Every simulator teaches with fictional people, companies and amounts. Below, each simulator lists what it includes, what it leaves out and what it assumes, form by form and workpaper by workpaper. The same notes sit inside each simulator under “Scope & Assumptions”.
38 Simulators598 Forms and WorkpapersUS · Canada · India · Global
Included: worked in the simulatorNot Included: left out on purposeAssumed: simplifications to know
US Individual and Business Returns
1040Form 1040 Individual ReturnTax year 2025 · 25 forms and worksheets
Applies to the Whole Simulator
- Figures follow the 2025 IRS forms, instructions and inflation adjustments, including the 2025 tax law changes.
- The estimated tax penalty (Form 2210) and the premium tax credit (Form 8962) are not calculated.
- State and local returns are not included.
- All people and amounts are fictional; the simulator does not prepare or file real returns.
1040U.S. Individual Income Tax Return3 included · 3 not included · 3 assumed
Included
- All income lines fed by the simulator's documents: wages, interest, dividends, IRA and pension distributions, Social Security, capital gains and Schedule 1 income
- Tax from the IRS Tax Table under $100,000 and the Tax Computation Worksheet above it, or the capital gain worksheet when there are qualified dividends or net capital gain
- Credits and payments on lines 19–33, with the refund or amount owed
Not Included
- Lines 1b–1i (household wages, unreported tips, Medicaid waiver payments, dependent care and adoption benefits, Form 8919 wages, combat pay)
- Line 30 refundable adoption credit and line 38 estimated tax penalty (Form 2210)
- Kiddie tax (Form 8615), lump-sum distributions (Form 4972) and state returns
Assumed
- Every line is rounded to whole dollars
- The taxpayer lived in the U.S. all year and had no digital asset transactions
- Dependents have SSNs and meet the relationship, residency and support tests
Sch 1Additional Income and Adjustments to Income2 included · 2 not included · 3 assumed
Included
- Line 3 business income, line 5 Schedule E income, line 7 unemployment
- Adjustments: educator expenses, HSA, deductible half of SE tax, early withdrawal penalty, IRA deduction and student loan interest
Not Included
- State tax refunds, alimony, Form 4797 gains, farm income, net operating losses and other income on lines 8a–8z
- Self-employed health insurance, SEP/SIMPLE contributions, Archer MSA and other adjustments on lines 24a–24z
Assumed
- HSA contributions entered are personal contributions, not made through payroll
- IRA contributions are to a traditional IRA for 2025
- The IRA deduction phase-out uses modified AGI before taxable Social Security (the Pub. 590-A interaction is simplified)
Sch 2Additional Taxes2 included · 2 not included · 1 assumed
Included
- Alternative minimum tax (Form 6251)
- Self-employment tax, the 10% additional tax on early distributions (Form 5329), Additional Medicare Tax (Form 8959) and net investment income tax (Form 8960)
Not Included
- Repayment of excess advance premium tax credit (the premium tax credit is not calculated)
- Household employment taxes, uncollected Social Security and Medicare tax, recapture taxes and section 965 installments
Assumed
- Early distributions with code 1 have no exception to the 10% tax
Sch 3Additional Credits and Payments1 included · 2 not included · 1 assumed
Included
- Foreign tax credit, child and dependent care credit, education credits and the saver's credit
Not Included
- Energy, clean vehicle, general business, adoption and elderly credits
- Premium tax credit (Form 8962), extension payments, excess Social Security withholding and fuel tax credit
Assumed
- Nonrefundable credits are applied in Schedule 3 order, then the child tax credit, each limited by the tax left
Sch 1-AAdditional Deductions (new for 2025)1 included · 1 not included · 3 assumed
Included
- No tax on tips (up to $25,000), qualified overtime (up to $12,500; $25,000 joint), new-car loan interest (up to $10,000) and the $6,000 senior deduction, each with its phase-out
Not Included
- Add-backs for Puerto Rico and foreign income exclusions (lines 2a–2d are zero)
Assumed
- Tips are qualified tips in a listed occupation; the overtime amount is only the premium part
- The vehicle is new, assembled in the U.S., for personal use and secured by the loan
- Married filing separately cannot claim tips, overtime or the senior deduction
Sch AItemized Deductions3 included · 1 not included · 3 assumed
Included
- Medical expenses above 7.5% of AGI
- State and local income, real estate and personal property taxes with the $40,000 SALT limit and its reduction above $500,000
- Mortgage interest from Form 1098 and cash and noncash gifts to charity (60% and 30% of AGI limits)
Not Included
- The sales tax election, other taxes, investment interest (Form 4952), casualty losses, charity carryovers and other itemized deductions
Assumed
- Mortgage debt is within the $750,000 acquisition-debt limit and points are on the 1098
- Gifts go to public charities; Form 8283 for noncash gifts is not shown
- The simulator uses whichever is larger, itemized or standard (a taxpayer may elect otherwise)
Sch BInterest and Ordinary Dividends2 included · 1 not included
Included
- Interest from 1099-INT boxes 1 and 3 and K-1s
- Ordinary dividends from 1099-DIV and K-1s
Not Included
- Part III foreign account questions (FBAR), the savings bond exclusion (Form 8815), nominee and accrued interest adjustments, and original issue discount
Sch CProfit or Loss From Business1 included · 2 not included · 2 assumed
Included
- One business per return: 1099-NEC income plus other income, expense totals, and the home office by the simplified method ($5 per square foot, up to 300)
Not Included
- Cost of goods sold and inventory, depreciation and section 179, the regular home office method (Form 8829)
- At-risk, hobby-loss and excess business loss limits
Assumed
- Cash method of accounting
- Meals are entered at the deductible 50%
Sch DCapital Gains and Losses (with Form 8949)3 included · 2 not included · 1 assumed
Included
- Short- and long-term sales from 1099-B, with Form 8949 boxes A, B, D and E and wash sale adjustments
- Long-term gains from K-1s and capital gain distributions
- The $3,000 capital loss limit ($1,500 married filing separately)
Not Included
- Capital loss carryovers from earlier years (the carryover to next year is noted but not tracked)
- Collectibles (28%) and unrecaptured section 1250 gain, Form 4797, installment sales and Form 1099-DA
Assumed
- Each 1099-B slip is a summary of one category of sales
Sch ESupplemental Income and Loss2 included · 2 not included · 2 assumed
Included
- One residential rental property, with the Form 8582 limit applied to a loss
- Partnership and S corporation K-1 income, passive and nonpassive
Not Included
- Royalties, more than one property, vacation-home (personal use) rules and Part III estate and trust business income
- At-risk and basis limits and section 179 from K-1s
Assumed
- Rental depreciation is straight line over 27.5 years for a full year (building placed in service before 2025; the first-year mid-month convention is not applied)
- The building cost entered excludes land
Sch SESelf-Employment Tax1 included · 1 not included · 1 assumed
Included
- Schedule C profit and K-1 box 14 code A, coordinated with W-2 Social Security wages for the $176,100 wage base
Not Included
- Farm income, the optional methods, church employee income and Conservation Reserve payments
Assumed
- One person on the return has self-employment income (the business owner)
8812Credits for Qualifying Children and Other Dependents1 included · 2 assumed
Included
- $2,200 per qualifying child, $500 per other dependent, the phase-out, and the refundable additional child tax credit (including Part II-B for three or more children)
Assumed
- Children have SSNs and meet the age, relationship, residency and support tests
- Credit Limit Worksheet A uses the Schedule 3 credits on lines 1–4
8995Qualified Business Income Deduction — Simplified1 included · 1 not included · 1 assumed
Included
- QBI from Schedule C (less the deductible part of SE tax) and from K-1s, the 20% component and the income limit
Not Included
- REIT dividends and publicly traded partnership income, QBI loss carryforwards, aggregation and cooperative rules
Assumed
- Rentals are not treated as a trade or business for QBI
8995-AQualified Business Income Deduction1 included · 1 not included · 1 assumed
Included
- Per-business W-2 wage and property (UBIA) limits, the phase-in range, and the specified service business phase-out
Not Included
- REIT/PTP income, loss carryforwards, aggregation and patron reductions
Assumed
- K-1 QBI, W-2 wages and UBIA are taken from box 20 code Z or box 17 code V as entered
8863Education Credits1 included · 1 not included · 2 assumed
Included
- American opportunity credit per student (up to $2,500, 40% refundable) and lifetime learning credit (20% of up to $10,000), with phase-outs
Not Included
- The four-year limit, half-time enrolment and conviction tests (assumed met)
Assumed
- Qualified expenses are 1098-T box 1 minus scholarships in box 5
- Married filing separately is not eligible; someone claimed as a dependent gets no refundable part
2441Child and Dependent Care Expenses1 included · 1 not included · 2 assumed
Included
- The $3,000 / $6,000 expense limits, the earned income limit, the 35%–20% rate table and the tax limit
Not Included
- Dependent care benefits (W-2 box 10), prior-year expenses and deemed income for a student or disabled spouse
Assumed
- Qualifying persons are children under 13 who lived with the taxpayer more than half the year
- Married filing separately is not eligible
8880Credit for Qualified Retirement Savings Contributions1 included · 2 assumed
Included
- IRA and W-2 box 12 elective deferrals, reduced by retirement distributions, up to $2,000 each, at 50%, 20% or 10%
Assumed
- Distributions in the testing period are the 2025 1099-Rs only
- The age, student and dependent tests come from the taxpayer settings
8959Additional Medicare Tax1 included · 1 not included
Included
- Additional Medicare Tax on Medicare wages and self-employment income, and the withholding reconciliation
Not Included
- RRTA compensation and unreported tips
8960Net Investment Income Tax1 included · 1 not included · 1 assumed
Included
- Interest, dividends, net capital gain and passive rental and K-1 income; nonpassive trade or business income is removed
Not Included
- Investment expense deductions, state tax allocation, CFC/PFIC and disposition adjustments
Assumed
- Modified AGI equals AGI
6251Alternative Minimum Tax — Individuals1 included · 1 not included · 1 assumed
Included
- Line 1a add-back of the senior deduction, the SALT or standard deduction add-back, incentive stock options, the exemption phase-out, the 26% / 28% rates and Part III capital gain rates
Not Included
- Other adjustments and preferences (private activity bonds, depreciation, NOLs, passive differences) and the AMT credit carryforward (Form 8801)
Assumed
- The AMT foreign tax credit equals the regular foreign tax credit
1116Foreign Tax Credit (passive category, simplified)1 included · 1 not included · 2 assumed
Included
- Passive category foreign tax from 1099-DIV and 1099-INT, and the $300 / $600 election to skip Form 1116 when it applies
Not Included
- Qualified dividend and capital gain rate adjustments, carryovers and carrybacks, other categories and the high-tax kickout
Assumed
- Deductions are apportioned by the ratio of foreign to total gross income
- Unused foreign tax carries over but is not tracked
8582Passive Activity Loss Limitations1 included · 1 not included · 2 assumed
Included
- The $25,000 special allowance for rental real estate with active participation, reduced by 50% of MAGI over $100,000, and passive income offsetting the loss
Not Included
- Limits on passive K-1 losses (they are not limited in this simulator), prior-year unallowed losses and real estate professional status
Assumed
- Married filing separately gets no special allowance
- MAGI is simplified to AGI before the rental loss
SSWSocial Security Benefits Worksheet1 included · 1 not included · 1 assumed
Included
- The standard Social Security Benefits Worksheet (lines 1–18)
Not Included
- The lump-sum election and railroad retirement benefits
Assumed
- Married filing separately is treated as living with the spouse (base amount $0)
EICEarned Income Credit Worksheet1 included · 1 not included · 2 assumed
Included
- The EIC Table method (middle of each $50 row) on earned income and AGI, with the investment income limit of $11,950
Not Included
- The separated-spouse rule for married filing separately, disallowance periods and the combat pay election
Assumed
- Qualifying children are under 19, or under 24 and full-time students, and lived with the taxpayer more than half the year
- Valid SSNs and U.S. residency
QDCGQualified Dividends and Capital Gain Tax Worksheet1 included · 1 not included
Included
- The 0%, 15% and 20% rates on qualified dividends and net capital gain, using the Tax Table for amounts under $100,000
Not Included
- The Schedule D Tax Worksheet for 28% and unrecaptured section 1250 gain, and the Form 4952 election
1120Form 1120 Corporate ReturnCalendar year 2025 · 27 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025, domestic C corporation, separate federal return. State returns are not included.
- Rules follow the 2025 forms and the 2025 tax law changes (100% bonus depreciation, section 174A, the EBITDA-based 163(j) limit and the $2.5 million section 179 limit).
- All companies, people and amounts are fictional; the simulator does not prepare or file real returns.
1120U.S. Corporation Income Tax Return2 included · 2 not included · 2 assumed
Included
- Pages 1 and 6 of the 2025 Form 1120 for a calendar-year domestic C corporation filing a separate (non-consolidated) return
- The 21% flat rate, payments, the estimated tax penalty and the refund or amount owed
Not Included
- Consolidated returns (Form 851), personal holding company tax, life and insurance companies, the section 1062 farmland installment election and Form 1125-E detail
- Accumulated earnings tax and state returns
Assumed
- Accrual method, December 31 year end, U.S. trade or business only
- Federal income tax recorded in the books is the book provision, not the tax on the return
Sch CDividends, Inclusions and Special Deductions1 included · 1 not included · 1 assumed
Included
- 50%, 65% and 100% dividends-received deductions, the section 245A deduction, Subpart F, GILTI, the section 78 gross-up and the section 250 deduction
Not Included
- Debt-financed stock (line 3), public utility preferred stock, IC-DISC, FSC and hybrid dividends
Assumed
- Holding periods are met (46 days, or 1 year for section 245A)
DRDDividends-Received Deduction Limit Worksheet1 included · 1 assumed
Included
- The section 246(b) taxable income limit (65% first, then 50%), with line 28 reduced by the 100% deductions on Schedule C lines 10–12, and the NOL exception
Assumed
- No capital loss carryback or section 1059 adjustment
Sch JTax Computation and Payment1 included · 1 not included
Included
- Regular tax, CAMT, the foreign tax credit and the general business credit, estimated payments and extension deposits
Not Included
- BEAT amounts, personal holding company tax, recapture taxes, deferred tax items and refundable credits
Sch KOther Information · selected questions1 included · 1 not included
Included
- A few questions that the numbers answer: accounting method, tax-exempt interest, NOL carryover, the $250,000 test, BEAT, Form 8990 and CAMT
Not Included
- The other ownership and reporting questions on pages 4–5
Sch LBalance Sheet per Books · end of year (column d)1 included · 1 not included · 1 assumed
Included
- Year-end book balances (column d), with retained earnings from Schedule M-2
Not Included
- The beginning-of-year columns (a) and (b)
Assumed
- Cash is the balancing figure in the case records
Sch M-1Reconciliation of Income (Loss) per Books With Income per Return1 included · 1 assumed
Included
- Book-tax differences: tax expense, capital losses, inclusions, depreciation, contributions, meals and entertainment, fines, life insurance, foreign taxes, research costs, interest and tax-exempt interest
Assumed
- Used when total assets are under $10 million
Sch M-3Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More2 included · 1 not included · 1 assumed
Included
- Part I line 11 and the Part II and Part III lines that carry differences in these cases, split into temporary (b) and permanent (c) columns
- Line 30 ties column (a) to book income and column (d) to Form 1120, line 28
Not Included
- Parts I lines 1–10 and 12 (consolidation items) and lines with no differences, which are combined on Part II, line 28
Assumed
- Required instead of Schedule M-1 when total assets are $10 million or more
Sch M-2Analysis of Unappropriated Retained Earnings per Books1 included · 1 not included
Included
- Retained earnings roll-forward with book income and cash dividends
Not Included
- Stock and property distributions and appropriated retained earnings
1125-ACost of Goods Sold1 included · 1 assumed
Included
- All eight lines
Assumed
- Section 263A costs are given; the simplified production method is assumed
4562Depreciation and Amortization1 included · 1 not included · 1 assumed
Included
- Section 179 (2025 limits), bonus depreciation at 100% or 40%, half-year MACRS for 5-, 7- and 15-year property and mid-month for 39-year buildings, and prior-year MACRS from the asset schedule
Not Included
- The mid-quarter convention, listed property, amortization (Part VI) and ADS
Assumed
- Bonus applies to new 5-, 7- and 15-year property unless the election out is ticked; buildings get no bonus
4797Sales of Business Property1 included · 1 not included · 1 assumed
Included
- Section 1231 netting, the five-year lookback, section 1245 recapture, the corporate section 291 recapture on buildings and short-term business property
Not Included
- Casualties (Form 4684), installment sales (Form 6252), like-kind exchanges (Form 8824) and Part IV
Assumed
- MACRS buildings use straight-line, so only section 291 applies to them
Sch DCapital Gains and Losses (Form 1120)1 included · 1 not included · 1 assumed
Included
- Short- and long-term sales from Form 8949, section 1231 gain from Form 4797 and the five-year capital loss carryover
Not Included
- Capital gain distributions, installment and like-kind gains, and the three-year carryback
Assumed
- All carryover years are within five years
8949Sales and Other Dispositions of Capital Assets · gain or loss per sale1 included · 1 not included
Included
- One gain or loss per sale (column h), basis reported to the IRS (box A or D)
Not Included
- Adjustment codes and wash sales
CHARCharitable Contributions Limit Worksheet1 included · 1 not included · 1 assumed
Included
- The 10% limit, current gifts before carryovers, and the five-year carryover
Not Included
- Inventory and property contributions, and the 2026 rules
Assumed
- Taxable income for the limit includes the NOL carryforward deduction but not special deductions
NOLNet Operating Loss Deduction Worksheet1 included · 1 not included
Included
- Post-2017 NOLs and the 80% limit
Not Included
- Pre-2018 NOLs, carrybacks (farm and insurance only) and section 382 limits
1118Foreign Tax Credit—Corporations1 included · 1 not included · 1 assumed
Included
- The general category (direct taxes on foreign royalties and Subpart F taxes deemed paid) and the section 951A category, with the limitation fraction and Schedule B, Part III
Not Included
- Schedules C to H in full, the passive and foreign branch categories, carryover schedules and boycott reductions
Assumed
- Deductions are apportioned by the gross income method (a simplification of Schedule H); none are apportioned to GILTI beyond the section 250 deduction
4626Alternative Minimum Tax—Corporations (CAMT)2 included · 1 not included · 1 assumed
Included
- Part I: the $1 billion three-year average test
- Part II for an applicable corporation: book income, the tax expense and depreciation adjustments, CFC income, 15% tentative minimum tax and the CAMT
Not Included
- The foreign-parented group test, the $100 million test, financial statement NOLs, partnership and other adjustments, and the minimum tax credit
Assumed
- Average AFSI for 2022–2024 is given in the case records
8990Limitation on Business Interest Expense Under Section 163(j)1 included · 1 not included · 1 assumed
Included
- The 30% of ATI limit with the restored depreciation add-back, business interest income and carryforwards
Not Included
- Floor plan interest, pass-through items, the real property and farming elections
Assumed
- All interest is business interest; the small business exemption uses the average gross receipts given ($31 million for 2025)
2220Underpayment of Estimated Tax by Corporations1 included · 1 not included · 1 assumed
Included
- The regular installment method, the prior-year safe harbor, the large-corporation rule (first installment only on last year's tax, catch-up in the second), payments applied to the earliest underpayment, and the 7% and 6% rates through April 15, 2026
Not Included
- The annualized and adjusted seasonal installment methods
Assumed
- Estimated payments are made on the due dates; the penalty runs to April 15, 2026
6765Credit for Increasing Research Activities · Section B (ASC)1 included · 1 not included · 1 assumed
Included
- The alternative simplified credit and the section 280C reduced-credit election
Not Included
- The regular credit (Section A), basic research payments, the payroll tax election and Section G detail
Assumed
- QREs are a subset of the domestic research costs
174AResearch and Experimental Expenditures Worksheet1 included · 1 not included · 1 assumed
Included
- Section 174A expensing of domestic research, 15-year amortization of foreign research and the deduction of unamortized 2022–2024 domestic research in 2025
Not Included
- The two-year spread option and amended returns for small businesses
Assumed
- The research deduction is reported on Form 1120, line 26
3800General Business Credit1 included · 1 not included · 1 assumed
Included
- The general business credit limit with the 25% rule
Not Included
- Specified credits, carryback and carryforward detail
Assumed
- The tentative minimum tax is treated as zero for a corporation
8992U.S. Shareholder Calculation of GILTI1 included · 1 not included · 1 assumed
Included
- Net CFC tested income, the 10% QBAI return less interest, GILTI, the inclusion percentage, the section 78 gross-up and the 80% deemed-paid taxes
Not Included
- Schedule A detail, tested income and loss of each CFC on its own row, the high-tax exclusion and PTEP
Assumed
- The corporation owns 100% of each CFC for the whole year
8993Section 250 Deduction for FDII and GILTI1 included · 1 not included · 1 assumed
Included
- DEI, the 10% QBAI return, FDDEI, the foreign-derived ratio, FDII, GILTI and the taxable income limit, with the 2025 rates
Not Included
- Detailed allocation of deductions to DEI and FDDEI
Assumed
- DEI is line 28 less all dividends, inclusions and gross-ups; foreign-derived sales and their costs are given
8991Base Erosion Minimum Tax · Part I applicable taxpayer test1 included · 1 not included · 1 assumed
Included
- The $500 million gross receipts test and the 3% base erosion percentage test
Not Included
- Parts II–V: modified taxable income and the BEAT itself
Assumed
- The cases are not applicable taxpayers
8903Domestic Production Activities Deduction · history note1 included · 1 not included
Included
- A history note on the repealed domestic production activities deduction
Not Included
- Any 2025 calculation: the deduction does not apply after 2017
1065Form 1065 Partnership Return and K-1Calendar year 2025 · 13 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025 Form 1065 for a U.S. partnership with U.S. partners and no foreign activity.
- Partners are individuals (general or limited) or a domestic corporation; no tiered partnerships.
- All partnerships, people and amounts are fictional; the simulator is for training and is not tax advice.
P1Form 1065 Page 1 · Income and Deductions1 included · 1 not included · 1 assumed
Included
- Gross receipts, cost of goods sold, Form 4797 ordinary gain, other income and the page 1 deductions through ordinary business income
Not Included
- Farm income, income from lower-tier partnerships, depletion, the energy efficient buildings deduction and the section 163(j) interest limit (the small business exception is assumed)
Assumed
- Book and tax amounts are the same except depreciation, section 179, meals, fines, charitable gifts and tax-exempt interest
4797Form 4797 · Sale of Business Property1 included · 1 not included · 1 assumed
Included
- Sale of section 1245 equipment: recapture as ordinary income, remainder as section 1231 gain
Not Included
- Real property (section 1250 and unrecaptured gain), installment sales and like-kind exchanges
Assumed
- Book gain equals tax gain
8825Form 8825 · Rental Real Estate Income and Expenses1 included · 1 not included · 1 assumed
Included
- Gross rents, expenses and depreciation per property, and the total to Schedule K line 2
Not Included
- Short-term rentals with services and the real estate professional rules (partner level)
Assumed
- Book and tax rental income are the same; rental real estate is not treated as a trade or business for QBI
KSchedule K · Partners' Distributive Share Items1 included · 1 not included
Included
- Ordinary income, rental income, guaranteed payments, portfolio income, capital and section 1231 gains, section 179, charitable gifts, self-employment, tax-exempt income, nondeductible expenses, distributions and investment income
Not Included
- Credits, foreign transactions (K-2 and K-3), AMT items and other codes not used in these cases
ANAnalysis of Net Income (Loss) per Return1 included · 1 assumed
Included
- Analysis line 1 and the split of line 2 by type of partner
Assumed
- Corporate, general (active) and limited (passive) partners only
K-1Schedule K-1 · Each Partner's Share1 included · 3 assumed
Included
- Each partner's share of every Schedule K item, self-employment income (box 14) and QBI information (box 20 code Z)
Assumed
- Items are shared by the profit ratio, losses by the loss ratio, unless a special allocation applies
- Rounding goes to the largest partner so the K-1s add up to Schedule K
- QBI is shown before any section 743(b) amortization
743Section 743(b) Adjustment · Section 754 Election1 included · 1 not included · 1 assumed
Included
- The section 743(b) step-up for a partner who bought an interest, assigned to goodwill and amortized over 15 years, reported on the buyer's K-1
Not Included
- Section 755 allocation across several asset classes, section 751 hot assets for the seller and section 734(b) adjustments
Assumed
- The interest was bought on January 1, 2025 and the partnership has a section 754 election
K-1 KSchedule K-1 Item K · Partner's Share of Liabilities1 included · 1 assumed
Included
- Nonrecourse, qualified nonrecourse and recourse debt at the start and end of the year
Assumed
- Nonrecourse debt is shared by profits (third tier only); recourse debt by loss shares among general and corporate partners; limited partners have no guarantees
K-1 LSchedule K-1 Item L · Partner's Capital Account (Tax Basis)1 included · 1 not included
Included
- Beginning balance, contributions, current year net income (loss), withdrawals and distributions, ending balance on the tax basis
Not Included
- Other increases and decreases, and section 743(b) adjustments (which stay out of item L)
M-1Schedule M-1 · Reconciliation of Income (Loss) per Books With Analysis of Net Income (Loss) per Return1 included · 1 not included
Included
- Book income to Analysis line 1: guaranteed payments, depreciation, meals, fines and tax-exempt interest
Not Included
- Schedule M-3 (required when total assets are $10 million or more) and Schedule L
M-2Schedule M-2 · Analysis of Partners' Capital Accounts (Tax Basis)1 included · 1 assumed
Included
- Partners' capital accounts on the tax basis
Assumed
- M-2 ties to the total of the item L capital accounts
BasisPartner Outside Basis and the Section 704(d) Loss Limit2 included · 1 not included · 2 assumed
Included
- Outside basis with the ordering rules: increases, distributions (section 731 gain, section 732 property basis), nondeductible expenses, then losses limited by section 704(d)
- Suspended losses carried forward
Not Included
- The at-risk (section 465) and passive loss (section 469) limits, which the partner applies on their own return
Assumed
- Nondeductible expenses are taken before losses
- Liabilities: increases are deemed contributions, decreases deemed cash distributions
20252025 Partnership Rules and Filing Notes1 included
Included
- Filing dates and the 2025 rules that affect partnerships
1120-SForm 1120-S S Corporation Return and K-1Calendar year 2025 · 11 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025 Form 1120-S for a U.S. S corporation with individual shareholders and one class of stock.
- No foreign activity, no subsidiaries (QSubs) and no LIFO inventory.
- All corporations, people and amounts are fictional; the simulator is for training and is not tax advice.
P1Form 1120-S Page 1 · Income, Deductions and Tax1 included · 1 not included · 1 assumed
Included
- Gross receipts to ordinary business income, officer compensation (including 2% shareholder health insurance) and the entity-level taxes on lines 23a and 23b
Not Included
- LIFO recapture, depletion, estimated tax payments, penalties and credits
Assumed
- Book and tax amounts are the same except depreciation, section 179, meals, fines, charitable gifts and tax-exempt interest
4797Form 4797 · Sale of Business Property1 included · 1 not included · 1 assumed
Included
- Equipment (section 1245 recapture) and land (section 1231 gain)
Not Included
- Section 1250 real property and installment sales
Assumed
- Book gain equals tax gain
8825Form 8825 · Rental Real Estate Income and Expenses1 included · 1 assumed
Included
- Rents, expenses and depreciation per property
Assumed
- Rental real estate is not treated as a trade or business for QBI
1374Schedule D Part III · Built-In Gains Tax (Section 1374)1 included · 1 not included · 1 assumed
Included
- Recognized built-in gain on one asset, the taxable income limit and the net unrealized built-in gain limit
Not Included
- Built-in losses, built-in income items, carryovers of gain over the income limit and credits against the tax
Assumed
- The taxable income limit is the net income on Schedule K before entity-level taxes
1375Excess Net Passive Income Tax (Section 1375)1 included · 1 not included · 1 assumed
Included
- The section 1375 tax when passive investment income exceeds 25% of gross receipts and accumulated E&P exists at year end
Not Included
- Rents and royalties as passive income, and the three-year termination test
Assumed
- The tax reduces interest and dividends pro rata
KSchedule K · Shareholders' Pro Rata Share Items1 included · 1 not included
Included
- Income, deductions, items affecting basis, distributions, dividends from accumulated E&P and the line 18 reconciliation
Not Included
- Credits, international items (K-2 and K-3) and AMT items
M-2Schedule M-2 · AAA, Accumulated E&P and Other Adjustments Account1 included · 1 not included · 1 assumed
Included
- AAA, accumulated E&P and the other adjustments account; distribution ordering under section 1368
Not Included
- Previously taxed income (pre-1983) and the elections under section 1368(e)(3)
Assumed
- All distributions are cash, paid in December
K-1Schedule K-1 · Each Shareholder's Pro Rata Share1 included · 2 assumed
Included
- Each shareholder's pro rata share of every Schedule K item and the section 199A information (box 17 code V)
Assumed
- Rounding goes to the largest shareholder so the K-1s add up to Schedule K
- With an ownership change on July 1, items are allocated per share, per day (181 and 184 days); no election to close the books
M-1Schedule M-1 · Reconciliation of Income (Loss) per Books With Income (Loss) per Return1 included · 1 not included
Included
- Book income to Schedule K line 18: depreciation, meals, fines and tax-exempt interest
Not Included
- Schedule M-3 and Schedule L
7203Form 7203 · Shareholder Stock and Debt Basis1 included · 1 not included · 1 assumed
Included
- Stock basis and debt basis with the ordering rules: increases, distributions, nondeductible expenses, then losses (stock first, then debt), and suspended losses
Not Included
- Restoration of debt basis reduced in earlier years, open-account debt and the at-risk and passive loss limits
Assumed
- Shareholder loans have never been reduced in earlier years
20252025 S Corporation Rules and Filing Notes1 included
Included
- Filing dates, eligibility and the 2025 rules that affect S corporations
REITForm 1120-REIT Real Estate Investment TrustCalendar year 2025 · 12 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025 Form 1120-REIT for a U.S. equity or mortgage REIT that has qualified in earlier years.
- No foreign activity and no subsidiaries other than one taxable REIT subsidiary (whose own return is not shown).
- All REITs and amounts are fictional; the simulator is for training and is not tax advice.
P1Form 1120-REIT Part I · REIT Taxable Income1 included · 1 not included · 1 assumed
Included
- Income, deductions, taxable income, the dividends paid deduction, the section 857(b)(2)(E) deduction and REIT taxable income
Not Included
- Net operating loss deductions, foreclosure property and Schedule M-1
Assumed
- Amounts are on a tax basis; prohibited transaction gains are kept out of income
IVPart IV · Tax on Net Income From Prohibited Transactions1 included · 1 not included
Included
- The 100% tax on net income from dealer property sales
Not Included
- The safe harbor calculation in detail (2-year holding, 30% improvements, 7 sales or 10% tests)
856(c)Gross Income Tests · 75% and 95%1 included · 2 assumed
Included
- The 75% and 95% gross income tests for the year
Assumed
- Personal property rents are 15% or less of each lease's rent, so they count as rents from real property
- Prohibited transaction income is left out of both tests
IIIPart III · Tax for Failure To Meet Certain Source-of-Income Requirements1 included · 1 assumed
Included
- The section 857(b)(5) tax when a test is failed with reasonable cause
Assumed
- The failure was due to reasonable cause and the required schedule is filed
E&PCurrent Earnings and Profits1 included · 1 not included
Included
- Current E&P with the depreciation adjustment
Not Included
- Accumulated E&P from non-REIT years (which must be distributed under section 857(a)(2)(B))
Sch ASchedule A · Deduction for Dividends Paid1 included · 1 not included
Included
- Dividends paid in the year, December declarations paid in January and spillback dividends, limited to E&P
Not Included
- Consent dividends, deficiency dividends and preferential dividends
857(a)Distribution Requirement · 90% Test1 included · 1 assumed
Included
- The 90% distribution requirement
Assumed
- No foreclosure income and no excess noncash income
JSchedule J · Tax Computation1 included · 1 not included
Included
- 21% tax on REIT taxable income, retained capital gains and the total tax
Not Included
- Credits, foreign tax and the section 1374 built-in gains tax on property from C corporations
8612Form 8612 · Excise Tax on Undistributed Income (Section 4981)1 included · 1 assumed
Included
- The 4% excise tax on undistributed income for the calendar year
Assumed
- Grossed-up prior-year shortfall is given as one amount
856(c)(4)Asset Tests · Fourth Quarter 20251 included · 1 not included
Included
- The 75% real estate asset test, the 20% TRS limit, the 5% single-issuer limit and the 25% securities limit at one quarter end
Not Included
- The 10% vote and value tests and the cure provisions
1099-DIVHow the Dividends Are Reported · Form 1099-DIV Totals1 included · 1 assumed
Included
- Totals for Form 1099-DIV: ordinary, qualified, section 199A, capital gain and nondividend distributions
Assumed
- Character is shown for dividends attributable to 2025; spillback and January dividends are reported by shareholders when received or deemed received
2025REIT Qualification and 2025 Notes1 included
Included
- Qualification rules, filing dates and 2025 law changes
RICForm 1120-RIC Regulated Investment CompanyCalendar year 2025 · 11 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025 Form 1120-RIC for a U.S. registered fund that has qualified in earlier years.
- No foreign tax pass-through, no capital loss carryovers and no PFIC investments.
- All funds and amounts are fictional; the simulator is for training and is not tax advice.
P1Form 1120-RIC Part I · Investment Company Taxable Income1 included · 1 not included · 1 assumed
Included
- Investment income, deductions, the dividends paid deduction and investment company taxable income
Not Included
- Section 988 currency gains, capital loss carryovers and late-year losses
Assumed
- Amounts are on a tax basis
Sch BSchedule B · Income From Tax-Exempt Obligations1 included · 1 assumed
Included
- Tax-exempt interest and the section 265(a)(3) disallowance when the fund pays exempt-interest dividends
Assumed
- Expenses are allocated by the share of gross investment income that is tax-exempt; the disallowed part comes out of other deductions
851(b)(2)90% Gross Income Test1 included · 1 assumed
Included
- The 90% gross income test and the section 851(i) tax
Assumed
- Gains are counted net by holding period; the failure was due to reasonable cause
Sch ASchedule A · Earnings and Profits and the Deduction for Dividends Paid1 included · 1 not included
Included
- E&P, distributions, capital gain and exempt-interest dividends, and the deduction for dividends paid
Not Included
- Consent dividends, deficiency dividends and dividends paid on redemptions
IIPart II · Tax on Undistributed Net Capital Gain1 included
Included
- Undistributed net capital gain, the section 852(b)(3)(D) designation and the 21% tax
852(a)Distribution Requirement · Section 852(a)(1)1 included
Included
- The 90% distribution requirement on ordinary income and net tax-exempt interest
JSchedule J · Tax Computation1 included
Included
- The 21% tax on investment company taxable income and the total tax
8613Form 8613 · Excise Tax on Undistributed Income (Section 4982)1 included · 1 assumed
Included
- The 4% excise tax with the 98% and 98.2% required distributions
Assumed
- Capital gain net income for the year to October 31 is given
851(b)(3)Diversification Tests · Fourth Quarter 20251 included
Included
- The 50% and 25% diversification tests and the 50% tax-exempt bond test at one quarter end
1099-DIVHow the Dividends Are Reported · Form 1099-DIV Totals1 included · 1 assumed
Included
- Totals for Form 1099-DIV
Assumed
- Character is shown for dividends attributable to 2025
2025RIC Qualification and 2025 Notes1 included
Included
- Qualification rules, filing dates and what is not covered
US Provision, International and Sales Tax
ASC 740ASC 740 Income Tax ProvisionCalendar year 2025 · 15 workpapers
Applies to the Whole Simulator
- Calendar-year 2025 income tax provision under ASC 740 for a U.S. C corporation with no foreign operations.
- Annual provision only: interim reporting (ASC 740-270) is not covered.
- All companies, people and amounts are fictional; the simulator is for training and is not accounting or tax advice.
PDPermanent Differences1 included · 1 assumed
Included
- Meals (50%), entertainment, fines, officer life insurance, section 162(m), lobbying, tax-exempt interest, the dividends-received deduction, life insurance proceeds and share-based payment windfalls and shortfalls
Assumed
- Amounts are entered as the book amount; the simulator applies the disallowed percentage
TDTemporary Differences · Book Basis vs Tax Basis2 included · 2 assumed
Included
- Book basis and tax basis of each asset and liability at January 1 and December 31
- Deductible differences (future deductions) and taxable differences (future taxable amounts)
Assumed
- January 1 tax bases agree to the filed 2024 return
- Each item reverses in future years when the enacted rates apply
STState Income Tax and Blended Rate2 included · 1 not included · 1 assumed
Included
- One composite state with an apportionment percentage and rate, the federal deduction for state tax and the blended deferred rate
- A state rate change enacted in 2025 for later years
Not Included
- State NOLs, separate state modifications, unitary and combined reporting, and state credits
Assumed
- State taxable income follows the federal adjustments; apportionment stays the same
RTP2024 Return-to-Provision True-Up1 included · 1 assumed
Included
- The current and deferred true-up of the 2024 federal provision to the filed return
Assumed
- January 1 deferred balances shown on the Temporary Differences tab are already trued up to the filed return
UTPUncertain Tax Positions · ASC 740-10 (formerly FIN 48)1 included · 1 not included · 1 assumed
Included
- The two-step recognition and measurement test, the tabular rollforward, interest and penalties in income tax expense, settlements and lapses
Not Included
- Uncertain positions that reduce a deferred tax asset rather than create a liability
Assumed
- Benefits claimed are already reflected in taxable income; settlements are paid at the amount reserved
CURCurrent Tax Provision1 included · 1 not included · 1 assumed
Included
- Pretax book income, permanent and temporary differences, the state tax deduction, the NOL 80% limit, the 21% rate, credits, the return-to-provision true-up and uncertain positions
Not Included
- AMT credits, CAMT, BEAT, GILTI and foreign taxes
Assumed
- The current provision is the tax on the 2025 return as estimated at year end
DTIDeferred Tax Asset and Liability Inventory1 included · 1 assumed
Included
- Deferred tax assets and liabilities by item at the enacted rate, NOL and credit carryforwards, gross assets, gross liabilities and the valuation allowance
Assumed
- NOLs and credits are federal; temporary differences are measured at the blended federal and state rate
VAValuation Allowance1 included · 1 not included · 1 assumed
Included
- Increases and releases of a valuation allowance on specific deferred tax assets
Not Included
- Scheduling of reversals and the full evidence analysis, which the case records summarize
Assumed
- The case records state which assets are not more likely than not to be realized
DEFDeferred Tax Provision1 included · 1 not included
Included
- The balance sheet approach: deferred expense equals the change in the net deferred tax balance, plus the return-to-provision true-up
Not Included
- Deferred taxes recorded in other comprehensive income, equity or business combinations (backwards tracing and purchase accounting)
TOTTotal Provision and Effective Tax Rate1 included
Included
- Total income tax expense, net income and the effective tax rate
RREffective Tax Rate Reconciliation1 included · 1 not included · 1 assumed
Included
- The 2025 rate reconciliation in dollars and percent using the ASU 2023-09 categories that apply to these cases
Not Included
- Foreign tax effects, cross-border taxes and nontaxable items by jurisdiction
Assumed
- Permanent differences are shown at the federal rate; their state effect is in the state line
TAXIncome Taxes Payable Rollforward1 included · 1 assumed
Included
- Income taxes payable or receivable for federal and state combined
Assumed
- The uncertain tax position liability is a separate account
JEProvision Journal Entries1 included · 1 assumed
Included
- The three year-end provision entries
Assumed
- Entries are shown as debit amounts; a negative amount is a credit
FNIncome Tax Footnote and Balance Sheet1 included · 1 not included · 1 assumed
Included
- Components of tax expense, the balance sheet amounts, gross deferred tax assets and liabilities, and income taxes paid
Not Included
- Unremitted foreign earnings, carryforward expiry schedules and the full narrative disclosures
Assumed
- Deferred taxes are netted because they are with the same taxing authorities (simplified)
20252025 Tax Law Changes in the Provision1 included
Included
- A reference note on the 2025 law changes and how they flow through a provision
INTLInternational FormsTax year 2025 · 9 forms and worksheets
Applies to the Whole Simulator
- Calendar-year 2025 information returns for a U.S. corporation or individual with foreign interests.
- Exchange rates in the cases are illustrative, not official Treasury or market rates.
- All filers, entities and amounts are fictional; the simulator is for training and is not tax advice.
GuideInternational Information Returns · Which Form, Who Files1 included
Included
- Who files each form, penalties and the 2026 changes
8938Form 8938 · Specified Foreign Financial Assets, and the FBAR Test1 included · 1 not included · 1 assumed
Included
- Highest and year-end values at the year-end Treasury rate, the thresholds by filing status and residence, and the FBAR $10,000 test
Not Included
- Foreign pensions' special valuation, assets held through entities and specified domestic entities
Assumed
- Highest values are added asset by asset
5471Form 5471 · U.S. Shareholder and CFC Tests1 included · 1 assumed
Included
- U.S. shareholder (10%) and CFC (over 50%) tests
Assumed
- Ownership percentages already include indirect and constructive ownership
C · HForm 5471 Schedules C and H · Income and Current E&P1 included · 1 not included
Included
- Income statement and current E&P in functional currency, translated at the average rate
Not Included
- Accumulated E&P pools and hovering deficits
I-1Subpart F Income (Schedule I-1 and Schedule I)2 included · 1 not included · 1 assumed
Included
- Foreign base company sales income, foreign personal holding company income, de minimis and full inclusion rules, the high-tax exception, the E&P limit and the pro rata inclusion
- Deemed-paid credits for a corporate shareholder
Not Included
- Foreign base company services income, insurance income, investments in U.S. property (section 956) and recapture accounts
Assumed
- Expenses and foreign taxes are allocated by share of gross income (simplified)
8992Tested Income and GILTI (Schedule I-1, Form 8992)1 included · 1 not included · 1 assumed
Included
- Tested income, QBAI, GILTI and, for corporations, the section 78 gross-up, section 250 deduction and section 960(d) credit
Not Included
- Multiple CFCs, tested losses of other CFCs, the GILTI high-tax exclusion and expense apportionment to the GILTI basket
Assumed
- One CFC, held all year
Sch PSchedule P · PTEP, Distributions and Stock Basis1 included · 1 not included · 1 assumed
Included
- PTEP from current and earlier inclusions, distributions, section 986(c) currency gain, section 245A and stock basis
Not Included
- PTEP annual accounts and groups, section 956 PTEP and hybrid dividends
Assumed
- PTEP is pooled
8865Form 8865 · Foreign Partnership1 included · 1 not included
Included
- Category 1, 2 and 3 tests, distributive share and foreign taxes
Not Included
- Section 721(c) partnerships and full Schedule K-1 detail
8858Form 8858 · Foreign Branch1 included · 1 not included
Included
- Branch income and taxes in dollars, foreign branch basket limit
Not Included
- Section 987 currency gain or loss (final regulations apply from 2025) and branch remittances
Sales TaxUS Sales and Use TaxReporting periods in 2026 · 13 workpapers
Applies to the Whole Simulator
- One 2026 reporting period of a fictional US seller, in nine sales tax states plus Oregon (no sales tax).
- State rates, thresholds and headline taxability rules as understood in October 2026; local rates are ILLUSTRATIVE (always use the rate for the exact address).
- Education only: not a tax engine or sales tax software product, not a state filing portal and not tax advice. No federal sales tax exists.
NexusNexus Study by State4 included · 3 not included · 2 assumed
Included
- Physical presence (offices, employees, inventory in third-party or marketplace warehouses)
- Economic thresholds with each state's base (all sales, tangible goods only, retail only or taxable only), period and marketplace rule
- New York's two-part test ($500,000 and more than 100 sales)
- No-sales-tax states
Not Included
- Click-through and affiliate nexus
- Trailing nexus after leaving a state
- Income tax nexus (P.L. 86-272)
Assumed
- The measurement period is 2025 (or the last 12 months) for a 2026 return
- Colorado counts marketplace sales and Tennessee does not (simulator assumption; no case relies on it)
TaxabilityProduct Taxability Matrix4 included · 3 not included · 1 assumed
Included
- Ten product codes across nine states
- Partial taxability (Texas SaaS 80%)
- Reduced food rates (Tennessee 4%, Illinois local grocery tax)
- New York clothing under $110
Not Included
- Candy, soft drinks and dietary supplements
- Bundled transactions
- Medical and agricultural exemptions
Assumed
- IT services values for Texas, Pennsylvania, Colorado and Tennessee are placeholders and not used by any case
RatesSourcing and Rate Stacking4 included · 2 not included · 1 assumed
Included
- Origin sourcing for in-state sellers in Texas and Illinois
- Destination sourcing elsewhere (California district taxes at destination)
- Texas single local use tax rate for remote sellers
- Colorado home-rule cities
Not Included
- Rooftop geocoding and boundary disputes
- Rate changes during the period
Assumed
- ILLUSTRATIVE local rates: real place names, example rates
CertsExemption Certificates4 included · 3 not included · 1 assumed
Included
- Resale, exempt organization, manufacturing and federal government claims
- Expired, missing and wrong-state certificates
- States without a nonprofit exemption (California, Washington)
- California partial manufacturing exemption
Not Included
- Streamlined and MTC uniform certificates in detail
- Cure periods and good-faith rules state by state
- Direct pay permits
Assumed
- A certificate is valid only if it is complete, for the right state and on file
Tax CalcTransaction Tax Calculation4 included · 1 not included · 1 assumed
Included
- State and local tax on each invoice
- Florida $5,000 surtax cap per item
- Tennessee single-article rules
- Marketplace sales (facilitator collects)
Not Included
- Tax rounding per line in cents
Assumed
- Tax is rounded to the dollar on each line for teaching
ReturnsSales Tax Return by State3 included · 3 not included · 1 assumed
Included
- Gross sales, deductions, taxable sales, state and local tax, discounts
- Returns, credit memos and bad debts
- Vendor discounts in Texas, Florida, New York, Illinois and Pennsylvania
Not Included
- Each state's actual form layout and line numbers
- Prepayments and accelerated payments
- Local schedules by jurisdiction code
Assumed
- One reporting period for every state; due dates use each state's normal rule
Use TaxUse Tax Accrual3 included · 2 not included · 1 assumed
Included
- Use tax on purchases where no (or too little) tax was charged
- Credit for tax paid to the vendor or another state
- Resale and manufacturing purchases
Not Included
- Fixed asset transfers between states
- Self-use of samples in detail
Assumed
- The rate is the combined rate where the item is first used
GLGeneral Ledger Reconciliation2 included · 1 not included
Included
- Sales tax payable to the returns with the usual reconciling items
- Use tax payable to the accrual
Not Included
- Multi-period roll-forwards
VDAVoluntary Disclosure and Exposure Estimate3 included · 2 not included · 2 assumed
Included
- Uncollected tax by state and year
- Interest and penalty without a VDA
- Look-back limits under a VDA
Not Included
- Each state's real interest and penalty rates
- Multistate Tax Commission programme details
Assumed
- Interest 8% simple and penalty 10% are ILLUSTRATIVE
- Look-back 3 or 4 years as typical programme terms; confirm with the state
AuditAudit Sample Projection1 included · 2 not included
Included
- Block sample error rate and projection
Not Included
- Statistical sampling with confidence intervals
- Interest and penalties on the assessment
MappingTax Engine Mapping Review1 included · 2 not included
Included
- Wrong product tax codes and the tax effect
Not Included
- Customer exemption mapping
- Address validation errors
ReviewReview Notes · what the senior would flag before filing1 included
Included
- The points a reviewer would raise for this case
2026Sales and Use Tax Notes and What Is New1 included
Included
- Workflow, What Is New and what is not covered
Canada
T1Canada T1 Personal ReturnTax year 2025 · Ontario · 11 forms and worksheets
Applies to the Whole Simulator
- Tax year 2025, one Canadian resident who lived in Ontario on December 31, 2025. Quebec, other provinces, non-residents and part-year residents are excluded.
- Federal and Ontario figures as indexed for 2025, including the 14.5% lowest federal rate and the Top-Up Tax Credit. Amounts are whole Canadian dollars and each line is rounded.
- Education only: teaches the CRA T1 line logic; it is not NETFILE, not CRA software and not tax advice. All people, employers and amounts are fictional.
T1 Step 2Total Income3 included · 3 not included · 2 assumed
Included
- Employment income (T4), pensions (T4A, T4A(P), T4A(OAS)), EI benefits (T4E)
- Interest and dividends from T5 and T3 slips with the 38% and 15% gross-ups
- Rental, business and capital gains from their schedules; T4A box 028 and T3 box 26 other income
Not Included
- Line 10400 other employment income (tips, wage loss replacement), 10120 commissions split, 11410 CPP disability
- Foreign income, support payments, RRSP and RRIF income, workers' compensation and social assistance (lines 14400–14600)
- Quebec slips (RL-1) and QPP
Assumed
- Every slip belongs to the taxpayer (spouses file their own returns)
- Dividends are entered as actual amounts; the workpaper grosses them up (T5 boxes 25 and 11 show the same result)
Sch 3Schedule 3 · Capital Gains (or Losses) in 20253 included · 1 not included · 2 assumed
Included
- Dispositions of shares, mutual fund units and bonds: proceeds − ACB − outlays
- Capital gains from T3 box 21
- The 50% inclusion rate and a net capital loss of the year
Not Included
- Principal residence, real estate and depreciable property dispositions, the lifetime capital gains exemption, reserves, superficial losses, foreign currency
Assumed
- The ACB is already averaged for identical shares
- A net loss is carried forward (it is not carried back in this simulator)
T776Form T776 · Statement of Real Estate Rentals (summary)1 included · 1 not included · 1 assumed
Included
- Gross rents, total current expenses and capital cost allowance limited so it does not create a loss
Not Included
- Detailed CCA classes and half-year rule, co-ownership splits, personal-use portions, recapture and terminal loss
Assumed
- The CCA figure on the record is the maximum available for the year
T2125Form T2125 · Statement of Business or Professional Activities (summary)2 included · 2 not included · 2 assumed
Included
- Gross business income, total expenses and CCA for one or more sole proprietorships
- T4A box 020 commissions as business income
Not Included
- Business-use-of-home calculations, vehicle logs, inventory and cost of goods sold detail, GST/HST (shown separately in the GST/HST simulator)
- Partnership income and non-calendar fiscal periods
Assumed
- Gross income excludes HST collected
- Expenses on the record are already limited to the deductible amounts
Sch 8Schedule 8 · CPP Contributions, and EI Premium Check3 included · 2 not included · 1 assumed
Included
- CPP and CPP2 required on employment versus deducted, with overpayments
- CPP on self-employment (both shares) after employment earnings
- EI premiums required versus deducted, including the $2,000 rule
Not Included
- Prorating for turning 18 or 70, CPP disability, opting out at 65–70, QPP, EI on self-employment (optional)
- Multiple T4s combined with self-employment where an employment overpayment exists
Assumed
- Full year in Canada and age 18 to 69 for CPP
T1 Step 3Net Income3 included · 1 not included · 3 assumed
Included
- RPP, RRSP (limit from the notice of assessment), FHSA, dues, child care (T778), moving expenses
- CPP deductions on lines 22200 and 22215
- EI repayment (30% over $82,125) and OAS recovery (15% over $93,454)
Not Included
- Support payments, carrying charges, employment expenses (T777), disability supports, northern residents, the Home Buyers' Plan and RRSP withdrawals
Assumed
- RRSP contributions were made in the eligible period and none were unused from earlier years
- The moving distance test (40 km closer) is met
- T4E box 7 shows 30% when regular benefits may have to be repaid
T1 Step 4Taxable Income1 included · 1 not included
Included
- Net capital losses of other years applied against taxable capital gains
Not Included
- Stock option deductions, lifetime capital gains exemption, non-capital loss carryovers, northern residents deductions
Sch 1Schedule 1 · Federal Tax3 included · 3 not included · 3 assumed
Included
- Federal brackets at 14.5% / 20.5% / 26% / 29% / 33%
- Basic personal, age, spouse, eligible dependant, Canada caregiver (child under 18), CPP, EI, Canada employment, pension, disability (self and transferred), student loan interest, tuition with the Schedule 11 limit, medical
- Top-Up Tax Credit, Schedule 9 donations and the dividend tax credit
Not Included
- Alternative minimum tax (Form T691; rules changed in 2024), federal foreign tax credit, political contributions, investment tax credits
- Caregiver amount for adults (line 30450), adoption, home buyers' amount, home accessibility, volunteer firefighter and search and rescue amounts, amounts transferred from a spouse (line 32600)
- Tuition transferred to a parent
Assumed
- Top-Up Tax Credit = 0.5% × (line 33500 − $57,375); donations are not part of line 33500
- Pension income on T4A box 016 is a life annuity from a registered pension plan (eligible at any age)
- Gifts are under the 75% of net income limit
ON428Form ON428 · Ontario Tax2 included · 2 not included · 1 assumed
Included
- Ontario brackets, basic, age, spouse, eligible dependant, CPP, EI, pension, disability, student loan interest, medical and donations credits
- Surtax (20% over $5,710 and 36% over $7,307), Ontario dividend tax credit, Ontario tax reduction ($294 + $544), LIFT credit and Ontario Health Premium
Not Included
- Ontario minimum tax, Ontario foreign tax credit, Ontario caregiver amount for adults, the community food program donation credit
- Ontario Trillium Benefit, Ontario Child Benefit and refundable Ontario credits (ON479) such as the fertility treatment and seniors' public transit credits
Assumed
- The higher-income spouse claims the $544 dependant amounts of the Ontario tax reduction
T1 Step 6Refund or Balance Owing2 included · 1 not included · 1 assumed
Included
- Net federal tax, CPP on self-employment, social benefits repayment and Ontario tax
- Tax deducted on slips, CPP and EI overpayments and instalments
Not Included
- Refundable credits (Canada workers benefit, refundable medical expense supplement, Canada training credit), interest and penalties
Assumed
- The return is filed by 30 April 2026 (15 June 2026 for self-employed, with any balance still due 30 April)
RatesMarginal and Average Tax Rate1 included · 1 assumed
Included
- Average rate on total income and the statutory combined marginal rate on ordinary income
Assumed
- The marginal rate ignores clawbacks, the BPA phase-out and Health Premium steps
HSTCanada GST/HST ReturnReporting periods in 2026 · 12 workpapers
Applies to the Whole Simulator
- One GST/HST reporting period in 2026 of a fictional registrant based in Ontario, on the regular or the quick method.
- Rates and thresholds as understood in October 2026, checked on canada.ca: GST 5%; HST 13% Ontario, 14% Nova Scotia, 15% New Brunswick, Newfoundland and Labrador and PEI.
- Education only: not CRA software, not GST/HST NETFILE or My Business Account, and not tax advice. Quebec QST and provincial PST are not covered.
ProfileRegistration and Filing Profile4 included · 3 not included · 2 assumed
Included
- Small supplier test over four calendar quarters
- Assigned reporting period by annual taxable supplies
- Filing and payment due dates, including the April 30 / June 15 rule for individuals
- Quick method eligibility ($400,000 and the 40% resale test)
Not Included
- Associated persons tests in detail
- Changing the fiscal year or reporting period during the year
- Public holidays (weekends are handled)
Assumed
- The fiscal year is the calendar year 2026
- The business has a permanent establishment in Ontario
RatesPlace of Supply and Tax Rates4 included · 3 not included · 2 assumed
Included
- Place of supply by province (goods: where delivered; services: the customer's address in Canada)
- Taxable, zero-rated and exempt supplies
- Time of supply: advances, security deposits and work invoiced next period
- Credit notes
Not Included
- The detailed place of supply rules for real property, intangibles, passenger transportation and freight
- Supplies by non-residents and the simplified registration regime
- Point-of-sale rebates
Assumed
- Each record states the province of the place of supply
- Tax is rounded to the dollar on each line
QMQuick Method Remittance4 included · 2 not included · 1 assumed
Included
- Remittance rates for a permanent establishment in Ontario, by where the supply is made
- The 1% credit on the first $30,000
- The 2.8% credit for resale into GST-only provinces
- Capital property sales taxed in full
Not Included
- The 90% single-group simplification
- Mixed services and resale businesses with special rates
Assumed
- The election (Form GST74) is in force for the whole fiscal year
101–104Sales and Tax Collected (Lines 101, 103 and 104)3 included · 2 not included · 1 assumed
Included
- Line 101 on the regular and quick methods
- Line 103 tax collected or collectible
- Line 104: meals add-back, bad debt recovery, change in use
Not Included
- Lines 90 and 91 detail used by some electronic filers
- Recapture of input tax credits for large businesses (ended in Ontario)
Assumed
- Accrual basis: tax is reported when invoiced or paid, whichever is first
106–107Input Tax Credits and Adjustments (Lines 106 and 107)8 included · 4 not included · 2 assumed
Included
- Documentary requirements by amount ($100 and $500 tiers)
- Four-year time limit
- Meals and entertainment 50% and long-haul meals 80%
- Passenger vehicle ceiling $39,000
- Capital personal property "primarily" rule
- Apportionment between taxable and exempt activities
- Imports through the CBSA
- Self-assessed imported services and real property
Not Included
- Real property change-in-use rules
- Leased passenger vehicles
- Specified (large) business ITC limits
- Employee and partner rebates
Assumed
- Revenue is a fair and reasonable apportionment basis for shared costs
- A sole proprietor's vehicle ITC follows the business-use share
109Net Tax (Lines 105, 108 and 109)1 included
Included
- Lines 105, 108 and 109
110–115Other Credits, Self-Assessment and Balance (Lines 110 to 115)1 included · 1 not included · 1 assumed
Included
- Lines 110 to 115, 205 and 405
Not Included
- Rebate applications themselves (only the amount on line 111)
Assumed
- Refunds are not offset against other CRA accounts in this simulator
280Interest and Late-Filing Penalty (ETA s. 280, 280.1)3 included · 3 not included · 1 assumed
Included
- Interest at 7% compounded daily
- Late-filing penalty A + (B × C)
- Earlier balance on the account
Not Included
- Instalment interest
- Failure to file electronically penalty
- Taxpayer relief requests
Assumed
- Payment is made on the date shown; interest uses 7% throughout and a 365-day year
Inst.Instalment Requirement for Next Year (Annual Filers)1 included · 1 not included
Included
- The $3,000 test and the previous-year method
Not Included
- Current-year estimate and instalment interest
GLGeneral Ledger HST Accounts to the Return1 included · 1 not included · 1 assumed
Included
- Tie-out of the GL HST accounts to line 109 with the usual reconciling items
Not Included
- Balance sheet HST receivable/payable roll-forward over several periods
Assumed
- The bookkeeper posts every dollar of tax paid to the ITC account
ReviewReview Notes · what the senior would flag before filing1 included
Included
- The points a reviewer would raise for this case
2026GST/HST Notes and What Is New1 included
Included
- Workflow, What Is New and what is not covered
PayrollCanadian PayrollOntario pay runs, 2026 · 11 workpapers
Applies to the Whole Simulator
- One pay run of a fictional Ontario employer in 2026, with 2 to 5 employees. Advanced cases are the last pay run of the year, with T4 slips and the T4 Summary.
- Formulas: CRA T4127 Payroll Deductions Formulas, 122nd edition (January 1, 2026). Ontario employment standards (ESA 2000) for overtime, vacation pay and public holiday pay.
- Amounts are Canadian dollars, rounded to the cent at each line.
- Education only: not PDOC, not CRA software, not payroll software and not tax advice.
PayGross Pay · Earnings and Taxable Benefits6 included · 3 not included · 2 assumed
Included
- Salaried pay (annual salary ÷ pay periods) and hourly pay from weekly timesheets
- Ontario overtime after 44 hours in a week at 1.5 times
- Vacation pay at 4% or 6% (ESA), paid each period or accrued
- Public holiday pay with the ESA formula (wages + vacation pay in the 4 weeks before ÷ 20)
- Commission, bonus and vacation pay paid out on termination
- Taxable benefits: group term life, car standby charge and operating benefit, parking and gift cards
Not Included
- Premium pay for working on a public holiday and substitute days off
- Overtime averaging agreements and the special overtime thresholds for some industries (for example, highway truck drivers at 60 hours)
- Standby charge reduction for low personal use; taxable allowances
Assumed
- Hourly employees in weekly or biweekly payrolls enter hours by week; a semi-monthly or monthly hourly employee enters the hours of the whole period in week 1 (no overtime calculation)
- Discretionary bonuses do not attract vacation pay
PI · IEPensionable and Insurable Earnings · Pre-Tax Deductions3 included · 1 not included · 1 assumed
Included
- Pensionable earnings = cash pay + all taxable benefits
- Insurable earnings = cash pay + cash-equivalent benefits
- RPP and group RRSP contributions and union dues deducted at source
Not Included
- Non-insurable cash payments such as retiring allowances
Assumed
- RPP contributions are a percentage of regular pay under the plan rules
CPPCanada Pension Plan · CPP and CPP24 included · 2 not included · 1 assumed
Included
- CPP per pay period with the basic exemption from T4127 Table 6.1
- The annual maximum using CPP already deducted this year (D)
- CPP2 on earnings between the YMPE and the YAMPE
- CPP exemptions: under 18, 70 or older, CPP disability, Form CPT30
Not Included
- Proration of the maximum in the year an employee turns 18 or 70 (PM < 12)
- Multiple jurisdictions, Quebec QPP
Assumed
- The employee contributes for all 12 months (PM = 12) unless exempt for the whole year
EIEmployment Insurance Premiums2 included · 1 not included · 1 assumed
Included
- EI at 1.63% of insurable earnings to the annual maximum
- EI-exempt employment (for example, a shareholder with more than 40% of the votes)
Not Included
- QPIP and the Quebec EI rate
Assumed
- Insurable earnings include cash-equivalent benefits only
T4127Income Tax · Federal and Ontario (T4127 Formulas)3 included · 1 not included · 3 assumed
Included
- T4127 chapter 4: A, K1, K2, K4, T3/T1, T4, K1P, K2P, V1, V2, S and T2
- The bonus method for bonuses and vacation pay paid out (non-periodic payments)
- Claim code 0 (no personal amounts)
Not Included
- K3/K3P other credits, LCF/LCP, HD, F1, F2, the TD1X commission method, option 2 annualisation
Assumed
- Total claim amounts are taken from the employee's TD1 and TD1ON as entered
- No previous bonuses this year (B1 = 0) and no RRSP taken off a bonus (F3 = 0)
- The same TD1 applies for the whole year
NetOther Deductions, Net Pay and Pay Stubs3 included · 1 not included · 1 assumed
Included
- Net pay = cash earnings − all deductions
- Charitable donations and garnishments after tax
- Pay stub summary for each employee
Not Included
- Benefit plan premiums, loans and advances
Assumed
- Taxable benefits are not cash and are not part of net pay
EREmployer Costs · CPP, EI, WSIB and EHT4 included · 2 not included · 2 assumed
Included
- Employer CPP, CPP2 and EI (1.4 or a reduced rate factor)
- Employer RPP contributions
- WSIB premiums at an assumed rate per $100
- Ontario EHT annual estimate
Not Included
- WSIB annual maximum per worker and the WSIB reconciliation
- EHT instalments and associated employer sharing
Assumed
- WSIB premium is on gross cash earnings for the period
- The WSIB rate in each case is an assumption for teaching
PD7ARemittance to the CRA · PD7A and Due Date4 included · 3 not included · 2 assumed
Included
- Remitter type from the AMWA two years earlier
- Due dates for quarterly, regular and accelerated (Threshold 1 and 2) remitters
- Weekend and holiday rule
- Late-remitting penalty tiers (3%, 5%, 7%, 10%) on the part over $500
Not Included
- Interest on late remittances
- Failure to deduct and failure to remit penalties beyond the late tiers
- The 20% penalty for repeated knowing failures
Assumed
- The remittance for the period is this pay run plus any earlier pay runs paid in the same period
- Holidays used: New Year's Day, Good Friday, Easter Monday, Victoria Day, Canada Day, Civic Holiday, Labour Day, National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, Christmas and Boxing Day (observed)
T4Year-End · T4 Slips, Deduction Check and T4 Summary4 included · 3 not included · 2 assumed
Included
- T4 boxes 14, 16, 16A, 18, 20, 22, 24, 26, 28, 40, 44, 46 and 52
- CPP, CPP2 and EI deduction check (overpayment or shortfall)
- T4 Summary lines 14 to 86
- Payroll register vs remittances reconciliation
Not Included
- Box 45 dental benefits code, other information codes besides a note on code 119
- Filing through the CRA portal or XML
- PIER report itself
Assumed
- This pay run is the last one of 2026
- Pension adjustment for a defined contribution plan = employee + employer contributions
ROERecord of Employment (Simplified) for the Leaver2 included · 1 not included · 2 assumed
Included
- Blocks 11, 15A, 15C (simplified), 16 and 17A
- Due date for an electronic ROE
Not Included
- Block 17B/17C other payments, block 19 special payments, the full 53/27/25/13 period look-back
Assumed
- The records list only the most recent pay periods
- Vacation pay paid because of the separation is shown in Block 17A and kept out of the 15C pay period amounts
2026Payroll Notes and What Is New for 20261 included
Included
- Pay cycle, What Is New for 2026 and what is not covered
BooksCanadian BookkeepingASPE · Ontario · 13 workpapers
Applies to the Whole Simulator
- One fictional Ontario corporation per case, fiscal year 2025 (calendar year). Basic and Intermediate: one month-end close; Advanced: December transactions and the year-end close.
- Accounting framework: Accounting Standards for Private Enterprises (ASPE, Part II of the CPA Canada Handbook). Not IFRS.
- Quebec is excluded (no QST or QPP). Payroll is taken as a summary from the payroll register. Preparing the T2 return itself is out of scope.
- Education only: teaches the workflow used in Canadian accounting firms with cloud accounting software; it is not any particular product.
TBChart of Accounts and Opening Trial Balance2 included · 1 not included · 1 assumed
Included
- Balance sheet balances brought forward; for the year-end case, income statement balances for January to November
- Opening accounts receivable built from the open invoices list
Not Included
- Multi-currency and departmental (class) tracking
Assumed
- Last period was closed and reconciled; the opening bank balance agreed with the bank statement (no reconciling items brought forward)
A/RSales Journal and Accounts Receivable3 included · 1 not included · 2 assumed
Included
- Sales invoices and daily sales summaries with the tax code by province of supply
- Customer receipts applied to invoices, NSF cheques, e-transfers from the bank feed and approved write-offs
- Customer sub-ledger and an aged receivables listing (statements levels)
Not Included
- Sales returns, credit notes, early-payment discounts and customer deposits on account
Assumed
- A payment is applied to the invoice quoted first, then to the customer's oldest invoices
- Aging is by invoice date: current 0–30 days, then 31–60, 61–90 and over 90
A/PPurchases Journal, Coding and Accounts Payable4 included · 1 not included · 2 assumed
Included
- Supplier bills and expense receipts with GST/HST and ITCs
- Capitalisation policy for equipment
- Partial ITCs for a business that also makes exempt supplies
- Company credit card
Not Included
- Supplier credit notes, vendor sub-ledger aging, the ITC restriction for passenger vehicles and the provincial sales tax of other provinces
Assumed
- Every bill and receipt holds the information SOR/91-45 requires for its amount
- Tax is rounded to the dollar on each document
CashCash Receipts and Disbursements Journals1 included · 1 not included · 1 assumed
Included
- Receipts, cash sales, supplier and card payments, net pay, PD7A and GST/HST remittances, shareholder transactions and the loan payment
Not Included
- Petty cash, foreign currency accounts
Assumed
- Card sales settle to the bank the same period
Bank RecBank Reconciliation1 included · 1 not included · 1 assumed
Included
- Deposits in transit, outstanding cheques, bank charges, interest, NSF cheques and customer e-transfers found in the bank feed
Not Included
- Bank errors and stale-dated cheques
Assumed
- No reconciling items were left over from the previous month
GST34HST Control Account and the GST34 Return1 included · 1 not included · 2 assumed
Included
- HST control account, GST34 lines 101 and 103 to 109, bad debt relief and the year-end 50% meals and entertainment add-back
Not Included
- Quick method, instalments (line 110), rebates (line 111), the self-assessment of imported services
Assumed
- The client is a monthly filer (elected) so each month is a reporting period
- Line 101 is taken from the sales journal only
PD7APayroll Journal Entries and Source Deductions1 included · 1 not included · 1 assumed
Included
- Payroll journal entries from a register summary and the PD7A liability
Not Included
- Calculating CPP, EI and income tax (see the Payroll Simulator), vacation pay accruals, Ontario EHT and WSIB
Assumed
- The client is a regular remitter: deductions are due by the 15th of the following month
AJEAdjusting Entries1 included · 1 not included · 1 assumed
Included
- Prepaids, accruals, straight-line amortization, inventory count and NRV write-down, allowance for doubtful accounts, unearned revenue and corrections found in review
Not Included
- Income tax provision, inventory costing methods, impairment of long-lived assets, leases
Assumed
- Book amortization takes a full month in the month the asset is available for use; at year end the firm records the whole year's amortization at once
ATBTrial Balance at the Period End (Adjusted)1 included
Included
- Trial balance after every posting and adjustment
ASPEIncome Statement, Retained Earnings and Balance Sheet (ASPE)1 included · 1 not included · 2 assumed
Included
- Income statement, statement of retained earnings and classified balance sheet under ASPE
Not Included
- Cash flow statement, notes to the financial statements, income taxes and the compilation report
Assumed
- No dividends were declared
- Month-end statements show the income for the month; retained earnings at the start of the month include earlier months' profit
T2 NotesYear-End Close and Tax Hand-Off2 included · 1 not included · 1 assumed
Included
- Closing entries, post-closing trial balance, book-to-tax notes (amortization, 50% meals, CCA) and a CCA schedule by class
- Shareholder loan warning under ITA s. 15(2)
Not Included
- Preparing the T2 itself, GIFI, deemed interest under s. 80.4, recapture and terminal losses
Assumed
- The first-year rule chosen in each CCA record reflects the law enacted at the time the T2 is prepared (Bill C-15, March 2026)
ReviewReviewer's Checklist1 included
Included
- Zero-difference tie-outs and corrections posted from the review
2025–26Canadian Bookkeeping Notes and What Is New1 included
Included
- The monthly close, What Is New and what is not covered
India GST
GSTGST Portal SimulatorReturn periods in 2026 · 10 workpapers
Applies to the Whole Simulator
- One return period of a fictional registered regular taxpayer: September 2026 for monthly filers, or the July–September 2026 quarter for QRMP filers.
- Rates as at October 2026 after the GST rate rationalisation of 22 September 2025; each record states the rate used. Cess is not covered.
- Education only: the simulator imitates the portal workflow and tables; it is not the GST portal and is not legal advice.
POSInvoice Classification and Place of Supply3 included · 2 not included · 2 assumed
Included
- Intra-state vs inter-state for each sale (IGST Act sections 7, 8, 10 and 12)
- Exports and SEZ supplies as zero-rated (IGST Act section 16)
- Reverse charge self-invoices for GTA, advocates, security, unregistered landlords and imported services
Not Included
- Bill-to ship-to and other special place of supply rules
- Tax on advances and vouchers
Assumed
- The address of the buyer is the place of supply for goods delivered there; for services, the registered buyer's location
- Tax is rounded to the rupee on each line
GSTR-1Details of Outward Supplies3 included · 2 not included · 1 assumed
Included
- Tables 4A, 5, 6A, 6B, 7, 8, 9A, 9B, 12 and 13
- IFF for QRMP filers
- E-invoice applicability check
Not Included
- Table 4B (supplies under reverse charge by you), Tables 10, 11, 14 and 15 (e-commerce)
- Credit and debit notes to unregistered buyers
Assumed
- B2C (Large) = inter-state invoice to an unregistered buyer above ₹1,00,000 including tax
IMSInvoice Management System and GSTR-2B Reconciliation2 included · 2 not included · 1 assumed
Included
- Accept, reject, pending and no action (deemed accepted) in IMS
- Books vs GSTR-2B: matched, missing, short, excess, rejected, pending
Not Included
- IMS actions on credit notes and ITC reversal on them
- GSTR-2A
Assumed
- GSTR-2B is regenerated after IMS actions, before GSTR-3B is filed
ITCITC Eligibility · Blocked Credit and Reversals4 included · 2 not included · 1 assumed
Included
- Blocked credits under section 17(5)
- Credit used only for exempt supplies (T2)
- Common credit reversal under rule 42 (D1)
- Temporary reversals: excess in GSTR-2B, goods not received
Not Included
- Rule 42 D2 (non-business use), annual true-up, rule 43 for capital goods
- Rule 37 (payment to supplier within 180 days)
Assumed
- All purchases are for business; capital goods are used only for taxable supplies
GSTR-3BSummary Return1 included · 1 not included · 1 assumed
Included
- Tables 3.1(a)–(e), 3.2, 4A(1), 4A(2), 4A(3), 4A(5), 4B(1), 4B(2), 4C, 4D(1) and 5
Not Included
- Table 3.1.1 (e-commerce operators), 4A(4) ISD, 4D(2), cess
Assumed
- Auto-filled values are accepted as shown
6.1Payment of Tax · Set-Off From the Ledgers (GSTR-3B Table 6.1)2 included · 1 not included · 1 assumed
Included
- Set-off order under section 49 and rule 88A
- Reverse charge paid in cash only
Not Included
- Rule 86B restriction
Assumed
- Leftover IGST credit is applied first where CGST or SGST credit falls short, then to CGST, then SGST (any order is legal; this one saves cash)
50 · 47Interest (Section 50) and Late Fee (Section 47)2 included · 2 not included · 1 assumed
Included
- Interest at 18% on tax paid in cash for the days late
- GSTR-3B and GSTR-1 late fees with the turnover-based caps
Not Included
- Interest at 24% or 18% on wrongly availed and utilised ITC
- Interest on amendment differentials
Assumed
- Days are counted from the day after the due date to the filing date; interest uses a 365-day year
LedgersElectronic Credit and Cash Ledgers · Closing Balances3 included · 1 not included · 1 assumed
Included
- Credit ledger and cash ledger by head
- TDS and TCS credits to the cash ledger
- PMT-06 deposits for QRMP filers
Not Included
- Electronic liability ledger, PMT-09 transfers, minor heads (penalty, others)
Assumed
- Opening cash balances are under the tax minor head
RFD-01Refund of Unutilised ITC · Rule 89(4) or 89(5)2 included · 1 not included · 2 assumed
Included
- Rule 89(4) refund for zero-rated supplies under LUT
- Rule 89(5) inverted duty refund (2022 formula)
Not Included
- Refund of IGST paid on exports (through the shipping bill), SEZ developer documents, provisional refunds
Assumed
- For services, payment for the exports has been received in the period
- The whole period's ITC is used in the formula
2026GST Notes and What Is New1 included
Included
- Portal cycle, What Is New and what is not covered
Transfer Pricing
TPTransfer Pricing SimulatorFY 2025-26 · OECD, US and India · 14 workpapers
Applies to the Whole Simulator
- One tested party, one financial year; amounts in thousands of the case currency, PLIs and rates in percent with two decimals.
- All groups, companies, comparables and figures are fictional. Rules are summarised for teaching as at October 2026; confirm current law before advising.
- For education only: not tax advice.
Step 1Functional Analysis and Characterisation (Functions, Assets, Risks)2 included · 1 not included · 1 assumed
Included
- A scored functional analysis (functions, assets, risks) for the tested party
- Characterisation, method and PLI selection
Not Included
- Interviews, the full value chain analysis and DEMPE of intangibles
Assumed
- Scores are given in the record as the outcome of the functional interviews
Step 2Tested Party Profit Level Indicator2 included · 1 not included · 1 assumed
Included
- Operating revenue, gross profit, operating profit and the PLI base
- Pass-through costs left out of the cost base
Not Included
- Segmentation of the accounts and comparability adjustments (working capital, capacity)
Assumed
- All revenue and costs belong to the controlled transaction being tested
Step 3Comparable Companies · Weighted Three-Year PLIs2 included · 1 not included · 1 assumed
Included
- Three-year weighted average PLI for each comparable
- Screening flags and, at Advanced level, the persistent-loss screen
Not Included
- The database search itself and working capital adjustments
Assumed
- Data for all three years is available for every comparable
Step 4Interquartile Range and Median (OECD Practice and US Section 482)1 included · 1 not included · 1 assumed
Included
- Interquartile range and median with the stated position rule
Not Included
- Other statistical methods such as interpolation or full-range use
Assumed
- The same accepted set is used for OECD/US and Indian tests
Step 5India Rule 10CA · 35th–65th Percentile Range or Arithmetic Mean2 included · 1 not included · 1 assumed
Included
- 35th–65th percentile range and median with 6 or more comparables
- Arithmetic mean and the 3% / 1% tolerance with fewer than 6
Not Included
- Use of multiple-year data rules for the tested party itself
Assumed
- Tolerance rates are taken from the record
Step 6Arm's Length Test and Primary Adjustment1 included · 1 not included · 1 assumed
Included
- Arm's length test under both approaches and the primary adjustment in the tested party's country
Not Included
- Corresponding adjustments, MAP and penalties
Assumed
- The adjustment changes the transfer price of the tested transaction only
PSMResidual Profit Split · Cross-Check of the Tested Party Result1 included · 1 not included · 1 assumed
Included
- Two-step residual profit split as a cross-check
Not Included
- Contribution analysis and projected profit splits
Assumed
- Combined operating profit, routine mark-ups and the split key are given
Amount BPillar One Amount B · Baseline Distribution Check1 included · 1 not included · 1 assumed
Included
- Operating expense scoping test and the matrix return on sales
Not Included
- The full qualifying tests, data availability mechanism and the operating expense cross-check collar
Assumed
- The matrix return is read from the Amount B table and given in the record
Step 7Intra-Group Services Charge · Cost Pool × Key × Mark-Up2 included · 1 not included · 1 assumed
Included
- Benefit test (shareholder activities), allocation keys and mark-ups
- 5% simplified approach for low value-adding services
Not Included
- Direct charging and on-call services
Assumed
- Each pool has one allocation key
Step 8Intercompany Loan Interest and Guarantee Fee2 included · 1 not included · 1 assumed
Included
- Interest rate = reference rate + credit spread; interest for the months outstanding
- Guarantee fee by the yield approach
Not Included
- Debt versus equity recharacterisation, thin capitalisation and interest limitation rules
Assumed
- The credit spread already reflects implicit group support
Step 9Secondary Adjustment · India Section 92CE1 included · 1 not included · 1 assumed
Included
- Section 92CE threshold, 90-day repatriation, deemed interest and the one-time tax option
Not Included
- Exact computation of the 90-day period and rate notifications
Assumed
- Threshold, days and rates are stated in the record
Step 10Quarterly True-Up to the Target Margin1 included · 1 not included · 1 assumed
Included
- Year-to-date PLI, target margin, true-up amount, note direction and indirect tax flag
Not Included
- Customs filings and the accounting entries themselves
Assumed
- The target is the median (or the mean for an Indian test with fewer than 6 comparables)
Step 11Documentation Thresholds · Local File / Form 3CEB, Master File, CbCR1 included · 1 not included · 1 assumed
Included
- Form 3CEB / Local File, Master File and CbCR tests and the specified domestic transaction threshold
Not Included
- Content of the reports, due dates and penalties
Assumed
- All thresholds are stated in the record in the case currency
2026What Is New in Transfer Pricing1 included
Included
- Recent changes: Amount B, Pillar Two, India and UK reforms
IFRS
IFRSIFRS Financial StatementsYear ended 31 December 2025 · 19 workpapers
Applies to the Whole Simulator
- A single company (no group) reporting under IFRS Accounting Standards for the year ended 31 December 2025, amounts in CU thousands.
- The draft statements are adjusted for year-end issues one standard at a time; disclosures are not prepared.
- All companies and amounts are fictional; the simulator is for training and is not accounting advice.
DraftDraft Financial Statements · Before Year-End Adjustments1 included · 1 assumed
Included
- The bookkeeper's draft profit or loss and statement of financial position for the year ended 31 December 2025
Assumed
- All cash entries in the draft are correct; only the accounting treatment needs adjusting
IAS 2IAS 2 Inventories · Lower of Cost and Net Realisable Value1 included · 1 not included · 1 assumed
Included
- Lower of cost and NRV, item by item
Not Included
- Cost formulas (FIFO, weighted average) and overhead absorption
Assumed
- Costs to complete and sell are given
IAS 37IAS 37 and IAS 16 · Decommissioning Provision1 included · 1 not included · 1 assumed
Included
- Present value of the dismantling cost, its addition to the asset and the unwinding of the discount
Not Included
- Changes in estimates (IFRIC 1 adjustments)
Assumed
- The obligation arose when the machine was installed
IAS 16IAS 16 Property, Plant and Equipment · New Machine1 included · 1 not included · 1 assumed
Included
- Elements of cost, depreciation from the date available for use and the correcting entry
Not Included
- Borrowing costs (IAS 23) and component accounting
Assumed
- Straight-line depreciation charged to cost of sales
IAS 38IAS 38 Intangible Assets · Research and Development1 included · 1 not included · 1 assumed
Included
- Research vs development and the IAS 38.57 criteria
Not Included
- Amortisation, because the product is not yet available for use
Assumed
- The criteria were met part-way through the year
IFRS 15IFRS 15 Revenue From Contracts With Customers · Bundled Contract1 included · 1 not included · 1 assumed
Included
- Allocation by relative standalone selling prices and revenue over time for the service
Not Included
- Variable consideration, significant financing components and contract costs
Assumed
- The service is provided evenly over its term
IAS 37IAS 37 Provisions, Contingent Liabilities and Contingent Assets1 included · 1 not included · 1 assumed
Included
- Probable, possible and remote legal claims; warranties at expected value
Not Included
- Discounting of short-term provisions and reimbursements
Assumed
- Legal adviser's assessment of probability is accepted
IFRS 16IFRS 16 Leases · Lessee Accounting1 included · 1 not included · 1 assumed
Included
- Lease liability, right-of-use asset, interest, depreciation and the current/non-current split
Not Included
- Short-term and low-value exemptions, lease modifications and variable payments
Assumed
- Payments annually in arrears; the lease started on 1 January 2025
IFRS 9IFRS 9 Expected Credit Losses · Provision Matrix1 included · 1 not included · 1 assumed
Included
- Simplified approach with a provision matrix
Not Included
- The general three-stage model and write-offs during the year
Assumed
- The allowance in the draft is last year's closing allowance
IAS 36IAS 36 Impairment of Assets · Cash-Generating Unit With Goodwill1 included · 1 not included · 1 assumed
Included
- Annual goodwill test of one cash-generating unit and the allocation of the loss
Not Included
- Corporate assets and the floor of each asset's own recoverable amount
Assumed
- The unit's other assets are all property, plant and equipment
IAS 21IAS 21 Foreign Currency Transactions · Unpaid Supplier Invoice1 included · 1 not included · 1 assumed
Included
- Retranslation of a monetary payable at the closing rate
Not Included
- Foreign operations and translation of financial statements
Assumed
- The inventory is still held, so it stays at the historical rate
IFRS 9IFRS 9 Financial Liabilities · Loan at Amortised Cost1 included · 1 not included · 1 assumed
Included
- Initial measurement net of transaction costs and the effective interest method
Not Included
- Modifications and early repayment
Assumed
- The effective interest rate is given
IAS 19IAS 19 Employee Benefits · Defined Benefit Plan1 included · 1 not included · 1 assumed
Included
- Service cost, net interest, remeasurements and the net liability
Not Included
- Past service cost, settlements and the asset ceiling
Assumed
- Contributions and benefits are paid at the year end
IAS 16IAS 16 Revaluation Model · Land and Buildings1 included · 1 not included · 1 assumed
Included
- First revaluation of land and buildings to fair value
Not Included
- Transfers from revaluation surplus to retained earnings and depreciation on revalued amounts
Assumed
- Revaluation at the year end, after the year's depreciation in the draft
IAS 12IAS 12 Income Taxes · Deferred Tax1 included · 1 not included · 1 assumed
Included
- Deferred tax on PPE, leases, provisions, the loss allowance and contract liabilities; the split between profit or loss and OCI
Not Included
- Unused tax losses, the recognition test for deferred tax assets and Pillar Two
Assumed
- Current tax in the draft is correct; other assets and liabilities have tax base equal to carrying amount; the pension is ignored for deferred tax
ReconFrom Draft Profit to IFRS Profit1 included
Included
- The effect of every correcting entry on profit before tax
IAS 1Statement of Profit or Loss and Other Comprehensive Income · Year Ended 31 December 20251 included · 1 not included
Included
- IAS 1 statement of profit or loss (expenses by function) and OCI
Not Included
- Earnings per share and discontinued operations
IAS 1Statement of Financial Position · 31 December 20251 included · 1 not included · 1 assumed
Included
- IAS 1 statement of financial position with current and non-current classification of key liabilities
Not Included
- Comparative figures
Assumed
- Pension remeasurements are transferred to retained earnings
2025IFRS Reporting Notes1 included
Included
- IFRS 18 and recent amendments, Ind AS link and what is not covered
India Income Tax, TDS and Payroll
ITRIndia Income Tax ReturnFY 2025-26 · AY 2026-27 · 11 forms and worksheets
Applies to the Whole Simulator
- One resident individual, financial year 2025-26 (assessment year 2026-27), Income-tax Act 1961. The Income-tax Act 2025 applies from 1 April 2026 and is shown only as a note.
- Both regimes are worked out in full and the return uses the cheaper one. Amounts are whole rupees; total income and tax are rounded to ₹10.
- Education only: teaches how an income tax return is computed. It is not the income-tax e-filing portal, not any tax software and not tax advice. All people, PANs, employers and amounts are fictional.
Sch SSchedule S · Income From Salary3 included · 2 not included · 3 assumed
Included
- Form 16 salary: basic, DA, HRA, allowances, perquisites, employer NPS, pension
- HRA exemption by Rule 2A (old regime)
- Standard deduction (₹50,000 / ₹75,000) and professional tax (old regime)
Not Included
- Leave travel concession, gratuity and leave encashment exemptions, relief u/s 89 for arrears, salary from abroad, ESOP perquisites
- Separate HRA working for each employer when the job changed mid-year
Assumed
- Salary for HRA = basic + DA forming part of retirement benefits
- The employee paid rent for the whole period HRA was received, so HRA is worked out on yearly totals
- Perquisites are already valued in Form 12BA
Sch HPSchedule HP · Income From House Property2 included · 1 not included · 2 assumed
Included
- Let-out house: rent, municipal taxes, 30% standard deduction, interest u/s 24(b)
- Self-occupied house: nil annual value, interest up to ₹2,00,000 (₹30,000 for repairs), old regime only
Not Included
- Expected rent (municipal value, fair rent, standard rent) and vacancy allowance, unrealised rent, pre-construction interest in five instalments, co-ownership splits, deemed let-out third house
Assumed
- The rent received is the gross annual value
- Loans were taken after 1 April 1999 to buy or build, and the house was completed within 5 years
Sch BPSchedule BP · Profits and Gains of Business or Profession2 included · 1 not included · 1 assumed
Included
- Presumptive income u/s 44AD (6% digital / 8% other) and 44ADA (50%)
- Net profit from regular books (ITR-3)
Not Included
- Computation of business income from books (depreciation, disallowances), tax audit u/s 44AB, 44AE goods carriages, the five-year lock-in u/s 44AD(4)
Assumed
- Turnover is within the presumptive limits (₹3 crore / ₹75 lakh with cash receipts of 5% or less)
Sch CGSchedule CG · Capital Gains3 included · 2 not included · 2 assumed
Included
- Listed equity with STT: holding period, s.111A at 20%, s.112A at 12.5% over ₹1,25,000, grandfathering to 31 January 2018
- Set-off of short-term and long-term losses within the year and loss carry-forward
- Land or building: s.50C, cost of improvement, indexation option for assets bought before 23 July 2024, s.54 and s.54EC
Not Included
- Debt mutual funds (s.50AA), unlisted shares, bonds, gold, virtual digital assets, s.54F, buy-back losses, capital gains accounts scheme, brought-forward losses
- Purchases before 1 April 2001 (fair market value option)
Assumed
- All sales were on or after 23 July 2024 (FY 2025-26)
- Unused basic exemption is set against 20% gains first, then 12.5% gains
Sch OSSchedule OS · Income From Other Sources1 included · 1 not included
Included
- Savings and deposit interest, dividends, family pension with the s.57(iia) deduction
Not Included
- Interest on income-tax refunds, gifts, lottery and online games, interest expense against dividends
Part B-TIGross Total Income and Set-Off of Losses1 included · 1 not included · 1 assumed
Included
- Set-off of a house property loss: up to ₹2,00,000 (old regime), none (new regime), and the loss carried forward
Not Included
- Brought-forward losses of earlier years, clubbing of income, agricultural income for rate purposes
Assumed
- Any house property loss is set off against salary or other normal income first
Ch VI-AChapter VI-A · Deductions From Gross Total Income1 included · 1 not included · 2 assumed
Included
- 80C (EPF, PPF, ELSS, life insurance, tuition fees, home loan principal, NPS u/s 80CCD(1)), 80CCD(1B), 80CCD(2) (10% / 14%), 80D (with the check-up limit), 80E, 80G (100% / 50% without qualifying limit), 80TTA, 80TTB
Not Included
- 80DD, 80DDB, 80U, 80GG, 80EEA, 80EEB, 80G with a qualifying limit, 80D medical expenditure for uninsured seniors
Assumed
- The spouse is under 60 (80D uses only the taxpayer's and parents' ages)
- Health insurance premiums were paid other than in cash
OldTax Computation · Old Regime (opting out of s.115BAC)1 included · 1 not included
Included
- Old slabs by age (below 60, 60 to 79, 80 and above), special-rate gains, s.87A ₹12,500, surcharge with marginal relief, 4% cess, rounding u/ss 288A and 288B
Not Included
- Alternative minimum tax, relief u/ss 89, 90, 91, surcharge cap on dividends (cases stay below ₹2 crore)
NewTax Computation · New Regime (s.115BAC, default)1 included · 1 not included · 1 assumed
Included
- New slabs u/s 115BAC(1A) for FY 2025-26, s.87A rebate up to ₹60,000 with marginal relief, surcharge (max 25%) with marginal relief, 4% cess
Not Included
- Relief u/ss 89, 90, 91
Assumed
- The ₹12 lakh test uses total income including special-rate gains; the rebate and marginal relief never exceed the tax at slab rates (second proviso to s.87A)
ITRWhich Regime and Which ITR Form2 included · 1 not included · 1 assumed
Included
- Regime choice by lower tax
- ITR-1, ITR-2, ITR-3, ITR-4 eligibility for AY 2026-27 and the due dates
Not Included
- ITR-5 to ITR-7, Form 10-IEA filing mechanics, updated returns (ITR-U)
Assumed
- The taxpayer is resident and ordinarily resident, has no foreign assets, and agricultural income (if any) is under ₹5,000
Part B-TTITaxes Paid, Interest and Refund1 included · 1 not included · 2 assumed
Included
- TDS and advance tax credit, interest u/ss 234A, 234B, 234C (with the 12% / 36% rule and the single 15 March instalment for presumptive income), late fee u/s 234F, self-assessment tax or refund
Not Included
- Interest on refund u/s 244A, the capital gains and dividend proviso to s.234C, TCS credit, revised returns
Assumed
- Any balance tax is paid on the day the return is filed
- Senior citizens without business income need not pay advance tax (s.207(2))
TDSTDS and TCSFY 2025-26 · 8 forms and worksheets
Applies to the Whole Simulator
- One quarter of FY 2025-26 (AY 2026-27) for a fictional business in India that has a TAN.
- Law: Income-tax Act 1961 as amended by the Finance Act 2025 (thresholds and rates from 1 April 2025).
- Amounts in whole rupees; tax is rounded to the nearest rupee.
- Education only: not TRACES, not the e-filing portal, not return preparation software and not tax advice.
26QPayments Ledger · Is TDS Needed, Under Which Section, at What Rate?5 included · 3 not included · 4 assumed
Included
- Sections 194A, 194C, 194H, 194-I, 194J, 194Q, 194T and 194-IA, payment by payment
- Single-payment and yearly limits, with earlier payments of the year
- Monthly rent test under 194-I
- 194C(6) transporters
- No PAN (206AA), lower deduction certificates (197)
Not Included
- Section 195 and other non-resident payments
- 194D, 194G, 194K, 194LA, 194N, 194O, 194R, 194S
- Deductions by banks (194A for banks)
Assumed
- Each payment record is the date the party's account was credited or paid, whichever was first
- Amounts exclude GST shown separately on the invoice (CBDT Circular 23/2017 and 13/2021)
- When a payment takes the year's total over the limit, the TDS on the earlier untaxed payments is deducted from that payment
- TDS is rounded to the nearest rupee on each voucher
192TDS on Salary (Section 192) · Monthly Deduction for the Quarter3 included · 1 not included · 3 assumed
Included
- Projected salary, standard deduction, slab tax, section 87A rebate with marginal relief, 4% cess
- New regime (default) and old regime with professional tax and Chapter VI-A deductions
- Monthly TDS = tax still to deduct ÷ months left
Not Included
- HRA, perquisites, other income declared by the employee, previous employer's salary, surcharge, section 89 relief
Assumed
- Salary is the same every month of the year
- Employees are below 60 years
- Salary TDS is paid by the 7th of each next month (no interest)
206CTCS on Sales and Remittances (Section 206C)5 included · 2 not included · 3 assumed
Included
- 206C(1) scrap
- 206C(1F) motor vehicles and notified luxury goods above ₹10 lakh
- 206C(1G) overseas tour packages and LRS remittances with the ₹10 lakh limit
- 206C(1H) no longer applying from 1 April 2025
- No PAN (206CC)
Not Included
- Alcohol, tendu leaves, timber, forest produce, minerals, parking lots, toll plazas, mining leases
- Lower collection certificates (206C(9))
Assumed
- TCS is collected on the day the amount is received
- LRS and tour package limits are counted per buyer, through this collector only
- TCS base excludes GST (a teaching assumption)
ChallanChallans, Due Dates and Interest (Sections 201(1A) and 206C(7))2 included · 2 not included · 2 assumed
Included
- Due dates under Rules 30 and 37CA, and Form 26QB
- Interest at 1% (late deduction), 1.5% (late payment of TDS) and 1% (TCS)
Not Included
- Book adjustment by government deductors
- Interest on short deduction found later
Assumed
- Months are counted as calendar months: the first and last month count in full even if only a day falls in them (the method commonly used to match the TDS system's calculation)
- One challan per month of deduction and payment date
24Q · 26Q · 27EQQuarterly Statements · Totals, Due Dates and Late Fee (Section 234E)3 included · 2 not included · 2 assumed
Included
- Forms 24Q, 26Q and 27EQ totals and section-wise totals
- Due dates under Rules 31A and 31AA
- Late fee under section 234E, capped at the tax
Not Included
- Penalty under section 271H
- Annexure II of the fourth-quarter Form 24Q (salary details for the whole year)
Assumed
- Every challan is deposited before the statement is filed
- For a voucher that crossed the yearly limit, the amount reported includes the earlier payments taxed with it
RevisionCorrection Statement · Adding a Missed Voucher to Form 26Q1 included · 1 not included · 1 assumed
Included
- A correction statement that adds deductee rows left out of the original Form 26Q
Not Included
- PAN corrections, challan corrections, deletion of rows
Assumed
- The original statement was accepted and the correction is filed for the same quarter
16 · 16A · 27DCertificates to Deductees and Collectees · Forms 16, 16A and 27D1 included · 1 not included · 1 assumed
Included
- Form 16A and 27D per quarter, Form 16 per year, and their due dates
Not Included
- Form 16 Part B details
Assumed
- One certificate per payee per quarter, even if paid under two sections
2025-26TDS and TCS Notes and What Is New1 included
Included
- Monthly and quarterly cycle, What Is New and what is not covered
PayIndia PayrollFY 2025-26 · Telangana · 14 forms and worksheets
Applies to the Whole Simulator
- One monthly payroll of a fictional employer in Telangana (Hyderabad area), pay months December 2025 to March 2026 in FY 2025-26, with 2 to 4 employees.
- Laws: the four Labour Codes (in force 21 November 2025), the EPF and ESI schemes, Telangana professional tax, Income-tax Act 1961 s. 192 for FY 2025-26.
- Amounts in whole rupees, rounded at each line.
- Education only: not the EPFO, ESIC, income tax or TRACES portal, not payroll software and not legal or tax advice.
CTCSalary Structure · CTC to Monthly Components2 included · 2 not included · 1 assumed
Included
- CTC staff: annual CTC → monthly CTC → employer PF inside CTC → gross → basic % of gross → HRA % of basic → conveyance → special allowance as the balance
- Workers paid on a fixed monthly structure (basic, DA, HRA, conveyance, special allowance) from the salary master
Not Included
- Gratuity provision, insurance and variable pay inside CTC
- Flexible benefit plans and reimbursements
Assumed
- CTC includes only employer PF, at ₹1,800 a month (12% of the ₹15,000 ceiling); CTC staff earn enough that their PF wages reach the ceiling
PayAttendance, Loss of Pay, Overtime and Arrears4 included · 2 not included · 2 assumed
Included
- Paid days for calendar-day salary: days in the month − days not on the payroll − loss of pay (LOP) days
- Earned components rounded to the rupee
- Overtime at twice the ordinary rate
- Arrears of a salary or DA revision with effect from an earlier month
Not Included
- Shift allowances, incentives, commission
- Leave accounting other than the exit balance
Assumed
- Ordinary hourly rate = (basic + DA) ÷ 26 ÷ 8 (teaching base)
- Salary is paid on the last day of the month
50%Wages Under the Labour Codes · The 50% Rule2 included · 2 not included · 1 assumed
Included
- Wages = basic + DA; other remuneration = HRA, conveyance, special allowance and overtime
- 50% test and add-back for the month
Not Included
- Retaining allowance
- Remuneration in kind (the Code values it separately)
Assumed
- Total remuneration = this month's pay (employer PF, bonus, gratuity, leave encashment and arrears left out); arrears are tested with their own months
EPFProvident Fund · EPF, EPS, EDLI and the Challan5 included · 2 not included · 1 assumed
Included
- EPF wages from wages under the Codes, restricted to ₹15,000 or on actual wages
- Employee 12%, EPS 8.33% (up to ₹15,000), employer EPF balance, EDLI 0.5%, admin charges 0.5% (minimum ₹500)
- No EPS after age 58
- PF on arrears month by month within the ceiling
- Excluded employees (not PF members)
Not Included
- VPF, international workers, exempted (private PF trust) establishments
- Damages and interest for late PF (s. 14B, 7Q)
Assumed
- Every member joined before age 58 and is an EPS member unless 58 or older now
ESIEmployees' State Insurance (ESI)2 included · 3 not included · 1 assumed
Included
- Coverage fixed for the contribution period 1 October 2025 – 31 March 2026 from wages at its start (₹21,000 ceiling)
- 0.75% employee and 3.25% employer, each rounded up to the next rupee
Not Included
- The ₹176 daily wage exemption from the employee share
- ₹25,000 ceiling for persons with disability
- First-time coverage of an establishment
Assumed
- ESI wages = gross earnings for the month including overtime and arrears paid now
PTProfessional Tax · Telangana2 included · 2 not included · 1 assumed
Included
- Telangana slab on monthly gross salary: nil / ₹150 / ₹200
- Exemption for persons aged 65 or more and persons with disability
Not Included
- Enrolment certificate tax for the employer itself
- Other states' slabs
Assumed
- Professional tax is on gross earnings of the month, without statutory bonus and exit payments
BonusStatutory Bonus for FY 2025-263 included · 2 not included · 2 assumed
Included
- Eligibility (wages up to ₹21,000, at least 30 days worked)
- Calculation ceiling ₹7,000 or the minimum wage
- Bonus = bonus wages × months × rate (8.33% to 20%, minimum ₹100)
Not Included
- Allocable surplus, set-on and set-off
- Bonus for new establishments
Assumed
- Wages for bonus = basic + DA, which is at least half of pay for these employees
- The minimum wage figure in each case is an assumption for teaching
F&FFull and Final Settlement · Gratuity, Leave Encashment, Notice Pay5 included · 3 not included · 3 assumed
Included
- Service period and years counted (part year over 6 months)
- Gratuity 15/26 × last drawn wages × years, ₹20 lakh ceiling; fixed-term pro rata after 1 year
- Tax exemptions u/s 10(10) and 10(10AA)
- Leave encashment and notice pay recovery
- Due date: 2 working days
Not Included
- Death and disablement cases
- Retrenchment compensation
- Forfeiture of gratuity for misconduct
Assumed
- Leave encashment per day = (basic + DA) ÷ 30; the leave balance is within the limit of 30 days a year
- Notice pay = shortfall days × gross ÷ 30; it does not reduce taxable salary here
- Salary did not change in the last 10 months before exit
192TDS on Salary · Section 192 Projection for FY 2025-265 included · 2 not included · 2 assumed
Included
- Projection for the year: paid so far + this month + months left × full gross
- Previous employer salary and TDS (Form 12B)
- New regime (default) and old regime (HRA, PT, 80C with employee PF, 80D)
- Rebate u/s 87A and marginal relief, 4% cess
- TDS this month = balance ÷ months left
Not Included
- Surcharge, perquisites, other income declared to the employer, relief u/s 89
- Senior citizen slabs in the old regime
Assumed
- Total income rounded to the nearest ₹10; tax to the nearest rupee
- Rent is paid for all 12 months at the declared monthly rent
NetPayslips, Net Pay and the Payroll Register2 included · 1 not included · 1 assumed
Included
- Payslip totals: earnings, deductions, net pay
- Payroll register totals
Not Included
- Loans, advances, canteen and other voluntary deductions
Assumed
- All employees are paid by bank transfer
JEPayroll Journal Entry1 included · 2 not included · 1 assumed
Included
- Accrual entry for salaries, gratuity, employer PF and ESI, with payables for PF, ESI, PT, TDS and net salaries
Not Included
- Payment entries when the challans and salaries are paid
- Gratuity and leave provisions (AS 15)
Assumed
- Notice pay recovered is credited to other income
DuesStatutory Dues Calendar · PF, ESI, PT and TDS3 included · 2 not included · 1 assumed
Included
- Due dates: TDS 7th (March: 30 April), PT 10th, PF and ESI 15th of the next month
- Interest u/s 201(1A) at 1.5% a month or part for late TDS
- Form 24Q quarter
Not Included
- Interest and damages for late PF and ESI
- Late fee u/s 234E
Assumed
- Due dates are shown without moving them for holidays; pay before the date to be safe
F16Form 16 Part B Summary1 included · 1 not included · 1 assumed
Included
- Part B for each employee at year end (March) and for a leaver
Not Included
- Part A (TDS deposited by quarter), which comes from the TDS returns
Assumed
- At year end the projection equals the actual salary for the year
2025-26Payroll Notes and What Is New1 included
Included
- Payroll cycle, What Is New and what is not covered
B.Com Accounting, Costing and Audit
FAFinancial AccountingAccounting Standards (AS) · 20 forms and worksheets
Applies to the Whole Simulator
- Indian format and Accounting Standards issued by ICAI (AS 1, AS 2, AS 9, AS 10, AS 26 concepts), as taught in B.Com Year 1. Not Ind AS.
- Amounts in whole rupees with Indian digit grouping (₹1,25,000).
- Basic: transactions of April 2026 and final accounts for that month. Intermediate and Advanced: the year ended 31 March 2026 (financial year 2025-26).
- Education only: this is not accounting software and not any commercial product. Every business, person and amount is fictional.
GuideStart Here · How a Business Keeps Its Books1 included · 1 not included · 1 assumed
Included
- Sole traders, partnership firms, not-for-profit organisations and incomplete records, as taught in B.Com Year 1 Financial Accounting
Not Included
- Company accounts (see the Corporate Accounting Simulator), GST entries (see the Accounting Software Practice Simulator), Ind AS
Assumed
- Every business, person and amount is fictional
JournalBooks of Original Entry1 included · 1 not included · 2 assumed
Included
- Opening entry, capital, cash and credit purchases and sales with trade discount, returns, receipts and payments with cash discount, expenses, assets, drawings in cash and goods, free samples, contra entries, bank charges and interest, bad debts with partial recovery
Not Included
- GST on invoices, bills of exchange, consignment and depreciation entries during the month
Assumed
- Trade and cash discounts are rounded to the rupee
- Goods taken for personal use and free samples are recorded at cost
BooksSubsidiary Books and the Two-Column Cash Book1 included · 1 not included · 1 assumed
Included
- Sales, Purchases, Sales Returns and Purchases Returns Books totals; two-column cash book (cash and bank) with discount columns
Not Included
- Petty cash book, bills receivable and payable books
Assumed
- The cash book totals include contra entries on both sides
LedgerLedger Accounts and Their Balances1 included · 1 assumed
Included
- Real, nominal and personal accounts, balanced at the period end
Assumed
- The opening entry is posted like any other journal entry
TBTrial Balance1 included · 1 not included · 1 assumed
Included
- Trial balance by balances method; difference put to suspense at Intermediate
Not Included
- Trial balance by totals method
Assumed
- Partners' capital, current, drawings and loan balances come from the partner records
ErrorsRectification of Errors and the Suspense Account2 included · 1 not included · 1 assumed
Included
- Casting errors in books, wrong amounts, wrong side, omitted postings, errors of principle and complete omission
- Suspense account and effect on profit
Not Included
- Errors found after the final accounts were closed (prior period items, AS 5)
Assumed
- Errors are found before the final accounts are prepared, so they are corrected in this year's accounts
BRSAmended Cash Book and Bank Reconciliation Statement1 included · 1 not included · 1 assumed
Included
- Amended cash book (bank charges, interest, dishonoured cheques, direct deposits and payments) and the statement from the amended balance, favourable balance and overdraft
Not Included
- Errors made by the bank
Assumed
- The cash book balance in the trial balance is the balance before amendment
AdjYear-End Adjustments1 included · 1 not included · 2 assumed
Included
- Closing stock, outstanding and prepaid expenses, accrued income and income received in advance, depreciation (SLM and WDV, additions during the year), bad debts and provisions for doubtful debts and discount, goods withdrawn, samples, loss by fire with an insurance claim, interest on loan, manager's commission
Not Included
- Sale of fixed assets, revaluation, GST adjustments
Assumed
- Depreciation rates and methods are given in each case (AS 10 leaves the method to the business); additions are depreciated for the months used
- Closing stock is given at the lower of cost and net realisable value (AS 2)
TradingTrading Account (Vertical Form)1 included · 1 not included · 1 assumed
Included
- Vertical Trading Account with direct expenses
Not Included
- Manufacturing Account
Assumed
- Wages, carriage inwards, freight on purchases and power are direct expenses
P&LProfit and Loss Account1 included · 1 not included · 1 assumed
Included
- Indirect expenses and other incomes after adjustments, depreciation, bad debts and provisions, loss by fire, interest on partners' loans, manager's commission
Not Included
- Income tax of the proprietor or firm
Assumed
- Manager's commission is on the net profit before or after charging it, as the case says
Approp.Profit and Loss Appropriation Account1 included · 1 not included · 2 assumed
Included
- Interest on capital (opening capital and additions for the months used), interest on drawings (average period), salary, commission before or after charging it, sharing in the profit ratio
Not Included
- Guaranteed profit to a partner, past adjustments, interest on capital when profit is insufficient
Assumed
- Profit is always enough to pay interest on capital and salaries in these cases
- Drawings are made evenly, so interest is charged for an average of 6 months unless the record says otherwise
CapitalPartners' Capital and Current Accounts1 included · 1 not included · 1 assumed
Included
- Fixed and fluctuating capital methods in columnar form
Not Included
- Revaluation and reserves on admission or retirement
Assumed
- No capital is withdrawn permanently during the year
BSBalance Sheet (Vertical Form)1 included · 1 not included · 1 assumed
Included
- Vertical Balance Sheet of a sole trader or firm with every adjustment
Not Included
- Schedule III company format
Assumed
- A partner's current account debit balance is shown as a minus figure on the capital side
GoodwillValuation of Goodwill and the Goodwill Adjustment1 included · 1 not included · 2 assumed
Included
- Average profit, super profit and capitalisation of super profit methods; premium for goodwill on admission; retiring partner's share of goodwill
Not Included
- Weighted average profits, hidden goodwill, revaluation of assets
Assumed
- Sacrificing ratio = old ratio on admission and gaining ratio = old ratio of the continuing partners on retirement (no new ratio given)
- The premium is retained in the business
FundOpening Balance Sheet and Capital Fund1 included · 1 assumed
Included
- Opening capital fund from the opening balance sheet
Assumed
- Cash and bank are given as one figure
R&PReceipts and Payments Account1 included
Included
- Receipts and payments grouped by head
I&EIncome and Expenditure Account1 included · 1 not included · 3 assumed
Included
- Subscriptions with outstanding and advance at both ends, salaries outstanding, sports material used, depreciation, interest accrued
Not Included
- Sale of old assets, trading activity of the club (bar, canteen) with a separate trading account
Assumed
- Subscriptions outstanding at the start were all received during the year
- Entrance fees and general donations are revenue income; legacies and life membership fees are added to the capital fund
- Depreciation is on the opening equipment and purchases for the full year
BSBalance Sheet of the Organisation1 included
Included
- Capital fund, specific (building) fund, outstanding and advance items, fixed assets and investments
SoAStatements of Affairs (Opening and Closing)1 included · 1 not included · 1 assumed
Included
- Opening and closing statements of affairs with depreciation and provision for doubtful debts at the end
Not Included
- Conversion of single entry into double entry (finding credit sales and purchases from total debtors and creditors accounts)
Assumed
- Depreciation is charged on the closing values of furniture, machinery and vehicles
ProfitStatement of Profit or Loss (Net Worth Method)1 included · 1 not included
Included
- Net worth method: closing capital + drawings − additional capital − opening capital
Not Included
- Interest on capital and drawings in the statement
BooksAccounting Software PracticeGST rates from 22 Sep 2025 · 19 forms and worksheets
Applies to the Whole Simulator
- One fictional trading business in Hyderabad, Telangana per case, financial year 2025-26 (1 April 2025 to 31 March 2026), GST registered.
- Basic: one month of a trading business (accounts only, closing stock from the count). Intermediate: one month with stock items (FIFO or weighted average), credit and debit notes, bill-wise details and cost centres. Advanced: March 2026 with payroll, TDS on expenses and interest on overdue bills, then the year-end close.
- Method: double entry, periodic stock, horizontal final accounts for a proprietary business (standard B.Com textbook method). GST rates as in force from 22 September 2025.
- Education only: teaches the workflow of accounting software used in India; it is not any particular product.
F.Y.Company Creation and Features1 included · 1 not included · 1 assumed
Included
- Financial year, books beginning date, state and GSTIN, and the period of work
Not Included
- Security controls, user accounts, data backup and company splitting
Assumed
- The company is a proprietary trading business registered for GST in Telangana (state code 36)
GroupsLedger Masters Under the Standard Groups and Opening Balances1 included · 1 not included · 1 assumed
Included
- Ledgers under the standard groups with opening balances; party ledgers with state, credit days and an opening bill
Not Included
- Multiple opening bills per party, group creation by the user
Assumed
- Ledgers used in vouchers are created when first needed; the opening balance is entered when the ledger is created
VouchersVoucher Entry by Voucher Type (with GST)3 included · 1 not included · 3 assumed
Included
- Sales, Purchase, Credit Note, Debit Note, Receipt, Payment, Contra, Journal and Payroll vouchers
- CGST + SGST within Telangana and IGST for other states, by the party's state
- Cash discounts on receipts and payments
Not Included
- Reverse charge, composition dealers, exempt-supply ITC reversal, advances received with GST, e-invoices
Assumed
- GST is worked out on each line and rounded to the rupee per tax head; no round-off ledger is used
- A credit purchase of an expense or an asset is entered as a journal voucher
- Bank charges are taken from the statement without GST (the bank's GST invoice is ignored here)
Day BookDay Book: Vouchers by Type1 included · 1 not included · 1 assumed
Included
- Count and total of each voucher type
Not Included
- Voucher numbering settings and cancelled vouchers
Assumed
- The amount of a voucher is its debit total
LedgerLedger Reports: Cash, Bank and Parties1 included · 1 not included
Included
- Ledger summaries for cash, bank and every party
Not Included
- Ledger monthly summaries and columnar ledgers
StockStock Summary and Closing Stock3 included · 1 not included · 2 assumed
Included
- Stock summary by item with opening, inward, outward and closing quantity and value
- FIFO and weighted average (periodic, for the period) methods
- Closing stock from the physical count when stock items are not kept
Not Included
- Godowns, batches, units of measure conversion, perpetual valuation after each sale
Assumed
- Net realisable value is above cost (AS 2), so cost is used
- A purchase return comes out of the lot of the bill it refers to; a sales return reduces the quantity sold
InterestInterest on Overdue Customer Bills1 included · 1 not included · 1 assumed
Included
- Simple interest on overdue customer bills at the firm's rate, and a debit note with GST
Not Included
- Compound interest, interest on supplier bills
Assumed
- 365-day year; days counted from the due date (bill date + credit days) to the period end
BillsOutstanding Receivables and Payables1 included · 1 not included · 1 assumed
Included
- Bill-wise receivables and payables with due dates and days overdue (inventory levels); group totals (Basic)
Not Included
- Ageing buckets and interest on payables
Assumed
- A receipt or payment is matched to the bill quoted first, then to the oldest bills; any excess stays on account
GSTGST Summary: Output Tax, Input Tax Credit and Set-Off1 included · 1 not included · 2 assumed
Included
- Output tax, input tax credit, credit and debit notes, and set-off in the legal order
Not Included
- GSTR-1 and GSTR-3B tables, interest and late fees, reverse charge, blocked credit, rule 42 reversal
Assumed
- Every purchase is used for taxable business supplies, so all ITC is eligible and appears in GSTR-2B
- Output tax ledgers start each period at zero (last month's tax was set off and transferred to GST Payable)
BRSBank Reconciliation1 included · 1 not included · 1 assumed
Included
- Payments not yet shown and deposits not yet credited; bank charges and interest entered from the statement
Not Included
- Bank errors and stale cheques
Assumed
- The opening bank balance was already reconciled; UPI and card collections reach the bank the same day
Cost CtrCost Centre Summary1 included · 1 not included
Included
- Expenses allocated to one cost centre each
Not Included
- Splitting a voucher across cost centres, cost categories
TDSTDS on Expenses (Income-tax Act 1961, FY 2025-26)1 included · 1 not included · 2 assumed
Included
- Sections 194C, 194J, 194-I and 194H with the FY 2025-26 thresholds and rates, and section 206AA without PAN
Not Included
- Lower deduction certificates, TDS returns, interest and fees for late payment (see the TDS and TCS Simulator)
Assumed
- "Paid earlier" means amounts credited to the same party earlier in the year on which no TDS was deducted
- TDS is worked out on the value before GST (CBDT Circular 23/2017)
PayrollPayroll Summary for the Month1 included · 1 not included · 1 assumed
Included
- A payroll voucher from the month's payroll sheet and the net salary payment
Not Included
- Calculating PF, ESI, professional tax and TDS on salary (see the India Payroll Simulator)
Assumed
- Employer PF includes the pension share and admin charges as given in the payroll sheet
31 MarYear-End Adjustments and Closing1 included · 1 not included · 1 assumed
Included
- Depreciation by the written down value method, outstanding and prepaid expenses, GST set-off journal, transfer of profit and drawings to capital
Not Included
- Income tax provision, provisions for doubtful debts, disposal of assets
Assumed
- Additions are depreciated for the months in use; the month of purchase counts as a full month
TBTrial Balance (Ledger-Wise, Closing Balances)1 included · 1 not included · 1 assumed
Included
- Closing balance of every ledger after all vouchers and adjustments
Not Included
- Group-wise and period-wise trial balances
Assumed
- Closing stock is not a ledger: it is shown in the Profit and Loss Account and the Balance Sheet only
P&LProfit and Loss Account (Trading and Profit and Loss)1 included · 1 not included
Included
- Trading and Profit and Loss sections in the horizontal (T) format the software prints for a proprietary business
Not Included
- Schedule III format (for companies; see the Corporate Accounting Simulator)
B/SBalance Sheet1 included · 1 not included · 1 assumed
Included
- Capital account with profit and drawings, liabilities and assets by group
Not Included
- Schedule III format and notes
Assumed
- Groups are shown net, as the software prints them
ReviewChecks Before You Close the Period1 included
Included
- Zero-difference tie-outs a reviewer looks at before signing off
2025-26Accounting Software Practice: Notes and What Is New1 included
Included
- The monthly routine, what is new and what is not covered
CorpCorporate AccountingCompanies Act 2013 · AS · 13 forms and worksheets
Applies to the Whole Simulator
- A fictional Indian company, financial year 2025-26 (1 April 2025 to 31 March 2026), under the Companies Act 2013, Schedule III (Division I) and the Accounting Standards (Companies (Accounting Standards) Rules 2021).
- Standard B.Com textbook methods: journal entries for every event, then the year-end adjustments and the Schedule III statements. Each workpaper's scope note says which method and assumptions are used.
- Education only: not legal or accounting advice.
TBStart Here · Trial Balance Before This Year's Entries2 included · 1 not included · 1 assumed
Included
- A trial balance extracted before the year's share and debenture entries and the year-end adjustments
- Proving the trial balance agrees before posting
Not Included
- Errors and suspense accounts (see the Financial Accounting Simulator)
Assumed
- The trial balance is correct; the bank balance in it is before the share and debenture money of the year
s. 23–42Issue of Shares: Application, Allotment and Calls4 included · 3 not included · 3 assumed
Included
- Issue at par and at a premium, payable in stages (application, allotment, calls)
- Oversubscription, rejection and pro-rata allotment with excess money adjusted to allotment and the rest refunded
- Calls in arrears and calls in advance, with interest on calls in advance under Table F
- Journal entries for every stage
Not Included
- Issue at a discount (not allowed by s. 53) and sweat equity
- Interest on calls in arrears (recorded only when received)
- Issue for consideration other than cash
Assumed
- Excess application money is adjusted towards allotment and any balance is refunded
- Where a defaulter's excess application money paid part of the allotment, it is treated as paying the premium first
- Calls in advance are only for calls not yet made at the year end
Table FForfeiture and Reissue of Shares3 included · 2 not included · 1 assumed
Included
- Forfeiture of all the defaulter's shares, including pro-rata cases
- Reissue at a discount or at a premium, in full or in part
- Transfer of the forfeiture gain on reissued shares to capital reserve
Not Included
- Forfeiture of partly called shares
- Reissue of forfeited shares as partly paid
Assumed
- Forfeiture takes place after all calls are made; reissued shares are credited as fully paid
s. 62, 63Bonus Shares and Rights Issue2 included · 2 not included · 1 assumed
Included
- Bonus issue from securities premium, capital redemption reserve, general reserve or surplus
- Rights issue paid in full, theoretical ex-rights price and the value of a right
Not Included
- Making partly paid shares fully paid by bonus
- Renunciation and sale of rights
Assumed
- All shares are fully paid when the bonus is issued; all rights are taken up
s. 68, 69Buy-Back of Equity Shares3 included · 3 not included · 2 assumed
Included
- Buy-back at a premium out of securities premium and free reserves
- The s. 68 tests: 25% of capital and free reserves, 25% of equity shares, debt-equity 2 : 1, and the most shares allowed
- Transfer to the capital redemption reserve (s. 69)
Not Included
- Buy-back out of the proceeds of a fresh issue
- Expenses of the buy-back
- Tax on buy-back (a note only)
Assumed
- Free reserves and the debt are taken from the books on the date of the buy-back
- For the debt-equity test, capital redemption reserve is counted with share capital (s. 69(2)) and debt is debentures plus long-term loans
s. 71Debentures: Issue, Interest, Redemption and the DRR5 included · 4 not included · 2 assumed
Included
- Issue at par, premium or discount; redeemable at par or at a premium
- Loss on issue written off against securities premium, then profit
- Interest paid and accrued
- Redemption in cash, by conversion into shares or by purchase in the open market
- DRR (unlisted companies) and the 15% deposit by 30 April
Not Included
- Sinking fund method
- Ex-interest and cum-interest purchase calculations
- Debentures issued as collateral security
- TDS on debenture interest
Assumed
- The whole loss on issue is written off in the year of issue
- DRR on redeemed debentures is released to general reserve in proportion
s. 40(6)Underwriting of a Share Issue3 included · 3 not included · 3 assumed
Included
- Gross liability, marked and unmarked applications, firm underwriting and surplus redistribution
- Commission on the gross liability and the 5% limit
- Journal entries in the company's books
Not Included
- Partial underwriting (the company keeps part of the risk)
- Sub-underwriting
- Underwriting of debentures
Assumed
- Firm underwriting is treated like marked applications
- Unmarked applications are shared in the ratio of gross liability
- Commission is written off against securities premium
AS 14Amalgamation (AS 14): Purchase Consideration and Entries5 included · 3 not included · 2 assumed
Included
- Purchase consideration (shares and cash)
- Purchase method: fair values, goodwill or capital reserve
- Pooling of interests: book values, reserves kept, difference in general reserve
- Liquidation expenses borne by the transferee
- Entries in the transferee's books
Not Included
- Amalgamation adjustment reserve (AS 14 para 39)
- Inter-company holdings and unrealised profit
- Entries in the transferor's books (realisation account)
Assumed
- The amalgamation takes effect at the close of 31 March 2026, after the year's profit
- The transferor's debentures are taken over as debentures of this company
GoodwillValuation of Goodwill and Shares3 included · 3 not included · 2 assumed
Included
- Simple and weighted average profit, normal profit and super profit
- Goodwill: average profit, super profit, capitalisation of super profit, capitalisation of average profit
- Shares: net assets (intrinsic) value, yield value and fair value
Not Included
- Annuity method
- Earnings yield and price-earnings methods
- Partly paid shares and notional calls
Assumed
- Profits given are already adjusted for non-recurring items
- Fair value = simple average of the intrinsic and yield values
Sch. IIIStatement of Profit and Loss (Schedule III, Part II)4 included · 3 not included · 2 assumed
Included
- Depreciation (straight line or written down value), closing inventory, outstanding and prepaid expenses
- Statement of Profit and Loss in the Schedule III format
- Current tax at a given rate
- Basic EPS with the weighted average number of shares (AS 20)
Not Included
- Deferred tax (AS 22)
- Exceptional and extraordinary items
- Diluted EPS (no dilutive instruments in the cases)
Assumed
- Depreciation is charged on the opening gross block only
- Tax is the given rate on profit before tax
NotesAppropriations and Notes to Accounts2 included · 1 not included · 1 assumed
Included
- Appropriations: transfer to general reserve, DRR, interim and preference dividends
- Notes 1 to 5: share capital, reserves and surplus, long-term borrowings, other current liabilities, property, plant and equipment
Not Included
- Notes on contingent liabilities, related parties, ageing schedules and ratios
Assumed
- Interim dividend is paid on the equity capital of 1 April 2025; preference dividend is paid for the year
Sch. IIIBalance Sheet as at 31 March 2026 (Schedule III, Part I)1 included · 1 not included · 1 assumed
Included
- Balance Sheet in the Schedule III format, Part I
Not Included
- Deferred tax, long-term and short-term loans and advances, other non-current assets
Assumed
- Every figure comes from the ledger after all the entries of the case
2026Company Law Notes and What Is New1 included
Included
- Rules used, What Is New and what is not covered
CostCost AccountingCAS and AS 2 · 19 forms and worksheets
Applies to the Whole Simulator
- One fictional Indian company per case (mostly in and around Hyderabad, Telangana). Basic: one month of a manufacturer. Intermediate: an overhead budget, jobs, batches and contracts. Advanced: process, joint product and reconciliation work.
- Methods: standard B.Com and CMA textbook cost accounting, in line with the ICMAI Cost Accounting Standards and ICAI AS 2 and AS 7. No statutory rates are involved.
- Rates to two decimals; money to the nearest rupee; Indian digit grouping.
- Education only: not cost accounting software and not professional advice.
StartStart Here · The Costing Cycle and Where You Will Use This at Work1 included
Included
- The costing cycle of this simulator and where freshers use it at work
EOQMaterial · Economic Order Quantity and Stock Levels3 included · 1 not included · 3 assumed
Included
- Carrying cost per unit, EOQ (Wilson formula), number of orders, ordering and carrying costs
- Quantity discount: total annual cost at the EOQ vs at the discount order size
- Re-order, minimum, maximum and average stock levels
Not Included
- Danger level, safety stock with probabilities, ABC and VED analysis, inventory turnover ratios
Assumed
- Usage is per week and lead time in weeks
- Carrying cost is a % of the price paid, so it falls with a discount
- Re-order quantity = EOQ
StoresMaterial · Stores Ledger and Pricing of Issues2 included · 1 not included · 2 assumed
Included
- Stores ledger with receipts and issues in date order
- Pricing of issues by FIFO and by weighted average (perpetual)
Not Included
- LIFO, simple average, standard price, returns to supplier, returns from production, shortages and surpluses
Assumed
- Receipts at invoice rate (all costs to bring them to the store included)
- Weighted average rate is worked again after every receipt and rounded to two decimals; an issue that empties the stock takes the whole balance
WagesLabour · Time Rate, Piece Rate, Halsey and Rowan3 included · 1 not included · 2 assumed
Included
- Time wages, straight piece wages, piece rate with guaranteed time wages
- Halsey and Rowan premium plans and effective earnings per hour
- Total direct wages carried to the cost sheet
Not Included
- Taylor and Merrick differential piece rates, Emerson efficiency bonus, overtime premium, idle time, statutory deductions (see the India Payroll Simulator)
Assumed
- Time allowed is the standard time for the work done
- The piece rate equals the hourly rate ÷ standard output per hour
LTRLabour · Labour Turnover1 included · 1 not included · 1 assumed
Included
- Separation, replacement and flux methods; equivalent annual rate for a part year
Not Included
- Cost of labour turnover (preventive and replacement costs)
Assumed
- Average employees = (opening + closing) ÷ 2
Cost SheetStatement of Cost and Profit3 included · 1 not included · 3 assumed
Included
- Materials consumed (from purchases and stocks, or from the stores ledger)
- Prime cost, factory overheads, WIP, scrap, works cost, administration overheads, cost of production, finished goods stock, cost of sales and profit
- Items kept out of the cost sheet
Not Included
- Tender pricing with escalation, cost sheets for two periods, output-related royalties computed by formula
Assumed
- Closing finished goods are valued at this period's cost of production per unit
- Administration overheads relate to production and are part of cost of production
- Scrap is normal scrap and reduces works cost
QuoteQuotation · Pricing a New Order From the Cost Sheet1 included · 1 not included · 1 assumed
Included
- Overhead recovery rates from the cost sheet and a price with profit on selling price
Not Included
- Escalation of material and wage rates
Assumed
- Next period's overheads behave like this period's
OH 1Overheads · Allocation and Primary Distribution1 included · 1 not included · 1 assumed
Included
- Allocation of overheads to departments and apportionment on suitable bases
Not Included
- Apportionment of fixed and variable parts on different bases
Assumed
- Each overhead goes on the basis shown in the record; the last department takes any rounding rupee
OH 2Overheads · Secondary Distribution of Service Departments1 included · 2 not included · 2 assumed
Included
- Direct method, step method and repeated distribution (reciprocal services, worked by simultaneous equations)
Not Included
- Trial and error method shown step by step
- More than two service departments
Assumed
- Step method closes S1 first
- Service usage is given as percentages
OAROverheads · Absorption Rates and Under- or Over-Absorption2 included · 1 not included · 1 assumed
Included
- Machine hour or labour hour rates per production department
- Under- and over-absorption against actual overheads and the supplementary rate
Not Included
- Treatment by write-off to costing P&L or carry forward shown as entries
Assumed
- Rates are predetermined from the budget
MHROverheads · Machine Hour Rate1 included · 1 not included · 1 assumed
Included
- Depreciation, repairs, power and standing charges per hour
Not Included
- Setting-up time, maintenance hours and separate rates for idle time
Assumed
- Straight-line depreciation; power only for running hours (all working hours are running hours)
JobJob Costing · Job Cost Sheet and Price1 included · 1 not included · 1 assumed
Included
- Job cost sheet with departmental overhead absorption, administration overheads and profit on selling price
Not Included
- Work-in-progress ledgers and job cost cards over several periods
Assumed
- All labour hours on the job are paid at one wage rate
EBQBatch Costing · Economic Batch Quantity and Batch Cost1 included · 1 not included · 1 assumed
Included
- Economic batch quantity, set-up and carrying costs, cost of one batch and cost per unit
Not Included
- Batch production with WIP between batches
Assumed
- Machine overheads at the machine hour rate
ContractContract Costing · Contract Account and Profit to Take1 included · 2 not included · 2 assumed
Included
- Contract account, notional profit, profit to the P&L under the traditional rules, reserve and work-in-progress in the balance sheet
Not Included
- Escalation clauses, sub-contracts, plant shown as a credit at written-down value, retention money details
- AS 7 percentage of completion entries
Assumed
- Plant is charged by depreciation for the months at site
- Work not yet certified is at cost
ProcessProcess Costing · Process Accounts, Normal and Abnormal Loss and Gain2 included · 2 not included · 2 assumed
Included
- Process accounts with normal loss (scrap value), abnormal loss and abnormal gain, transfers between processes
- Abnormal loss, abnormal gain and normal loss accounts
Not Included
- Inter-process profit, process stocks with losses
- By-product recovery inside the process
Assumed
- Scrap value per unit is the same for normal and abnormal loss units
- Transfer = balancing figure (= output × cost per unit)
EUProcess Costing · Equivalent Production and Statement of Evaluation3 included · 1 not included · 2 assumed
Included
- Equivalent units for material and conversion, cost per equivalent unit, statement of evaluation
- FIFO and weighted average methods
- A process fed by the previous process account
Not Included
- Normal and abnormal loss inside the equivalent units statement
Assumed
- No losses in this process
- Material added at the stage given in the records
JointJoint and By-Products · Apportionment and the Further Processing Decision3 included · 1 not included · 1 assumed
Included
- By-product NRV credited to joint cost
- Apportionment by physical units, sales value at split-off and net realisable value
- Product profit and the further processing decision
Not Included
- Average unit cost and survey (points) methods, constant gross margin method
Assumed
- The last product takes any rounding rupee
ReconReconciliation of Cost and Financial Profit1 included · 1 not included · 1 assumed
Included
- Memorandum reconciliation statement from cost profit to financial profit
Not Included
- Integrated accounts and control account reconciliation
Assumed
- Additions and deductions follow the effect of each item on financial profit
NotesMethods Used in This Simulator1 included
Included
- Methods chosen where textbooks differ, rounding, and what is not covered
AuditAuditStandards on Auditing (ICAI) · 12 forms and worksheets
Applies to the Whole Simulator
- A statutory audit of the financial statements of a fictional Indian company for the year ended 31 March 2026 (FY 2025-26), prepared under the Accounting Standards (not Ind AS).
- Standards on Auditing issued by ICAI and CARO 2020 as understood in October 2026, explained in our own words for learning.
- Teaching assumptions (benchmarks, tables, factors, thresholds) follow common practice; a real audit firm uses its own methodology and professional judgement.
- Education only: not an audit methodology product and not professional advice.
SA 320Planning: Materiality (SA 320)3 included · 2 not included · 4 assumed
Included
- Overall materiality from one benchmark (profit before tax, revenue or total assets)
- Performance materiality from the assessed audit risk
- Clearly trivial threshold (SA 450)
Not Included
- Specific materiality for particular balances or disclosures (SA 320 para 10)
- Revising materiality during the audit (SA 320 para 12)
Assumed
- Benchmark ranges: profit before tax 5–10%, revenue 0.5–1%, total assets 1–2% (common practice; SA 320 gives examples only)
- Performance materiality 75% / 65% / 50% of overall materiality for low / moderate / high audit risk
- Clearly trivial = 5% of overall materiality
- Overall and performance materiality rounded down to ₹1,000; clearly trivial to ₹100
SA 315Risk Assessment and Planned Response (SA 315, SA 330)3 included · 2 not included · 2 assumed
Included
- Risk of material misstatement = inherent risk × control risk, scored 1 to 9
- Significant risks (for example presumed fraud risk in revenue, SA 240) treated as high
- Detection risk and planned approach
Not Included
- Understanding of the entity and its controls in detail
- Fraud brainstorming and journal entry testing
Assumed
- Scores: High 3, Medium 2, Low 1; level High at 6 or more, Medium at 3–4, Low at 1–2
- An area is in scope when its balance is at or above performance materiality or it has a significant risk
SA 530Audit Sampling (SA 530)3 included · 3 not included · 4 assumed
Included
- Key items tested 100%
- Sample size from a simple table and systematic selection by item number
- Monetary unit sampling: interval and sample size
Not Included
- Statistical sample size formulas with expected errors
- Stratification beyond key items
- Random number generation
Assumed
- Key items are items at or above performance materiality
- Table: Low RMM 15, Medium 25, High 40 items
- MUS confidence factors 1.6 / 2.3 / 3.0 for low / medium / high RMM, no errors expected
- The random start is given in the records
SA 500Vouching and Projection of Errors (SA 500, SA 530)4 included · 2 not included · 2 assumed
Included
- Misstatement per exception
- Ratio projection for table samples
- Tainting × interval projection for MUS samples
- Comparison with performance materiality
Not Included
- Upper misstatement limit and incremental allowance in MUS
- Anomalous errors
Assumed
- Only exceptions are listed; all other sample items agreed to documents
- The tolerable misstatement for every test is performance materiality
SA 501Physical Verification of Inventory and Fixed Assets (SA 501)2 included · 2 not included · 1 assumed
Included
- Book quantity against counted quantity, valued at cost
- Fixed assets not found (written off) and impaired (written down to recoverable amount, AS 28)
Not Included
- Net realisable value testing (AS 2)
- Roll-forward or roll-back of counts done on another date
Assumed
- The count was on 31 March 2026 and the auditor attended it
Cut-OffCut-Off Testing Around 31 March 20261 included · 2 not included · 1 assumed
Included
- Sales and purchases either side of 31 March 2026 and their effect on profit
Not Included
- Cut-off of expenses other than purchases
- Goods in transit with special terms
Assumed
- Goods sent after the year end but invoiced before it were in the warehouse and left out of the count
SA 505External Confirmations: Bank and Receivables (SA 505)2 included · 2 not included · 2 assumed
Included
- Bank confirmation reconciled to the books
- Positive confirmations of receivables: agreed, timing differences, errors, no reply with alternative procedures
Not Included
- Negative confirmations
- Confirmations of loans, guarantees and securities
Assumed
- Unexplained bank differences are misstatements
- Unsupported balances after alternative procedures are judgemental misstatements
SA 520Substantive Analytical Procedures (SA 520)2 included · 2 not included · 1 assumed
Included
- Expectation from last year and growth, or from a base and a rate
- Threshold and investigation of unexplained differences
Not Included
- Regression and ratio analysis in depth
- Analytical procedures at the planning and final review stages
Assumed
- Threshold = 10% of the expectation, capped at performance materiality
SA 450Summary of Misstatements (SA 450)3 included · 2 not included · 1 assumed
Included
- Factual, judgemental and projected misstatements
- Clearly trivial items not accumulated
- Corrected and uncorrected misstatements against materiality
Not Included
- Prior-year uncorrected misstatements (the iron curtain and rollover effects)
- Qualitative materiality
Assumed
- Misstatements are measured by their effect on profit before tax and netted
SA 700Forming the Opinion (SA 700, SA 705, SA 706, SA 570, SA 701)2 included · 2 not included · 2 assumed
Included
- Unmodified, qualified, adverse and disclaimer of opinion
- Emphasis of Matter (SA 706), Material Uncertainty Related to Going Concern (SA 570), Key Audit Matters (SA 701)
Not Included
- Other Matter paragraphs, other information (SA 720), comparatives (SA 710)
- Reporting under section 143(3) of the Companies Act 2013
Assumed
- Pervasive = 5 times overall materiality or more, unless the auditor has judged it in the records
- A going concern uncertainty that is not disclosed is a material misstatement of the disclosures
CAROCompanies (Auditor's Report) Order, 20202 included · 2 not included · 3 assumed
Included
- Applicability: small company and exempt private company tests
- Clauses 3(ii)(a), 3(ii)(b), 3(vii)(a) and 3(xvii)
Not Included
- All other clauses of paragraphs 3 and 4
- Holding and subsidiary company exclusions, banking, insurance, section 8 and one person companies
Assumed
- The company is not a holding or subsidiary company
- Inventory discrepancies: shortages and excesses added without netting, as a percentage of the book value of the items in that class
- Cash loss = profit before tax after corrections + depreciation
2026Audit Notes and What Is New1 included
Included
- Audit cycle, What Is New and what is not covered
MAManagement AccountingAS 3 and textbook methods · 17 forms and worksheets
Applies to the Whole Simulator
- One fictional Indian company per case, budget year 2026-27; amounts in whole rupees.
- Methods follow the standard B.Com and BBA textbook approach used for Indian university and ICAI Intermediate cost and management accounting; the cash flow statement follows AS 3 (Companies (Accounting Standards) Rules, 2021) for companies not on Ind AS.
- Variances: positive = favourable, negative = adverse. Cash flows: inflows positive, outflows negative.
- Education only: not an accounting, ERP or budgeting product, and not professional advice.
WorkManagement Accounting at Work · read me first1 included
Included
- Where each technique is used at work and the sign conventions of the simulator
CVPMarginal Costing and Cost-Volume-Profit Analysis2 included · 1 not included · 3 assumed
Included
- Contribution, P/V ratio, break-even in units and rupees, margin of safety, target profit
- Two or three products with a constant sales mix (composite unit method)
Not Included
- Absorption costing profit reconciliation, step fixed costs, CVP charts
Assumed
- Selling price and variable cost per unit stay the same at every volume (the relevant range)
- Break-even and target units are rounded up to a whole unit (or a whole mix)
- Break-even sales for one product = fixed costs ÷ the exact P/V ratio
What-IfWhat-If Analysis of a Proposal1 included · 1 not included · 1 assumed
Included
- A price, variable cost or fixed cost change for a single-product company, with the expected volume after the change
Not Included
- Price elasticity estimates and competitors' reactions
Assumed
- The expected units after the change are given by the sales team
FlexFlexible Budget at Different Levels of Activity2 included · 1 not included · 2 assumed
Included
- Flexible budget at three capacity levels
- High-low split of a semi-variable cost
Not Included
- Step-fixed costs and regression
Assumed
- Material, labour, direct expenses and variable overhead are fully variable
- Fixed overhead stays the same within the levels shown
BvAActual Results Against the Flexed Budget1 included · 1 not included · 1 assumed
Included
- Budget flexed to the actual output, line-by-line variances and the profit variance
Not Included
- Splitting the sales variance into price and volume parts
Assumed
- The actual selling price may differ from the budget; the difference shows in the sales variance
NotesWorking Notes for the Cash Flow Statement1 included · 1 not included · 2 assumed
Included
- Depreciation, purchase of assets, profit on sale and tax paid worked out from the balance sheets
Not Included
- Bonus shares, revaluation and foreign exchange
Assumed
- Interest is paid in the year it is charged (no interest outstanding)
- The share capital increase is a cash issue
AS 3Cash Flow Statement (AS 3, Indirect Method)1 included · 1 not included · 2 assumed
Included
- AS 3 indirect method for a non-financial company: operating, investing and financing activities
Not Included
- Direct method, extraordinary items, foreign currency cash flows, Ind AS 7
Assumed
- Cash and cash equivalents are cash, bank balances and deposits of up to 3 months
- Interest and dividends received are investing; interest and dividends paid are financing (AS 3 paras 30–34)
Make/BuyDecision: Make or Buy1 included · 1 not included · 1 assumed
Included
- Relevant costing: variable cost, avoidable fixed cost and opportunity cost against the supplier price
Not Included
- Qualitative scoring and long-term contracts
Assumed
- General fixed overhead allocated per unit continues whether the part is made or bought
OrderDecision: Accept a Special Order?1 included · 1 not included · 1 assumed
Included
- Contribution from a one-off order, extra fixed cost and regular sales lost when capacity is short
Not Included
- Effect on the regular price (customers asking for the same discount)
Assumed
- The order needs no selling commission; regular sales lost are lost for good
Key FactorDecision: Best Product Mix With a Key Factor1 included · 1 not included · 1 assumed
Included
- One scarce resource, ranking by contribution per unit of that resource, demand limits
Not Included
- Two or more scarce resources (linear programming)
Assumed
- Only whole units are made; fixed costs do not change with the mix
Shut DownDecision: Shut Down for the Period or Continue1 included · 1 not included · 1 assumed
Included
- Temporary closure for a period: avoidable fixed costs, shutdown and reopening costs, shut-down point
Not Included
- Permanent closure and the sale of assets
Assumed
- Contribution per unit is the same at any volume up to demand
StdStandard Cost Card (per unit of output)1 included · 1 not included · 2 assumed
Included
- Standard cost per unit for materials, labour grades and overheads
Not Included
- Setting standards (time and motion study), revision of standards
Assumed
- Overheads are absorbed on standard labour hours
- Quantities are per unit of good output
MaterialMaterial Variances2 included · 2 not included · 2 assumed
Included
- Price, usage and cost variances for each material
- Mix and yield variances where materials are blended in a standard mix (Advanced)
Not Included
- Price variance at the time of purchase (materials bought but not used)
- Yield variance in terms of output
Assumed
- Material bought = material used, so the price variance is on the quantity used
- Mixed materials are measured in the same unit (kg)
LabourLabour Variances1 included · 2 not included · 1 assumed
Included
- Rate, idle time and efficiency variances for each grade
Not Included
- Labour mix (gang composition) and labour yield variances
- Calendar variance
Assumed
- Idle time is abnormal (not built into the standard), so it is shown as a separate adverse variance
OverheadOverhead Variances2 included · 1 not included · 1 assumed
Included
- Variable overhead expenditure and efficiency
- Fixed overhead expenditure and volume, with volume split into efficiency and capacity
Not Included
- Calendar variance, overheads absorbed on machine hours or units
Assumed
- Variable overhead varies with hours actually worked; idle hours incur no variable overhead
ReconReconciliation of Standard and Actual Cost1 included · 1 not included · 1 assumed
Included
- Standard cost of actual output reconciled to actual cost through the variances
Not Included
- Sales variances and the operating profit statement
Assumed
- There are no opening or closing work-in-progress
CashCash Budget1 included · 1 not included · 2 assumed
Included
- Monthly cash budget with cash and credit sales, collection and payment lags, other receipts and payments, minimum cash balance
Not Included
- Interest on the overdraft, GST and TDS cash flows
Assumed
- History months only feed the lags; the budget starts with the first budget month
- Depreciation and other non-cash items are left out
GCC Operations, Analysis and Planning
GCCGCC Finance OperationsUS GAAP · Amounts in US$ · 25 forms and worksheets
Applies to the Whole Simulator
- One fictional US company per case, one month of calendar 2026. Basic: P2P only. Intermediate: P2P and O2C. Advanced: P2P, O2C and the full R2R close.
- US GAAP, accrual basis, whole US dollars (the GCC's rupee figures appear only in the intercompany workpaper).
- The work is done by the company's own GCC in Hyderabad in the company's ERP. No ERP product is named or imitated.
- Education only: invented companies, vendors, customers and figures.
GRPurchase Orders and Goods Receipts2 included · 1 not included · 1 assumed
Included
- PO lines with quantity, unit price and the account to charge
- Goods receipts this month and units received or invoiced in earlier months
Not Included
- Purchase requisitions, approval limits, blanket POs and services entry sheets
Assumed
- Receipts are valued at the PO price; stock items go to inventory, everything else to expense
DupDuplicate Invoice Check2 included · 1 not included · 1 assumed
Included
- Same vendor and same normalised invoice number, or same vendor, amount and invoice date
- Compared with open AP, the 90-day payment history and earlier invoices this month
Not Included
- Fuzzy matching on vendor names and bank accounts
Assumed
- Invoices are checked in invoice-date order; the first one is kept
3-WayThree-Way Match: PO, Receipt and Invoice3 included · 1 not included · 2 assumed
Included
- Quantity: billed to date may not exceed received to date
- Price: above the PO only within the percentage tolerance and the dollar cap
- Approved invoices clear GRNI at the PO price; the difference goes to purchase price variance
Not Included
- Freight and tax lines, partial price changes, two-way match for services, evaluated receipt settlement
Assumed
- One invoice line per PO line
- An invoice that fails is held, not posted
Non-PONon-PO Invoices and Approvals1 included · 1 not included · 1 assumed
Included
- Invoices without a PO approved by the budget owner
Not Included
- Approval limits and delegation of authority
Assumed
- Approval is shown in the record as Yes or No
GRNIGRNI: Goods Received Not Invoiced1 included · 1 not included · 1 assumed
Included
- Open GRNI by PO line, the GRNI rollforward and the tie-out
Not Included
- Clearing very old GRNI lines
Assumed
- GRNI is a real ledger account (not a manual accrual)
Pay RunPayment Run and Early-Payment Discounts3 included · 1 not included · 2 assumed
Included
- Pay if a discount is still available on the run date, or if the due date is on or before the next run
- Payment blocks for disputes and for vendor bank-detail verification
- Discounts lost and the annualised cost of skipping a discount
Not Included
- Cash forecasting, positive pay files, foreign-currency payments
Assumed
- Due and discount dates count from the invoice date
- Gross method for purchase discounts
APVendor Aging and the AP Control Account1 included · 1 not included · 1 assumed
Included
- Vendor aging by days past due and the AP control account
Not Included
- Debit balances, vendor statement reconciliations
Assumed
- Aging is measured at the month end from the due date
JEP2P Journal Entries for the Month1 included · 1 assumed
Included
- Goods receipt, invoice, non-PO and payment journals
Assumed
- Journals are summarised by account
BillBilling and Revenue1 included · 1 not included · 1 assumed
Included
- Customer invoices for goods shipped this month and the cost of goods sold at standard cost
Not Included
- Sales tax, freight billed to customers, multiple performance obligations
Assumed
- Revenue at shipment (ASC 606, point in time)
Cash AppCash Application, Short Payments and Deductions1 included · 1 not included · 2 assumed
Included
- Full and partial payments, valid and invalid deductions, early-payment discounts, unapplied cash and overpayments
Not Included
- Lockbox file formats, chargebacks to sales teams, refunds
Assumed
- Pricing and damage deductions are valid only with approved backup
- A discount is valid only if paid within the discount period
ARCustomer Aging, AR Control and DSO1 included · 1 not included · 1 assumed
Included
- Approved write-offs, customer aging with unapplied cash, the AR control account, DSO and the past-due share
Not Included
- Average-balance and count-back DSO methods
Assumed
- DSO = closing AR ÷ this month's credit sales × days in the month
ReserveBad-Debt Reserve from the Aging1 included · 1 not included · 1 assumed
Included
- Aging (loss-rate) method for the allowance and the top-up or release
Not Included
- Customer-specific reserves and forward-looking adjustments
Assumed
- Unapplied cash is not reserved; the loss rates are the company's policy for the case
CreditCredit Limits and Credit Holds1 included · 1 not included · 1 assumed
Included
- Exposure = open AR + open orders; hold if over the limit or an invoice is more than the policy days past due
Not Included
- Credit scoring, credit insurance, letters of credit
Assumed
- Unapplied cash reduces the open AR
JEO2C Journal Entries for the Month1 included
Included
- Billing, cost of sales, receipts, credit memos, write-offs and the reserve adjustment
AccrualsAccruals and Reversals1 included · 1 not included · 1 assumed
Included
- Auto-reversing accruals and new month-end accruals from quantity × rate
Not Included
- Bonus, payroll and tax accruals
Assumed
- Every accrual reverses on day 1 of the next month
PrepaidPrepaid Expense Amortisation1 included · 1 not included · 1 assumed
Included
- Straight-line amortisation, new prepayments paid this month
Not Included
- Prepaids paid through AP
Assumed
- The start month counts as a full month; the last month takes the rounding
FAFixed Asset Additions and Depreciation1 included · 1 not included · 1 assumed
Included
- Capitalisation threshold, straight-line depreciation with salvage value, fully depreciated assets
Not Included
- Disposals, impairment, construction in progress, tax depreciation
Assumed
- Full month of depreciation in the month placed in service
ICIntercompany Reconciliation with GCC India1 included · 1 not included · 2 assumed
Included
- USD intercompany payable to the GCC, invoices and payments in transit, the US cut-off entry and the GCC's rupee remeasurement
Not Included
- Transfer pricing mark-up calculation, withholding tax and GST on the GCC's export of services, consolidation entries
Assumed
- The GCC invoices in US dollars; both sides agreed the balance at last month end
- Exchange rates are illustrative
Bank RecBank Reconciliation1 included · 1 not included · 1 assumed
Included
- Deposits in transit, outstanding checks, interest and bank fees
Not Included
- Bank errors, stale checks, returned (NSF) customer payments
Assumed
- ACH payments and wires clear the same day; the bank statement is dated the last day of the month
JEMonth-End Close Journal Entries1 included · 1 not included
Included
- Accrual reversal, accruals, prepaids, equipment, depreciation, bank items and intercompany entries
Not Included
- Income tax and payroll journals
TBOpening and Closing Trial Balance1 included · 1 assumed
Included
- Opening trial balance and the trial balance after all journals
Assumed
- Income statement accounts start the month at zero; earlier months' profit is in retained earnings
P&LIncome Statement for the Month1 included · 1 not included · 1 assumed
Included
- Monthly income statement before income taxes
Not Included
- Income taxes, other comprehensive income
Assumed
- Purchase price variance is reported in gross profit
BS RecsBalance Sheet Account Reconciliations1 included · 1 not included · 1 assumed
Included
- Ten balance sheet accounts reconciled to independent support
Not Included
- Risk ratings and reconciliation frequency
Assumed
- Inventory support is the stock ledger: opening + receipts − cost of goods sold
CloseClose Checklist and Dashboard1 included
Included
- Key P2P, O2C and R2R measures and the close checklist
2026GCC Finance Operations Notes1 included
Included
- GCC words, What Is New and what is not covered
RatioFinancial AnalysisSchedule III · ₹ lakh · 13 forms and worksheets
Applies to the Whole Simulator
- One fictional company per case, with two (Basic) or three (Intermediate and Advanced) years of statements ending 31 March 2026, in ₹ lakh.
- Textbook methods used in B.Com, BBA and CA/CMA Foundation courses in India; the method chosen for each ratio is stated on its rule card.
- Education only: not investment, credit or audit advice. Every company, person and figure is invented.
Sch IIIFinancial Statements · Schedule III Summary (₹ Lakh)2 included · 2 not included · 2 assumed
Included
- Statement of profit and loss and balance sheet in the Schedule III (Division I) summary format for two or three years
- Analyst lines: gross profit, operating EBITDA, EBIT and total borrowings
Not Included
- Notes to accounts, exceptional items, discontinued operations, deferred tax lines
- Cash flow statement
Assumed
- Cost of materials consumed, purchases of stock-in-trade and change in inventories are shown as one line
- Other current assets include short-term loans and advances
CompComparative Statements · Previous Year vs Current Year1 included · 1 not included · 1 assumed
Included
- Absolute and percentage change for the main lines
Not Included
- Comparative statements for more than two years at once
Assumed
- When the previous year is negative, the % change divides by its size without the minus sign
CommonCommon-Size Statements1 included · 1 not included · 1 assumed
Included
- Common-size statement of profit and loss (% of revenue from operations) and balance sheet (% of total assets) for both years
Not Included
- Common-size comparison with another company (inter-firm)
Assumed
- Revenue from operations, not total income, is the 100% base
TrendTrend Percentages · Base Year = 1002 included · 1 not included · 1 assumed
Included
- Trend percentages with the first year as base
- CAGR of revenue and profit
Not Included
- Trend lines for items whose base year is zero or negative
Assumed
- Three years of statements
LiqLiquidity and Solvency Ratios (Current Year, Year-End Balances)3 included · 1 not included · 2 assumed
Included
- Working capital, current, quick and cash ratios
- Debt-equity, proprietary ratio and interest coverage
- Net debt and net debt to EBITDA (Advanced)
Not Included
- Debt service coverage ratio (needs instalment schedules)
Assumed
- Quick assets = current assets − inventories
- Debt = long-term + short-term borrowings; current maturities sit inside short-term borrowings
ReturnsProfitability and Return Ratios1 included · 1 not included · 2 assumed
Included
- ROA, ROE, capital employed and ROCE
Not Included
- Return on investment for treasury investments
Assumed
- Capital employed = shareholders' funds + long-term borrowings
- Year-end or average balances as set in the company profile
TurnoverTurnover Ratios and the Cash Conversion Cycle3 included · 1 not included · 2 assumed
Included
- Inventory, receivables and payables turnover and days
- Cash conversion cycle
- Total and fixed asset turnover
Not Included
- Net capital (working capital) turnover
Assumed
- 365 days
- All revenue is credit sales; cost of goods sold stands in for credit purchases
DuPontDuPont Analysis · What Drives ROE?1 included · 1 not included · 1 assumed
Included
- Three-step DuPont: margin × turnover × leverage
Not Included
- Five-step DuPont (tax burden and interest burden)
Assumed
- The factors use the rounded figures from the earlier workpapers
MarketMarket and Shareholder Ratios1 included · 1 not included · 2 assumed
Included
- EPS, book value per share, P/E, P/B, payout, retention and dividend yield
Not Included
- Diluted EPS, bonus or split adjustments, weighted average shares
Assumed
- Number of shares did not change during the year
- Market price is the closing price on the analysis date
ValueSimple Valuation · EV/EBITDA and P/E Methods2 included · 1 not included · 1 assumed
Included
- Market capitalisation, enterprise value, EV/EBITDA
- Implied value per share by peer EV/EBITDA and peer P/E, and their simple average
Not Included
- Discounted cash flow, control premium, minority adjustments
Assumed
- Peer multiples are given; a real analyst would choose and clean the peer group
ZAltman Z-Score (Original 1968 Model, a Teaching Tool)1 included · 1 not included · 2 assumed
Included
- Original 1968 Altman Z-score with its five ratios and zones
Not Included
- Z' (private firms) and Z'' (non-manufacturing / emerging markets) variants
Assumed
- Reserves and surplus stand in for retained earnings; revenue from operations for sales
- Used as a teaching tool for all companies here, though it was built for listed manufacturers
DashOne-Page Dashboard · Flags1 included · 1 not included · 1 assumed
Included
- Checks against rules of thumb, flag count and overall view
Not Included
- Industry-specific benchmarks
Assumed
- Thresholds are teaching assumptions stated on each rule card
NotesMethods and Notes1 included
Included
- Methods, rules of thumb and what is not covered
FP&AFP&A BudgetingFY 2026-27 budget · 9 forms and worksheets
Applies to the Whole Simulator
- One budget year of a fictional Indian company: FY 2026-27 (April 2026 to March 2027), amounts in rupees with Indian digit grouping.
- Intermediate and Advanced add H1 actuals (April to September 2026), a variance report and a 6 + 6 rolling forecast; Advanced adds scenarios, a bonus pool, the WDV method and a target-gap check.
- Method: the standard driver-based budgeting method taught in B.Com and BBA (Business Analytics) courses and used by FP&A teams. Not any planning software product.
- Education only. Every company, person and figure is fictional.
RevenueRevenue and COGS Budget (Driver-Based)3 included · 3 not included · 2 assumed
Included
- Volume × price revenue for each product or service line, with volume growth and price change
- New product launches from a launch month (monthly volume × months on sale)
- Cost of goods sold = volume × variable cost per unit, with input-cost inflation
Not Included
- Discounts, returns and channel rebates
- Revenue recognition timing (Ind AS 115 / AS 9) and GST: budget revenue is net of GST
- Monthly phasing of the annual budget (only H1 phasing at Intermediate and Advanced)
Assumed
- Units and prices are rounded to whole numbers before multiplying
- Cost per unit is a fully variable cost: no fixed production overheads are inside COGS
PeopleHeadcount and Salary Budget4 included · 3 not included · 3 assumed
Included
- Opening headcount, attrition (leavers), new joiners and closing headcount by department
- Annual increment from a chosen month
- Salary cost (CTC) by month-count method
- Bonus pool as a % of salary (Advanced)
Not Included
- Statutory cost breakdown (PF, ESI, gratuity actuarial valuation): CTC is taken as the full cost to the company
- Notice-period recoveries, leave encashment and arrears
- Payroll taxes and TDS (see the India Payroll Simulator)
Assumed
- A joiner in month m is paid 13 − m months; a leaver who exits at the end of month m is paid m months
- Joiners get no increment in their first year; leavers come from the opening staff
- Per-head costs and revenue per employee use year-end headcount
OpexOperating Expense (Opex) Budget3 included · 2 not included · 1 assumed
Included
- Fixed costs (last year + inflation)
- Costs as a % of revenue
- Per-head costs × year-end headcount
Not Included
- Zero-based budgeting line by line
- GST input credit: opex is budgeted net of recoverable GST
Assumed
- Each line follows one driver only
CapexCapex Plan and Depreciation4 included · 2 not included · 2 assumed
Included
- Capex total
- Straight-line depreciation with residual value and useful life (Companies Act 2013 Schedule II)
- Written down value method at a given rate (Advanced)
- Depreciation on existing assets from the fixed asset register
Not Included
- Capital work in progress, borrowing costs, asset disposals
- Income-tax depreciation (block of assets) and deferred tax
Assumed
- Full month of depreciation in the month the asset is put to use
- Capex is paid in the month of purchase (cash flow not modelled)
P&LBudgeted Statement of Profit and Loss · FY 2026-273 included · 2 not included · 2 assumed
Included
- Budgeted statement of profit and loss down to profit after tax, using Schedule III line names in a management (EBITDA) layout
- Finance costs on a term loan
- Tax at the budget rate on profit before tax
Not Included
- Other income, exceptional items, OCI
- Deferred tax, MAT credit, loss carry-forward
Assumed
- Tax rate 25.168% where the company has opted for s. 115BAA (22% + 10% surcharge + 4% cess)
- No tax is budgeted on a loss
H1H1 Actual vs Budget (April–September 2026) and Flux Review5 included · 2 not included · 2 assumed
Included
- H1 budget by phasing % of the annual budget
- Variance with the correct sign for income and cost lines
- Variance % of budget
- Flux rule: explain only when both the % and the amount thresholds are crossed
- Commentary from budget owners
Not Included
- Price-volume-mix analysis of revenue
- Standard costing variances (see the Management Accounting Simulator)
Assumed
- Actuals are final, after the H1 close
- Derived lines (gross profit, EBITDA, EBIT) are worked out from the base lines, never phased separately
6 + 6Rolling Forecast (6 + 6) · Latest Estimate vs Budget4 included · 2 not included · 1 assumed
Included
- H2 budget = annual − H1 budget
- H2 forecast = H2 budget × the owner's outlook %
- Full-year forecast = H1 actual + H2 forecast
- Forecast vs annual budget
Not Included
- Monthly 3 + 9 or 9 + 3 forecasts
- Re-budgeting (the budget stays fixed; the forecast moves)
Assumed
- One outlook % per line for the whole of H2
What-IfScenario Analysis · Base, Best and Worst Case2 included · 2 not included · 1 assumed
Included
- Best and worst cases built by flexing volume, price, unit cost and fixed costs
- EBITDA margin and EBITDA change from the base case
Not Included
- Probability-weighted scenarios, Monte Carlo
- Working capital and cash impact of each scenario
Assumed
- Employee and other expenses are treated as fixed for the scenario; they change only by the fixed-cost %
KPIsKPI Dashboard for the Budget Review3 included · 1 not included · 1 assumed
Included
- Revenue growth, gross margin, EBITDA margin, PAT margin, employee cost %, revenue per employee
- Target EBITDA gap (Advanced)
- Yes/No flags for management attention
Not Included
- Balance sheet and cash KPIs (see the Financial Analysis Simulator)
Assumed
- Margins use budgeted revenue; percentages to two decimals
WCWorking Capital and Credit AppraisalIndian bank lending methods · 13 forms and worksheets
Applies to the Whole Simulator
- A fictional borrower in Telangana applies to a fictional bank for a working capital limit and, at Advanced level, a term loan.
- Methods: standard B.Com/BBA financial management and bank officer exam methods (operating cycle, estimation, turnover method, Tandon MPBF, cash budget, drawing power, credit policy evaluation, EMI, DSCR).
- Lending norms are the case's own (a fictional bank's loan policy) and can be changed in the records. Education only: not credit advice and not any bank's system.
ProposalLoan Proposal and Balance Sheet Groups2 included · 2 not included · 2 assumed
Included
- Working capital limit and term loan asked for
- Balance sheet regrouped into current assets, other current liabilities, bank borrowings, net working capital and total outside liabilities
Not Included
- Detailed CMA data forms
- Intangible assets and investments (assumed already removed from net worth)
Assumed
- The balance sheet is the estimate for the year of assessment, as accepted by the bank
- Term loan instalments due within 12 months are treated as current liabilities (banker's practice)
CycleOperating Cycle · How Long Money Stays Locked Up2 included · 1 not included · 2 assumed
Included
- Raw material, WIP, finished goods, debtors and creditors periods
- Gross and net operating cycle; cycles in a year
Not Included
- Separate cash and credit purchase analysis
Assumed
- A 365-day year
- Averages are (opening + closing) ÷ 2; days are rounded to whole days and the cycle adds the rounded days
EstimateEstimate of Working Capital Requirement2 included · 2 not included · 3 assumed
Included
- Estimation of working capital requirement from a cost budget: stocks, WIP at stage of completion, debtors, cash, creditors and lags in wages and overheads
- Safety margin
Not Included
- Depreciation (not a cash cost)
- Debtors at selling price (the alternative method)
Assumed
- Debtors are valued at cost
- Purchases equal consumption; all purchases are on credit
- Months are converted with ÷ 12
NayakTurnover Method for Small Units (Nayak Committee)3 included · 1 not included · 2 assumed
Included
- Turnover method: 25% need, 5% margin, 20% bank finance
- Assessed limit as the lower of 20% of turnover and 25% of turnover less actual NWC
- Margin shortfall
Not Included
- The alternative higher limit by the operating cycle method that RBI allows
Assumed
- Projected turnover is as accepted by the bank
- The method is for fund-based limits up to ₹5 crore
MPBFMaximum Permissible Bank Finance · Tandon Methods I, II and III3 included · 1 not included · 2 assumed
Included
- Working capital gap
- MPBF by Methods I, II and III
- Shortfall in NWC, excess borrowing, current ratio at MPBF
Not Included
- Inventory and receivables holding norms by industry
Assumed
- Current assets are within the bank's holding norms
- Method II is used for the assessed limit; a negative MPBF means nil
CashCash Budget · Month by Month3 included · 1 not included · 2 assumed
Included
- Cash sales, collections by an ageing pattern, other receipts
- Payments with or without one month's supplier credit
- Closing balance against minimum cash; peak finance needed
Not Included
- Interest on the bank borrowing itself
Assumed
- The budget is drawn up before any bank borrowing, so a shortfall shows the finance needed
- Sales not collected within two months are bad debts
DPDrawing Power From the Stock Statement2 included · 1 not included · 1 assumed
Included
- Paid stock, margins on stock and book debts, 90-day cut-off
- Available limit, excess drawing and headroom
Not Included
- Separate margins for different stock types; stock audit findings
Assumed
- Margins are the bank's; creditors are all for goods in stock
DebtorsReceivables Management · Should the Credit Policy Change?2 included · 1 not included · 2 assumed
Included
- Contribution, investment in debtors at variable cost, cost of funds, bad debts, collection costs and cash discount
- Incremental (change) analysis and the decision
Not Included
- Taxes and the time value of the discount period
Assumed
- A 365-day year
- Fixed costs do not change with the credit policy
EMITerm Loan · Means of Finance, EMI and Repayment Schedule3 included · 1 not included · 2 assumed
Included
- Means of finance and promoter's margin
- EMI on monthly reducing balance, or equal yearly principal with interest on the opening balance
- Year-by-year schedule
Not Included
- Moratorium, upfront fees, floating rate resets
Assumed
- First EMI one month after disbursement at the start of Year 1
- EMI schedules use the exact EMI (as a spreadsheet does); yearly figures are rounded to the rupee
DSCRDebt Service Coverage and Loan Eligibility3 included · 2 not included · 2 assumed
Included
- Cash available for debt service, yearly DSCR, average and minimum DSCR
- Interest coverage in Year 1
- Loan eligibility by margin and by DSCR
Not Included
- Sensitivity analysis, break-even DSCR
- Tax effect of a smaller loan on the DSCR limit
Assumed
- Average DSCR = total cash available ÷ total debt service
- Projections run for the loan period
RatiosCredit Ratios From the Balance Sheet1 included · 1 not included · 1 assumed
Included
- Current ratio, quick ratio, TOL/TNW
Not Included
- Debt-equity on long-term funds, fixed asset coverage ratio
Assumed
- Ratios are rounded to two decimals before they are compared with the norms
DecisionCredit Appraisal Note · Sanction, Modify or Reject2 included · 1 not included · 2 assumed
Included
- Tests against the bank's norms
- Recommended limits and the decision: sanction, modify or reject, with reasons
Not Included
- Security, collateral, credit rating, CIBIL score and site visit
Assumed
- Deal-breakers (reject): current ratio below 1.00, TOL/TNW more than 1.00 above the norm or nil net worth, average DSCR below 1.00
- Any other failed test, or an amount above the assessed limit, gives "modify"
NotesMethods Used and Recent Changes1 included
Included
- Methods, sources, recent changes and what is not covered
PlanBusiness Plan and Startup FinanceFY 2026-27 onwards · 14 forms and worksheets
Applies to the Whole Simulator
- A fictional student startup in Hyderabad, planned for three years: Year 1 = FY 2026-27, Year 2 = FY 2027-28, Year 3 = FY 2028-29.
- Standard B.Com/BBA textbook methods for a project report; amounts in whole rupees; GST left out of prices and costs.
- Education only: not financial, legal or tax advice. Every name and figure is fictional.
CostProject Cost3 included · 3 not included · 1 assumed
Included
- Fixed assets at cost
- Preliminary and pre-operative expenses
- Working capital margin money
Not Included
- Land and buildings
- Contingency provision
- GST on capital goods (assumed claimed as input tax credit)
Assumed
- All fixed assets are bought and paid for before Year 1 starts
FinanceMeans of Finance2 included · 2 not included · 1 assumed
Included
- Term loan, grant or subsidy and promoters' contribution
- Promoters' margin and debt-equity ratio
Not Included
- Unsecured loans from friends and family
- Cash credit or overdraft
Assumed
- The grant is received before the start and is treated as owners' funds (capital reserve)
SLMFixed Assets and Depreciation (Straight-Line Method)1 included · 3 not included · 1 assumed
Included
- Straight-line depreciation with residual value
Not Included
- Written-down value method
- Depreciation under the Income-tax Act
- Part-year depreciation
Assumed
- Assets are put to use on the first day of Year 1, so a full year's depreciation is charged
FixedFixed Operating Costs Budget3 included · 1 not included · 1 assumed
Included
- Rent, salaries, marketing, utilities, software and other fixed costs
- Costs that start in a later year
- Cost inflation from Year 2
Not Included
- Semi-variable costs
Assumed
- Inflation is compounded on the Year 1 rate and rounded to the rupee each year
EMITerm Loan and EMI Schedule3 included · 1 not included · 1 assumed
Included
- EMI by the reducing-balance formula
- Interest-only moratorium at the start
- Yearly interest and principal from the monthly schedule
Not Included
- Processing fees, prepayment, floating-rate changes
Assumed
- The loan is drawn in full on day one; the first instalment is paid at the end of month 1
PriceUnit Cost and Selling Price (Year 1)3 included · 1 not included · 1 assumed
Included
- Variable and fixed cost per unit
- Cost-plus pricing grossed up for commission
- Market price check
Not Included
- Price discrimination, discounts and GST in price
Assumed
- One product or service, sold at one price in a year
BEPBreak-Even Point and Margin of Safety (Year 1)3 included · 1 not included · 1 assumed
Included
- Break-even in units and rupees
- Margin of safety
- Cash break-even (Intermediate and Advanced)
Not Included
- Multi-product break-even
Assumed
- Fixed costs include depreciation and interest; one-off pre-operative expenses are left out
P&LProjected Profit and Loss Account (3 Years)3 included · 1 not included · 2 assumed
Included
- Volume growth, price rise and cost inflation
- Tax on book profit with losses carried forward (s.72)
- Net profit margin
Not Included
- Deferred tax, MAT, s.80-IAC deduction
Assumed
- Tax depreciation equals book depreciation
- Tax is paid in the same year
AS 3Projected Cash Flow Statement (Indirect Method)3 included · 1 not included · 1 assumed
Included
- Indirect method (AS 3)
- Working capital changes (Advanced)
- Equity raised and loan repayments
Not Included
- Dividends and new capital expenditure
Assumed
- Pre-operative expenses were paid before Year 1 from the project funds
BSProjected Balance Sheet2 included · 1 not included · 1 assumed
Included
- Owners' funds, term loan and trade payables
- Net block, receivables and cash
Not Included
- Stock (inventory), GST balances, provisions
Assumed
- No dividends; all profit is retained
DSCRDebt Service Coverage Ratio (Bank View)1 included · 1 not included · 1 assumed
Included
- Year-wise and average DSCR
Not Included
- Other loans and lease payments
Assumed
- Non-cash write-offs (pre-operative expenses) are added back to cash available
NPVInvestment Appraisal · Payback, NPV and IRR1 included · 1 not included · 3 assumed
Included
- Payback, NPV with a terminal value, profitability index, IRR by interpolation
Not Included
- Discounted payback, modified IRR, sensitivity tables
Assumed
- Initial investment = total project cost at Year 0
- Terminal value = Year 3 cash flow × the multiple given
- Tax actually paid is used in the project cash flow
CapFunding Round: Valuation, Dilution and ESOP Pool3 included · 1 not included · 1 assumed
Included
- Pre-money and post-money valuation
- ESOP pool created before the round (option pool shuffle)
- Cap table and founders' dilution
Not Included
- Convertible notes, liquidation preferences, anti-dilution clauses
Assumed
- The round closes on the first day of Year 2 and the money stays in the bank
NotesStartup India, MSME (Udyam) and Notes1 included
Included
- Methods, tax rates, Startup India and Udyam context, and what is not covered
FMFinancial ManagementTextbook Method · ₹ · 23 forms and worksheets
Applies to the Whole Simulator
- A fictional Indian company, standard B.Com Financial Management textbook methods; amounts in rupees with Indian digit grouping.
- Rates in % with two decimals; PV factors to three decimals; compound and annuity factors to four decimals.
- Education only: not investment, tax or financial advice. Every name and figure is fictional.
FVCompound Interest and Future Value3 included · 2 not included · 1 assumed
Included
- Compound interest with yearly, half-yearly, quarterly or monthly compounding
- Simple interest for comparison
- Effective annual rate
Not Included
- Tax deducted at source on interest
- Premature withdrawal penalties
Assumed
- Interest is reinvested at the same rate until maturity
PVPresent Value and a Savings Goal2 included · 1 not included · 1 assumed
Included
- Present value of a single future amount
- Sinking fund (equal saving at year end)
Not Included
- Inflation
Assumed
- Annual compounding at a constant rate
AnnuityAnnuities: Future Value, Present Value and a Lump-Sum Offer3 included · 2 not included · 1 assumed
Included
- Ordinary annuity and annuity due
- Future value and present value
- Comparison with a lump-sum offer
Not Included
- Growing annuities
- Perpetuities
Assumed
- Payments are equal and the rate does not change
EMIEquated Monthly Instalment (EMI) on a Loan3 included · 1 not included · 1 assumed
Included
- EMI by the reducing-balance formula
- Total interest
- Split of the first EMI
Not Included
- Processing fees, prepayment, floating rates
Assumed
- Interest is charged monthly on the balance outstanding
CFATCapital Budgeting 1 · Cash Flows After Tax of the Project3 included · 1 not included · 2 assumed
Included
- Straight-line depreciation with scrap value
- Tax on profit
- Cash flow after tax with scrap in the final year
Not Included
- Working capital, inflation, tax depreciation (WDV) for this project
Assumed
- Cash flows arrive at the end of each year
- The company pays tax on other profits, so the tax rate applies in every year
PBCapital Budgeting 2 · Payback Period and Accounting Rate of Return2 included · 2 not included · 2 assumed
Included
- Payback period with uneven cash flows
- Accounting rate of return on average investment
Not Included
- Payback reciprocal
- ARR on initial investment
Assumed
- Cash flows are spread evenly within a year (for the fraction of the payback year)
- Scrap value is part of the final year's inflow
NPVCapital Budgeting 3 · NPV, Discounted Payback and Profitability Index1 included · 1 not included · 2 assumed
Included
- NPV, PI and discounted payback
Not Included
- IRR for this project (see Intermediate)
Assumed
- PV factors rounded to three decimals
- Initial outlay at the start (Year 0)
KdCost of Capital 1 · Cost of Debt (Term Loan and Redeemable Debentures)2 included · 2 not included · 1 assumed
Included
- Term loan after tax
- Redeemable debentures by the approximation formula
Not Included
- Exact YTM by trial and error
- Irredeemable debt
Assumed
- Interest is fully tax-deductible at the company's tax rate
KpCost of Capital 2 · Cost of Redeemable Preference Shares1 included · 1 not included · 1 assumed
Included
- Redeemable preference shares by the approximation formula
Not Included
- Irredeemable and participating preference shares
Assumed
- No tax saving on preference dividend
KeCost of Capital 3 · Cost of Equity (Gordon and CAPM) and Retained Earnings3 included · 2 not included · 2 assumed
Included
- Dividend growth (Gordon) model
- CAPM
- Retained earnings at Ke
Not Included
- Flotation cost on new equity
- Personal tax adjustment to Kr
Assumed
- Growth is constant for ever
- Kr = Ke
WACCCost of Capital 4 · Weighted Average Cost of Capital (Book Value Weights)1 included · 1 not included · 1 assumed
Included
- Book value weights from the balance sheet
Not Included
- Marginal cost of capital
Assumed
- Retained earnings shown separately at Kr
WACCCost of Capital 5 · Weighted Average Cost of Capital (Market Value Weights)1 included · 1 not included · 3 assumed
Included
- Market value weights
Not Included
- Re-computing component costs at market prices
Assumed
- Market value of equity covers the reserves too
- A term loan is taken at book value
- The same component costs are used with both sets of weights
DOLLeverage · Operating, Financial and Combined2 included · 1 not included · 1 assumed
Included
- DOL, DFL (with preference dividend) and DCL
- Effect of a change in sales on EBIT and EPS
Not Included
- Leverage at break-even (infinite DOL)
Assumed
- DCL = DOL × DFL using the rounded figures
EBIT-EPSEBIT-EPS Analysis · Choosing Between Two Financing Plans2 included · 1 not included · 2 assumed
Included
- Plan A all equity vs Plan B debt and equity
- Indifference EBIT and EPS
Not Included
- Graphs and financial break-even point
Assumed
- Existing interest and preference dividend continue
- New shares issued at the price given (whole numbers)
NPVMutually Exclusive Projects 1 · NPV and Profitability Index1 included · 1 not included · 1 assumed
Included
- NPV and PI of two mutually exclusive projects
Not Included
- Unequal lives (equivalent annual annuity)
Assumed
- Both projects have the same life
IRRMutually Exclusive Projects 2 · IRR by Interpolation and the NPV-IRR Conflict2 included · 3 not included · 1 assumed
Included
- IRR by linear interpolation
- NPV-IRR conflict
Not Included
- Exact IRR by spreadsheet
- Modified IRR
- Incremental IRR
Assumed
- Trial rates given in the case bracket the IRR
TheoryCapital Structure Theories · Net Income and Net Operating Income Approaches1 included · 2 not included · 3 assumed
Included
- Net Income and Net Operating Income approaches
Not Included
- Traditional approach
- MM with taxes
Assumed
- No taxes
- All earnings paid out
- Debt is perpetual
DivDividend Decisions 1 · Walter and Gordon Models1 included · 1 not included · 3 assumed
Included
- Walter and Gordon models at three payout ratios
Not Included
- Linter model
Assumed
- All financing from retained earnings
- r and Ke constant
- Gordon needs Ke > br
MMDividend Decisions 2 · Modigliani-Miller Dividend Irrelevance1 included · 1 not included · 2 assumed
Included
- MM dividend irrelevance with a new share issue
Not Included
- Taxes, issue costs, information effects
Assumed
- Perfect capital markets
- Investment and earnings the same under both policies
RationCapital Rationing · Divisible Projects Ranked by Profitability Index2 included · 2 not included · 1 assumed
Included
- Divisible projects ranked by PI
- Comparison with ranking by NPV
Not Included
- Indivisible projects (combinations)
- Multi-period rationing
Assumed
- A part of a project gives NPV in proportion
RiskRisk in Capital Budgeting · Certainty Equivalent and Risk-Adjusted Discount Rate2 included · 2 not included · 1 assumed
Included
- Certainty-equivalent method
- Risk-adjusted discount rate method
Not Included
- Sensitivity, scenario and simulation analysis
- Decision trees
Assumed
- Coefficients and the risk premium are set by the management (given)
ReplaceReplacement Decision 1 · Net Outlay and Incremental Cash Flows3 included · 3 not included · 2 assumed
Included
- Net outlay after the sale of the old machine
- Incremental depreciation on the block (WDV)
- Incremental scrap values
Not Included
- Working capital changes
- Capital gains on the sale (block assumed to continue)
- Half-rate depreciation for assets used under 180 days
Assumed
- Same remaining life for old and new
- Savings are the same every year
NPVReplacement Decision 2 · Incremental NPV and the Decision1 included · 1 not included · 1 assumed
Included
- Incremental NPV and the decision
Not Included
- IRR of the replacement
Assumed
- PV factors rounded to three decimals
InvestInvestment Analysis and Financial MarketsFY 2025-26 · ₹ · 21 forms and worksheets
Applies to the Whole Simulator
- Fictional investors, companies, funds, bonds and prices in India; trades and holdings in FY 2025-26.
- Statutory rates (STT, stamp duty, SEBI fee, GST, TDS, capital gains tax) as in force for FY 2025-26; methods as taught in B.Com investment analysis and financial markets courses.
- Education only: not investment advice and not any broker's, exchange's, depository's or fund's system.
ContractContract Note · Charges, Net Amounts and the Settlement Obligation3 included · 3 not included · 2 assumed
Included
- Delivery and intraday equity trades on one day
- Brokerage with a per-order cap, STT, exchange transaction charge, SEBI fee, stamp duty and GST
- Net amount per trade, net rate per share, net obligation and cost of trading
Not Included
- Depository (DP) charges, which the broker bills separately on sales
- Investor protection fund levy (a few paise per crore)
- Auction and short-delivery penalties
Assumed
- Charges worked trade by trade and rounded to paise; STT rounded to the nearest rupee on each trade
- Brokerage cap applies per executed order
HPRReturn on a Holding · HPR, Yields and Annualised Return2 included · 2 not included · 1 assumed
Included
- Capital gain, dividend yield, holding period return
- Simple and compound annualised return
Not Included
- Tax on the gain (see the capital gains task)
- Brokerage on buying and selling
Assumed
- Months held are whole months
DividendDividends Received · Rate on Face Value, TDS and Dividend Yield1 included · 2 not included · 2 assumed
Included
- Dividend per share as a % of face value, gross dividend, TDS under s. 194, net dividend, dividend yield
Not Included
- Dividends from mutual funds (IDCW) and from foreign companies
- Lower TDS certificates and Form 15G/15H
Assumed
- PAN furnished; each company pays the dividend once in the year
- TDS shown in whole rupees
RightsRights Issue · Entitlement, TERP, Value of a Right and Your Choices1 included · 1 not included · 2 assumed
Included
- Entitlement, cash needed, TERP, value of a right, wealth under the three choices
Not Included
- Brokerage on selling rights entitlements; tax on rights
Assumed
- Holding is a multiple of the ratio, so there are no fractions
- Rights entitlements can be sold at their theoretical value
BonusBonus Issue and Stock Split · Adjusting Shares, Price and Cost1 included · 2 not included · 1 assumed
Included
- Bonus shares and stock splits: new holding, adjusted price, adjusted cost, value before and after
Not Included
- Income-tax cost of bonus shares (nil) and holding periods of bonus shares
- Consolidation of shares
Assumed
- Holding is a multiple of the ratio; the market prices the shares at the theoretical price
NAVMutual Fund NAV · From the Scheme's Assets to NAV per Unit1 included · 1 not included · 1 assumed
Included
- Total assets, liabilities, net assets and NAV per unit
Not Included
- Valuation of individual securities and expense ratio limits
Assumed
- Figures in whole rupees; NAV to four decimals
Lump SumMutual Fund Lump Sum · Stamp Duty, Units, Exit Load and Return1 included · 2 not included · 1 assumed
Included
- Stamp duty on purchase, units allotted, redemption value, exit load, net proceeds, return
Not Included
- Tax on the gain and STT of 0.001% on redemption of equity fund units (a few rupees)
- Direct and regular plan commissions
Assumed
- All units are redeemed together; exit load applies only if months held are less than the load period
SIPSystematic Investment Plan · Units Month by Month and Rupee Cost Averaging1 included · 1 not included · 1 assumed
Included
- Stamp duty and units for each instalment, total units, average cost, average NAV, value and absolute return
Not Included
- XIRR (the yearly return a spreadsheet gives for uneven cash flows)
Assumed
- Units rounded to three decimals each month; equal instalments
BondBond Valuation · Price, Current Yield, YTM, Accrued Interest1 included · 2 not included · 2 assumed
Included
- Value from coupons and redemption at par, decision, current yield, approximate YTM, accrued interest and dirty price
Not Included
- Exact YTM by trial and error, duration and convexity
- Redemption at a premium, call options
Assumed
- Next coupon is a full period away (valuation on a coupon date); accrued interest uses 30/360
- Approximate YTM uses (F + P) ÷ 2 in the denominator
T-BillTreasury Bills · Discount, Yield and Amount Paid1 included · 1 not included · 1 assumed
Included
- Discount, yield by the RBI formula, amount paid and income earned
Not Included
- Auction bidding and cut-off prices
Assumed
- 365-day year; price per ₹100 face value
DDMEquity Valuation · Dividend Discount Model (Constant and Two-Stage Growth)2 included · 1 not included · 1 assumed
Included
- Constant growth (Gordon) and two-stage dividend discount models
- Upside or downside and the decision
Not Included
- Three-stage and H models, free cash flow valuation
Assumed
- Dividends at year ends; PV factors rounded to four decimals; ke above growth
P/ERelative Valuation · P/E Based Value Against Peers1 included · 1 not included · 1 assumed
Included
- EPS, value at the peer P/E, P/E at the market price
Not Included
- Choosing the peer group; EV/EBITDA (see the Financial Analysis Simulator)
Assumed
- Profit and shares in lakh
RiskRisk and Return of a Stock · Mean, Standard Deviation and Beta1 included · 1 not included · 1 assumed
Included
- Mean, deviations, variance, standard deviation, covariance, beta, correlation
Not Included
- Regression beta from daily data; sample (n − 1) formulas
Assumed
- Population formulas (÷ n); every step rounded to two decimals
CAPMCapital Asset Pricing Model · Required Return, Alpha and the Decision1 included · 1 not included · 1 assumed
Included
- Market risk premium, CAPM required return, expected return, alpha, value today and the decision
Not Included
- Arbitrage pricing theory; multi-factor models
Assumed
- One-year holding; beta from the risk task when it is not given
PortfolioTwo-Asset Portfolio · Return, Risk, Correlation and Minimum Variance2 included · 1 not included · 1 assumed
Included
- Two-asset return, covariance, variance, SD, diversification benefit
- Minimum-variance weights, return and risk
Not Included
- Portfolios of three or more assets; the efficient frontier and short selling
Assumed
- Weights as decimals in the variance formula; every step rounded to two decimals
FundsFund Performance · Sharpe, Treynor and Jensen's Alpha1 included · 1 not included · 1 assumed
Included
- Sharpe, Treynor and Jensen's alpha for each fund and for the market; ranks and conclusion
Not Included
- M², information ratio, Sortino ratio
Assumed
- Returns, SD and beta for the same period; no ties after rounding
TaxCapital Gains on Listed Shares and Equity Fund Units · FY 2025-261 included · 1 not included · 2 assumed
Included
- Short-term and long-term classification, gain or loss per sale, set-off, s. 112A exemption, tax at 20% and 12.5%, cess
Not Included
- Grandfathering for shares bought before 1 February 2018; surcharge; rebate under s. 87A; brought-forward losses
Assumed
- STT paid on purchase and sale; income below ₹50 lakh; basic exemption limit already used by other income
- Long-term = sold after the same date one year after purchase
FuturesContract Value, Margins, Daily Settlement and Margin Calls1 included · 1 not included · 2 assumed
Included
- Contract value, initial and maintenance margin, daily mark-to-market, margin calls back to the initial margin, total profit and return on margin
Not Included
- STT and charges on futures; SPAN and exposure margin split; physical settlement
Assumed
- Textbook maintenance-margin rule (Indian exchanges actually require the full margin to be kept every day)
- The margin call is paid before the next day
OptionsOptions at Expiry · Payoff, Profit and Break-Even1 included · 1 not included · 1 assumed
Included
- Value at expiry, exercise, payoff, profit, total profit, break-even, strategies of several legs
Not Included
- Option pricing (Black-Scholes), Greeks, early exercise, STT on exercise
Assumed
- Held to expiry; premiums paid or received on the trade date
PolicyInvestment Policy Check · Asset Mix Against the Target and Rebalancing1 included · 1 not included · 1 assumed
Included
- Actual weights, deviations, bands, target values and rebalancing amounts
Not Included
- Tax and costs of rebalancing; tactical tilts
Assumed
- Full rebalancing to target when any class is outside its band; whole rupees
NotesRates Used (FY 2025-26) and What Is New1 included
Included
- Rates for FY 2025-26, changes from 1 April 2026 and what is not covered
AIAI in Finance, Tax and AccountingFY 2025-26 rates · 13 forms and worksheets
Applies to the Whole Simulator
- Records and an AI assistant's draft for one month (January 2026) of a fictional Indian business, FY 2025-26.
- GST rates as in force from 22 September 2025; TDS thresholds and rates as amended from 1 April 2025.
- Education only: the AI assistant is imaginary and no real AI product is named. Not tax, legal or data protection advice.
ScopeCase Brief · What the AI Did and What You Must Check1 included · 1 assumed
Included
- What the AI assistant did this month and how many items you must check
Assumed
- You are the reviewer: nothing is posted or filed until you sign off
ExtractInvoice Extraction Check · AI-Read Purchase Invoices3 included · 1 not included · 3 assumed
Included
- Six fields per invoice: goods value, freight, GST rate, tax type (CGST + SGST or IGST), total GST and invoice total
- Freight charged on the invoice is part of the taxable value (CGST Act s. 15(2)(c))
- Red flags that need a person: duplicate invoice number, GSTIN that does not match the vendor master, changed bank details
Not Included
- Reverse charge, e-invoice IRN checks, tax on advances
Assumed
- The paper invoice is right; the AI's reading may not be
- Tax is rounded to the rupee; CGST and SGST are each half, rounded
- A difference of ₹1 or less is a match
LedgerBank Line Categorisation Check · AI-Suggested Ledgers3 included · 1 not included · 1 assumed
Included
- The supporting document decides the ledger; the bank narration is only a clue
- Customer receipts against invoices already booked go to Sundry Debtors, not Sales
- Lines with no document go to Suspense and are escalated
Not Included
- Splitting one bank line into several ledgers, GST on bank charges
Assumed
- The sales and purchase invoices were already booked earlier in the books
GSTAI-Drafted GST Computation · Check Before Filing4 included · 2 not included · 2 assumed
Included
- Rates from 22 September 2025
- Blocked credit under CGST Act s. 17(5): food and beverages, motor cars, gifts and personal use
- No credit unless the invoice is in GSTR-2B (s. 16(2)(aa))
- Interest at 18% a year on a shortfall (s. 50(1))
Not Included
- CGST/SGST/IGST head-wise set-off order
- Reverse charge, rule 42 reversals, late fees
Assumed
- Credit can be used against any output tax (the head-wise order is taught in the GST Portal Simulator)
- A shortfall found later is paid with interest for the days given in the business profile
TDSAI-Drafted TDS Computation · Check Before Deducting3 included · 1 not included · 2 assumed
Included
- Sections 194A, 194C, 194H, 194I and 194J with thresholds from 1 April 2025
- 20% when PAN is not given (s. 206AA)
- Interest at 1% a month for short deduction (s. 201(1A)(i))
Not Included
- Lower deduction certificates, 194Q, salary TDS, TDS returns
Assumed
- When a yearly threshold is first crossed, TDS is deducted on the whole year's total so far
- Rent is tested month by month against ₹50,000
PromptPrompt Quality · Score Before You Send1 included · 2 assumed
Included
- Five parts of a good prompt: role, context (business, period, law year), data, output format and checks
Assumed
- Points: 0 missing, 1 partly there, 2 done well
- A prompt that pastes personal data is never sent, whatever its score
DPDPData Privacy · What May Go Into an AI Tool2 included · 3 assumed
Included
- Public chatbot vs the company-approved AI tool
- Masking (replacing names and numbers with codes)
Assumed
- The approved tool keeps data inside the company's account and does not use it for training
- Aadhaar numbers are never pasted in full into any AI tool
- Unpublished results of a listed client stay out of public tools even when names are masked
MatrixAnomaly Detection Model · Confusion Matrix and Threshold Choice2 included · 1 assumed
Included
- Confusion matrix, accuracy, precision, recall and the cost of false alarms and misses
- Choosing a threshold that meets the recall policy at the lowest cost
Assumed
- The test sample was fully checked by people, so the real exceptions are known
ROIReconciliation Automation · Time Saved, Cost and Payback1 included · 2 assumed
Included
- Minutes saved, value of time, running cost, setup cost and payback
Assumed
- Payback = setup cost ÷ net monthly saving, rounded up to whole months
- People still handle the exceptions and a monthly review sample
ControlsAudit Trail and Human Review · AI-Assisted Entries1 included · 1 assumed
Included
- Audit trail of AI-assisted entries and independent human review
Assumed
- An entry needs an independent reviewer when it is above the amount limit or below the confidence limit; every other entry needs at least the preparer's check
PolicyAI Use Policy · Allowed, Allowed With Review, or Not Allowed1 included
Included
- Typical AI use policy questions for an accounts or tax team
Sign-OffReview Sign-Off · What Goes Back to the Team1 included
Included
- The counts that go into your review note
2026Notes, Rates Used and What Is New1 included
Included
- Rates used, what is new and what is not covered
Class 11–12 Commerce (CBSE and Any Board)
AccCBSE AccountancyCBSE Class 11–12, 2026–27 syllabus · 38 forms and worksheets
Applies to the Whole Simulator
- CBSE Senior Secondary Accountancy (subject code 055), session 2026-27, Classes 11 and 12. Follows the 2026-27 syllabus; not made by or linked to CBSE or NCERT.
- Basic = Class 11; Intermediate = Class 12 Part A; Advanced = board-exam level from both years plus Class 12 Part B.
- Amounts in whole rupees with Indian digit grouping (₹1,25,000). Ratios in times with 2 decimals; percentages with 2 decimals; shares of profit in parts of a common denominator.
- Education only. Every person, business and amount is fictional.
GuideStart Here · CBSE Accountancy, Class 11 and 12 (2026-27)1 included · 2 not included · 2 assumed
Included
- CBSE Senior Secondary Accountancy (055), session 2026-27: Class 11 Units 1-3 and Class 12 Units 1-4 (Part B Option I, analysis of financial statements and cash flow)
Not Included
- Class 12 Part B Option II (Computerised Accounting); project work
- Topics not in the 2026-27 syllabus: not-for-profit organisations, bills of exchange, piecemeal distribution, conversion method, change of depreciation method, TDS on debenture interest, redemption of debentures
Assumed
- Syllabus chapter list read from the Directorate of Education, Delhi copy of the CBSE 2026-27 curriculum (the official CBSE PDF could not be opened from here)
- Every person, firm, company and amount is fictional; not made by or linked to CBSE or NCERT
GST JnlJournal Entries With GST · Class 11 Part A, Unit 21 included · 1 not included · 3 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: recording transactions with GST (trade discount, freight on the bill), purchases, sales, assets and expenses
Not Included
- GST returns, reverse charge, composition scheme, blocked credits
Assumed
- Business registered in Telangana; other states mean IGST
- Rates 5% and 18% as in force from 22 September 2025
- Freight on the same invoice is taxed with the goods
Set-OffGST Ledgers and Set-Off of Input Tax Credit · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- Totals of input and output CGST, SGST and IGST; set-off in the legal order; payable and carried forward
Not Included
- Interest and late fees
Assumed
- Rule 88A: IGST credit first; after that this simulator uses it against CGST before SGST
JournalClass 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: journal entries for capital, purchases, sales, returns, receipts and payments with cash discount, expenses, assets, drawings and contra
Not Included
- GST (see the GST case)
Assumed
- A new business: no opening balances
LedgerLedger Posting · Class 11 Part A, Unit 21 included
Included
- Posting and side totals of every account, real, nominal and personal
TBTrial Balance (Balance Method) · Class 11 Part A, Unit 21 included · 1 not included
Included
- Trial balance by the balance method
Not Included
- Totals method (not in the syllabus)
Cash BookCash Book With Cash and Bank Columns · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: cash book with cash and bank columns, contra entries, discount columns, GST on cash bills
Not Included
- Simple (single column) cash book shown separately
Assumed
- Bank balance is favourable all month
PettyPetty Cash Book (Imprest System) · Class 11 Part A, Unit 21 included · 1 assumed
Included
- Petty cash book on the imprest system with analysis columns
Assumed
- The imprest is restored at the end of the period
BooksPurchases, Sales and Returns Books With GST · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: purchases, sales, purchases returns and sales returns books with GST columns
Not Included
- Journal proper entries
Assumed
- Business in Telangana; IGST for other states
BRSAmended Cash Book and Bank Reconciliation Statement · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: amended cash book and bank reconciliation statement, favourable balance and overdraft
Not Included
- Errors made by the bank
Assumed
- The amended cash book balance goes to the balance sheet
ErrorsRectification of Errors and the Suspense Account · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: one-sided and two-sided errors, suspense account and effect on profit
Not Included
- Errors found after the books were closed (next year)
Assumed
- All errors are found before the final accounts are prepared
DepnDepreciation Schedule and Sale of an Asset · Class 11 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part A Unit 2: SLM and WDV, part-year depreciation, sale of an asset with profit or loss
Not Included
- Change of method (excluded by CBSE)
Assumed
- Books close on 31 March; depreciation for complete months
Asset A/cAsset Account and Provision for Depreciation Account · Class 11 Part A, Unit 21 included · 1 not included
Included
- Asset account with depreciation charged to it, or asset at cost with a provision for depreciation account
Not Included
- Asset disposal account shown in full
AdjTrial Balance Totals and Debtors Adjustments · Class 11 Part B, Unit 31 included · 1 assumed
Included
- CBSE Class 11 Accountancy 2026-27, Part B Unit 3: trial balance totals, further bad debts, provision for doubtful debts and for discount on debtors
Assumed
- Provision for discount is made on debtors after the provision for doubtful debts
TradingTrading Account (Vertical Form) · Class 11 Part B, Unit 31 included · 1 not included · 1 assumed
Included
- Vertical Trading Account with direct expenses, goods withdrawn, abnormal loss and closing stock
Not Included
- Manufacturing account
Assumed
- Wages, carriage inwards, freight and power are direct expenses
P&LProfit and Loss Account · Class 11 Part B, Unit 31 included · 1 not included · 1 assumed
Included
- Incomes and expenses adjusted for outstanding, prepaid, accrued and advance items; depreciation; bad debts and provisions; abnormal loss; staff welfare and samples; interest on loan and capital; manager's commission; operating profit (EBIT)
Not Included
- Income tax of the proprietor
Assumed
- Interest received and rent received are non-operating incomes for EBIT; interest on loan, interest on capital and abnormal loss are non-operating charges
BSBalance Sheet of a Sole Proprietor · Class 11 Part B, Unit 31 included · 1 assumed
Included
- Capital account and grouped balance sheet with the second effect of each adjustment
Assumed
- Depreciation is on the trial balance figure for a full year
SoAStatements of Affairs (Incomplete Records) · Class 11 Part B, Unit 31 included · 1 not included
Included
- CBSE Class 11 Accountancy 2026-27, Part B Unit 3: statements of affairs at the start and end with depreciation and provision on closing items
Not Included
- Conversion method (excluded by CBSE)
ProfitStatement of Profit or Loss · Class 11 Part B, Unit 31 included · 1 assumed
Included
- Profit = closing capital + drawings − additional capital − opening capital, then interest on capital and drawings
Assumed
- Interest on capital on the opening capital for the full year
Approp.Profit and Loss Appropriation Account · Class 12 Part A, Unit 11 included · 1 not included · 2 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 1: interest on partners' loans, interest on capital (with additional capital), interest on drawings (average period), salary, commission before or after charging it, sharing, guarantee of profit
Not Included
- Interest on capital when profit is not enough
Assumed
- Profit is enough to meet every appropriation
- Deed silent on loan interest: 6% (Partnership Act s. 13(d))
CapitalPartners' Capital and Current Accounts · Class 12 Part A, Unit 11 included
Included
- Fixed capitals with current accounts; fluctuating capitals
Past Adj.Past Adjustments · Class 12 Part A, Unit 11 included · 1 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 1: past adjustments for omitted interest on capital, salary and interest on drawings, and for profit shared in the wrong ratio
Assumed
- A single adjusting entry through capital or current accounts
GoodwillValuation of Goodwill · Class 12 Part A, Unit 11 included · 1 not included · 2 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 1: average and weighted average profit, super profit and capitalisation methods; premium on admission
Not Included
- Hidden goodwill from capitals
Assumed
- Remuneration not charged is deducted from each past year's profit
- Weights 1, 2, 3 … with the latest year highest
RatiosNew Ratio, Sacrifice or Gain, and Goodwill · Class 12 Part A, Unit 11 included · 1 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 1: common denominator, old and new shares, sacrifice and gain, goodwill premium, share of profit up to death
Assumed
- Goodwill is not raised in the books (AS 26); it is adjusted through capital accounts
Reval.Revaluation Account and Reserves · Class 12 Part A, Unit 11 included · 1 not included · 1 assumed
Included
- Revaluation of assets and liabilities, unrecorded items, new provision for doubtful debts; reserves and accumulated profits or losses
Not Included
- Workmen compensation claims (the reserve is treated as fully free)
Assumed
- Revaluation result and reserves go to the old partners in the old ratio
CapitalsPartners' Capital Accounts After the Change · Class 12 Part A, Unit 11 included · 1 not included · 1 assumed
Included
- Capital accounts on change in ratio, admission, retirement and death; capitals in the new ratio through cash; retiring partner's loan; executor's account
Not Included
- Interest on the retiring partner's loan; instalments to the executor
Assumed
- The new partner brings his premium for goodwill in cash
New BSBalance Sheet of the Reconstituted Firm · Class 12 Part A, Unit 11 included · 1 not included
Included
- Balance sheet after admission, retirement or change in ratio
Not Included
- Balance sheet on death (CBSE asks for the capital and executor accounts)
RealisationRealisation Account (Dissolution) · Class 12 Part A, Unit 11 included · 1 not included · 1 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 1: realisation account with assets sold, taken over and realised at a %, liabilities paid at a discount, unrecorded items and expenses
Not Included
- Piecemeal distribution, sale to a company, insolvency of a partner (excluded by CBSE)
Assumed
- Liabilities are settled in cash unless the record says otherwise
SettlePartners' Capital Accounts and Bank on Dissolution · Class 12 Part A, Unit 11 included · 1 assumed
Included
- Partners' capital accounts and the bank account on dissolution
Assumed
- Partners' loans are repaid in full before capitals
SharesIssue of Shares, Forfeiture and Reissue · Class 12 Part A, Unit 21 included · 2 not included · 2 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 2: issue at par and premium, over-subscription with rejection and pro-rata allotment, calls in arrears and advance, forfeiture, reissue, capital reserve
Not Included
- Interest on calls in arrears and in advance (excluded by CBSE)
- Issue of shares at a discount (not allowed)
Assumed
- Calls in advance are paid with allotment
- Forfeiture after the final call
Note 1Share Capital in the Balance Sheet (Schedule III Note) · Class 12 Part A, Unit 21 included
Included
- Share capital note as in Schedule III
DebenturesIssue of Debentures · Class 12 Part A, Unit 21 included · 1 not included · 1 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part A Unit 2: debentures at par, premium and discount, to a vendor, as collateral, redeemable at a premium; loss on issue; interest
Not Included
- TDS on interest; redemption of debentures (not in the 2026-27 syllabus)
Assumed
- Loss on issue is written off in the year of issue: securities premium first, then the Statement of Profit and Loss
Sch IIIBalance Sheet in the Schedule III Format · Class 12 Part B, Unit 31 included · 1 not included · 1 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part B Unit 3: classification under Schedule III headings for two years
Not Included
- Deferred tax, share warrants, exceptional items
Assumed
- Marketable securities are current investments
CompareComparative Balance Sheet · Class 12 Part B, Unit 31 included · 1 assumed
Included
- Comparative balance sheet: absolute and % change by heading
Assumed
- % change on the earlier year
CompareComparative Statement of Profit and Loss · Class 12 Part B, Unit 31 included · 1 not included
Included
- Comparative Statement of Profit and Loss with tax at the given rate
Not Included
- Exceptional and extraordinary items (excluded by CBSE)
Common SizeCommon-Size Statement of Profit and Loss · Class 12 Part B, Unit 31 included · 1 assumed
Included
- Common-size Statement of Profit and Loss on revenue from operations
Assumed
- Revenue from operations = 100 in each year
RatiosAccounting Ratios · Class 12 Part B, Unit 31 included · 1 not included · 2 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part B Unit 3: current, quick, debt-equity, total assets to debt, proprietary, interest coverage, debt to capital employed, inventory, receivables, payables, fixed asset, net asset and working capital turnover, gross profit, operating, operating profit, net profit (before and after tax) and return on investment
Not Included
- Earnings per share and market ratios
Assumed
- Turnover ratios on averages of opening and closing balances
- Long-term debt = debentures and long-term loans; capital employed = shareholders' funds + long-term debt
Cash FlowCash Flow Statement (AS 3, Indirect Method) · Class 12 Part B, Unit 41 included · 1 not included · 2 assumed
Included
- CBSE Class 12 Accountancy 2026-27, Part B Unit 4: AS 3 indirect method with depreciation, patents written off, loss or profit on sale, finance cost, investment income, working capital, tax paid, shares, debentures, loans, overdraft, interest and dividend
Not Included
- Direct method; extraordinary items
Assumed
- Dividend paid during the year came out of the surplus
- Increase in general reserve is a transfer from profit
BSTCBSE Business StudiesCBSE Class 11–12, 2026–27 syllabus · 20 forms and worksheets
Applies to the Whole Simulator
- CBSE Class 11 and 12 (Commerce), Business Studies (code 054), 2026–27 syllabus: number problems and case questions written in our own words.
- Fictional businesses and people in Telangana and across India; amounts in whole rupees.
- Education only. Not endorsed by or affiliated with CBSE or NCERT. Figures as in force in October 2026.
StartCase Brief · Your Tasks in This Case File2 included · 2 assumed
Included
- CBSE Business Studies (054) 2026–27: Class 11 at Basic, Class 12 at Intermediate, both at Advanced
- Case questions answered with code numbers; number questions in whole rupees
Assumed
- All businesses, people and figures are invented
- Follows the 2026–27 syllabus; not endorsed by CBSE or NCERT
Cases 11Class 11 Case Questions · Identify the Concept1 included · 1 assumed
Included
- Business activities, forms of business, types of enterprise, bank accounts and services, principles of insurance, social responsibility, sources of finance, types of retailers, export and import documents
Assumed
- Each case has one best answer from the list given
Ch 2Forms of Business · Who Pays When the Business Cannot Pay Its Debts3 included · 2 not included · 2 assumed
Included
- Unlimited liability of a sole proprietor and partners (shared in the profit-sharing ratio)
- Karta's unlimited liability and other members' limited liability in a Joint Hindu Family business
- Company: shareholders pay only the unpaid amount on their shares
Not Included
- Limited Liability Partnerships (a separate law)
- Insolvency procedure and priority of creditors
Assumed
- Business assets are sold first and all of it goes to creditors
- Partners' personal assets are enough to pay their share
Ch 3Public Enterprises · Is It a Government Company?1 included · 1 not included
Included
- Companies Act 2013 s. 2(45): at least 51% of paid-up share capital held by Central and/or State Governments
Not Included
- Subsidiaries of government companies
Ch 4Business Services · Fire Insurance Claim3 included · 1 not included · 1 assumed
Included
- Indemnity: claim never more than the loss or the sum insured
- Average clause when goods are under-insured
- Contribution between two insurers in the ratio of their sums insured
Not Included
- Salvage, policy excess and claim documents
Assumed
- When there is no average clause, the claim is the loss up to the sum insured
Ch 7Sources of Business Finance · Trade Credit, Debentures and Preference Shares2 included · 1 not included · 2 assumed
Included
- Cost of not taking a cash discount (yearly rate, 365-day year)
- Debenture interest saves tax; preference dividend does not
Not Included
- Flotation costs, redemption premium
Assumed
- A business pays early when the yearly cost of skipping the discount is more than the bank rate
- Tax rate as given in the record
Ch 8Small Business · Micro, Small or Medium Enterprise?2 included · 1 not included · 1 assumed
Included
- MSMED Act 2006 classification with limits in force from 1 April 2025
- Both investment and turnover tests; crossing either limit moves the enterprise up
Not Included
- Udyam registration steps
Assumed
- Investment = plant and machinery or equipment (land, building, furniture left out); exports left out of turnover
Ch 9Internal Trade · Wholesaler's GST Bill and the Retailer's Margin3 included · 1 not included · 3 assumed
Included
- Trade discount before GST
- CGST + SGST within a state, IGST between states
- Retailer's margin with GST taken out of the MRP
Not Included
- Cash discount, freight, e-way bills, GST returns
Assumed
- GST rates in force from 22 September 2025
- The retailer takes credit for the GST it pays, so GST is not part of its cost
- Every figure rounded to the rupee
Ch 10International Business · Export Invoice Value (FOB and CIF)2 included · 1 not included · 2 assumed
Included
- Ex-works, FOB and CIF values
- Conversion to US dollars at the given rate
Not Included
- Export incentives, customs duty, Incoterms details beyond FOB and CIF
Assumed
- Exports are zero-rated under GST
- Dollar values rounded to the nearest dollar
Cases 12Class 12 Case Questions · Identify the Concept1 included · 1 assumed
Included
- Fayol's 14 principles and Taylor's techniques, functions and levels of management, business environment, types of plans, organising, recruitment and training, Maslow, leadership, financial decisions, money and capital markets, marketing mix, promotion, product decisions, consumer rights
Assumed
- Each case has one best answer from the list given
12·1Management · Efficient, Effective, Both or Neither?1 included · 1 assumed
Included
- Effectiveness = target met; efficiency = actual cost per unit not more than planned
Assumed
- Costs per unit rounded to the rupee for display; the decision uses exact figures
12·2Principles of Management · Taylor's Differential Piece Wage1 included · 1 assumed
Included
- Taylor's differential piece wage: one rate for all units of a worker, higher if output reaches the standard
Assumed
- Reaching the standard exactly earns the higher rate
12·6Staffing · How Many People Do We Need?1 included · 1 not included
Included
- Workload analysis (work ÷ output per worker, rounded up) and workforce analysis (present staff less expected leavers)
Not Included
- Absenteeism and overtime
12·8Controlling · Deviations and Management by Exception2 included · 1 assumed
Included
- Deviation, deviation %, adverse or favourable
- Management by exception with an agreed % limit
Assumed
- A deviation exactly at the limit is handled at the lower level
12·9Financial Management · Debt or Equity? Trading on Equity and EPS2 included · 1 not included · 2 assumed
Included
- Return on investment, EPS under an all-equity plan and a plan with debt
- Trading on equity test: return on investment compared with the interest rate
Not Included
- Preference shares, flotation costs
Assumed
- Shares issued at face value
- EPS rounded to 2 decimals after rounding tax and earnings to the rupee
12·9Financial Management · Working Capital Estimate and the Dividend Decision2 included · 1 not included
Included
- Stock, debtors, creditors and cash from days given (360-day year)
- Payout ratio, retained earnings and cash position for the dividend
Not Included
- Work in progress, safety margins, taxation on dividend
12·10Financial Markets · Contract Note and Treasury Bill3 included · 1 not included · 1 assumed
Included
- Contract note for a delivery trade: brokerage, GST on brokerage, STT 0.1%, stamp duty 0.015% on buying
- T+1 settlement
- Treasury bill discount and yield (365-day year)
Not Included
- Exchange transaction charges and the SEBI fee (a few rupees), DP charges, intraday trades, capital gains tax
Assumed
- Each charge rounded to the rupee
12·11Marketing · Cost-Plus Price, MRP and Break-Even1 included · 1 assumed
Included
- Full cost per unit, cost-plus price, MRP with GST, contribution, break-even units (rounded up), margin of safety and profit
Assumed
- Price and costs per unit rounded to the rupee; profit worked from the rounded price
12·12Consumer Protection · Which Commission, Where to Appeal, and Time Limits3 included · 1 not included · 1 assumed
Included
- Consumer Protection Act 2019 and the 2021 jurisdiction rules: value paid decides the Commission
- Appeals: District → State (45 days), State → National (30 days), National → Supreme Court (30 days)
- Complaint within 2 years of the cause of action
Not Included
- Fees, mediation, product liability details, e-filing steps
Assumed
- The case is decided at the first level and appealed once
2026–27Notes, Syllabus and What Is New1 included
Included
- Syllabus, figures used and what is new
EcoCBSE EconomicsCBSE Class 11–12, 2026–27 syllabus · 23 forms and worksheets
Applies to the Whole Simulator
- Follows the CBSE Economics (030) syllabus for session 2026-27 (Classes 11 and 12). Not made, approved or endorsed by CBSE or NCERT.
- All people, firms, places and countries are fictional; every figure is illustrative practice data, not official statistics.
- Decimals and percentages are rounded to two places at the end of each formula; later lines use the rounded figure, as you would in an exam answer.
- Choices are entered as number codes explained on each line.
- Education only.
StartEconomics Simulator · CBSE Class 11 and 12 · Session 2026-272 included · 1 not included · 2 assumed
Included
- CBSE Economics (030) syllabus for session 2026-27: Class 11 (Statistics for Economics, Introductory Microeconomics) and Class 12 (Introductory Macroeconomics, Indian Economic Development)
- Numerical and data-based questions of the kind asked in the board exam and in school tests
Not Included
- Long theory answers, diagrams drawn by hand and Project Work (Part C, 20 marks)
Assumed
- Basic = Class 11, Intermediate = Class 12, Advanced = board-exam level long questions mixing both years
- Not made, approved or endorsed by CBSE or NCERT; it follows the published 2026-27 syllabus
StatsClass 11 · Part A · Frequency Distribution: Mean, Median and Mode2 included · 2 not included · 3 assumed
Included
- Continuous (exclusive) classes of equal width
- Mean by the direct and step-deviation methods; median and mode by formula; the empirical relation
Not Included
- Measures of dispersion (range, quartile deviation, standard deviation): not in the 2026-27 CBSE syllabus
- Unequal class widths, open-end classes and inclusive classes that need adjusting
Assumed
- Items in a class are taken to be at its mid-value
- The modal class is the class with the highest frequency (found by inspection)
- Answers are rounded to two decimals at the end of each formula
CorrClass 11 · Part A · Correlation2 included · 1 not included · 3 assumed
Included
- Karl Pearson's coefficient by the actual mean method
- Spearman's rank correlation, with the correction for repeated ranks
Not Included
- Scatter diagrams (drawn on paper), the assumed mean and step deviation methods for r, probable error
Assumed
- Rank 1 goes to the highest value
- Equal values share the average of the ranks they cover
- Strength words (strong 0.70+, moderate 0.40–0.69, weak below 0.40) are this simulator's teaching convention: textbooks use slightly different bands
IndexClass 11 · Part A · Index Numbers and Inflation2 included · 1 not included · 2 assumed
Included
- Price relatives and the simple aggregative price index
- Inflation from two CPI values; money and real wages
Not Included
- Weighted index numbers (Laspeyres, Paasche) and the construction of WPI, CPI and IIP by MoSPI and the Office of the Economic Adviser
Assumed
- CPI and wage figures are illustrative, not official values
- Real wage is shown in base-year rupees, rounded to whole rupees
PPFClass 11 · Part B · Production Possibility Frontier and Opportunity Cost2 included · 1 not included · 2 assumed
Included
- Marginal opportunity cost (MRT) between combinations
- Whether a point is on, inside or outside the PPF
Not Included
- Shifts and rotations of the PPF (explained in the rule cards only)
Assumed
- Resources are fully used and technology is given along the PPF
- A test point is checked at one of the listed quantities of the first good
UtilityClass 11 · Part B · Utility and Consumer's Equilibrium (One Good)2 included · 1 not included · 1 assumed
Included
- Total and marginal utility, law of diminishing marginal utility, one-good equilibrium (MU in rupees = price)
- Point of satiety
Not Included
- Consumer surplus and indifference curve diagrams
Assumed
- Utility can be measured in utils (cardinal approach), and the money value of one util is given and stays constant
Budget LineClass 11 · Part B · Budget Line and Consumer's Equilibrium (Two Goods)2 included · 1 not included · 2 assumed
Included
- Budget line: intercepts and slope; whether a bundle is affordable
- Two-good equilibrium by the law of equi-marginal utility, buying one unit at a time
Not Included
- Indifference curves and the MRS condition (theory only in this simulator)
Assumed
- The whole income is spent on the two goods
- Goods come in whole units
DemandClass 11 · Part B · Demand and Price Elasticity of Demand3 included · 1 not included · 2 assumed
Included
- Market demand from individual schedules
- Price elasticity of demand by the percentage and total expenditure methods
- Finding a new quantity from a known elasticity
Not Included
- The geometric (point) method, income and cross elasticity (not in the 2026-27 syllabus list)
Assumed
- Percentage changes use the original (initial) price and quantity as the base
- Elasticity is shown as an absolute value (the minus sign is dropped)
TP, AP, MPClass 11 · Part B · Production Function: Returns to a Factor2 included · 1 not included · 1 assumed
Included
- TP, AP and MP schedules
- The three phases of returns to a factor
Not Included
- Returns to scale and isoquants
Assumed
- Only one input varies; all others are fixed (short run)
CostsClass 11 · Part B · Short-Run Costs2 included · 1 not included · 2 assumed
Included
- TFC, TVC, TC, AFC, AVC, AC and MC from a schedule
- Lowest points of MC and AVC
Not Included
- Long-run costs
Assumed
- Output rises one unit at a time
- When TC is given, TC at zero output is the TFC
RevenueClass 11 · Part B · Revenue and Producer's Equilibrium2 included · 1 not included · 2 assumed
Included
- TR, AR and MR for a price-taking firm and for a firm that must lower its price to sell more
- Producer's equilibrium (MR = MC, MC rising) for a price-taking firm with its profit table
Not Included
- Shut-down and break-even points
Assumed
- The cost schedule is the one on the Costs workpaper
- Output is sold in whole units
SupplyClass 11 · Part B · Price Elasticity of Supply1 included · 1 not included · 1 assumed
Included
- Price elasticity of supply by the percentage method
Not Included
- The geometric method
Assumed
- Original price and quantity are the base for percentage changes
MarketClass 11 · Part B · Perfect Competition: Equilibrium, Shifts and Price Controls3 included · 1 not included · 2 assumed
Included
- Equilibrium from straight-line demand and supply equations
- Effect of a shift in demand or supply
- Price ceiling (shortage) and price floor (surplus)
Not Included
- Free entry and exit, the long run, and markets other than perfect competition
Assumed
- Short run only, as in the 2026-27 syllabus
- Equations are in the form Qd = a − bP and Qs = c + dP
NIClass 12 · Part A · National Income and Related Aggregates (₹ crore)3 included · 2 not included · 2 assumed
Included
- Value added, income and expenditure methods
- GDP, GNP, NDP and NNP at market price and factor cost
- Items that must be left out (transfers, second-hand goods, shares, capital gains, windfalls)
Not Included
- Private income, personal income and personal disposable income (not in the 2026-27 syllabus)
- GVA at basic prices as used in India's official accounts
Assumed
- Value added is measured at market price, as in the CBSE textbook
- Profit is either given as one figure or split into dividends, corporation tax and retained profit
GDPClass 12 · Part A · Real and Nominal GDP and the GDP Deflator1 included · 1 not included · 1 assumed
Included
- Nominal and real GDP from prices and quantities; GDP deflator; nominal and real growth
Not Included
- Chain-linked indices used in official accounts
Assumed
- The first year is the base year
MoneyClass 12 · Part A · Money Supply and Credit Creation1 included · 1 not included · 2 assumed
Included
- M1 money supply; credit creation round by round; money multiplier; effect of a change in the reserve ratio
Not Included
- M3, high-powered money and the money multiplier with cash leakage
Assumed
- All loans come back to banks as deposits (no cash leakage)
- LRR stands for the legal reserve ratio set by the RBI (CRR and SLR together)
AD and MultiplierClass 12 · Part A · Determination of Income and Employment (₹ crore)3 included · 1 not included · 2 assumed
Included
- Consumption function, MPC, MPS, APC, APS
- Equilibrium income in a two-sector economy; the investment multiplier and its reverse
- Excess and deficient demand at full-employment output
Not Included
- Government and foreign sector in the income equation (shown only in rule cards)
Assumed
- Investment is autonomous (does not depend on income)
- The consumption function is a straight line C = C̄ + bY
BudgetClass 12 · Part A · Government Budget and Deficits (₹ crore)1 included · 1 not included · 1 assumed
Included
- Revenue and capital receipts and expenditure; revenue, fiscal and primary deficits; deficits as a share of GDP
Not Included
- Effective revenue deficit and the plan/non-plan split (no longer used)
Assumed
- Figures are illustrative for a fictional government, not the Union Budget
BoPClass 12 · Part A · Balance of Payments and the Exchange Rate2 included · 1 not included · 2 assumed
Included
- Trade balance, invisibles, current and capital account, overall balance and the change in reserves
- Depreciation and appreciation of the rupee; a market-determined exchange rate from demand and supply equations
Not Included
- Errors and omissions, the IMF account and real exchange rates
Assumed
- Overall balance is the sum of current and capital accounts (autonomous transactions)
- Exchange rates are illustrative, not RBI reference rates
SectorsClass 12 · Part B · Growth, Sectors and Per Capita Income1 included · 1 not included · 2 assumed
Included
- GDP and sector growth, sector shares, per capita income and output per worker
Not Included
- Compound annual growth rates over many years
Assumed
- Figures are illustrative and at constant prices, so growth is real growth
- Population is in crore, so ₹ crore ÷ crore gives rupees per person
NeighboursClass 12 · Part B · Development Experience: Comparing Countries1 included · 1 not included · 1 assumed
Included
- GDP growth, population growth and GDP per head for three fictional countries, with a ranking
Not Included
- The Human Development Index formula
Assumed
- Countries and figures are fictional, set up like the India-Pakistan-China comparison in the textbook
JobsClass 12 · Part B · Employment: Growth, Informalisation and Other Issues1 included · 1 not included · 1 assumed
Included
- Unemployment rate, labour force participation, worker-population ratio, status of workers, informal share
Not Included
- Usual status and daily status definitions used by PLFS
Assumed
- Figures are illustrative, in crore
AgricultureClass 12 · Part B · Agriculture: Area, Production and Yield1 included · 1 not included · 1 assumed
Included
- Yield per hectare and the growth of area, production and yield
Not Included
- Marketed surplus and procurement
Assumed
- Figures are illustrative; area in million hectares, production in million tonnes
GST JrJunior GST and Accounting SoftwareAny Board · Class 11–12, 2026–27 syllabus · 13 forms and worksheets
Applies to the Whole Simulator
- For Class 11 and 12 commerce students of any board (CBSE and others). Follows the 2026-27 syllabus topics on GST in accounting entries and computerised accounting; based on the CBSE 2025-26 curriculum document, reported unchanged for 2026-27. Not endorsed by any board.
- One fictional GST-registered shop in Hyderabad, Telangana per case; one month between October 2025 and February 2026, after the GST 2.0 rates of 22 September 2025.
- Basic (Class 11): vouchers with CGST + SGST, stock summary, GST summary, Trial Balance and Profit and Loss Account. Intermediate (Class 12): parties in other states (IGST), returns, two-item invoices, Day Book and party balances, GSTR-1 and GSTR-3B style summaries, condensed Trial Balance. Advanced (board-exam style): credit brought forward, personal use, B2C large invoices, late GSTR-3B, the set-off journal and the Balance Sheet.
- Education only: teaches the workflow of accounting software and GST returns in India; it is not any software product and not the GST portal.
CompanyCreate the Company (Shop Details and GSTIN)2 included · 1 not included · 1 assumed
Included
- Shop name, state, GSTIN (state code and PAN inside it), books beginning date and the month of work
- Board and year: any board, Class 11 and 12 commerce; follows the 2026-27 syllabus topics on GST and computerised accounting (based on the CBSE 2025-26 document, reported unchanged for 2026-27)
Not Included
- Security, user accounts and backups
Assumed
- Every shop is a proprietor's trading business registered under GST in Telangana (state code 36) and files GST returns monthly
LedgersLedgers and Opening Balances1 included · 1 not included · 1 assumed
Included
- Opening balances of cash, bank, furniture, stock, parties, input tax credit and capital
Not Included
- Creating new groups
Assumed
- Capital is the balancing figure, so the opening balances always agree when keyed correctly
VouchersVoucher Entry With GST3 included · 1 not included · 3 assumed
Included
- Purchase, Sales, Credit Note, Debit Note, Receipt, Payment and Contra vouchers
- CGST + SGST inside Telangana and IGST for other states, by the party's state
- Goods bought for the owner's personal use (drawings, credit blocked)
Not Included
- Journal vouchers for credit expenses, discounts, reverse charge, advances, e-invoices
Assumed
- GST is worked out on each line and rounded to the rupee for each tax head; no round-off ledger
- Cash and UPI counter sales are to walk-in buyers inside Telangana
- Expenses are paid at once in cash or by bank
ReportsDay Book and Ledger Balances1 included · 1 not included
Included
- Total vouchers in the Day Book; closing balances of cash, bank and every party
Not Included
- Ledger-wise entry lists and monthly summaries
StockStock Summary and Closing Stock1 included · 1 not included · 2 assumed
Included
- Stock summary by item: bought, sold, closing quantity and value
Not Included
- Godowns, batches, FIFO and perpetual valuation
Assumed
- Weighted average cost for the month (periodic); selling price is above cost, so cost is used (AS 2)
- A purchase return comes out at the bill rate; a sales return goes back into stock
GSTGST Summary: Output Tax, Input Tax Credit and Set-Off2 included · 1 not included · 2 assumed
Included
- Output tax, input tax credit, credit and debit notes, credit brought forward, set-off in the legal order, cash payable and credit carried forward
- The GST set-off journal (Advanced)
Not Included
- Interest and late fee in the books, reverse charge, TDS/TCS under GST
Assumed
- All credit is in the supplier's GSTR-1 and so in GSTR-2B
- IGST credit pays IGST, then CGST, then SGST (the law lets you choose CGST or SGST second)
GSTR-1GSTR-1 Style Summary: Sales Return (Teaching Version)1 included · 1 not included · 2 assumed
Included
- B2B, B2C large, B2C others, nil-rated and credit notes to registered buyers, with the total tied to net sales
Not Included
- HSN-wise summary, document summary, amendments, e-invoice auto-population
Assumed
- Teaching summary in our own layout, not the GST portal
- Nil-rated goods on any invoice are reported in table 8 only
GSTR-3BGSTR-3B Style Summary: Tax and Payment (Teaching Version)1 included · 1 not included · 3 assumed
Included
- Tables 3.1(a), 3.1(c), 3.2, 4(A), 4(B), 4(C) and 6.1 in summary form; late fee and interest when filed late
Not Included
- Reverse charge rows, ineligible ITC under section 16(4), auto-drafted values from the portal
Assumed
- Teaching summary in our own layout, not the GST portal
- Monthly filer (not in the QRMP scheme); turnover up to ₹1.5 crore, so the GSTR-3B late fee is capped at ₹2,000
- Interest is worked out only on the tax paid in cash, for the days from the 20th to the filing date
TBTrial Balance1 included · 1 not included · 1 assumed
Included
- Ledger-wise Trial Balance (Basic) and group-wise condensed Trial Balance (Intermediate and Advanced)
Not Included
- Period-wise trial balances
Assumed
- Closing stock is not a ledger: it is shown in the final accounts only
P<rading and Profit and Loss Account for the Month1 included · 1 not included · 1 assumed
Included
- Trading and Profit and Loss Account of a sole trader for one month
Not Included
- Depreciation, outstanding and prepaid expenses, provisions
Assumed
- Horizontal (T) format as taught in Class 11, shown as a list
B/SBalance Sheet at the Month End1 included · 1 not included · 1 assumed
Included
- Capital account, creditors, GST payable, stock, debtors, credit carried forward, cash and bank
Not Included
- Schedule III company format
Assumed
- GST payable and credit carried forward are shown separately, as after the set-off
ReviewChecks Before You Close the Month1 included
Included
- Opening balances, Trial Balance, GST ledgers, GSTR-1 and Balance Sheet tie-outs
2025-26Junior GST and Accounting Software: Notes and What Is New1 included
Included
- Board and year, what is new, other rules used and what is not covered
AI JrAI in Commerce (Junior)Any Board · Class 11–12, 2026–27 syllabus · 14 forms and worksheets
Applies to the Whole Simulator
- Follows the 2026-27 syllabus for Class 11 and 12 commerce: CBSE (Accountancy, Business Studies, Economics); it works for students of any board. Not endorsed by or affiliated with CBSE, NCERT or any board.
- Questions and an imaginary AI study helper's answers for a fictional Class 11 or 12 student.
- GST rates as in force from 22 September 2025; consumer commission limits from the 2021 Rules.
- Education only: no real AI product is named or imitated.
ScopeCase Brief · What the AI Study Helper Answered4 included · 2 assumed
Included
- Follows the 2026-27 syllabus for Class 11 and 12 commerce: CBSE (Accountancy, Business Studies, Economics); it works for students of any board. Not endorsed by or affiliated with CBSE, NCERT or any board.
- Basic: Class 11 (1st year) topics: journal, ledger, trial balance, GST on a bill, bank interest, SLM depreciation, mean, price elasticity, forms of business
- Intermediate: Class 12 (2nd year) topics: interest on capital and drawings, goodwill, current and quick ratios, national income, principles and functions of management, consumer commissions
- Advanced: board-exam style long and mixed problems from both years, with the marks each question carries
Assumed
- Topic placement follows the CBSE 2026-27 syllabus; other boards may teach a topic in the other year
- You are the checker: nothing is copied into your notebook until you have worked it out yourself
JournalJournal Entries · Check the AI's Debit and Credit2 included · 1 not included · 1 assumed
Included
- Single journal entries for common Class 11 transactions
- Modern (accounting equation) rule for debit and credit
Not Included
- Compound entries, GST in journal entries, narrations
Assumed
- A wrong account on either side, a reversed entry or a wrong amount each count as a wrong part (a reversed entry counts once)
LedgerLedger Balances and Trial Balance · Check the AI's Totals2 included · 1 not included · 2 assumed
Included
- Balancing a ledger account with an opening balance
- Trial balance by the balance method with returns, drawings and carriage
Not Included
- Suspense accounts and rectification
Assumed
- The balance is carried down on the smaller side
- A wrong-side line counts as one wrong part
GSTGST on a Bill · Rates From 22 September 20253 included · 1 not included · 1 assumed
Included
- GST rates from 22 September 2025
- Trade discount on the bill is deducted before GST
- CGST + SGST (half each) for a seller in the same state; IGST for another state
Not Included
- Cess, reverse charge, cash discount after the sale
Assumed
- GST is rounded to the rupee per item; CGST and SGST are each rounded
InterestBank Interest and Depreciation · Check the AI's Arithmetic2 included · 1 not included · 1 assumed
Included
- Simple interest for months and compound interest added yearly
- SLM depreciation with installation, scrap value and part-year use
Not Included
- Half-yearly compounding, WDV method, disposal of assets
Assumed
- The accounting year ends on 31 March; months of use are counted to that date
EconomicsMean, Elasticity and National Income3 included · 1 not included · 2 assumed
Included
- Mean of a frequency table (direct method)
- Price elasticity by the percentage method on the original base
- National income by the expenditure and income methods
Not Included
- Median, mode, the point method and arc (midpoint) method of elasticity, value added method
Assumed
- Elasticity is written without the minus sign
- National income figures are in ₹ crore and are made up for practice
PartnersPartnership · Interest, Goodwill and the P&L Appropriation Account4 included · 1 not included · 2 assumed
Included
- Interest on opening capital for 12 months
- Interest on drawings for the average period
- Goodwill by average profit and super profit methods
- P&L Appropriation Account with salary and commission
Not Included
- Guarantee of profit, past adjustments, capitalisation method of goodwill, weighted average profit
Assumed
- The deed allows interest on capital and profits are enough to pay it
- Commission is a percentage of net profit before charging it
RatiosAccounting Ratios · Current Ratio and Quick Ratio1 included · 2 assumed
Included
- Current ratio and quick ratio to two decimals
Assumed
- Quick assets = current assets − inventory − prepaid expenses
- Bills payable and outstanding expenses are current liabilities
BSTBusiness Studies · Case Questions and Consumer Commissions3 included · 2 assumed
Included
- Forms of business organisation (Class 11)
- Functions and principles of management (Class 12)
- Which consumer commission, by the value paid (2021 Rules)
Assumed
- Each case has one best answer
- Older books may show the ₹1 crore and ₹10 crore limits; ask your teacher which your board's answer key expects
PromptPrompt Quality · Score It Before You Send It1 included · 2 assumed
Included
- Five parts of a good study prompt: clear goal, context, your own attempt, format and checks
Assumed
- Points: 0 missing, 1 partly there, 2 done well
- A prompt that asks the AI to do your work for you, or carries personal details, is never sent
SafetySafe Use · What Never Goes Into an AI Tool2 included · 2 assumed
Included
- Public chatbot vs a school-approved learning tool
- Masking personal details
Assumed
- Aadhaar, PAN, bank numbers, OTPs and passwords never go into an AI tool in full
- Test and exam papers are never shared before or during the test
HonestyAcademic Honesty · Learning With AI or Copying?1 included · 1 assumed
Included
- Learning with AI, using it with permission and a note, and copying
Assumed
- Your school's own AI rule comes first; these answers follow the usual rule
Sign-OffAccuracy Count and Sign-Off · What Checking Saved You1 included · 1 assumed
Included
- AI accuracy, your decisions and the marks at stake
Assumed
- Only fully right AI answers would score if copied; a partly right answer gets no marks here (in a real board exam you may get step marks)
2026-27Notes, Rules Used and What Is New1 included
Included
- Rules used, what is new and what is not covered
Education only: the simulators do not prepare or file real returns and are not tax, accounting or legal advice. Rules are summarised for teaching; check current law before relying on any figure. Questions? Contact us or see the FAQs.