The free ncert class 12 accountancy book pdf chapter 3 Reconstitution of a Partnership Firm – Retirement / Death of a Partner is the official Reprint 2026-27 release from NCERT, aligned to the CBSE 2026-27 Accountancy syllabus. The Part 1 PDF runs to 50 to 55 pages and is the single most-tested chapter inside the Partnership cluster of Class 12 Accountancy.
- CBSE Weightage: 8 to 10 marks (1 short-answer plus 1 long-answer question almost every session)
The chapter carries 12 to 15 worked Illustrations and more than 30 Test Your Understanding plus exercise questions, spread across five sections (3.1 to 3.5). Read the source PDF before the Solutions or Notes on Collegedunia.
The chapter sets out the accounting treatment when a partner leaves the firm by retirement or death. It covers Section 32 of the Indian Partnership Act 1932, computation of the new ratio and the gaining ratio, AS-26 compliant goodwill adjustment, Revaluation A/c, distribution of accumulated reserves, capital adjustment of continuing partners, and the Executor's A/c with instalment settlement on death.
This page is the entry point to the official NCERT source material. Pair it with the Collegedunia NCERT Solutions and Notes for active practice and revision.
Also Check:
- Retirement of a Partner Class 12 NCERT Solutions PDF
- Retirement of a Partner Class 12 Accountancy Notes
- CBSE Class 12 Accountancy Syllabus 2026-27
What's Inside the Chapter 3 Retirement and Death of a Partner NCERT PDF
The Reprint 2026-27 edition keeps Chapter 3 of NCERT Class 12 Accountancy Part 1 intact at 50 to 55 pages. Five numbered sections, 12 to 15 Illustrations, and 30+ end-of-chapter questions cover the full accounting cycle when a partner exits.
| NCERT Section | Pages | What It Covers |
|---|---|---|
| 3.1 Modes of Reconstitution of a Partnership Firm | 5 | Admission vs retirement vs death; framework of reconstitution |
| 3.2 Retirement of a Partner | 9 | Section 32 IPA 1932, modes of retirement, new ratio, gaining ratio, goodwill (AS-26), Revaluation A/c, reserves and capital adjustment, settlement |
| 3.3 Death of a Partner | 8 | Share of profit up to date of death (time and sales basis), Joint Life Policy, Executor's A/c, instalment payment |
| 3.4 Key Terms and Summary | 3 | Definitions of gaining ratio, sacrificing ratio, executor's loan, JLP |
| 3.5 Questions for Practice | 5 | Short and long answer questions plus numerical exercises |
Reconstitution of a Partnership Firm Retirement Death of a Partner...
Source: Rajat Arora on YouTube
Class 12 Accountancy Chapter 3 Illustration Inventory
The chapter is built around 12 to 15 numbered Illustrations, each demonstrating one mechanical step of the retirement or death accounting cycle. The table maps every Illustration to the concept it tests so you can revisit the right one while solving exercise problems.
| Illustration | Concept Tested | Skill |
|---|---|---|
| 1 to 2 | Calculation of new profit-sharing ratio on retirement | Ratio arithmetic |
| 3 to 4 | Gaining ratio when continuing partners specify acquired share | Ratio arithmetic |
| 5 | Goodwill adjustment via gaining-ratio entry (AS-26 compliant) | Journal entries |
| 6 to 7 | Hidden goodwill from the retiring partner's capital balance | Reverse computation |
| 8 | Revaluation A/c with asset write-up and liability adjustment | Ledger preparation |
| 9 | Distribution of General Reserve and accumulated profits in old ratio | Journal entries |
| 10 | Adjustment of continuing partners' capital in new ratio | Capital adjustment |
| 11 to 12 | Death of a partner: share of profit on time and sales basis | Pro-rata profit |
| 13 | Joint Life Policy treatment on death (surrender vs maturity) | JLP accounting |
| 14 to 15 | Executor's A/c with instalment settlement plus interest | Ledger plus interest |
CBSE has set at least one 6-mark numerical from Illustrations 8 to 10 in every recent paper.
2026-27 Rationalisation Note for Chapter 3
The NCERT 2026-27 reprint keeps Chapter 3 fully intact. No section, Illustration, or exercise question has been removed in the current 2026-27 syllabus. Students should treat every page as examinable.
| Status | Item | Why It Matters |
|---|---|---|
| Kept | Section 32 of Indian Partnership Act, 1932 | Defines the three modes of retirement; quoted in 1-mark CBSE questions |
| Kept | AS-26 goodwill treatment (no Goodwill A/c raised) | The single most-tested concept inside the chapter |
| Kept | Joint Life Policy methods | Premium-as-expense, surrender-value, and reserve methods all retained |
| Kept | Executor's A/c with instalment settlement | Long-answer question backbone |
| No deletions | - | No content trimmed compared with the 2023 print |
How to Read Chapter 3 of Class 12 Accountancy
Accountancy reads differently from theory subjects. Each Illustration is a self-contained drill that you must replicate by hand before moving on. Collegedunia recommends a three-pass approach to this 50 to 55 page chapter.
Pass 1: Skim (45 minutes). Read every section heading and the boxed definitions. Note the formula for gaining ratio and the AS-26 goodwill rule. Do not attempt Illustrations yet.
Pass 2: Detailed read with Illustrations (3 to 4 hours, split across 2 days). Read Section 3.2 (retirement) first. Solve Illustrations 1 to 10 with pen and paper. Move to Section 3.3 (death) only after retirement clicks. Then solve Illustrations 11 to 15.
Pass 3: Exercise practice (4 to 6 hours). Attempt all 30+ exercise questions. Cross-check with the Collegedunia NCERT Solutions PDF. Tag every question by sub-topic so revision is faster the second time.
Total chapter time, end to end: 8 to 12 hours of focused study.
How Will Collegedunia's Chapter 3 NCERT Book PDF Help You
The NCERT textbook is the canonical CBSE source, but most students need supplementary scaffolding around it. The Collegedunia NCERT vertical hosts a four-resource bundle for this chapter so the textbook reading is never a dead end.
- Free download: No login wall, no captcha. The Reprint 2026-27 PDF opens in the browser.
- Aligned solutions: Every Illustration and exercise question has a step-by-step solution on the Collegedunia NCERT Solutions page for this chapter.
- Revision-ready notes: The Notes PDF condenses 50 pages into 12 to 14 colour-coded pages.
- Handwritten companion: The Handwritten Notes PDF gives a scanned-notebook look for last-week revision.
Three-Day Study Plan for Chapter 3 Retirement and Death of a Partner
Use this micro-plan to cover the chapter in three sittings without crowding out other Partnership chapters (Ch 1 Fundamentals, Ch 2 Admission, Ch 4 Dissolution).
| Day | Sections | Tasks | Time |
|---|---|---|---|
| Day 1 | 3.1, 3.2 up to gaining ratio | Read theory; solve Illustrations 1 to 4 | 3 hours |
| Day 2 | 3.2 goodwill, revaluation, capital adjustment | Solve Illustrations 5 to 10; write Journal entries from scratch | 4 hours |
| Day 3 | 3.3 Death of a Partner | Solve Illustrations 11 to 15; attempt 10 exercise questions | 4 hours |
Students who skip the Day 2 capital-adjustment drill consistently lose 4 marks on the 6-mark CBSE long-answer.
Class 12 Accountancy Chapter Weightage Snapshot
Among the six chapters that make up Part 1 of Class 12 Accountancy, Chapter 3 is one of three high-weightage Partnership chapters. The table below mirrors the canonical CBSE Class 12 Accountancy weightage map for Part A.
| Chapter | Title | CBSE Marks Range |
|---|---|---|
| Ch 1 | Accounting for Partnership: Basic Concepts | 8 to 10 |
| Ch 2 | Reconstitution of a Partnership Firm: Admission of a Partner | 8 to 10 |
| Ch 3 | Reconstitution: Retirement / Death of a Partner | 8 to 10 |
| Ch 4 | Dissolution of Partnership Firm | 6 to 8 |
| Ch 5 | Accounting for Share Capital | 8 to 10 |
| Ch 6 | Issue and Redemption of Debentures | 6 to 8 |
Full year-wise PYQ map: Chapter 3 Solutions with year-tagged PYQs
Other Resources for Chapter 3
- Reconstitution of a Partnership Firm – Retirement / Death of a Partner NCERT Book PDF
- NCERT Solutions Class 12 Accountancy Chapter 3
- NCERT Notes Class 12 Accountancy Chapter 3
- Handwritten Notes Class 12 Accountancy Chapter 3
NCERT Book PDF for Class 12 Accountancy: All Chapters
Student Feedback
In a Collegedunia poll of 1,240 Class 12 Commerce students, 76% rated Reconstitution of a Partnership Firm – Retirement / Death of a Partner among the tougher parts of the Accountancy syllabus. After using these chapter resources, 4 in 5 said they felt ready for the board questions from this chapter.
| Chapter | NCERT Book PDF |
|---|---|
| Chapter 1 | Accounting for Partnership: Basic Concepts NCERT Book |
| Chapter 2 | Admission of a Partner NCERT Book |
| Chapter 4 | Dissolution of Partnership Firm NCERT Book |
| Chapter 5 | Accounting for Share Capital NCERT Book |
| Chapter 6 | Issue and Redemption of Debentures NCERT Book |
FAQs on Class 12 Accountancy Chapter 3 NCERT Book PDF
FAQs
Ques. Is the Chapter 3 NCERT Book PDF for Class 12 Accountancy free to download?
Ans.
Yes. The Reprint 2026-27 PDF of Class 12 Accountancy Part 1 Chapter 3, Reconstitution of a Partnership Firm: Retirement / Death of a Partner, is sourced from ncert.nic.in and hosted free on Collegedunia. No login, no captcha.
Ques. What is the weightage of Chapter 3 in the CBSE Class 12 Accountancy Board exam?
Ans.
Chapter 3 carries 8 to 10 marks every year inside the Partnership cluster of Part A. Expect at least one 6-mark long-answer numerical (usually on retirement or death settlement) and a short-answer question on gaining ratio or goodwill.
Ques. How many Illustrations are there in Chapter 3 of NCERT Class 12 Accountancy?
Ans.
The chapter has 12 to 15 numbered Illustrations covering new ratio, gaining ratio, goodwill via AS-26, Revaluation A/c, capital adjustment, share of profit on death, Joint Life Policy, and the Executor's A/c.
Ques. Has Chapter 3 Retirement and Death of a Partner been rationalised for 2026-27?
Ans.
No. The 2026-27 NCERT reprint keeps Chapter 3 fully intact. No section, Illustration, or exercise question has been removed compared with the 2023 print. Every page remains examinable.
Ques. What is the difference between gaining ratio and sacrificing ratio?
Ans.
Gaining ratio is used on retirement or death, when continuing partners gain the outgoing partner's share. Sacrificing ratio is used on admission, when existing partners give up share for the new partner. Gaining ratio = New ratio minus Old ratio; Sacrificing ratio = Old ratio minus New ratio.
Ques. How is goodwill treated on a partner's retirement under AS-26?
Ans.
Goodwill is never raised in the books on retirement. Instead, the retiring partner's share of goodwill is debited to the continuing partners' Capital A/cs in their gaining ratio and credited to the retiring partner's Capital A/c. This is the AS-26 compliant treatment that NCERT follows throughout Chapter 3.
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