NCERT Solutions For Class 12 Accountancy - 2026-27

Chapter 1: Accounting for Partnership Firms: Basic Concepts

• NCERT Class 12 Accountancy Solutions of Chapter 1, Accounting in Partnership Firms has basic concepts that teach the fundamentals of partnership accounting. 

• It teaches how to manage capital accounts, distribute revenue and losses, and handle partnership changes. 

• The chapter discusses how to calculate interest on capital, interest on draws, and partner payment. 

• It also explains how to revalue assets and liabilities when a new partner enters or an old partner leaves. 

• Understanding these fundamentals helps in maintaining accurate and balanced partnership management of all partners.

Important Topics Covered in Chapter 1: Accounting for Partnership Firms: Basic Concepts

• Capital Accounts

• Profit and Loss Sharing

• Interest on Capital

• Interest on Drawings

• Partner Salaries

• Admission of a New Partner

• Retirement/Death of a Partner

• Revaluation of Assets and Liabilities

Chapter 2: Reconstitution of a Partnership Firm: Admission of a Partner

• Chapter 2: Reconstitution of Partnership Firms contains Admissions of a Partner describes what happens when a new partner joins the company. 

• It includes altering the existing partner's capital accounts, calculating the new profit-sharing ratio, and revaluing assets and liabilities. 

• The chapter also discusses how to deal with goodwill, whether it gets increased or cancelled. 

• Understanding this chapter is important for managing financial changes and maintaining accurate records when a new partner is accepted, allowing the business to move smoothly.

Important Topics Covered in Chapter 2: Reconstitution of a Partnership Firm: Admission of a Partner

• Adjusting existing partners' capital accounts

• Calculating the new profit-sharing ratio

• Revaluing assets and liabilities

• Treatment of goodwill (raising or writing off)

• Calculation of new capital contributions

• Adjustments for accumulated profits and losses

• Accounting entries for admission of a new partner

Chapter 3: Reconstitution of a Partnership Firm: Retirement / Death of a Partner

• Chapter 4: Reconstruction of a Partnership Firm is Retirement/Death of a Partner focuses on the changes that are required when a partner retires or dies.

• It refers to the revaluation of assets and liabilities. This chapter describes how to calculate and distribute the retirement or deceased partner's share.

• It also deals with goodwill adjustment and payment settlement.

• Students learn about variations in profit-sharing ratios between the remaining partners.

• These concepts support smooth transitions and fair settlements within the partnership firm.

• Understanding these processes is important for maintaining the financial health of the company.

Important Topics Covered in Chapter 3: Reconstitution of a Partnership Firm: Retirement / Death of a Partner

• Adjustments to Capital Accounts

• Revaluation of Assets and Liabilities

• Calculation and Distribution of Goodwill

• Settlement of Retiring/Deceased Partner’s Dues

• Adjustments in Profit Sharing Ratio

• Preparation of Reconstituted Balance Sheet

• Treatment of Reserves and Accumulated Profits

• Accounting for Joint Life Policy

Chapter 4: Dissolution of Partnership Firm

• NCERT Class 12 Accountancy Solutions of Chapter 4, Dissolution of Partnership covers how to discontinue the partnership business. 

• It includes settling accounts and dividing property among partners. The chapter teaches how to handle responsibilities, pay off debts, and properly distribute remaining assets. 

• It also addresses how to deal with any financial losses or gains generated during the divorce. 

• It also explores the legal requirements and formalities for terminating a partnership. 

• This chapter is important for understanding how to close a partnership firm and address all financial issues correctly.

Important Topics Covered in Chapter 4: Dissolution of Partnership Firm

• Settlement of accounts

• Distribution of assets among partners

• Handling liabilities and paying off debts

• Dealing with losses or gains during dissolution

• Legal requirements and formalities for dissolution

• Realisation account

• Partner's capital accounts during dissolution

NCERT Solutions for Accountancy Class 12: Chapter Details, Concepts, and Important Links (Part 2)

Chapter 1: Accounting for Share Capital

• Chapter 1: Accounting for Share Capital covers the basics of share capital and its importance in a company. 

• This chapter describes the various kinds of shares, including equity and preference shares, as well as how they are issued. 

• It discusses the accounting procedures for issuing shares at average, premium, and discount. 

• It also covers the concepts of oversubscription and under-subscription of shares.

• The chapter also discusses the financial view of calls in backlog and calls in advance. 

• Overall, this chapter provides an excellent overview of how companies raise money through shares, as well as the financial records involved.

Important Topics Covered in Chapter 1: Accounting for Share Capital

• Types of shares: Equity and Preference

• Issuing shares at par, premium, and discount

• Over-subscription and under-subscription of shares

• Accounting treatment for calls in arrears and calls in advance

• Journal entries for issuing shares

Chapter 2: Issue and Redemption of Debentures

• NCERT Class 12 Accountancy Solutions of Chapter 2, Issue and Redemption of Debentures, explains how companies raise money by offering debentures. 

• It covers the different types of debentures and their features. 

• This chapter covers accounting for issuing debentures at the standard, premium, or discount. 

• It also describes how companies redeem debentures, whether in a single payment, in instalments, or by buying them back on the market. 

• Additionally, it includes how to record interest on debentures in the accounts.

• This chapter helps in understanding the entire process of managing debentures in a company's financial records.

Important Topics Covered in Chapter 2: Issue and Redemption of Debentures

• Types of debentures and their features

• Issuing debentures at par, premium, and discount

• Methods of redeeming debentures (lump sum, instalments, market purchase)

• Accounting entries for issue and redemption

• Interest on debentures and its accounting treatment

• Conditions and provisions related to debenture issuance and redemption

Chapter 3: Financial Statements of a Company

• Chapter 3: Financial Statements of a Company explains how to prepare and present a company's financial statements. 

• It covers the balance sheet and income statement, showing what they include and why they are important. 

• Students learn how to record and summarise financial data accurately. 

• This chapter also discusses adjustments, rules, and reservations, which are necessary for proper reporting of earnings. 

• By studying this chapter, students can understand and analyse a company's financial health. 

• It provides the fundamental skills required for creating clear and accurate financial statements for effective business management.

Important Topics Covered in Chapter 3: Financial Statements of a Company

• Balance Sheet

• Income Statement

• Adjustments

• Provisions

• Reserves

• Financial Reporting

Chapter 4: Analysis of Financial Statements

• Chapter 4: Financial Statement Analysis explains how to study financial statements to understand a company's performance better. 

• It focuses on the value of evaluating financial data and provides several resources and methods such as ratios, trends, and comparative statements. 

• These methods help in making sound decisions related to a company's health.

• This chapter teaches students how to properly evaluate balance sheets and income statements properly, and assess a company's profitability, availability, and bankruptcy. 

• This information is required for anyone choosing jobs in finance or business.

Important Topics Covered in Chapter 4: Analysis of Financial Statements

• Tools for financial analysis

• Comparative financial statements

• Common-size financial statements

Chapter 5: Accounting Ratios

• NCERT Class 12 Accountancy Solutions of Chapter 5, Accounting Ratios teaches the basics of accounting ratios and why they are important.

• It shows how to calculate different types of ratios, like liquidity, solvency, and profitability ratios.

• These ratios help understand how well a business is doing.

• The chapter includes formulas for each ratio and explains how to use them.

• There are real-life examples and practice problems to help learn.

• Knowing these ratios is important for making good financial decisions and checking how a business is performing.

• This chapter is helpful for anyone interested in finance or business management.

Important Topics Covered in Chapter 5: Accounting Ratios

• Current Ratio

• Quick Ratio

• Debt to Equity Ratio

• Gross Profit Ratio

• Net Profit Ratio

• Return on Investment (ROI)

• Inventory Turnover Ratio

• Importance and Uses of Accounting Ratios

Chapter 6: Cash Flow Statements

• Chapter 6: Cash Flow Statements explains how to track the money a business receives and spends.

• It teaches how to create a cash flow statement, showing cash inflows and outflows over a period.

• This chapter highlights the importance of cash flow statements for understanding a business's financial health.

• It breaks down cash flows into operating, investing, and financing activities.

• You'll learn different methods to prepare cash flow statements, helping to see how businesses manage their cash.

• This chapter focuses on the role of cash flow in making smart financial decisions.

Important Topics Covered in Chapter 6: Cash Flow Statements

• Definition and purpose of cash flow statements

• Classification of cash flows: operating, investing, and financing activities

• Direct and indirect methods of preparing cash flow statements

• Steps to create a cash flow statement

• Analysis and interpretation of cash flow statements

• Importance of cash flow statements in financial decision-making

Benefits of Referring to Vedantu’s NCERT Solutions for Class 12 Accountancy (Part I and II)

• Clear Concept Understanding: Vedantu’s NCERT Solutions for Class 12 Accountancy provide step-by-step explanations that help students understand difficult accounting concepts and learn the correct problem-solving approach.

• Complete Chapter Coverage: These solutions cover important topics from both Part I and Part II of the Accountancy syllabus, including partnership accounts, company accounts, financial statements, and cash flow statements.

• Improves Problem-Solving Skills: Practising these solutions helps students understand accounting methods, improve calculation accuracy, and solve questions with better speed.

• Follows CBSE Answer Format: The detailed solutions guide students on presenting journal entries, calculations, and other accounting formats in a way that matches examination requirements.

• Supports Effective Revision: Students can use Class 12 Accountancy NCERT Solutions for quick revision, practising textbook questions, and strengthening important concepts before exams.

• Builds Confidence for Exams: Regular practice with these solutions helps students reduce mistakes, improve clarity, and prepare confidently for Class 12 Accountancy board exams.

• Useful for Future Learning: A strong understanding of accounting concepts through these solutions helps students build a foundation for higher studies in finance, commerce, and business-related fields.

Related Important Links for Class 12 Accountancy

Along with this, students can also download additional study materials provided by Vedantu for CBSE Class 12 Accountancy –