Class 12 Accountancy Important Questions for CBSE 2025-26 Exams

1. Define partnership as per the CBSE Class 12 Accountancy syllabus. Also, state one essential feature of a partnership.

Answer: A partnership is an agreement between two or more persons who agree to share profits and losses of a business carried on by all or any of them acting for all. A key feature is mutual agency, meaning each partner can act on behalf of the firm.

2. Why is revaluation of assets and liabilities important at the time of admission of a new partner?

Answer: Revaluation ensures that the existing partners get a fair share of any increase or decrease in the value of assets and liabilities up to the date of the new partner’s admission. It helps in maintaining fairness in capital adjustment.

3. Distinguish between fixed capital and fluctuating capital accounts, as per CBSE pattern.

Answer: In a fixed capital method, only additional capital and withdrawals affect the capital account; all other adjustments are shown in a separate current account. In a fluctuating capital method, all adjustments such as profits, drawings, interest, are recorded directly in the capital account itself.

4. Explain the term ‘goodwill’ and state one method of valuing goodwill in partnerships.

Answer: Goodwill is the value of a firm’s reputation which helps it earn higher profits. One common method for valuing goodwill is the Average Profit Method, where average profits are multiplied by the agreed number of years of purchase.

5. A and B are partners sharing profits in the ratio 2:1. They admit C for 1/4 share. Calculate the new profit sharing ratio.

Answer: C’s share is 1/4. The remaining share is 3/4 to be shared by A and B in 2:1. So, A’s new share = 2/3 of 3/4 = 1/2; B’s new share = 1/3 of 3/4 = 1/4. The new ratio is A:B:C = 2:1:1.

6. What is meant by ‘sacrificing ratio’? How is it calculated in case of admission of a partner?

Answer: Sacrificing ratio is the proportion of profit given up by existing partners in favour of a new partner. It is calculated as: Sacrificing Ratio = Old Ratio – New Ratio (for each partner).

7. State the difference between ‘dissolution of partnership’ and ‘dissolution of firm’.

Answer: Dissolution of partnership refers to a change in the relationship among partners, usually due to admission or retirement. Dissolution of firm means closing down the business and ending its legal existence, with all assets realised and liabilities settled.

8. Why is ‘Reserve Capital’ created, and how is it shown in the Balance Sheet?

Answer: Reserve Capital is that part of uncalled capital which a company decides to call only in case of winding up. It is shown as a note to share capital on the liabilities side of the balance sheet, not as a separate item.

9. Explain the purpose of issuing shares at a premium and how it is treated in accounts as per CBSE rules.

Answer: Issuing shares at a premium means selling shares at a price higher than their face value. The premium amount is credited to the ‘Securities Premium Reserve,’ which is shown under ‘Reserves & Surplus’ in the balance sheet.

10. List any two conditions under which debentures can be redeemed at a premium.

Answer: Debentures can be redeemed at a premium if the terms of issue specify so or when a company wants to offer additional benefits to debenture holders on redemption. The premium on redemption is adjusted against profits or securities premium.

How Does Class 12 Accountancy Important Questions Help You with Exams?

Practising these CBSE Class 12 Accountancy Important Questions helps students clearly understand and revise key topics in a focused manner. By using such questions, you learn how to answer according to CBSE’s requirements and efficiently use command words like define, explain, or justify. They also help manage your time in the exam, develop strong presentation skills, and avoid common mistakes, making your answers more precise and scoring.

Advantages of Vedantu Important Questions

• The questions follow the latest CBSE exam patterns and expected trends.
• All answers use clear language and stepwise explanation for easy understanding.
• Important topics for 1, 2, and 3 marks are included to mirror actual exam weightage.
• Where helpful, answers refer to diagrams, formulas, or calculation steps for clarity.
• Common exam mistakes are addressed in the answer style to help students avoid errors.
• They are designed for systematic and quick revision before final exams.

Regular practice of these Important Questions from CBSE Class 12 Accountancy helps you organize your revision, stay updated with CBSE exam patterns, and avoid common errors. You will enter the exam with more confidence and a deeper understanding of what is expected, leading to better scores and reduced exam stress.