CBSE XII Accountancy Paper : Last moment quick revision (Company and NPO)

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This section consist four chapters ( Accounting for Not for profit organisations, Accounting for share capital, Issue of debentures and redemption of debentures) carrying 25 marks as per CBSE blue print. Lets recall the important points/ entries/ items from this section as a part of your quick revision strategy to give your preparation a final touch.

Not for Profit organisations : 

• Receipt and Payment Account is prepared to find out the receipts and payments of an NPO during a year.


• Cash basis of accounting is followed while preparing Receipt and Payment Account.


• In the absence of any specific information Legacy is treated as capital receipt hence recorded as  liability.


• Any capital nature receipt or receipt for specific purpose is treated as liability.


• Income and Expenditure Account is prepared to know the income position of an NPO.


• Accrual basis of accounting is followed while preparing Income and Expenditure Account.


• Opening Balance Sheet is prepared to find out opening capital.


• In the absence of any specific information donation is treated as Income and donation for specific purpose as Liability.


• Creditors Account is prepared to find out Net credit purchases.


• Hidden depreciation need to be calculated when opening and closing balance of an asset has given.


• Hidden investment is calculated when Interest on investment is given but Investment is missing from question.

Share Capital:

• Minimum Subscription = 90% of the issued shares.


• Discount on reissue of forfeited shares can't be more than the forfeited amount.


• While making forfeiture entry Security Premium Reserve is debited with the amount unpaid for Premium. If premium is received no need to debit.


• While making entry for issue of shares other than cash, if number of shares comes in decimals ( Eg. 199.33 shares) take it as as 199 shares and settle the balance by cash.


• No need to show receipt entries if cash book has to be prepared.


• While making a journal entry for forfeiture of shares share capital is always debited with called money out of face value of shares.


• No need to show calls in arrear and calls in advance account until and unless it is instructed in question.

Issue and Redemption of Debentures : 

• DRR- 25% of face value on outstanding balances of debentures.


• DRI- 15% of face value of redeemed value of debentures.


• Exception of DRR and DRI- Banking company, Financial Company, Housing company, Fully convertible debentures.


• Create a DRR of 100% if company is having sufficient profit.


• Interest on debentures and interest on DRI is not shown until clearly instructed.


• DRI is made on 30th April prior to the year of redemption, if not specified in question.


• Loss on issue of debentures are written off from books utilising Security premium reserve balance and then profit.


• Loss on issue of debentures are written off from books in the ratio of outstanding balances in debentures account at the end of year.

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