Class 12 Accounting II Syllabus: Grade 12 Accounting II syllabus for 2080, recently released by NEB, offers a Class 12 Comprehensive Curriculum for students studying Account subject.
Accounting II Syllabus, Grade 12
- Principle of Accounting II
- Subject code: 104
- Annual Teaching hours: 160
- Credit hours: 5
Unit 1: Accounting for Companies
1.1 Concept of corporate 6LH
1.1.1 Company
- Private company and public company: Meaning, Characteristic;
- Differences between private company and public company;
- Documents of the company (memorandum of association, articles of association and prospectus)
1.2 Accounting for shares 8LH
1.2.1 Capital of the company
- Meaning of share capital, types of share capital (authorized, issued, subscribed, called up and paid up capital);
- Shares of the company: meaning, characteristic types of shares (ordinary and preference shares);
- Types of preference shares: redeemable preference shares, irredeemable preference shares, convertible preference shares, non-convertible preference shares, participating preference shares, non-participating preference shares, cumulative preference shares, non-cumulative preference shares;
- Difference between equity shares and preference shares;
- Procedures of share issue as per the Nepal Company Act.
- Method of share issue and accounting recoding: lump sum basis, installment basis;
- Forfeiture of shares and reissue of shares;
- Under subscription of shares, over subscription of shares (excess shares entire rejected, pro-rata allotment, mixed allotment);
- Shares issued for cash at par, premium and discount;
- Shares issued at other than cash;
- Share issued for underwriting commission and brokerage.
1.3 Accounting for debentures 5LH
1.3.1 Debenture
- Meaning, characteristic and importance of debentures;
- Types of debentures: bearer and registered, naked and secured, redeemable and irredeemable, convertible and non-convertible, first and second debentures;
- Differences between shares and debentures;
- Issue of debentures in consideration for other than cash
- Accounting treatment for debentures issue: lump sum basis;
- Issue of debentures with redeemable condition;
- Issue of debentures for collateral security;
- Redemption of debentures at lump sum basis;
- Conversion of debentures into shares.
Unit 2: Corporate Financial Statements
2.1 Corporate Financial Statements 24LH
2.1.1 Preparation of financial statements
- Meaning of financial statement;
- Traditional financial statements (trading account, profit and loss account, profit and loss appropriation account, balance sheet);
- Financial statements (income statement; retained earnings and balance sheet) with adjustments or without adjustment as per Nepal Accounting Standard and Nepal Financial Report Standards;
- Statement changing in shareholders’ equity.
2.2 Worksheet 8LH
2.2.1 Preparation of worksheet;
- Introduction of worksheet and need of worksheet;
2.3 Cash flow statement 18LH
2.3.1 Cash flow statement
- Preparation of cash flow statement with adjustment (direct and indirect method) on the basis of worksheet or trial balance;
- Preparation of cash flow statement with adjustment (direct and indirect method) on the basis of comparative balance sheet.
Unit 3: Cost Accounting
3.1 Concept of cost accounting 4LH
3.1.1 Introduction of cost accounting
- Cost accounting: meaning, objectives, importance and limitation;
- Limitation of financial accounting;
- Differences between cost accounting and financial accounting;
- Method of costing: job order costing, contract costing, process costing, service costing, unit costing, batch costing and multiple costing.
3.1.2 Introduction and classification of cost
- Concept of cost, classification of cost on the basis of production, process, elements, functions, variability and controllability;
3.2 Materials and materials control 10LH
3.2.1 Materials and materials control
- Meaning and types of materials, objectives and essential of materials control.
- Purchase and receipt procedures: materials purchasing and purchase department, centralized and decentralized
- Receipt of purchasing order; preparation of purchase requisition form, tender form, purchase order form, receipt of materials, inspection of materials and payment of materials;
- Purchase department: centralize purchase and decentralize purchase;
- Store keeping: meaning, types and location of store;
- Storekeeper: duties and responsibilities of storekeeper;
- Classification and codification of materials;
- Bin cards.
- Issuing: meaning and preparation of requisition form;
- Pricing of materials issue;
- Valuation of closing stock under FIFO, LIFO, average and weighted average methods;
- Stock level: meaning and computation of stock level; maximum stock level, minimum stock level, average stock level, reorder stock level and reordering quantity.
- Economic order quantity: meaning, concept and computation of EOQ; total cost at EOQ by using formula, EOQ by trial and error method, reorder level and calculation of total cost.
3.3 Accounting for labour 4LH
3.3.1 Accounting for labour
- Labour cost: meaning and importance; labour cost control and its need;
- Basic knowledge of labour requisition form, employees’ history card, time card, biometric machine, job card, piece card and payroll sheet.
- System of wage payment: meaning, advantage, disadvantage of piece rate system and time rate system;
- Differences between piece rate system, time rate system
- Determination of total wages using piece rate and time rate system.
3.4 Accounting for overhead or indirect expenses 2LH
3.4.1 Overhead or indirect expenses
- Overhead: concept and meaning of overhead;
- Classification of overhead on the basis of function, behavior, elements and control;
- Allocation, apportionment and absorption of overhead: meaning and importance.
3.5 Unit or output costing 16LH
3.5.1 Unit or output costing
- Unit costing: meaning and importance of unit costing;
- Components of cost sheet: prime cost, works cost, office on cost, cost of production, cost of goods sold, selling and distribution cost, cost of sales, profit and total sales;
- Preparation of cost sheet;
- Tender and historical cost: meaning and calculation of tender cost on the basis of cost sheet.
3.6 Cost reconciliation statement 5LH
3.6.1 Cost reconciliation statement
- Meaning of cost reconciliation statement;
- Causes of differences of net profit or loss of financial accounting and cost accounting;
- Preparation of cost reconciliation statement.
Unit 4: Computer Accounting
4.1 Use of computer in accounting 10LH
4.1.1 Computer systems in accounting
- The meaning, elements, importance and limits of computer system in accounting
- Computer System Process: sources of information in a computer system (invoice, purchase order, receipt, barcode)
- Information analysis
- Information processor: journals, ledgers and reports,
- Storage of information: Data storage method
- Records in Excel: depreciation table, debt repayment table, payroll sheet
4.1.2 Use of software in accounting
- Software: use of software, software system language refiner, accounting software requirements and features
- Company creation, accounting masters, accounting group, journal, ledger, balance test, income statement and balance sheet, report performance, bank account reconciliation details preparation (for small projects only)
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