NCERT Solutions for Class 12 Accountancy
NCERT Solutions for Class 12 Accountancy Part 1 Not-for-profit Organisation and Partner Accounts, Part 2 Company Accounts and Analysis of Financial Statements. Short and long question answers given at the end of NCERT Textbook for CBSE academic session 2020-2021 based on latest CBSE curriculum.All the questions are solved with accurate calculation by the experts, so that students can take the benefits of these solutions for their exams.
NCERT Solutions for Class 12 Accountancy Part I and II
|Contents:||NCERT Solutions and Study Materials|
Class 12 Accountancy Solutions for 2020-2021
Chapter wise Question Answers for 12th Accounts Part 1 All Chapters
Chapter wise Question Answers for 12th Accounts Part 2 All Chapters
Topic wise notes for Class 12 Accountancy Part 1
- Topic 1: Accounting for Not for Profit Organizations
- Topic 2: Accounting for Partnership Firms, Fundamentals
- Topic 3: Goodwill: Nature and Valuation
- Topic 4: Reconstitution of Partnership
- Topic 5: Accounting for Partnership Firms: Admission of a Partner
- Topic 6: Retirement/Death of a Partner
- Topic 7: Dissolution of a Partnership Firm
- Topic 8: Accounting for Share Capital
- Topic 9: Accounting for Issue of Debentures
- Topic 10: Company Accounts—Redemption of Debenture
Chapter wise Important Points for Class 12 Accountancy Part 1
Chapter 1. Accounting for Not-for-profit Organisation
In chapter 1 of 12th Accountancy, we will learn to identify the need for and nature of accounting records relating to not-for-profit organizations. This chapter also deals with list the principal financial statements prepared by not-for-profit organizations and teach us to prepare the Receipt, and Payment Account and Income and Expenditure Account. Guidelines for the preparation of Income and Expenditure Account and Balance Sheet from a given Receipt and Payment Account. In the end, the explanation of the treatment of certain peculiar items of Receipts and Payments such as subscriptions from members, special funds, legacies, sale of old fixed assets, and so many other concepts.
Chapter 2. Accounting for Partnership: Basic Concepts
Class 12 Accounts Chapter 2 explains about the partnership and list its essential features. It also tells how to Identify the provisions of the Indian Partnership Act 1932 relevant to accounting. Here, we will learn how to prepare partners’ capital accounts under fixed and fluctuating capital methods. We will explain the distribution profit or loss among the partners and prepare the Profit and Loss Appropriation Account. Chapter 2 also tells about making necessary adjustments to rectify the past errors in the partner’s capital accounts and prepare final accounts of a partnership firm.
Chapter 3. Reconstitution of a Partnership Firm-Admission of a Partner
Class 12 Accountancy Chapter 3 is based on the concepts of the reconstitution of a partnership firm. This chapter tells how to identify the matters that need adjustments in the firm’s books when a new partner is admitted and determine the new profit sharing ratio and calculate the sacrificing ratio. It also considers the factors of goodwill and enumerates that affect it. Methods of valuation of goodwill and the treatment of goodwill under different situations. How to make necessary adjustments for revaluation of assets, reassessment of liabilities, and accumulated profits and losses.
Chapter 4. Reconstitution of a Partnership Firm-Retirement/Death of a Partner
In Chapter 4 of 12th Accounts, we have to calculate the new profit sharing ratio and gain the remaining partners’ ratio after the retirement or death of a partner. It also describes the accounting treatment of goodwill in the same situation. It explains how to make the necessary entries regarding unrecorded assets, liabilities, and accumulated profits or losses. Here, we will try to understand the retiring/deceased partner claim against the firm and explain its settlement mode. We will know how to prepare the retiring partner’s loan account and the deceased partner’s executor’s account in the case of a partner’s death and the balance sheet of a reconstituted firm.
Chapter 5. Dissolution of Partnership Firm
Class 12 Accountancy state the meaning of the dissolution of a partnership firm and the difference between the dissolution of partnership and dissolution of a partnership firm. It also describes the various modes of dissolution of the partnership firm and explains the rules relating to the settlement of claims among all partners.
Chapter wise Important Points for Class 12 Accountancy Part 2
Chapter 1 of Class 12 Accounts part 2 explains the fundamental nature of a joint-stock company as a form of business organization and the various kinds of companies based on their members’ liability. This chapter also describes the types of shares issued by a company. It explains in a simplified manner about the accounting treatment of shares issued at par, at a premium, and at a discount, including oversubscription. After completing the chapter, we will know about the accounting for forfeiture of shares and reissue of forfeited shares under varying situations and transferred to capital reserve when forfeited shares are reissued.
Chapter 2. Issue and Redemption of Debentures
Chapter 2 of Part 2 Class 12 Accounts states the meaning of debenture and explains the difference between debentures and shares. It also explains the various types of debentures, how to record the journal entries for debentures at par, at a discount, and a premium. Here, we will learn the concept of debentures as collateral security and the accounting thereof and recording the journal entries for the issue of debentures with various terms of issue, terms of redemption. Easy way to describe the methods of writing-off discount/loss on issue of debentures and know about the methods of redemption of debentures and the accounting thereof.
Chapter 3. Financial Statements of a Company
Students can learn about the nature and objectives of a company’s financial statements in chapter 3 of class 12 Accounts Part 2. This chapter describes the form and content of the Statement of Profit and Loss of a company as per schedule III and the form and content of a company’s balance sheet as per schedule III. Here, we will learn about the significance and limitations of financial statements and the financial statements’ preparation.
Chapter 4. Analysis of Financial Statements
Class 12 Accounts Chapter 4 of Part II explains the nature and significance of financial analysis and tells us about identifying the objectives of financial analysis. It also explains the various tools of financial analysis and the limitations of financial analysis. Students can learn here to prepare comparative and common size statements and interpret the data given therein and calculate the trend percentages and interpret them.
Chapter 5. Accounting Ratios
Class 12 Accounts Part 2 Chapter 5 explains the meaning, objectives, and limitations of accounting ratios and helps to identify the various types of ratios commonly used. It explains how to calculate various ratios to assess the firm’s solvency, liquidity, efficiency, and profitability and provides a perfect method to interpret the various ratios calculated for intra-firm and interfirm comparisons.
Chapter 6. Cash Flow Statement
In Chapter 6 of Part 2 Accounts Class 12, we will learn about the purpose and preparation of the cash flow statement. We will be able to distinguish between operating activities, investing activities, and financing activities. Here, students can learn how to prepare the statement of cash flows using the direct method and the cash flow statement preparation using the indirect method.
How many chapters are there in class 12 Accountancy Part 1 book according to CBSE Syllabus 2020-2021?
There are total five chapters in part I of class 12 Accountancy.
1. Accounting for Not-for-profit Organisation
2. Accounting for Partnership: Basic Concepts
3. Reconstitution of a Partnership Firm-Admission of a Partner
4. Reconstitution of a Partnership Firm-Retirement/Death of a Partner
5. Dissolution of Partnership Firm
How many chapters are there in class 12 Accountancy Part 2 book according to CBSE Syllabus 2020-2021?
Chapters of Accounts Part 2 as per CBSE Curriculum 2020-2021 are as follows:
1. Accounting for Share Capital
2. Issue and Redemption of Debentures
3. Financial Statements of a Company
4. Analysis of Financial Statements
5. Accounting Ratios
6. Cash Flow Statement
What is Public accounting?
Public accounting simply means providing accounting services to other individuals or businesses.
What is the purpose of accounting?
The basic purpose of accounting is to make us understand the financial aspect.