NCERT Class 12 Accountancy Chapter 4: Dissolution of a Partnership Firm PDF Explained with Examples

Chapter 4 of Class 12 Accountancy focuses on the concept of dissolution of a partnership firm, which means the formal closure of a business and settling all accounts. This includes selling assets, paying off liabilities, and distributing the remaining cash among partners. Students need to understand how to prepare the Realisation Account, handle partners’ capital, and adjust liabilities during dissolution. This chapter is very important from an exam point of view, as it carries a decent weightage and also helps students understand practical accounting scenarios.

I chose to write about this topic because many students confuse dissolution of a firm with reconstitution. But these two are very different. Reconstitution is a change in the partnership structure, whereas dissolution is the complete ending of the business. Understanding this chapter is not just essential for exams but also for real-life accounting jobs or business scenarios. This topic also includes application-based questions and journal entries that often appear in CBSE board papers. So, having a strong grip on this chapter will give you clarity about the end procedures of a partnership firm and help improve your overall performance in the Accountancy paper.

Key Concepts in Chapter 4 – Dissolution of Partnership Firm

When a partnership firm is dissolved, it stops doing business, and the main goal becomes settling all liabilities and distributing any remaining assets among the partners.

Here are the major concepts explained in this chapter.

1. Meaning of Dissolution

Dissolution means the ending of the business by selling off all assets, settling all outside liabilities, and distributing any leftover amount among partners.

Types of Dissolution:

Dissolution by Agreement
Compulsory Dissolution
Dissolution by Notice (in case of partnership at will)
Dissolution by Court
On completion of the venture

2. Difference Between Dissolution of Firm and Dissolution of Partnership

Basis	Dissolution of Partnership	Dissolution of Firm
Meaning	Only partnership changes	Entire business ends
Business Continues?	Yes	No
Legal Process Required?	Not necessarily	Yes, in most cases
Settlement of Assets/Liabilities	Not required	Required

3. Realisation Account

This is the most important part of the chapter. It is prepared to:

Sell all assets of the firm
Settle all liabilities
Calculate gain or loss on dissolution

4. Settlement of Liabilities

First, pay off external liabilities like creditors and bank loans
Next, pay any partner’s loan
Finally, settle the capital accounts

5. Treatment of Unrecorded Assets and Liabilities

If an unrecorded asset is sold, the amount received is credited to Realisation A/c
If an unrecorded liability is paid, the amount paid is debited to Realisation A/c

6. Capital Account Adjustments

Partners’ capital accounts are adjusted for:

Realisation profit or loss
Share of any remaining reserves
Final distribution of cash after liabilities are settled

7. Journal Entries

You will have to learn journal entries for:

Transfer of assets and liabilities to Realisation A/c
Payment to creditors and partners
Final settlement with partners

Download PDF – NCERT Class 12 Accountancy Chapter 4

If you want to revise this chapter or practise from the official material, the NCERT PDF is the best source. It contains theory, formats, illustrations, and in-text questions.

NCERT Class 12 Accountancy Chapter 4

NCERT Class 12 English Vistas Chapter 6: Memories of Childhood PDF Download & Complete Summary

Memories of Childhood is Chapter 6 in the Class 12 English Vistas textbook by NCERT. What makes this chapter special is that it’s not a single story—it’s made up of two autobiographical excerpts written by two women, Zitkala-Sa and Bama. Both narrate incidents from their early lives that reflect the discrimination they faced because of

Memories of Childhood is Chapter 6 in the Class 12 English Vistas textbook by NCERT. What makes this chapter special is that it’s not a single story—it’s made up of two autobiographical excerpts written by two women, Zitkala-Sa and Bama. Both narrate incidents from their early lives that reflect the discrimination they faced because of their identity. While Zitkala-Sa was a Native American who suffered cultural oppression, Bama grew up as a Dalit in South India, dealing with caste-based discrimination. These two stories are placed together in the chapter to show that such issues exist in many parts of the world.

I decided to write about this chapter because it’s different from the others in the book. It’s not fiction, but a real account of how young children feel when they are treated unfairly just because of their background. When I first read Bama’s story, I couldn’t stop thinking about how common such behaviour still is in many Indian towns. These stories make us more aware and sensitive. As students, we need to understand not just grammar and vocabulary but also social realities. This chapter is an important step towards building that understanding.

What is “Memories of Childhood” About?

This chapter includes two short autobiographical narratives that focus on childhood memories shaped by discrimination and injustice.

Part One: The Cutting of My Long Hair by Zitkala-Sa

This section is written by a Native American woman who was taken to a missionary school where they tried to make her behave like a “white” child. She describes how humiliating it was when her long hair was forcibly cut, which in her culture was a sign of defeat. She feels powerless, angry, and alien in a place that tries to erase her identity.

Part Two: We Too Are Human Beings by Bama

Bama’s story takes place in a village in Tamil Nadu. She is a young Dalit girl who notices how upper-caste people treat her community with disrespect. She sees a man carrying food for his master without touching it, just because of his caste. When she narrates this incident to her brother, he tells her about caste discrimination and advises her to study hard to earn respect and equality.

Main Characters:

Zitkala-Sa – A Native American girl forced to give up her culture at a white-run school
Bama – A young Dalit girl who slowly becomes aware of social injustice

Key Themes:

Discrimination based on race and caste
Childhood trauma and awareness
Loss of identity
Education as a tool for change

Why This Chapter Matters for Students

Real stories: It helps students connect emotionally to real-life problems faced by children
Relevant to society: Topics like caste and cultural identity are still important in today’s India
CBSE exam favourite: Frequently asked in long and value-based questions
Builds empathy: Helps students look beyond textbooks and understand people around them better
Teaches resilience: Both writers turned their pain into power through education and awareness