
ICSE (Class XII)
Syllabus (2013)
Subject: Accounts
There will be one paper of 3 hours duration of 100 marks divided
into two parts.
Part I (30 marks) will be compulsory and will consist of
two questions based on the entire syllabus.
Question 1 (20 marks) will include compulsory short
answer questions, testing knowledge, application and skills relating to
elementary/ fundamental aspects of the syllabus.
Question 2 (10 marks) will be a compulsory numerical
question.
Part II (70 marks): Candidates will be required to answer
five questions out of eight questions from this section. Each question shall
carry 14 marks.
1. Joint Venture
Joint Venture: objectives; necessity and methods of accounting
(recording of transactions in the books of one Joint Venturer, recording of
transactions in the books of all Joint Venturers, recording of transactions in
separate set of books).
Joint Venture: meaning, features, objectives and application of
Joint Venture problems under three different methods of accounting.
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Recording of transactions in the books of one Joint Venturer.
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Recording of transactions in the books of all Joint Venturers.
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Recording of transactions in separate set of books.
NOTE: Valuation of closing stock in Joint Venture including abnormal
and normal losses and Joint Ventures for underwriting shares are included.
Interim settlement of accounts, interest calculation and incomplete ventures on
the date of final settlement of accounts are excluded from the syllabus along
with conversion of consignment into joint venture.
(i) Meaning of Self Balancing System and application of the
system in solving practical problems. Meaning, classification of ledgers,
transfer between subsidiary ledgers, advantages, and application of problems
relating to adjustment accounts.
(ii) Meaning of Sectional Balancing System and application of
the system in solving practical problems. Meaning, classification of ledgers and
application of problems relating to control accounts.
NOTE: Rectification of errors relating to Self-Balancing
and Sectional Balancing are not required.
3. Partnership Accounts
(i) The Indian Partnership Act, 1932: definition, features –
meaning and importance of partnership deed.
(ii) Practical problems on preparation of Profit and Loss
Appropriation Account and Capital Accounts.
Interest on capital, interest on drawings, salary, commission to
partners, transfer to reserves and division of profit among partners.
NOTE:
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Interest on partner’s loan to be taken as a charge against
profits.
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Interest on loan should be credited to a separate loan account.
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Rent paid to a partner is a charge against profit and not an
appropriation of profit and so it is to be debited to profit and loss account
and not to profit and loss appropriation account and credited to partners’
current account in case of fixed capital system or to partners’ capital account
when capitals are fluctuating.
NOTE: Guarantee of Profits and Past Adjustments (interest
on capital, interest on Drawings, salary and Profit and Loss ratio) are to be
covered.
(iii) Admission: Goodwill - concept and mode of valuation.