NCERT Solutions For Class 12 Accountancy - Partnership Accounts

NCERT Solutions are a valuable source of vital information so that students learn and adapt the various methodologies that aid them to answer questions more efficiently. After going through Partnership Accounts for Class 12, students will get a brief understanding of how to decode and solve problems, a detailed explanation of textbook answers, revision notes, concept videos, and solved MCQs.

The Partnership Accounts for Class 12 pdf is an easy-to-read document inclusive of all the necessary and updated study materials described clearly in an incisive manner. Students will acquire full preparation for their board exams through the thorough reference of the NCERT solutions.

NCERT Class 12 Accountancy Partnership Accounts

The NCERT Solutions for Class 12 Accountancy Partnership Accounts deals with the fundamentals required in Accounting for partnership firms with primary emphasis regarding Business Transactions, Company Accounts and Analysis of Financial Statements. The NCERT Class 12 Accountancy Partnership Accounts chapter is divided into two parts.

The first part of the Partnership Accounts chapter comprises five units. Unit one of Partnership Accounts is about different accounting practices required for an organisation that is not for profit. Unit two deals with the basic concepts of Accounting and Accounting Practices for Partnership Firms. Unit three discusses the changes involved in a partnership firm during the admission of a partner. Unit four discusses the changes in a partnership firm when the death or retirement of a partner takes place. Finally, Unit five deals with the formal ending of a partnership firm.

The second part of the Partnership Accounts Chapter comprises six units. Unit one deals with accounting for the capital regarding the issue of shares. Unit two discusses in detail of the redemption and issue of debentures. In Unit Three, students learn about the reports that reflect the financial performance of an individual company. Unit four examines and enables students to understand the various elements of financial statements. Unit five deals with the comparison of multiple financial data in a company. Finally, the last unit deals with the specific type of financial statement along with cash inflows and cash outflows of an individual company.

NCERT Class 12 Accountancy Partnership Accounts - Weightage Marks

The Accountancy Partnership Chapter Class 12 deals with the fundamentals of Partnership Accounts. In the Board examination, this chapter holds a weightage of 35 marks. The Accountancy Partnership chapter Class 12 includes the solutions to the problems given in this chapter of the textbook.

The Units for both Part One and Part Two of the Chapters are listed below for Partnership accounts class 12:

Part - I

Unit - 1 - Accounting For Not For Profit Organisation.

• The concept of non-profit organizations.

• Features and preparation for the Receipts and Payments Account.

• Income and Expenditure Account: This feature allows you to create an income and expenditure account as well as a balance sheet from supplied receipts and payments.

Unit - 2 - Basic Concepts of Accounting for Partnership Firms.

• Changes in the Profit Sharing Ratio among existing partners– sacrificing ratio, gaining ratio, accounting for revaluation of assets and liabilities, and treatment of reserves and accrued profits Revaluation account and balance sheet preparation.

Unit - 3 - The Admission of a Partner in Reconstitution of a Partnership Firm.

• Admission of a partner - impact on profit sharing ratio, treatment of goodwill (as per AS 26), treatment of revaluation of assets and reassessment of liabilities, and treatment of reserves and accumulated profits

Unit - 4 - Reconstitution of a Partnership Firm: Retirement or Death of a Partner.

Unit - 5 - Dissolution of Partnership Firm.

• At the time of dissolution, the realized value of each asset must be provided. (ii) If a partner is responsible for the realization costs, a clear explanation of how they will be paid should be provided.

Part - II

Unit - 1 - Accounting for Share Capital.

• Nature and forms of shares and share capital.

• Issue and allotment of equity and preference shares are part of the accounting for share capital. Oversubscription and under subscription of shares; issue at par and at a premium; calls in advance and arrears (excluding interest); and the issue of shares for consideration other than cash are all examples of public subscription of shares.

• Employee Stock Option Plan and Private Placement Concept (ESOP).

• Forfeiture and reissue of shares are treated differently in accounting.

• In a company's balance sheet, share capital is disclosed.

Unit - 2 - Issue and Redemption of Debentures.

Unit - 3 - Financial Statements of a Company.

• A company's financial statements include a profit and loss statement and a balance sheet in the required format, with major headings and subheadings (as per Schedule III to the Companies Act, 2013)

Unit - 4 - Analysis of Financial Statements.

• The goals, importance, and limitations of Financial Statement Analysis

• Comparative statements, common-size statements, cash flow analysis, and ratio analysis are the tools used in financial statement analysis.

Unit - 5 - Accounting Ratios.

• Meaning, objectives, classification, and calculation of accounting ratios

• Current and quick liquidity ratios are two types of liquidity ratios

• Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio, and Interest Coverage Ratio are all examples of solvency ratios

• Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, and Working Capital Turnover Ratio are examples of activity ratios

• Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment are all examples of profitability ratios

Unit - 6 - Cash Flow Statement.

The CBSE Class 12 Accountancy Syllabus focuses on improving a fundamental understanding of the nature and purpose of accounting information, as well as its application in corporate operations. Students' logical reasoning, analytical skills, and judging potential improve as a result of this. Class 12 Accountancy includes a variety of examples to assist students to understand and learn concepts fast.

Below you can find the marks distribution as well as the accountancy Class 12 syllabus. This helps students plan well for their studies and divide their time properly, giving each chapter equal importance, as these chapters will form a base for the future. 

CBSE Class 12 Accountancy Weightage 2024-25

Chapter-Wise Most Important Topics for Class 12 Accountancy

Check out the below list of chapter-wise important topics of Class 12 Accountancy.

Part A: Accounting for Not-for-Profit Organisations, Partnership Firms and Companies

Chapter 1: Accounting for Not-for-Profit Organisation

• Not-for-profit organisations

• Income and Expenditure Account: Preparation of income and expenditure account

• Balance sheet from the given receipts and payments account (Very Important)

Chapter 2:  Partnership Firm - Basic Concept

• Preparation of Profit and Loss Appropriation account

• Division of profit among partners

• Past Adjustments (relating to interest on capital, interest on drawing, salary, and profit-sharing ratio). 

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

• Admission of a New Partner

• New Profit Sharing Ratio

• Goodwill

• Revaluation of Assets and Reassessment of Liabilities

Chapter 4: Retirement/Death of a Partner

• Retirement and death of a partner

• Preparation of deceased partner’s capital account

• Treatment of Goodwill

• Disposal of Amount Due to Retiring Partner

Chapter 5: Dissolution of Partnership Firm

• Dissolution of partnership

• Settlement of accounts

• Realisation account

• Dissolution of a Firm

Part B: Analysis of Financial Statements

Chapter 1: Accounting for Share Capital

• Issue of Shares

• Accounting Treatment

• Forfeiture of Shares

Chapter 2: Issue and Redemption of Debentures

• Distinction between Shares and Debentures

• Accounting Treatment of Debentures

• Accounting Treatment

Chapter 3:  Financial Statements of a Company

• Meaning and Objective of Financial Statements

• Form and Contents of Income Statement

• Form and Contents of Balance Sheet

Chapter 4: Analysis of Financial Statement

• Meaning and Objective of Financial Analysis

Chapter 5: Accounting Ratio

• Types of Ratios

• Liquidity Ratios

• Solvency Ratios

• Activity (or Turnover) Ratios

• Profitability Ratios 

Chapter 6: Cash Flow Statement

• Classification of Activities for the Preparation of Cash Flow Statement

• Preparation of Cash Flow Statement

Benefits of NCERT Solutions for Class 12 Accountancy Partnership Accounts

NCERT Solutions for Class 12 Accountancy is a brief chapter that deals with accounting practices for a partnership. With a basic understanding of what the chapter entails and quick problem-solving skills, students can score better percentages in their board exams. A few benefits of NCERT solutions for NCERT Solutions for Class 12 Accountancy are as follows:

• The NCERT Solutions for Class 12 Accountancy are solved by experienced teachers and professionals with several years of expertise in this field of Accounts.

• The Accounts Class 12 Partnership Solutions offer accurate and credible sources of study material and notes for students to study efficiently. The solutions aim to alleviate students’ stress levels during the coerce preparation for the hectic year ahead.

• The NCERT Solutions for Class 12 Accountancy provides short and long questions and other exercises at the end of the chapter to create a profound understanding of partnership accounts.

• NCERT Solutions is a lifesaver as it saves a lot of time during preparation with brief knowledge on the subject matter.