Welcome to the NCERT Solutions for Class 12 Accountancy. This page offers chapter-wise solutions designed to help students grasp key concepts easily. With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.
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Chapter 1 Accounting for Not-for-Profit Organisation
Not-for-Profit Organisations refer to the organisations that are used for the welfare of the society and are set up as charitable institutions which function without any profit motive. Their main aim is to provide service to a specific group or the public at large. The main objective of keeping records in such organisations is to meet the statutory requirement and help them in exercising control over utilisation of their funds. The main sources of their income are subscriptions from members, donations, financial assistance from the government and income from investments. Most of their transactions are in cash or through the bank.They also maintain a ledger containing the accounts of all incomes, expenses, assets and liabilities which facilitates the preparation of financial statements at the end of the accounting period.
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Chapter 2 Accounting for Partnership : Basic Concepts
Section 4 of the Indian Partnership Act 1932 defines partnership as the ‘relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all’. Essential features of partnership are: 1) Two or More Persons. 2) Agreement 3) Business 4) Mutual Agency 5) Sharing of Profit 6) Liability of Partners
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Chapter 3 Reconstitution of a Partnership Firm - Admission of a Partner
Modes of Reconstitution of a Partnership Firm, Admission of a new partner, new profit sharing ratio,Sacrificing ration,Goodwill, adjustment for accumulated profits and losses, revaluation of assets and reassessment of Liabilities,Adjustment of Capitals,Change in profit sharing ratio among the existing partners.
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Chapter 4 Reconstitution of a Partnership Firm - Retirement/Death of a Partner
Modes of Reconstitution of a Partnership Firm, Admission of a new partner, new profit sharing ratio,Sacrificing ration,Goodwill, adjustment for accumulated profits and losses, revaluation of assets and reassessment of Liabilities,Adjustment of Capitals,Change in profit sharing ratio among the existing partners.
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Chapter 5 Dissolution of a Partnership Firm
Dissolution of Partnership, Dissolution of a Firm, Settlement of Accounts, Accounting Treatment.
Popular Questions of Class 12 Accountancy
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What is Capital Fund? How is it calculated?
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What is sacrificing ratio? Why is it calculated?
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
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Why there is need for the revaluation of assets and liabilities on the admission of a partner?
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What is subscription? How is it calculated?
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List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating. - Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
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If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
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Why it is considered desirable to make the partnership agreement in writing.
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On what occasions sacrificing ratio is used?
Recently Viewed Questions of Class 12 Accountancy
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In the absence of Partnership deed, specify the rules relating to the following :
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner. - Q:-
Reena and Raman are partners with capitals of Rs. 3,00,000 and Rs. 1,00,000 respectively. The profit for the year ended March 31, 2017 was Rs. 1,80,000, before paying rent for her personal building to be used as godown for firm to Reena payable at Rs. 5000 per month. Interest on capital is to be allowed at 6% p.a. Raman was entitled to a salary of Rs. 30,000 p.a. The drawings of partners were Rs. 30,000 and 20,000. The interest on drawings to be charged to Reena was Rs. 1,000 and to Raman, Rs. 500.
Assuming that Reena and Raman are equal partners. State their share of profit after necessary appropriations.
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Explain the process dissolution of partnership firm?
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On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet. - Q:-
State the meaning of Income and Expenditure Account.
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Raju and Jai commenced business in partnership on April 1, 2017. No partnership agreement was made whether oral or written. They contributed Rs. 4,00,000 and Rs. 1,00,000 respectively as capitals. In addtion, Raju advanced Rs. 2,00,000 as loan to the firm on October 1, 2017. Raju met with an accident on July 1, 2017 and could not attend the business up to september 30, 2017. The profit for the year ended March 31, 2018 amounted to Rs, 50,600. Disputes have arisen between them on sharing the profits of the firm.
Raju Claims:
(i) He should be given interest at 10% p.a. on capital and so also on loan.
(ii) Profit should be distributed in the proportion of capitals.Jai Claims:
(i) Net profit should be shared equally.
(ii) He should be allowed remuneration of Rs, 1,000 p.a. during the period of Raju’s illness.
(iii) Interest on capital and loan should be given @ 6% p.a.
State the correct position on each issue as per the provisions of the Partnership Act. 1932. - Q:-
On what occasions sacrificing ratio is used?
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Why it is considered desirable to make the partnership agreement in writing.
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If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
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Why is Profit and Loss Adjustment Account prepared? Explain.