NCERT Solutions for Class 12 Accountancy Chapter 3 - Financial Statements of a Company

Class 12 Accountancy NCERT Solutions Chapter 3 - Financial Statements of a Company

Accountancy is a subject which requires constant practice to balance your equations perfectly. It also requires a deep understanding of the concepts in the chapter. This helps the students in solving all types of questions - even if they are based on two concepts together. Vedantu provides detailed and easy-to-understand solutions for Class 12 Accountancy Part 2 Chapter 3. For continuous practice, study materials such as sample papers, previous years’ question papers, NCERT Solutions have always remained on top of the league. You can easily download NCERT solution for class 12 Accountancy Part 2 Chapter 3 PDF online, from Vednatu’s website. 

Do you need help with your Homework? Are you preparing for Exams?
Study without Internet (Offline)
Class 12 Accountancy Part 2 Chapter 3 part-1

NCERT Solutions for Class 12 Accountancy Chapter 3 -

NCERT Solutions for Class 12 Accountancy - Free PDF Download

This solution by Vedantu has been designed by following all the curriculum and guidelines as given out by the CBSE. You get all the possible questions and their answers written in the most lucid and comprehensive manner.

In Ncert solutions of Class 12 Accountancy Part 2 Chapter 3, students can easily get the facts about the character and purposes of a company’s financial statements. Second part of Chapter 3 illustrates the content of the Statement of Profit and  the Loss of a company on the basis of schedule III and the content of a company’s balance sheet on the basis of schedule III.  So Here, the students can easily understand  the importance and the regulations of financial statements and it's preparation. Download Ncert solutions of Class 12 Accountancy Part 2 Chapter 3 free pdf with a single lick on the pdf link given below on this page.

Benefits of NCERT Solutions for Class 12 Accountancy

  • Solutions of all the questions are available and are absolutely accurate and proof checked.

  • The entire material has been made to thoroughly abide by the CBSE established guidelines.

  • The course is designed in a way that if you go through it diligently, maximum marks are assured in any exam for the student.

  • Free PDF solutions are available online and can be downloaded as well in pf format.

  • Prepared by extremely experienced experts in particular fields pertaining to the subject.

How Does Vedantu Study Material Help Students?

Apart from 12th standard Accountancy, Vedantu’s study material is available for every subject and for every class. Every topic they have covered in their entire venture has been especially done by experts in subjects of that particular field. The entire course in every textbook stands out in the way it has been organized and sorted for the student to proceed in the most efficient manner possible.

Every line in the books have been explained in the simplest manner possible. And all of this has been done along with thoroughly abiding by the latest CBSE guidelines. All the study materials and sample test-papers along with the previous years’ question papers have been formulated accordingly. 

Students can find the solution to any particular problem quite easily. Several miscellaneous questions that would help you understand the topic clearly are also added at the end of each chapter. You can download Ncert Solutions for Class 12 Accountancy Part 2 Chapter 3 Pdf to get all of this information.

If you are not satisfied with the solutions and need any further help solving your doubts, experts around the clock are available to satisfy your queries. Download the Vedantu app now and get your doubts cleared right away.

FAQs (Frequently Asked Questions)

1. What are the main topics in NCERT Solutions for Class 12 Accountancy Part 2?

Accounting for Share Capital, Financial Statements of a Company, Accounting Ratios, Issue and Redemption of Debentures, and Analysis of Financial Statements are the main topics covered in Part 2 of Accountancy in 12th standard.

2. How many questions are there in NCERT Solutions for Class 12 Accountancy Part 2 Chapter 3 – Financial Statements of a Company?

There are 18 questions in total including those explaining the concepts as well as pertinent balance sheets and mathematical problems.

3. What are Financial Statements?

The preparation of the Financial Statements is done from Trial Balance. They are responsible for depicting the true financial position of the business and they may provide valuable financial information to the users.

Trading and Profit and Loss A/c or Income Statement

This shows the financial performance by determining the profit or loss made by a business during an accounting year.

Balance Sheet

This showcases the financial position of the business by telling about the assets, liabilities and the capital as of a particular date.

Cash Flow Statement

This is responsible for showcasing the inflow and outflow of the cash during a particular accounting period.

Financial Statements provide valuable information to stakeholders and aid them in making informed decisions.

4. How to reduce the fear of Accountancy with Vedantu’s NCERT Solutions?

Most students have a tough time getting a fine grip on Accountancy. Vedantu has made the subject of Accountancy easier to comprehend as well as made it much more engaging for students to reduce chances of frustration. Curated with the most experienced experts on the field and abiding by all the latest updated regulations and guidelines, Vedantu’s Ncert solutions for Class 12 Accountancy Part 2 Chapter 3 Financial Statements of a Company is an indispensable asset to any 12th grader Accountancy student. Vedantu’s experts have with the utmost care tried to make the humongous concepts of Accountancy easier for the students. The smartest decision on your part would be to avail your Vedantu guide for 12th Accountancy at your quickest opportunity.

In ch 3 of Accounts Class 12 Part 2 of NCERT Solutions of Accountancy Class 12 Part 2 Chapter 3, you will come across the difficult concepts of the objective, importance and limitations as well as the nature and significance of Financial Statements. You will also be asked to prepare the profit and loss statements as a part of the miscellaneous exercises at the end of the chapter. These questions often appear in exams and are all explained in great detail.

All other questions are also based on how the Financial Statements ease the path for stakeholders and other personnel involved in the business in making informed financial decisions. Practicing all these questions will indefinitely make you an expert on the topic of Financial Statements of a Company. Avail your copy of the Vedantu’s Ncert Solutions for Class 12 Accountancy Part 2 Chapter 3 now and start on your journey towards a 100 % in Accountancy.

5. How are NCERT Solutions useful in learning Chapter 3 of Class 12 Accountancy?

Accounting is a difficult subject regardless of whatever chapter students are studying. For Chapter 3 of Class 12 Accountancy, NCERT Solutions can be the best option for students because they are carefully crafted and assist students in writing answers correctly. Aside from that, the content offers idea clarity, a redesigned syllabus, topic-by-topic weightage, and complete correctness. The PDF format is easily accessible and portable, making it ideal for quick reference. This site provides access to all of these advantages through this link. These solutions are available free of cost on the Vedantu website and the Vedantu app.

6. What are the important definitions in Chapter 3 of Class 12 Accountancy?

Chapter 3 is titled 'Financial Statements of a Company' of Class 12 Accountancy. Some definitions need to be memorized by the students as the chances that these may be asked in the exam are high. NCERT Solutions for Chapter 3 of Class 12 provided by Vedantu can help score good marks as experts on the subject matter design them. So, the concepts are listed out below:

  • Profit-Sharing Ratio

  • Sacrificing ratio

  • New Profit sharing ratio

  • Gaining ratio

  • Goodwill

  • Admission of a partner

7. What is the sacrificing ratio? Why is it calculated, according to Chapter 3 of Class 12 Accountancy?

The sacrificing ratio is the accounting term given to that part of the profit-sharing ratio that the current partners sacrifice when a new partner joins the company, firm, or organization. The calculation of sacrificing ratio is quite simple: the difference between the old profit ratio and the new profit ratio gives the sacrificing ratio. The equation thereby is as follows:

{Sacrificing ratio= Old profit sharing ratio - New profit sharing ratio}

This is mandatory for reimbursement when a new partner enters. 

8. Why are liabilities and assets re-evaluated when a new partner is admitted, according to Chapter 3 of Class 12 Accountancy?

In old balance sheets, the values of assets and liabilities may not be justified and may increase or decrease. Thus, revaluation is helpful in these cases because it helps determine the true value when a new partner is admitted. So, to record changes in market values of assets and liabilities, a revaluation account should be prepared for ease of understanding profits and losses between existing partners of the company.

9. What are the real-life applications of Chapter 3 of Class 12 Accountancy?

This Chapter is immensely useful in real-life scenarios because students can apply these concepts in companies or organizations when a new partner is admitted. In these scenarios, students would be needed to look at the following concepts:

  • The profit-sharing ratio involves calculating new profit sharing ratio

  • Goodwill which is the valuation and adjustment among old partners

  • Revaluation of assets and liabilities

  • Accumulated profits, losses, etc. which are distributed among the existing partners

  • Adjustment of capital among partners.

Share this with your friends