NCERT Book for Class 12 Accountancy PDF

The CBSE-enlisted syllabus for 12^th board exams has been entailed entirely in the NCERT accountancy textbooks. The curriculum has been broken down in two halves to segregate the relevant topics and concepts. The class 12 accountancy NCERT book and PDF thus comes into two parts.

Part 1 of the NCERT accountancy book includes lessons on Partnership accounts, while Part 2 of the set comprises chapters related to Company Accounts and Financial Statements Analysis. Each section of the curriculum has been detailed precisely to help students achieve the best possible marks in board exams.

Chapter-Wise Elaboration of Part 1 of NCERT Accountancy Textbook for Class 12

Chapter 1: Accounting for Not-for-Profit Organization

The first chapter of the 12th standard NCERT accountancy book briefs about how non-profit organizations such as charities, trade unions, Government bodies, public organizations, and so on operate. The chapter explains the different types of accounts like Receipt and Payment Account, Income and Expenditure Account, based on which these organizations function. Various features of these accounts are also listed in a detailed and precise manner. 

First chapter of the NCERT class 12 accountancy Part 1 book also discusses the ins and outs of subscription (income collected from the members as a membership fee), capital fund (the excess of assets over liabilities). Explanation of these concepts is followed by some accountancy problems, which students can solve for better understanding of the chapter as a whole.

Chapter 2: Account for Partnership

This chapter of the NCERT accountancy book class 12 PDF discusses how the accounts are dealt when two or more parties or entities agree to be worn in a partnership. The chapter begins with the definition of Partnership deed and its importance. The chief characteristics of a business partnership are also enlisted in this chapter.

The mechanism of fixed capital and fluctuating capital in terms of a partnership account is detailed in this chapter of the NCERT class 12 Accountancy Book. Profit and loss adjustments account, different provisions of the Indian Partnership Act 1932, interest to be charged when a partner draws income, a guarantee of profit to a partner, dealing with change in profit sharing ratio, etc. are some of the other contents of the 2nd chapter.

Chapter 3: Reconstitution of a Partnership Firm: Admission of a Partner

Chapter 3 of the NCERT book of class 12 accountancy briefs students about the various points which are to be adjusted in case there is a new partner entering the agreement. In this chapter, it has also been discussed as to why it is important to assure a new profit ratio to the old partners when there is an admission of a new partner.

Sacrificing ratio, its role, use and way of calculation form a vital part of the 3rd chapter of the NCERT class 12 Accountancy Book. The chapter also explains goodwill, factors that affect it, and the various methods of finding its value in a partnership. Detailing of the important topics is followed by some situational questions, which help students understand the partnership intricacies better.

Chapter 4: Reconstitution of a Partnership Firm: Retirement/Death of a Partner

The 4th chapter of the NCERT accountancy book Class 12 Part 1 begins with the explanation of different ways in which a partner can retire from a partnership deal. This is followed by a brief guideline on which aspects need adjustment when any of the partners retire.

This chapter contains a precise table discussing how sacrificing ratio differs from that of gaining ratio in a business partnership. This table is followed by a discussion on the need to re-evaluate assets and reassess the liabilities on retirement or death of a particular partner.

Class 12 Accountancy book NCERT also details the various modes of paying a deceased or retired partner.

Chapter 5: Dissolution of Partnership Firm

The 5th chapter of the NCERT accountancy book lists the difference between the dissolution of a partnership and the dissolution of a partnership firm. The accounting treatments for unrecorded assets as well as liabilities are also explained in a detailed manner in the NCERT class 12 Accountancy book.

The difference between a firm's debts and a partner's debts, realization account and revaluation account, has been discussed in the same chapter. This chapter of the NCERT accountancy textbook for class 12 also briefs on how the deficiency of creditors is paid off when a firm dissolves. At the end of this chapter, there are some accountancy sums for the students to practice.

Chapter-wise Elaboration of Part 2 of NCERT Class 12 Accountancy Textbook

Chapter 1: Accounting for Share Capital

The 1st chapter of this book gives the students fundamental knowledge about what is a company, a listed company, a public company and a private company. It also briefs on how they operate. This chapter of 12th NCERT Accounts book goes on to explain the following-

• Call in Arrears

• Calls in Advance

• Minimum Subscription

• Share and different types of share

• Oversubscription and under subscription

• Forfeiture of shares

The 1st chapter of NCERT Class 12 Accountancy book describes the different categories of a company’s share capital. These include-

• Authorized Capital

• Issues Capital

• Subscribed Capital

• Unissued Capital

• Unsubscribed Capital

• Called up Capital

• Paid-up Capital

• Uncalled up Capital

• Reserved Capital

The chapter in NCERT accountancy book class 12 Part 2 also gives a detailed analysis of the different kinds of preference share.

Chapter 2: Issue and Redemption of Debentures

The 2nd chapter introduces students to the concept of a debenture. It gives a precise definition of the term and goes on to explain bearer debenture, irredeemable debenture, convertible debenture and mortgage debenture. This chapter of NCERT Class 12 accountancy Part 2 gives a list of the different aspects in which debentures can be segregated-

• Security

• Tenure

• Mode of Redemption

• Coupon rate

• Registration

These are some of the concepts which have been described in detail in 2nd chapter of NCERT Class 12 Accountancy book.

• Debentures issued as a collateral security

• Issue of debentures for consideration other than cash

• Issue of debenture at a discount and redeemable at a premium

• Premium on Redemption of debentures

• Redemption out of capital

• Redemption of debentures by 'Purchase in the open market.'

NCERT book of accountancy 12 also gives a detailed table of the differences between debentures and shares.

Chapter 3: Financial Statements of a Company

This chapter explains what financial statements denote, includes and what the limitations of it are. The different objectives of a financial statement have been enlisted in the chapter.

NCERT 12 accounts book PDF explains what importance financial statements hold for-

• Shareholders

• Creditors

• Government

• Investors

Chapter 3 of this account NCERT class 12 book teaches how different items like tools, dentures, dividend, etc. are to be enlisted in a balance sheet of a company. Subjective questions as to how a financial statement happens to be a combination of recorded facts, accounting conventions, and personal perspective are discussed in great detail.

This chapter includes a set of questions where students have to format a profit-loss statement, a balance sheet, and an income statement. Solving these problems would help a student increase his efficiency in answering accountancy sums.

Chapter 4:  Analysis of Financial Statements

This chapter of Account NCERT Class 12 book teaches students the various techniques of Financial Statement Analysis. This includes-

• Comparative financial statement

• Common size statement

• Trend ratio

• Average analysis

• Statement of change in working capital

• Fund flow statement

• Cash flow statement

• Ratio analysis

• Cost volume ratio analysis

The list of differences between horizontal Analysis and Vertical Analysis of financial data has been given in a table format for easy understanding. The importance of Financial Analysis in a business is also detailed in this chapter.

NCERT book of accountancy class 12 in this chapter explains the terms ‘analysis’ and ‘interpretation’ of a financial statement. Comparative financial statements and Common size financial statements are discussed in detail.

Chapter 5: Accounting Ratios

This chapter of accounts NCERT class 12 book gives a thorough explanation of ratio analysis and the different types of ratios commonly found in a financial statement, which include- 

• Profitability ratio

• Coverage ratio

• Turnover ratio

• Financial ratio

• Control ratio

Chapter 5 briefs students about the formulae and relationships established to study-

• Inventory turnover

• Trade receivables turnover

• Trade payables turnover

• Working capital turnover

Current as well as a liquid ratio is discussed elaborately in the 5th chapter of NCERT class 12 Accountancy book. The working of the different profitability ratios is also detailed in the chapter. This chapter mostly contains varied problems on how to calculate the different types of ratios.

Chapter 6: Cash Flow Statement

Cash flow statement is one of the most important chapters in the 12th standard syllabus. The NCERT accountancy book for class 12 students gives a precise and appropriate definition of cash flow statement, followed by its uses. The objectives of preparing cash flow statements in business have also been listed in the NCERT book of accounts class 12. Students learn the basis of classification (as per the revised provisions of AS-3) of various activities while drafting a cash flow statement.

This chapter teaches how to prepare a cash flow statement, and also computing cash from different operating activities in a business. The major sources of cash inflow and outflow in case of investing activities have been specified in this chapter

What Makes NCERT Books Ideal for Students?

Class 12 accountancy book NCERT is the best study material for students appearing for board exams. There are many reasons as to why numerous students have chosen NCERT books for their board exam preparations; here are a few -

1. Comprehensive Coverage of Syllabus: Textbooks of NCERT of Accounts Class 12 guides students through the entire syllabus of CBSE exams in a detailed approach. Simple as well as complex topics are dealt with equal importance in these books to help students have a complete idea of each and every concept.

2. Easy to Understand: NCERT 12th accountancy book has been drafted and compiled in an easy to understand language so that students can easily grasp the concepts. Reading the chapter in a simple language also helps them remember the crucial topics for a longer period. The professors and experts who have drafted the NCERT class 12 accountancy books have prioritized the perspective of students to make all the chapters intelligible.

3. Concise And Factual: NCERT books for CBSE curriculum are compact with factual data and essential information. All the facts and definitions have been incorporated in the books in an interesting way, which ensures students find interest in the textbooks. The facts and figures in the NCERT book class 12 Accountancy are reviewed scrupulously to ensure there is no incorrect information in the texts.

1. Diverse Problems in Exercise: Every chapter in the NCERT accountancy book is followed by exercises. These problems have been shortlisted and included in the exercise so that students get to solve the maximum variety of questions. By solving varied kinds of sums from the NCERT accountancy textbook class 12 students get better prepared for board exams.

2. Expert Guidance: The NCERT books have been drafted, reviewed and compiled by expert professors who have several years’ of experience in teaching students and tackling the CBSE syllabus. They have a detailed idea of how maximum marks can be obtained in the board exams. The expert guidance of the professors through the NCERT class 12 Accountancy book enables students to bring the best out of them in their examinations. 

NCERT books have maintained their reputation as the best academic help for class 12 students. The books and study materials help students boost their exam preparations and also contribute to uplift their confidence. 

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Vedantu is also a great platform for downloading Accountancy class 12 NCERT PDF and other such e-books. Students can also download the Vedantu app to take advantage of the live sessions and clear any sort of doubts from the subject experts. The application motivates students to learn more and pass their board exams with flying colors. 

Other Free CBSE Class 12 Accountancy Study Material

Other Free Study CBSE Material for Class 12