CBSE Class 12 Commerce Accountancy

Chapter 1 Accounting for Partnership: Basic Concepts

This chapter explains the need for and the nature of accounting records prepared by partnership firms as required by the provisions of the Indian Partnership Act, 1932. It also explains accounting treatment of special aspects like Profit and Loss Appropriation Account, Partners' Capital Accounts, Partners’ Salary and Commission, Interest on Capital and Drawings etc.

Chapter 2 Goodwill: Nature and Valuation

This chapter defines Goodwill and enumerates the factors which affect it. Along with the meaning, it also teaches the various methods of calculating the value of Goodwill like Simple Average Profit Method, Weighted Average Profit Method, Super Profit Method, Capitalisation of Profit Method etc.

Chapter 3 Reconstitution: Change in Existing Profit-Sharing Ratio

This chapter introduces the various modes of reconstitution of a partnership firm along with the calculation of new, sacrificing and gaining ratios. It also explains the accounting treatment for the various adjustments like Goodwill, Revaluation of Assets and Reassessment of Liabilities, Accumulated Profits and Losses, and Partners' Capital Accounts in the event of change in the existing profit-sharing ratio.

Chapter 4 Reconstitution: Admission of a Partner

This chapter introduces the concept of admission of a partner to partnership firm along with the calculation of new, sacrificing and gaining ratios. It also explains the accounting treatment for the various adjustments like Goodwill, Revaluation of Assets and Reassessment of Liabilities, Accumulated Profits and Losses, and Partners' Capital Accounts in the event of admission of a partner.

Chapter 5 Reconstitution: Retirement/Death of a Partner

This chapter introduces the concept of Retirement and Death of a Partner along with the calculation of the new and gaining ratios. It also explains the accounting treatment for various adjustments like Goodwill, Revaluation of Assets and Reassessment of Liabilities, Accumulated Profits and Losses, Partners’ Loan Account, Deceased Partner's Executor's Account, Partners' Capital Accounts and computation of the amount due to the retiring or deceased partner in the event of retirement or death of a partner.

Chapter 6 Dissolution of Partnership Firm

This chapter introduces the concept of Dissolution of Partnership Firm along with the various modes of dissolution. It also explains the rules relating to the settlement of claims and the accounting treatment relating to Realisation Account, Partners' Loan, Partners' Capital and Bank/Cash Account in the event of the dissolution of a partnership firm.

Chapter 7 Accounting for Not-for-Profit Organisation

This chapter explains the need for and the nature of accounting records prepared by Not-for-Profit Organisations. It also helps in understanding the accounting treatment for the peculiar items of Financial Statements such as Subscriptions, Membership Fees, Funds, Sale of Old Fixed Assets, Sports Materials, Legacies etc.

Chapter 8 Accounting for Share Capital

This chapter introduces the concept of a company along with the detailed explanations of its share capital. It also explains the accounting treatment of shares issued by a company including Oversubscription, Undersubscription, Calls-in-Arrears, Calls-in-Advance, Forfeiture of Shares and Reissue of Forfeited Shares.

Chapter 9 Issue of Debentures

This chapter explains the meaning of debentures and its various types. It also covers the accounting treatment relating to the issue of debentures for cash, for consideration other than cash, as collateral security along with the treatment for interest on debentures and writing off discount or loss on the issue of debentures.

Chapter 10 Redemption of Debentures

This chapter introduces the concept of Redemption of Debentures along with the sources and methods of redemption. It also covers the 2 important topics of Redemption of Debentures—Debenture Redemption Reserve (DRR) and Debenture Redemption Investment (DRI).

Chapter 11 Financial Statements of the Company

This chapter explains the Meaning, Objectives and Significance of Financial Statements of a Company along with its Limitations. It also explains the form and content of the Statement of Profit and Loss and Balance Sheet of a Company according to Schedule III of the Companies Act, 2013

Chapter 12 Analysis of Financial Statements

This chapter explains the meaning, objectives and significance of Analysis of Financial Statements along with its limitations. It also describes the various tools of financial statements analysis with the complete explanation for its preparation and presentation for analysing and interpreting the available financial information.

Chapter 13 Accounting Ratios

This chapter explains the meaning, objectives and limitations of Accounting Ratios. It also introduces the various classifications of Accounting Ratios which are used to assess the solvency, liquidity, efficiency and profitability of the firm based on the interpretations and comparisons within and between firms.

Chapter 14 Cash Flow Statement

This chapter explains the meaning, purpose and preparation of Cash Flow Statements. It also teaches to distinguish among the operating, investing and financing activities for correctly classifying the various transactions while preparing the cash flow statement.