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

EASY ACCOUNTS

Complete Accounting & Inventory Package

This is an accounts software with Inventory management and has rich set of features. Data entry is easy and there is no need for accounts knowledge to use the package.

Features: The user interface is easy to use. Even complete beginners can get productive very quickly. It is able to manage its functions through several modules that are named company, Suppliers, Customers, Accounts, Payroll, Job Work, Utilities, Accounts Reports and Inventory Reports. Some of the company wide features supported include creation of unlimited number of companies, all the interactive screen are controlled by user rights, so that only appropriate accesses take place. Year-end processes are done automatically without interrupting normal processing of the businesses. Data can be exported in Excel mode from all the operating modules. Stock maintenance features include unlimited items that can be created. All product and/or services prices can be changed at one place. You get low stock alert as the application powers up. Kit master preparation, kit production maintenance, daily stock usage entry etc., are maintained.

Employee wages report keyed to their production rate are made available. In the inventory functions, purchase order mechanisms are included. All the app l i cab le taxes are managed . Payments are also tracked. Statements r e la ted to supp l i e rs and the i r outstanding bill amounts are available. It manages customer related functions easily. These include customer name, contact details, sales bills, agency commission and taxes applicable, bills printing, monthly statements of all sales to a customer etc., are available. All the account functions are taken care of that include the general ledger and any number of other ledgers. Accounts management and year end account book preparations are handled too. Payroll preparation, job work and various return preparations are included in the package.

PROJECT – 4

XII 56Vishvas Accountancy Project Workbook

General Features

High look Graphical User Interface

NET based New Technology Package

Wide variety sections like Company, Suppliers, Customers, Accounts, Payroll, Auditor Desk, Outward Job Work, Inward Job Work, Utilities, Accounts Reports and Inventory Reports, Help etc.

Online Support & Customer Care

Online & Offline Video help

Company Features

Unlimited number of Company Creation

Company & Particular Year Deletion Option

Any number of User Account Creation

User Rights in each and every screen activity

57 Project–4

Unit Master - Create own unit of measurements

Automatic Year end process - No need manual interruption

Excel export facility in all screen

Dos mode print in most screen

Back-up facility

Stock Maintenance

Single Stock System/Company wise Stock System maintenance option

Allow Negative Stock Maintenance

Unlimited Item Creation

Kit Master - Very useful for Manufacturing Unit like Grinder Assembling unit, Garment Unit

Daily Kit Production Entry - Employee wise - Only input number of finished products. Its raw material automatically deduct from stock

Employee wages Report as per their production based

Daily Item Usage Entry for manufacturing/assembling unit

Multi Calendar create option

Reminder facility in main screen to follow some jobs without fail using schedule manager

Budget Screen for creating pre-budget in business

Cost Centre Screen for using in expense, daily item usage entry screen

Price List for periodically update your items prices. Keep old item prices also. You can select any Price list in Sales Bill

Stock Ledger View for particular period. You can see last month stock position also

Single Item Stock Tracking screen for particular period - To find particular in item all transactions.

Low Stock Alert Report window at application start up

Change all product/service price in one place

Unlimited Number of Godown Creation

Stock Transfer between godowns

Date wise Stock Transfer report between godowns

XII 58Vishvas Accountancy Project Workbook

Supplier Supplier Purchase Order - Print in your letter

head Purchase Delivery Challan Purchase Bill - Direct, DC, Purchase Order

based Purchase Bill

Any number of Tax, Any type of Tax, Expense entry in Purchase Bill

Bill to Bill Payment All Supplier list with address, Total Purchase of

year, their current balance Purchase Price Group facility Maintenance Purchase Group added in P&L,

appl ied in purchase b i l l to purchase maintenance items

Supplier Payment Bill- wise Part payment facility

Supplier Bill Due Days - 30/60/90 Days Format Display

Customer Customer Order Entry Sales Delivery Challan Sales Bill - Direct, DC, Customer Order based

Current Stock Information, Supplier Balance, Total Purchase of month Details in Purchase Bill

In Purchase Bill, adding Agent Commission in Journal made optional

Agent Commission in Purchase Bill

Sales Bill Sales Bill Voucher Name wise Billing Facility Price include Tax option - While typing Item

Price, Press Ctrl + Q for Price include Tax box Current Stock Information, Customer Balance,

Total Sales of month Details in Sales Bill Previous Sold Item price Display of every

Customer in Sales Bill Agent Commission in Sales Bill Sales Executive Selection in Sales Bill for their

incentive amount Any number of Tax, Any type of Tax, Expense

entry in Sales Bill Three types of Sales Bill Printing - Dos mode

Print, A4 dos mode print, Rich Windows Report Print

Retail Sales Bill for fast Bill Entry

59 Project–4

Customer Monthly Balance Statement - Agent wise, Line wise, Customer Place wise List with their pending Bill Details (In Excel, Dos Mode print format)

Customer Bill to Bill Receipt Entry Customer Pending Bill Due days list -

30/60/90 Days Format Display Customer Price Group facility All Customer list with address, Total Sales of

year, their current balance Customer Call Register added for registering

customer call for complaints, material requirement and other customer related entry

New Material Rental Bill Screen added for lending the material like computer, machinery etc. You can give material rent for particular period from this screen

New Service Contract Screen for Service based

company. For example computer service for AMC - Annual Maintenance Contract, Warranty based monthly/yearly service

Client's forthcoming service list report for particular period to maintain service perfectly

Reminder for Service Contract Ending to renew the service

In Sales Bill, adding Agent Commission in Journal made optional

Inventory Voucher Type System - By this option in every inventory screen, you can filter displaying Items list by Item Code

3 type of Sales Bill type - Material Bill, Service Bill, Rental Bill

3 types of Sales Bill prefix No of Bill Payment Due Days option for

C u s t o m e r / S u p p l i e r a n d a p p l i e d i n Sales/Purchase Bill

Accounts Any number of Ledger Creation Any number of Group Creation Ledger Sorting option for Ordered Output in

Print Outs Group Sorting option for Ordered Output in

Print Outs Voucher Type Structure Creation All Ledgers Opening change in one place Optional All Ledger Print out in year end While Inventory Section Entry, Automatic

posting of Purchase, Sales, Payment, Receipt Entry in Accounts. No need repeat entry in accounts

Ledger Balance as on Entry Date/Closing Date option

Journal, Contra, Sales, Sales Return, Purchase, Purchase Return, Payment, Receipt, Debit Note, Credit Note - Available Voucher types

Single Entry system for Cash Payment, Cash Receipt

Account Cash Adjustment Entry facility Cash Book, Day Book, Ledger, Trial Balance,

Profit & Loss Statement, Balance Sheet - Excel/Dos Mode Print out option

All Ledger List Voucher Monthly break up report Bill- wise settlement added in Accounts Entry

also

XII 60Vishvas Accountancy Project Workbook

Payroll Employee Master Different types of Salary Structure Daily Attendance Employee Permission Entry Attendance Summary Leave Entry Monthly Salary Statement Employee Debit Entry Pay slip Print Sales Executive Tour InfoJob work Outward Job Work Order Raw Material Output Entry Raw Material Return Entry Finished Product Input Entry Job Work Bill Job Work Bill to Bill Payment Pending Bill due days list All Contractor list with Total Job Work of year,

their current balanceJob work Inward Raw Material Inward Job Card Entry Daily Item Usage Entry Daily Finished Production Entry Output DC Entry Customer Job Work Bill Entry

Pending Bill due days list Receipt for Customer Payment All Contractor list with Total Job Work of year,

their current balance Job Work Receivable Bills listUtilities Cheque PrintAccounts Reports All Accounts Report in Excel/Dos Print formatInventory Reports Date to Date Purchase Report Date to Date Purchase Return Report Sales Order Reports L a s t S o l d / P u r c h a s e P r i c e L i s t o f

Customer/Supplier Reports Date to Date Sales Reports Date to Date Sales Return Reports Material Movement Chart Party-wise Turn over report Material Usage Report Kit Production Report Job work full Process Report Sales Executive Incentive Report Date to Date Profit Report Monthly VAT Return Report Various General ReportsConclusion: It is a nice and handy utility for accounts and inventory management. It takes care of customer related functions as well as payroll etc.

61 Project–4