NCERT Solutions for Class 12 Accountancy

NCERT Solutions for Class 12 Accountancy Chapter Brief

The class 12 Accountancy book is divided into five parts. Part A covers Accounting for Partnership Firms and Companies, Part B covers the Financial Statement Analysis, and Part C is about the project work that students must complete in their academic session, including a project file and viva. Now, students taking Commerce after class 10 would also have the option to opt for Computerised Accounting, which a student can opt for instead of Part B, i.e., Financial Statement Analysis. The project would be aware of Computerised Accounting and cover practical files and viva. NCERT has made many changes in the curriculum for school students this year following the National Education Policy 2020. However, Accounting is a field that has to be covered elaborately as it directly implies commercial operations. The changing scenario, financial legalities, and laws make it complex. Accounts NCERT class 12, however, is not hard if you put in hard work and some smart work. Accountancy class 12 NCERT solutions cover all the chapters that are mentioned below:

Part A

Chapter 1: Accounting for Partnership Firms: Basic Concept

Class 11 Accountancy introduces the world of business, commerce & economic operations. Class 12 Accountancy continues to delve into Accountancy further. The first chapter in the class 12 Accountancy chapters deals with Accounting for Partnership Firms. The aim is to inform students about Partnership, Partnership firms, and Partnership deeds. Account NCERT Solutions also help students understand the basic concept of Accounting for Partnership Firms and prepares them to answer correctly in exams. The chapter covers the essential features of a Partnership, including, Provisions of the India Partnership Act 1932 (relevant to accounting); Preparing Partners’ capital accounts under fixed and fluctuating capital methods; Distribution of profit or loss among the partners, and preparing the profit and loss appropriation account; Calculate interest on capital and drawing under various situations; How guarantee for a minimum amount of profit affects the distribution of profits among the partners; Making necessary adjustments to rectify the past errors in partners capital account, and Prepare final accounts of a partnership firm.

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

Accountancy class 12 prepares students for the professional world of Accounts. The curriculum begins with basic concepts of a Partnership Firm, while the second chapter of the class 12 Accountancy Book explains the concept of updating or changing an agreement between two or more partners. Students would be able to understand the dynamics of a partnership firm which will cover topics like the Admission of a new partner, change in profit sharing ratio, the retirement of a partner, death or insolvency of a partner, and more.

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

Running a business could be complicated if one is unaware of all the functioning, laws, and implications. Therefore, the training of a professional in Accounting begins at an early stage. Students interested in the world of Accounts opt for Accountancy by choosing Commerce as a subject after the class 10 CBSE board examination. The third chapter of the class 12 Accountancy Book also deals with the Reconstitution of partnership but in case of retirement or death of a partner. It helps students understand the change a partnership firm goes through in case of retirement or death of a partner.

Chapter 4: Dissolution of Partnership Firm

Accounting not only deals with the constitution or reconstitution of a Partnership Firm but also handles the dissolution of a partnership, which is a major part of Accounting. If a partner chooses to retire or in case of the death of a partner, the partnership is considered dissolved. Chapter 4 of the class 12 Accountancy Book deals with the meaning of dissolution; the difference between the dissolution of partnership and the dissolution of a partnership firm; modes of dissolution of the partnership firm; rules relating to the settlement of claims among all partners, and preparing a realisation account.

Part B

Chapter 1: Accounting for Share Capital

While studying Accounting, students will learn about various forms of organisations. Proprietorship, Partnership Firm, and Company, are some basic forms an organisation works on. When an organisation becomes a company, it accepts capital from many people that are considered shareholders. The first chapter of Part B deals with Accounting for Share Capital, which deals with accounting aspects in a large firm with an elected Board of Directors and is registered under the Companies Act 2013 or any other companies act (if there is one).

Chapter 2: Issue and Redemption of Debentures

A successful business needs a lot of capital support. Many companies call out investors/public to invest in their company through shares & debentures. Debentures let companies get long-term funds. This chapter helps students understand the meaning of debentures and the difference between debentures and shares. NCERT Solutions of Accounts class 12 are curated in a manner that helps students in learning about the topic in detail.

Chapter 3: Financial Statement of a Company

Accounts are related to taxes. Maintaining a balance sheet in accordance with tax laws is of utmost importance for any company. This chapter in Company Accounts class 12 throws light on the purpose & importance of the Financial Statement of a Company. Accountancy class, 12 NCERT solutions, are designed to ease the pressure on students studying Accountancy and complex topics like financial statements.

Chapter 4: Analysis of Financial Statements

The fourth chapter in NCERT class 12 Accountancy Part B focuses on the nature and significance of financial analysis. It will enable a student of Accountancy to properly analyze a financial statement with a precise interpretation of the company’s progress. Various tools will also be introduced that help in analysing financial statements.

Chapter 5: Accounting Ratios

Balance sheets explain a lot about companies’ success, liabilities, and potential. Accounting, therefore, is considered one of the most crucial aspects of business. It is based on a company's financial statement that its value ascends or descends in the market. Many financial experts invest their time, skill & money in analysing financial statements. This chapter explains the meaning, objectives, and limitations of accounting ratios for assessing the enterprises' solvency, efficiency, and profitability.

Chapter 6: Cash Flow Statement

Chapter 6 of Accountancy Class 12 explains the third type of financial statement, the Cash Flow Statement. The Cash Flow Statement helps understand the inflows and outflows of the cash and cash equivalents. This chapter introduces the concept of Cash Flow Management, which is an integral part of Accountancy, and provides information about cash flow and different techniques used in preparing the same.