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NCERT Solutions for Class 12 Accountancy - Free Latest PDF (2024-25)

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NCERT Class 12 Accountancy Solutions (Accountancy - Part I and II) - FREE PDF Download

NCERT Solutions for Class 12, Accountancy textbook is divided into two sections, each covering a different component of the course topic and also providing complete answers that help students comprehend important accountancy ideas. Accountancy covers topics including cash flow analysis, partnership firms, and financial accounts, which are meant to simplify the learning process. NCERT Class 12 Accountancy solutions are valuable for studying for examinations and building a strong foundation in accountancy.

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Students can practise Accountancy Class 12 by answering different kinds of questions and improving how they can analyse these solutions. Students may develop their ability to solve problems and take their board exams with confidence by using the CBSE Class 12 Accountancy Syllabus.


NCERT Solutions for Accountancy Class 12 Chapter-wise Links - Download the FREE PDF

Chapters Included in Class 12th Accountancy for Part 1 are as follows:




The following Chapters have been removed from Accountancy NCERT Class 12 for the Academic year 2024-25


  • Accounting for Not-For-Profit Organisation


Chapters Included in Class 12th Accountancy for Part 2 are as follows:




Below is the pictorial representation of the NCERT Accountancy Class 12 Syllabus for better understanding.


NCERT Accountancy Class 12 Syllabus


Quick Overview of NCERT Solutions Accountancy Class 12

  • NCERT Class 12 Accountancy Solutions offers comprehensive coverage with 10 chapters. These chapters are divided into two parts:

  • Part I focuses on Accounting for Partnership Firms and Companies.

  • Part II is dedicated to Financial Statement Analysis.

  • Accountancy teaches how to manage and record finances for non-profit organisations.

  • Learn the basics of partnership accounting, including how to handle changes when new partners join or old partners leave.

  • Class 12 Accountancy covers how to record share capital transactions and manage debentures.

  • Study how to prepare and present financial statements for companies.

  • Learn to analyse financial statements using various tools and techniques, such as accounting ratios.

  • Understand how to prepare and interpret cash flow statements to track a company's cash movements.

  • This subject teaches the accounting processes involved in dissolving partnerships and reconstituting firms.

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)

  • Vedantu's NCERT Solutions for Class 12 Accountancy (Accountancy - Parts I and II) provide clear and detailed explanations for each topic, allowing students to learn difficult accounting concepts more successfully.

  • These solutions cover all of the textbook's important parts and problems, making them perfect for whole exam preparation.

  • The step-by-step method makes it easier for students to learn and apply methods for problem-solving.

  • Students who practise these solutions can improve their speed and clarity, which helps to manage time during exams.

  • These solutions successfully handle the confusion that students may experience, while creating a complete understanding of financial concepts.

  • Regular practice with Vedantu's NCERT Solutions for Class 12 Accountancy improves students' confidence while properly preparing them for their exams.


NCERT Class 12 Accountancy Solutions for 2024-25 are great resources for learning for students. They provide step-by-step answers to accountancy questions, making it easy to understand topics such as financial statements, partnership accounting, and cash flow analysis. Using these solutions, students can improve their capacity to solve problems and develop a basic understanding of accountancy. This will help students perform well on examinations and prepare for future studies in finance and business. Overall, these answers are important to success in Class 12 Accountancy.


Important Books for Class 12 Accountancy

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 –


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FAQs on NCERT Solutions for Class 12 Accountancy - Free Latest PDF (2024-25)

1. Where can I find reliable, step-by-step NCERT Solutions for Class 12 Accountancy for the 2025-26 session?

Reliable and updated NCERT Solutions for Class 12 Accountancy, aligned with the 2025-26 CBSE syllabus, are available on major educational platforms like Vedantu. These solutions provide detailed, step-by-step answers for every question in the NCERT textbook, ensuring you learn the correct problem-solving methodology for the board exams.

2. How are the Class 12 Accountancy NCERT textbooks structured for the CBSE syllabus?

The Class 12 Accountancy syllabus is structured into two main parts, covered in two separate NCERT textbooks:

  • Part A: Accounting for Partnership Firms and Companies - This part covers the foundational and advanced concepts of partnership accounts, including reconstitution and dissolution, as well as accounting for share capital and debentures.
  • Part B: Financial Statement Analysis - This part focuses on analysing company financial statements, preparing accounting ratios, and creating cash flow statements.

3. Do the NCERT Solutions cover all chapters from both Part A and Part B of the Accountancy textbook?

Yes, comprehensive NCERT Solutions for Class 12 Accountancy cover all chapters from both textbooks as per the latest syllabus. This includes solutions for all exercises in chapters like Accounting for Partnership Firms: Fundamentals, Admission of a Partner, Accounting for Share Capital, Accounting Ratios, and Cash Flow Statements, ensuring complete preparation.

4. Are the NCERT Solutions for Class 12 Accountancy sufficient for scoring high marks in the board exams?

NCERT Solutions are the fundamental building block for board exam preparation as they are based on the prescribed textbook. To score high marks, you should use these solutions to master the correct formats and step-wise methods. For a top score, it is recommended to supplement this with practice from sample papers and previous years' question papers to understand the exam pattern and time management.

5. Which chapters in Class 12 Accountancy are often considered challenging, and how do NCERT Solutions help?

Students often find chapters like Cash Flow Statements, Redemption of Debentures, and Partnership Dissolution challenging due to their complex calculations and multiple scenarios. NCERT Solutions help by breaking down each problem into logical, easy-to-follow steps. They clarify the treatment of intricate adjustments, helping you understand the 'why' behind each accounting entry and calculation.

6. Why is it important to follow the exact step-by-step method provided in the NCERT Solutions when solving partnership or company accounts problems?

Following the exact method is crucial because the CBSE board awards marks for each logical step, not just the final answer. This includes marks for working notes, journal entries, ledger accounts, and the final balance sheet. The step-by-step approach in NCERT Solutions reflects the prescribed CBSE pattern, ensuring you don't lose marks for incorrect formatting or missing steps and demonstrating a clear conceptual understanding.

7. How do NCERT Solutions help in correctly applying the accounting treatment of Goodwill during the reconstitution of a partnership?

NCERT Solutions provide clear, worked-out examples for various scenarios involving Goodwill, such as a new partner's admission or a partner's retirement. They clearly show the calculation of the sacrificing ratio and gaining ratio, and the corresponding journal entries for adjusting Goodwill through the partners' capital accounts. This helps avoid common errors and builds a strong foundation on this critical topic.

8. What is the fundamental difference in the problem-solving approach for 'Accounting for Share Capital' versus 'Issue of Debentures' as explained in the NCERT solutions?

The key difference highlighted in the solutions lies in the nature of the funds. Share Capital represents ownership funds, so the solutions focus on complex entries for forfeiture, re-issue of shares, and maintaining the capital reserve. In contrast, Debentures are borrowed funds (a liability), so the solutions' approach emphasizes the conditions of issue (par, premium, discount) and the various methods and legal requirements for redemption.

9. Beyond providing correct final answers, what is the main purpose of using NCERT Solutions for preparing Cash Flow Statements?

The primary purpose is to develop analytical skills. The solutions teach the correct classification of cash flows into Operating, Investing, and Financing activities. More importantly, they explain the treatment of non-cash and non-operating items, such as depreciation or profit on sale of assets. This trains you to analyse a company's financial health by understanding its cash generation and usage patterns, which is a key objective of this chapter.

10. Why are the NCERT Solutions for Class 12 Accountancy divided into two parts: 'Accounting for Partnership Firms and Companies' and 'Financial Statement Analysis'?

This division reflects the logical flow of the accounting process. Part A, 'Accounting for Partnership Firms and Companies', focuses on the procedural aspect—recording and reporting transactions for different forms of business organisations. Part B, 'Financial Statement Analysis', focuses on the analytical aspect—using the financial data prepared in Part A to interpret a business's performance, profitability, and solvency through tools like ratios and cash flow statements.