Accountancy XII Part-I

There is a large number organisations in the world, which do not aim at profits, rather they work to serve their members or public at large. Some examples of such NPOs are Charitable Hospitals, Educational Institutions run by Trusts, Religious Organisations, Sports Clubs & many other welfare associations. Even the NPOs are required to maintain proper accounting records so that funds are not misused! Now, after NPO, other units in this course are:

‘Accounting for Partnership’, ‘Company Accounts’ and ‘Analysis of Financial Statements’.

All the rules and accounting procedures learnt in the Class XI were related to Sole Proprietorship (especially related to routine business transactions) are same even in case of a Partnership Firms and a Company. But in case of sole proprietorship business, whole profits belong to the single owner so, there is no scope of dispute regarding profit sharing. But in case of a Partnership Firm, profits are to be divided and moreover there can be some peculiar/typical situations that arise only in case of partnership like,

• Firm can admit a new partner;
• An existing partner might leave the firm;
• Unfortunately someone of them might die;
• there might a dispute regarding mutual terms, especially related to profit sharing; or
• Or that unlucky day might arrive when they decide to wind up i.e. to close their business altogether & end their economic relationship. All these are not routine/regular business events but they have significant accounting implications. In partnership unit you will learn the fundamentals and all the provisions related to these peculiar situation given in the Partnership Act 1932.

Next unit is company accounts in which students will learn the rules and accounting procedures related to - Issue of shares; Issue of debentures; and Redemption of debentures. The unit will equip students with the latest provisions of the Companies Act 2013 related to Shares & Debentures.
The last unit is, ‘Analysis of Financial Statements’, in which students will learn about the presentation of various items in Financial Statements of a company as prescribed by the Companies Act and about various Tools of testing the financial health of a business like, Comparative Statement, Common Size Statement, Ratio Analysis & Cash Flow Statement.