Subject: Accountancy • Chapter: 2 (Partnership Fundamentals) • Board: CBSE/NCERT • Session: 2025–26
This chapter introduces the basic principles of Partnership Accounting. It covers concepts like Partnership Deed, Profit-Sharing Ratio, Interest on Capital, Interest on Drawings, Salary, Commission, and Capital Accounts. These handwritten notes PDF provide complete and colorful summaries as per the latest CBSE Class 12 syllabus (2025–26).
📘 Chapter Index – Topics Covered
- Meaning of Partnership
- Features of Partnership
- Partnership Deed
- Provisions of Partnership Act (in absence of deed)
- Capital Accounts of Partners
- Fixed and Fluctuating Capital Methods
- Interest on Capital
- Interest on Drawings
- Partner’s Salary and Commission
- Profit and Loss Appropriation Account
- Past Adjustments and Guarantee of Profit
🧠 Key Concepts
- Partnership: An agreement between two or more persons to share profits of a business carried on by all or any of them acting for all.
- Partnership Deed: A written agreement containing terms and conditions of partnership.
- Profit-Sharing Ratio: The ratio in which partners share the firm’s profits or losses.
- Capital Accounts: Maintained under Fixed or Fluctuating capital methods.
⭐ Features of These Notes
- Colorful and well-organized handwritten notes.
- All formulas and journal entries explained with examples.
- Based on CBSE/NCERT 2025-26 guidelines.
- Short revision points and numericals for exam practice.
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You can download the complete handwritten notes for Chapter 2 below. Replace # with your verified download link.
📥 Download Chapter 2 – Partnership Firms Fundamentals (Handwritten Notes PDF)
📖 Fixed vs Fluctuating Capital Methods
| Basis | Fixed Capital | Fluctuating Capital |
|---|---|---|
| Nature | Remains constant | Changes frequently |
| Separate Accounts | Two accounts – Capital & Current | Only one capital account |
| Adjustments | Made in Current Account | Made in Capital Account |
| Balance Type | Always credit | Credit or debit |
💡 Important Journal Entries
- For Interest on Capital:
Profit & Loss Appropriation A/c Dr. → To Partner’s Capital/Current A/c - For Interest on Drawings:
Partner’s Capital/Current A/c Dr. → To Profit & Loss Appropriation A/c - For Partner’s Salary:
Profit & Loss Appropriation A/c Dr. → To Partner’s Capital/Current A/c
📚 Formula Summary
- Interest on Capital = Capital × Rate × Time / 100
- Interest on Drawings = Drawings × Rate × Time / 100
- Profit Distributed = Net Profit – (Interest, Salary, Commission, etc.)
🔍 SEO Keywords
Class 12 Accountancy Chapter 2 partnership firms fundamentals notes PDF 2025-26, handwritten notes, fixed capital, fluctuating capital, interest on capital, profit and loss appropriation account
FAQ
Q1. What is a partnership deed?
A partnership deed is a written agreement among partners that outlines the terms, profit-sharing ratio, and responsibilities of each partner.
Q2. What happens if there is no partnership deed?
In the absence of a deed, provisions of the Indian Partnership Act, 1932 apply — profits shared equally, no interest on capital, and no salary to partners.
Q3. What are the two types of capital methods?
The two methods are Fixed Capital and Fluctuating Capital methods.
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