of debentures for consideration other than cash, debentures as collateral security, interest on debentures

2. Redemption of debentures: Lump Sum, draw of lots and conversion

PART B : Financial Statement Analysis


Unit 5 : Analysis of financial Statements


1. Financial statement of a company : balance sheet of company in the prescribed from with major headings and sub headings(as per schedule VI to the Companies Act 1956).

2. FinancialStatement Analysis: objectives and limitations.

3. Toolsfor Financial Statement Analysis: comparative statements, common size statements, cash flow analysis ratio analysis.

4. According ratios: current ratio and quick ratio.

5. Solvency Ratios : Debt of Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio, Interest Coverage Ratio.

6. Activityratios: Stock Turnover Ratio, Debtors Turnover Ratio, Creditors TurnoverRatio, Working CapitalTurnoverRatio

7. ProfitabilityRatios:Gross ProfitRatio, OperatingRatio, CreditorsTurnover Ratio, Working CapitalTurnover Ratio.

8. ProfitabilityRatios: Gross Profit Ratio, OperatingRatio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

Unit 6 : Cash Flow Statement


1. Meaning objectives and preparation (as per AS 3 revised) (Indirect Method)

Unit 7 : Project Work


1. Kindly refer to the Guidlines published by the CBSE