Grade 12 Accounting II Syllabus (2080)

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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