Download Class 12 commerce accountancy subject all chapters notes by CBSE Toppers Students. It will and more Study notes Business in PDF only on Docsity! Chapter 2 Accountancy NotesBy Topper Of Cbse Partnership Firms - A partnership firm is a business entity that is owned and operated by two or more individuals who share profits and losses. In this chapter, students learn about the different types of partnerships, such as general partnerships and limited partnerships. Accounting for Partnership Firms - Students learn about the accounting procedures involved in partnership firms, such as maintaining separate capital accounts for each partner, recording transactions in a partnership ledger, and preparing a profit and loss appropriation account. Goodwill - Goodwill is the value of a business that exceeds the value of its assets and liabilities. In this chapter, students learn about how to calculate and account for goodwill in a partnership firm. Admission of a Partner - When a new partner joins a partnership firm, it affects the distribution of profits and losses among the existing partners. Students learn about the accounting procedures involved in admitting a new partner, such as the revaluation of assets and liabilities and the calculation of the new profit-sharing ratio. Retirement and Death of a Partner - Similarly, when a partner retires or dies, it affects the distribution of profits and losses among the remaining partners. In this chapter, students learn about the accounting procedures involved in retiring or settling the account of a deceased partner. Dissolution of a Partnership Firm - If a partnership firm is dissolved, its assets and liabilities must be liquidated and distributed among the partners. Students learn about the accounting procedures involved in the dissolution of a partnership firm. Treatment of Interest on Capital and Drawings - In a partnership firm, partners may receive interest on their capital contributions and may also withdraw funds for personal use. Students learn about the accounting treatment of interest on capital and drawings. Overall, Chapter 2 of an introductory accountancy course focuses on the unique accounting procedures and considerations involved in partnership firms.
