Project Work in Accountancy Class 12

Part II of Syllabus of Accountancy, 'Analysis of Financial Statements' carries weightage of 40 marks, divided into two parts:

a) 20 marks theory paper included in 3 hrs. exam. to be held in March.

b) 20 marks project work.

The purpose of Project work in Financial Statement Analysis is to help the students develop the skills to comprehend, analyze and interpret accounting data of the business firms and make it meaningful for taking business decisions.

 

Project Work of 20 Marks:

Project work will include:

  • Project File - 12 Marks
  • Viva Voce - 8 Marks

(The Written Test has been discontinued from the session 2023-24.)

Project File should contain one project:

One specific project based on financial statement analysis of a company covering any two aspects from the following:

    1. Comparative and common size financial statements
    2. Accounting Ratios
    3. Segment Reports
    4. Cash Flow Statements

So, you have to work on two out of the above mentioned four mentioned above. Since the project is only one but covering two tools of analysis, you have to take only one company, of which you have to take the data for two years.

The Annual Report of the company should be of 2023-24 i.e. ending March 31,2024. It would contain the data of 2022-23 as previous year and 2023-24 as current year. Any other previous Annual Report will be considered invalid.

 

Project Work in Accountancy Class 12

Project File:

Students are required to prepare a Project File relating to the problems attempted by them as follows:

  1. Particulars to be written on the first page:

          Title of work - Name of the project.

          Identity of student - Name, Class and section, Board Roll No

          School - Name of the school

         Concerned teacher - Name of the teacher who supervised the project work.

  1. Index to indicate columns for title of work, page no., date, teacher's remarks and signature.
  2. The format for Project Work:

          a) Statement of the problem/Name of the Project

          b) Objectives

          c) Period of Study

          d) Source Material

          e) Tools of Analysis used

          f) Processing and Tabulation of data

          g) Diagrammatic/graphic presentation- pie-charts, bar-charts and graphs.

          h) Derivations, Interpretation and Conclusion.

          i) Assumptions (if any).

How to write the Project file:

      1. Project File should be neatly handwritten with page numbers.

      2. Each step of the solution needs to be highlighted.

      3. Conclusions drawn should be placed in boxes at the end.

 

How to Arrange the Pages of Accountancy Project File?

To put in simple words, the pages of an Accountancy Project File with Ratio Analysis and Cash Flow Analysis should be arranged in the following order:

  1. Cover Page
  2. Inner Title Page
  3. Acknowledgement
  4. Certificate by teacher
  5. Certificate by student
  6. Index
  7. Company Profile
  8. Ratio, Ratio Analysis, uses, limitations, categories with meaning and names of different ratios.
  9. Problem, subject matter of project (as explained in class).
  10. Printed Balance Sheet and statement of profit and loss of the company.
  11. Analytical tools used, planning and execution.
  12. Chart showing different ratios with formula and calculations.
  13. Conclusion on the basis of these ratios individually or/and collectively.
  14. Also show bar diagrams depicting these Ratios of previous year as well as current year.
  15. Cash Flow Statement - Meaning, cash and cash equivalents, types of activities with meaning and examples of each.
  16. Printed cash flow statement.
  17. Summary of cash flows (as explained in class).
  18. Presentation in the form of bar diagrams.
  19. Conclusion.
  20. Bibliography

Use your own creativity to make your file the best. If you have any other tools, you may adjust these pages accordingly.

Teacher can however, guide his students with minor variations in the above list.

 

Project Work in Accountancy Class 12

Viva - 8 Marks

Viva Questions should relate only to the Project:

a) To check the authenticity of the work.

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

You may check here how questions are asked: Accountancy Class 12 Viva Questions

 

You may check Guidelines for Project Work in Accountancy issued by C.B.S.E. in 2015

No Revised Guidelines for Project Work have been issued after that, except in Curriculum already discussed above.

How to Collect Data for Accountancy Project?

Segment Project for Accountancy Class 12

Annual Reports of 20 Companies for Project Work