Accounting for Partnership: Basic Concepts
Master Accounting for Partnership: Basic Concepts for Class 12 Accountancy with structured notes and practice.
23 articles in this topic
Asked in the 2026-27 sample paper
Accountancy · Q2 · 1 marks
Applies interest on drawings.
Open the complete solved paperAccountancy · Q5 · 1 marks
Applies partner loan interest/loss.
Open the complete solved paperAccountancy · Q7 · 1 marks
Applies guaranteed profit.
Open the complete solved paperAccountancy · Q18 · 3 marks
Compute partner appropriations under profit, insufficient profit and loss after omitted employee salary.
Open the complete solved paperAccountancy · Q22 · 4 marks
Rectify omitted commission; OR prepare deceased partner executor account.
Open the complete solved paperAll articles
Adjustment of Partners' Capital on Retirement of a Partner
After retirement, continuing partners redivide capital in the new profit sharing ratio, bringing in any shortfall or withdrawing excess in cash.
Death of a Partner: How Is the Deceased Partner's Claim Settled?
A deceased partner's claim — capital, goodwill, reserves and profit up to the date of death — is settled through an Executor's Account.
How Is the Amount Due to a Retiring Partner Settled?
A retiring partner is settled in cash, by loan transfer, or a mix; unpaid balances move to a loan account governed by Section 37 of the Partnership Act.
Revaluation of Assets and Liabilities & Accumulated Profits on Retirement or Death of a Partner
On a partner's retirement or death, revaluation gains, losses and accumulated profits are shared by all partners in the old profit sharing ratio.
Indian Partnership Act 1932: Key Provisions for Accounting (Class 12 Guide)
Discover what the Indian Partnership Act 1932 says about profit sharing, interest on capital, interest on drawings, partner's loan.
Treatment of Goodwill on Retirement or Death of a Partner
Understand how goodwill is treated when a partner retires or dies — journal entries, hidden goodwill and a solved example for CBSE Class 12 Accountancy.
New Profit Sharing Ratio and Gaining Ratio on Retirement or Death of a Partner
When a partner retires, each continuing partner's new share is old share plus the share acquired, and the gaining ratio is new share minus old share.
Change in Profit Sharing Ratio Among Existing Partners (Class 12)
When Class 12 partners change the profit sharing ratio, sacrifice is old minus new share and gain the reverse; gainers compensate sacrificing partners.
Accumulated Profits & Capital Adjustment on Admission of a Partner
Accumulated profits and reserves go to old partners in the old profit sharing ratio, and capitals are adjusted to the new ratio only if the partners agree.
Revaluation of Assets and Liabilities on Admission of a Partner
On admission, the Revaluation Account records changes in asset and liability values, and the resulting profit or loss goes to old partners in their old ratio.
Treatment of Goodwill on Admission of a Partner (Journal Entries)
Learn the accounting treatment of goodwill on admission of a partner with journal entries for cash, non-cash, and hidden goodwill scenarios — CBSE Class 12.
Methods of Valuation of Goodwill: Average, Super Profit & Capitalisation
Master goodwill valuation methods in CBSE Class 12 Accountancy: Average Profit, Super Profit, and Capitalisation methods with step-by-step solved examples.
Goodwill in Accounting: Meaning, Need and Factors Affecting It
Comprehensive guide to goodwill in partnership accounting for CBSE Class 12. Learn its definition, need for valuation, and factors influencing value.
Partnership Accounts 6-Mark Questions Class 12: Reconstitution, Admission & Retirement
The official CBSE Class 12 Accountancy Sample Paper 2026-27 makes Partnership Accounts one of the strongest high-weightage areas for the 2027 Boards. The…
Sacrificing Ratio in Partnership Accounts: Meaning, Formula and Examples
Learn what sacrificing ratio is in Class 12 Accountancy, its formula (Old - New Share), and how to calculate it with step-by-step examples.
New Profit Sharing Ratio on Admission of a Partner (With Examples)
On admission of a partner, the new profit sharing ratio is found by deducting the acquired share from each old partner and using a common denominator.
Reconstitution of a Partnership Firm: Meaning & Modes (2026 Guide)
Master reconstitution of a partnership firm for CBSE Class 12. Learn its meaning, the 4 modes, and key differences from dissolution.
Interest on Drawings: Average Period & Product Method Explained (with Examples)
Interest on drawings, charged only when the deed provides, uses the average period method for fixed regular drawings and the product method for irregular ones.
What Is Partnership? Meaning, Features & Partnership Deed Explained (Class 12)
When a business outgrows what one person can manage alone, entrepreneurs often join hands to pool capital, share responsibilities, and spread risk.
Partnership Accounts: How to Score Full Marks in CBSE Class 12 & CA Foundation
Score full marks in Partnership Accounts for CBSE Class 12 & CA Foundation. Common mistakes, board presentation rules, and 30-day practice plan.
Interest on Capital & Drawings in Partnership: Formulas, Methods & Exam Traps — Class 12 Accountancy
Calculate Interest on Capital & Drawings with ease. Covers simple, product, and average period methods for CBSE Class 12 Accountancy & CA Foundation.
Fixed vs Fluctuating Capital Method: The Complete Guide for CBSE Class 12 Accountancy
Master Fixed vs Fluctuating Capital methods in partnership accounts for CBSE Class 12. Clear journal entries, capital vs current accounts, and exam checks.
Partnership Firms Explained: Key Features, Partnership Deed & Profit Sharing — CBSE Class 12 & CA Foundation
Understand partnership fundamentals for CBSE Class 12 & CA Foundation: Indian Partnership Act 1932, essential deed rules, and profit sharing ratios.