NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3: Chapter three in Accountancy for CBSE class 12 is the Reconstitution of a Partnership Firm. It emphasizes the admission of a partner. The chapter comes under Part one of Accountancy for CBSE class 12. It consists of various questions that are likely to appear in the exams and are helpful in that respect. Besides solutions that answer the questions, revision notes can also be beneficial for your studies. You should also take the help of revision notes and other resources that you can get to prepare for the exams.
- All you need to know about NCERT Solutions for Class 12 Accountancy
NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3 PDF- Reconstitution of a Partnership Firm- Admission of a Partner
Download Class 12 Accountancy NCERT Solutions for Chapter 3 PDF
The chapter talks about concepts such as the admission of a new partner, changes in the profit-sharing ratio when a firm admits a new partner, and what happens when one of the partners dies. Each topic in the chapter has a logical flow. So, you can follow all the topics without any hassles.
Summary for Class 12 Accountancy Part 1 Chapter 3 Reconstitution of a Partnership Firm
The chapter begins with the different modes of reconstitution of a partnership firm. The different ways of restructuring a partnership firm include the admission of a new partner, the current partner’s return, and a partner’s death. According to the prevailing laws, a partnership firm can accept a new partner only if all the existing partners agree. When such a thing does happen, sometimes, the partners’ roles may change, depending on the current profit-sharing ratio. In such cases, restructuring occurs.
The chapter also tells us about the factors that affect the goodwill of the business. The main factors that affect goodwill include
1. Nature of the Business
If a company has products or services of high value, then its goodwill also increases, along with its profits.
2. Location of the Business
Location is also one of the deciding factors that affect the goodwill of the business. If the company is in such an area where it would get more high-quality customer traffic, then the goodwill also increases.
3. The Efficiency of the Management
The efficiency with which the partners oversee the partnership firm’s daily activities is also an essential deciding factor in the goodwill that it gets. Higher productivity and efficiency lead to higher profitability, which, in turn, leads to more goodwill.
4. The Market Conditions
If the market conditions are favorable, then the business would be reaping higher profits and more goodwill. So, if the business idea is unique, it would not have to face stiff competition. So, the firm can earn a higher profit and goodwill.
Partnership firms that get unique benefits, such as licenses, low tariffs, and assured power supplies and other materials required to run the business, reap profits, sometimes, more often than others. They also gain more goodwill.
Concepts covered in this chapter –
- Modes of Reconstitution of a partnership
- Admission of a new partner
- Sacrificing Ratio
- Adjustment of capitals
- Change in profit sharing ratio among the existing partners
Marks Weightage of CBSE Chapter 3 of Accounts Part 1 Class 12
Part A of Accountancy will acquire a total of 52 marks in the final test, according to CBSE standards.
Highly Important Links For CBSE Class 12 Accountancy
NCERT books and solutions are available for download as PDF. So, you can download them here, and start preparing for the exams:
Benefits of NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3 PDF
You will find few advantages in the sections that follow.
1. It allows you to Study for the Exams
NCERT Solutions have questions at the end of each chapter, and chapter three, Reconstitution of a Partnership Firm, is no different. By writing answers to them, you will get enough practice to face the exams confidently.
2. It Helps you to Learn Essential Concepts in Accountancy
By going through NCERT solutions, you will also be able to learn and interpret various essential concepts not only for the exams but also for higher education.
3. It Enables you to Understand the Working of a Partnership Firm
NCERT Solutions for chapter three in Accountancy also helps you understand a partnership firm’s working in its constitution and operation. It also lets you know the different scenarios in which a partnership firm’s restructuring occurs, such as one or more partners’ death.
We have covered the detailed guide on CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3. Feel free to ask any questions in the comment section below.
FAQs on NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3
What are the benefits of the CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3?
Go through the above blog for the benefits of solving NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3.
Define the term goodwill as mentioned in NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3?
Intangible assets that are used to reflect the firm’s value and the brand name’s reputation in the current market are referred to as goodwill.
What is the Sacrificing Ratio Calculation Formula?
The sacrifice ratio is calculated using the following formula:
Sacrificing ratio = old profit sharing ratio – new profit sharing ratio
What are the Different Methods for Treating Goodwill When Adding a New Member?
These are the strategies for dealing with goodwill when a new member is added:
Is it possible to get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3 for free?
Yes, students can get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3 in PDF format for free from the above article.