ACCOUNTING FRIEND: September 2025

ANALYSIS OF ACCOUNTANCY SAMPLE PAPER 2025-26

Part A – Accounting for Partnership Firms and Companies

From Partnership Accounting

Fundamentals of Partnership – Profit sharing, interest on capital, current vs fixed capital, adjustments of past errors (Q2, Q9, Q11).
Admission of Partner – Revaluation, goodwill, capital brought in (Q4, Q15, Q16, Q18 (alt.)).
Retirement & Death of Partner – Settlement of retiring/deceased partner, treatment of reserves, investment fluctuation reserve (Q14, Q20, Q22).
Dissolution of Partnership Firm – Realisation account, treatment of assets/liabilities, remuneration to partners (Q8, Q10, Q17, Q25).
Change in Profit-Sharing Ratio – Sacrificing/gaining ratio (Q14, Q16).

From Company Accounts

Accounting for Shares – Issue, forfeiture, reissue, calls in arrears/advance, journal entries (Q3, Q6, Q13, Q15 (alt.), Q19 (alt.), Q21, Q23).
Accounting for Debentures – Issue at discount/premium, redemption, collateral security (Q3 (alt.), Q7, Q19, Q23 (alt.)).
Company Final Accounts / Balance Sheet as per Schedule III – Preparation and analysis of balance sheet with notes, reserves, share capital treatment (Q26, Q31).

Part B (Option I) – Analysis of Financial Statements

Tools of Financial Statement Analysis – Horizontal/Vertical analysis (Q27).
Accounting Ratios – Net profit ratio, operating ratio, gross profit ratio, interest coverage (Q28, Q33).
Cash Flow Statement – Classification of activities, computation of cash flow from operating, investing & financing activities (Q29, Q30, Q34).
Comparative & Common Size Statements – Preparation and interpretation (Q32).
Schedule III Presentation – Heads & subheads classification (Q31).

Part B (Option II) – Computerised Accounting

(Alternative to Financial Statement Analysis)

ACCOUNTING FRIEND