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Class 12 AccountancyChapter Summaries

10 chapters · Quick revision in under 3 minutes per chapter · Updated 2025-26

Ch 1

Accounting for Partnership Firms — Fundamentals

Covers partnership deed, fixed and fluctuating capitals, profit and loss appropriation account, past adjustments, and guarantee of profits.

Topics covered

Partnership deedFixed vs fluctuating capitalP&L Appropriation AccountInterest on capital and drawingsSalary and commission to partnersPast adjustments

Ch 2

Reconstitution of Partnership — Admission

Covers admission of a new partner, calculation of new profit sharing ratio, sacrificing ratio, goodwill treatment, revaluation of assets and liabilities, and capital adjustment.

Topics covered

New profit sharing ratioSacrificing ratioGoodwill: meaning and treatmentRevaluation accountCapital adjustment

Ch 3

Reconstitution — Retirement and Death

Covers gaining ratio, goodwill treatment on retirement, revaluation, settlement of retiring partner's account, and treatment on death of a partner.

Topics covered

Gaining ratioGoodwill treatment on retirementRevaluation of assets and liabilitiesSettlement of retiring partner's accountExecutor's account on death

Ch 4

Dissolution of Partnership Firm

Covers modes of dissolution, Realisation Account, and settlement of accounts. The difference between dissolution of partnership and dissolution of firm is important.

Topics covered

Modes of dissolutionRealisation AccountPartners' Loan AccountSettlement of accounts (payment priority)Difference between dissolution of partnership and firm

Ch 5

Share Capital

Covers types of shares, issue of shares at par/premium/discount, calls in arrears and advance, forfeiture and reissue of shares. Journal entries for each are critical.

Topics covered

Types of shares: equity and preferenceIssue of shares: at par, premium, discountPro-rata allotmentCalls in arrears and advanceForfeiture of sharesReissue of forfeited shares

Ch 6

Debentures

Covers types of debentures, issue (at par/premium/discount), redemption methods (at par/premium, sinking fund, own debentures), and interest payment.

Topics covered

Types of debenturesIssue of debentures: at par, premium, discountDebentures as collateral securityRedemption: at par, at premium, by sinking fund, by own debentures

Ch 7

Financial Statements of a Company

Covers the format of Statement of Profit and Loss and Balance Sheet as per Schedule III of Companies Act. Adjustments like depreciation, outstanding/prepaid items, and tax are included.

Topics covered

Format of Statement of Profit and LossFormat of Balance Sheet (vertical format)Notes to AccountsAdjustments in final accounts

Ch 8

Analysis of Financial Statements

Covers objectives, tools (comparative, common size), and limitations of financial analysis. Comparative and common size statements are exam favourites.

Topics covered

Objectives of financial analysisTools: comparative statements, common size statements, ratio analysis, cash flow analysisLimitations of financial analysis

Ch 9

Accounting Ratios

Covers liquidity, solvency, profitability, and activity ratios. Quick ratio, debt-equity ratio, gross profit ratio, and inventory turnover are commonly asked in exams.

Topics covered

Liquidity ratios: current ratio, quick ratioSolvency ratios: debt-equity, interest coverageProfitability ratios: gross profit, net profit, return on equityActivity ratios: inventory turnover, debtors turnover

Ch 10

Cash Flow Statement

Covers operating, investing, and financing activities. Preparation of cash flow statement using indirect method is a full question in board exams.

Topics covered

Classification of activities: operating, investing, financingDirect and indirect methodAdjustments for non-cash itemsPreparation of cash flow statement (indirect method)

Frequently Asked Questions

Can I revise Class 12 Accountancy in one day using summaries?

Yes. Each chapter summary here takes under 3 minutes to read. With 10 chapters, you can cover all of Class 12 Accountancy in a focused 2–3 hour session. Use these summaries to identify gaps — then revisit only those chapters in detail.

Are chapter summaries enough for CBSE Class 12 Accountancy board exam?

Summaries are for revision, not first learning. Use them after you've already studied the chapter — they quickly confirm what you remember and flag what you don't. For first-time study, read the NCERT textbook and work through important questions chapter-by-chapter.

What is covered in Class 12 Accountancy chapter summaries?

Each summary here covers the main concepts of the chapter, key topics that CBSE tests, and important points for the board exam. Deleted topics (removed from the 2025-26 CBSE syllabus) are clearly marked so you don't waste time on content that won't be tested.

What is the fastest way to revise Class 12 Accountancy for CBSE boards?

Read the chapter summary, then immediately close it and try to recall the key topics listed — without looking. Anything you miss, mark for one more read. This active recall method is proven to be 3× more effective than re-reading the textbook, and takes a fraction of the time.

Complete Study Pack — Class 12 Accountancy

NCERT Solutions →Important Questions →CBQ Practice →Sample Papers 2025-26 →Previous Year Papers →Last Minute Revision →Revision Checklist →Deleted Topics →