Name of the Student........................................................................................

Name of the School.........................................................................................

Class ........................................... Roll No. ......................................................

Chandigarh–Bengaluru–Delhi–Guwahati–Hyderabad–IndoreJammu–Jodhpur–Kolkata–Lucknow–Mumbai–Patna–Ranchi

PROJECT WORKBOOK

ACCOUNTANCYAs per the Latest Syllabus & guidelines Issued by CBSE for Project Work in Accounting

AUTHOR

Dr. VINOD KUMARM.Com., B.Ed, Doctorate in Commerce

XIICBSE

PrefaceI am feeling great pleasure in putting the Accountancy Project Workbook for class XII in the hands of Honorable Academic Community. The main purpose of writing this project workbook is to provide the practical knowledge of accounting to the students. I am confident that this project workbook will be certainly helpful to the students and the teaching fraternity. I am extremely grateful to the entire team of Vishvas Publications for providing wings to my ideas.I would also like to thank to the students, teachers, lecturers and Chartered Accountants across the country for appreciating my work in the field of accountancy.Why this project workbook is valuable for the students?

They will learn the meaning of project work and how to prepare a good project?

They will understand the value of project work in their real life. They will learn that how to identify, collect, and analyse the financial

data for the project work. They will understand the concept of Analysis and Interpretation. They will understand the concept of Cash Flow Statement. They will understand the concept of Ratio Analysis.

This project workbook is designed as per the latest syllabus issued by C.B.S.E. In this book �Four Solved Sample Projects� have been given to assist the students to develop a good project.Topics covered under this project work are :1. Analysis and Interpretation of Financial Statements.2. Ratio Analysis3. Cash Flow StatementStudents and teachers may directly contact to the Author to clear their doubts or for any suggestion for the improvement.

AuthorVinod Kumar (Accountancy Guru)www.accountancybook.com E-mail : authorcbse@gmail.com

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ContentsCBSE Guidelines 6�8

Part-B : Financial Statement Analysis

PROJECT�1 9�32

Part-A : Comprehensive ProblemPart-B : Project on Segement AnalysisPart-C : Cash Flow Statement

PROJECT�2 33�52

Part-A : Comprehensive ProblemPart-B : Project on Segement AnalysisPart-C : Cash Flow Statement

Computerized Accounting (Part-C)

Project�3 53�55Payroll Mate Software

Project�4 56�61Easy Accounts

Viva Questions (Part�B) 62�66Viva Questions (Part�C) 67�68

VALIDITY CERTIFICATE

This is to certify that this Accountancy Project Workbook belongs to

Name ......................................................................................................................

Roll No ............................ Class .................................... Section .............................

Session ................................... of ..............................................................................

The Projects recorded in this Project Workbook have been done by the candidate in

the school and the signatures affixed on recorded projects are genuine.

The student's initiative, cooperation and participation during the practical

classes is .Excellent/Good/Average

His/Her aesthetic presentation, visual appeal, expression and neatness is

Excellent/Good/Average.

His/Her content accuracy, creativity, originality and analysis of different

perception is .Excellent/Good/Average

Date : ..................... Teacher-Incharge

I wou ld l ike to convey my hear t f e l t thanks to

Mr/Mrs................................................ my Accountancy

teacher, who always gave valuable suggestions and guidance

for completion of my project. He/She helped me to

understand and remember important details of the project

that I would have otherwise lost. My project has been a

success only because of his guidance.

Acknowledgement

Name of Project................................................................

Name of Student..............................................................

Class Roll No Section................ ....................... .................

School Name....................................................................

5 Project–1

CBSE GUIDELINES FOR PROJECT WORK IN ACCOUNTING FOR CLASS�XII

The Board has introduced Project Work in Accounting for Class-XII in the Optional Part B : 'Financial Statement Analysis'. It is expected that the Project Work will help the students in developing the skills to comprehend, analyse and interpret accounting data of the business firms and make it meaningful for taking business decisions.

Objectives

l To enable a student to complete the accounting process in real life business situations and apply the tools of analysis as per the syllabus for a comprehensive project.

l To develop the competence of reading accounting data from quarterly or half yearly or annual reports of business firms and interpreting the information on the basis of given guidelines to present the desirable information in required format in the Project File for Specific Projects.

Guidelines for TeachersDuring the academic session the students will work on at least three types of projects out of which one will be of Comprehensive nature. The comprehensive project will involve the students from the initial stage of accounting to the preparation and analysis of financial statements. The data provided or the Project Statement will be as close to the real life situations as possible. The project statement should cover all important aspects like investments, financing, operating, adjustments to final accounts, etc. in a condensed form. The situations given in these problems will require a student to derive meaningful conclusion for taking decisions for the purposes of investment, expansion, financing, etc.

Two projects will be of specific nature using atleast one tool of analysis in each. The data for these will be drawn mainly from quarterly or half yearly or annual reports of corporate sector. Students will analyze the information given in the financial statements as follows:

(a) Performance of Segments keeping in mind their three parameters Revenue, Net Profit and Capital Employed of companies on quarterly or half yearly or annual basis. This is widely published and reported by the companies. It can be picked up either from the newspapers or from the websites of the companies.

(b) Comparison of Revenue, Net Profit and Earning Per Share (EPS) on quarterly or half yearly or annual basis with the help of comparative or common size statements. The Projects given in these guidelines are on sample areas of business activities like Segment Reporting, etc. The teachers and students are free to explore more such areas of business activities for specific projects.

There are four tools of analysis given in the syllabus for the analysis of Financial Statements, namely (i) Comparative Statement, (ii) Common Size Statements, (iii) Ratios and (iv) Cash Flow Statement. Any one or more of these tools are to be used to derive conclusions. No project is to be prepared on the tools, but these tools are to be used to achieve the object of the project. For instance, there will not be any project on the 'Ratios' as such, but ratios will be used in the development of the project to reach a conclusion.

Part�B : Financial Statement AnalysisProject WorkDuration: 1:30 Min Marks: 20Unit-1 Project File 4 Marks : As per requirement (given below)Unit-2 Written Test 12 Marks : One hourUnit-3 Viva Voce 4 Marks : As per requirement (given below)

Part�C : Computerzised AccountingPractical WorkUnit-1 File : 4 MarksUnit-2 Practical Examination : 12 Marks-1hr.Unit-3 Viva Voce : 4 Marks

XII 6Vishvas Accountancy Project Workbook

Scope

For the purpose of Project Work, the following ratios will be included :

Liquidity Ratios : Current Ratio, Liquidity Ratio.

Solvency Ratios : Debt to Equity; Total Assets to Debt, Proprietary Ratio.

Activity Ratios : Inventory Turnover, Debtors Turnover, Payables Turnover, Working Capital Turnover, Fixed Assets Turnover, Current Assets Turnover.

Profitability Ratio : Gross Profit Ratio, Operating Ratio, Net Profit Ratio, Return on Investment, Earning Per Share � Price Earnings Ratio.

A few projects have been given in detail at the end of the guidelines for practice. The student is expected to analyze the facts, and present the information in a meaningful manner for interpretation. Teachers are expected to discuss these problems thoroughly with the students and encourage them to come out with solutions. They are also expected to collect the quarterly or half yearly or annual Segment reports and Revenue and Net Profit reports of companies from newspapers or from the websites of the companies and formulate their own problems for Project Work.

UNIT-1: PROJECT FILE

Students will prepare a Project File to record their work related to the problems attempted by them in the following format :1. First page of the file should describe title of work, identity of student, school, and the teacher

concerned.2. Index to indicate columns for title of work, page no., date, teacher's remarks and signature.3. The format for Project Work will be :l Statement of the problem/Name of the Projectl Objectivesl Period of Studyl Source Material

l Tools of Analysis used

l Processing and Tabulation of data

l Diagrammatic/graphic presentation- pie-diagrams, bar diagrams and graphs.

l Derivations, Interpretation and Conclusion.

l Assumptions (if any)

Project File should be neatly handwritten and presentable with page numbers. Each step of the solution needs to be highlighted. Conclusions drawn should be placed in boxes at the end.

Evaluation

Guidelines for the ExaminerWhile evaluating the Project File, marks are to be awarded out of four, based on :l Contentl Coveragel Presentationl Interpretation and Conclusionl Originality and Quality of work

7 Project–1

UNIT-2: WRITTEN TEST

Objectives

l To give them exposure to analyse the financial statements of business firms and help them to derive meaningful information and conclusions therefrom.

l To know how effectively the students can derive conclusions and express them.

Guidelines for Teachers

Teachers will discuss with students the sample questions for this test and develop question papers for the purpose in their house examinations.

Guidelines for Examiners

Students will be given 2 application-oriented problems of 6 marks each covering the tools for analysis of financial statements. The question paper will be set in consultation with the school teacher. No question similar to the question given in the 3 hour question paper of the Board, should be asked here. Only such questions, relating to financial statements of companies should be asked which encourage thinking on practical lines. The external examiner will discuss with the internal examiner all the projects completed during the year and set the questions accordingly. On the day of the examination both should come prepared with atleast 10 questions each. Both the internal and external examiners must agree on the nature and scope of questions asked. It must be ensured that multiple sets of papers are prepared. Marks will be awarded on the steps taken, data identified and solution arrived at.

UNIT-3: VIVA�VOCE

Objectivesl To assess whether the student has understood the topic covered and is able to express.

l To assess whether the Project File presented by the student is genuine and prepared by him only.

Guidelines for Teachersl During the course of the academic year, the teacher must give thorough practice to the

students on �Viva Voce� examination on each aspect of the Project report and file.

l During all internal examinations 'Viva Voce' examination should form an integral part of the practical examination.

l Wherever possible, the teacher may invite a colleague/expert from another school for asking questions. This will rehearse the students for the final examination.

Guidelines for Examinersl The work done by the students in Project file will form the basis of asking questions. The

external examiner may ask 2-3 questions to test the authenticity of the work done in the files. Marks will be awarded out of 4 in consultation with the school teacher.

Viva Questionsl Should relate only to the Project.

(a) To check the authenticity of the work and

(b) To check that the student understands the idea behind the Project.

XII 8Vishvas Accountancy Project Workbook

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Payroll Tax FormsUse our payroll forms software to generate, preview,

print and export payroll forms 941, 944, 940, W2

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year.Payroll Tax Forms

PROJECT – 3

PART�C : COMPUTERIZED ACCOUNTING

53 Project–3

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Requirement.

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environment.

XII 54Vishvas Accountancy Project Workbook

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55 Project–3