CBSE 2024 Board Exams: Important topics, Class 12 Accountancy preparation tips

Scoring well in accountancy not only will require a thorough understanding of the subject but also strategic preparation. With a well-structured study plan based on the latest exam pattern and an analytical review of important chapters and topics from previous year, a high score can be obtained. 

Below are some essential tips that can help students score high marks in CBSE 2024 board Class 12 accountancy paper:

• Understand the basics thoroughly

Accountancy is a subject built on fundamental concepts. Ensure that you have a clear understanding of the basic principles, accounting equations, and formats. A strong foundation in the basics will help you tackle complex problems with ease. Focus on topics like accounting equations, journal entries, trial balance and financial statements. These concepts form the backbone of accountancy and mastering them will boost your confidence in the exam hall.

• Practice regularly with sample papers

Practice makes a man perfect, and this holds especially true for accountancy. Solve sample papers as much as you can. This practice will help you understand the exam pattern, time management and the type of questions asked. Additionally, solving papers under timed conditions will enhance your speed and accuracy, crucial elements for excelling in any board exam.

• Master accountancy formulas and concepts

Accountancy involves a plethora of formulas and concepts. Create a formula sheet or flashcards summarizing all the important formulas, equations and key points. Regularly revising these will reinforce your memory and help you recall them during the exam. Understanding the logic behind each formula and concept will enable you to apply them in different scenarios, enhancing your problem-solving skills.

• Focus on presentation and neatness

Practice writing answers neatly and in a structured manner. Label diagrams and financial statements clearly. Use bullet points and subheadings to organise your answers. A well-presented answer sheet not only pleases the examiner but also makes it easier for them to follow your logic, potentially earning you extra marks.

• Deepen your understanding through practical application

Accountancy is not just theoretical knowledge. It is about understanding real-world financial scenarios. Try to relate the concepts you learn in class to practical situations. Practical application not only enhances your understanding but also makes the subject more interesting.

Important chapters and topics to prepare

The recent CBSE Class 12 accountancy syllabus is divided into three parts: A, B and C. 

Part A focuses on accounting for partnership firms and companies accounting for 60 marks. Part B offers a choice between financial statement analysis or computerised accounting, each carrying 20 marks. Part C consists of project work and practical work for 20 marks. The total maximum marks for the theory paper are 80.

Based on the pattern observed over the last four to five years, certain chapters and topics have consistently surfaced, becoming the focal points of examination. Understanding these recurring crucial chapters and topics not only equips students with targeted preparation but also provides them with a strategic advantage. 

Here are some important chapters and topics

1. Accounting for Partnership Firms

This chapter introduces the conceptual knowledge about partnerships, explaining features and several provisions of the Indian Partnership Act of 1932. The most important topics include

• Goodwill: Nature, factors affecting and methods of valuation such as average profit, super profit and capitalisation. Mastering these techniques is vital, considering the high weightage this topic carries.
• Change in Profit Sharing Ratio: Understanding sacrificing ratio, gaining ratio, and accounting for revaluation of assets. Proficiency in these areas is crucial for solving complex problems related to partnerships.
• Admission of a Partner: Effect on profit sharing ratio, treatment for revaluation of assets and liabilities, goodwill treatment (as per AS 26), and adjustment of capital accounts. Focus on calculations and journal entries concerning admissions.
• Retirement and Death of a Partner: Calculations related to the share of profit till the date of retirement or death, preparation of deceased partner’s capital account, and the executor’s account. These topics demand meticulous understanding and application of partnership accounting principles.
• Dissolution of a Partnership Firm: Types of dissolution, preparation of realization accounts, settlement of accounts, and understanding the nuances of capital accounts and cash/bank accounts. Practice solving dissolution-related problems to enhance problem-solving skills.

2. Accounting for Companies

• Accounting for Share Capital: Issue and allotment of equity and preference shares, public subscription, and issues at par, premium, and discount. Understanding the intricacies of share capital is crucial, especially concerning public subscriptions and calls.
• Debentures: Types of debentures, interest calculations, and debentures as collateral security. Delve into the complexities of debenture issuance and redemption, including accounting for interest and losses on debenture issues.

3. Analysis of Financial Statements

• Financial Statements of a Company: Comprehend the formats as per Schedule III to the Companies Act, 2013, including the statement of profit and loss and balance sheet. Practice preparing these statements with correct major headings and sub-headings.
• Financial Statement Analysis: Understand the importance, objectives, and limitations of financial statement analysis. Develop a keen sense of interpreting financial data for meaningful insights.
• Tools for Financial Statement Analysis: Master cash flow analysis and ratio analysis, focusing on liquidity ratios (current ratio, quick ratio), solvency ratios (debt to equity ratio, interest coverage ratio), activity ratios (inventory turnover ratio, trade receivables turnover ratio), and profitability ratios (gross profit ratio, net profit ratio).

4. Computerised Accounting (Optional)

• Overview of Computerised Accounting System: Understand the application, features, and structure of computerized accounting systems. Familiarize yourself with various software packages, their generic and tailored features.
• Accounting Application of Electronic Spreadsheet: Conceptualize electronic spreadsheet applications in accounting, including bank reconciliation statements, asset accounting, and ratio analysis. Learn data representation techniques using graphs, charts, and diagrams.
• Using Computerised Accounting System: Master the steps in installation, codification, data entry, validation, and verification. Understand adjusting entries, preparation of balance sheet, profit and loss account with closing and opening entries, and system security features.

(Pratibha Sharma is the Academic Director of Bhai Parmanand Vidya Mandir)

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