CBSE Class 12 Accountancy Formulas and Ratios

The key formulas and ratios for CBSE Class 12 Accountancy — partnership accounts, company accounts and accounting ratios — for the 2027 board exam.

For chapter-wise formula sheets, open our CBSE Class 12 Accountancy formula sheets.

Partnership Accounts Formulas

• Profit-sharing ratio — Old ratio minus New ratio = Sacrificing ratio.
• Gaining ratio — New ratio minus Old ratio.
• Goodwill valuation — Average profit method, Super profit method, Capitalisation method.
• Revaluation account — adjustments for asset/liability changes on admission/retirement.

Company Accounts Formulas

• Issue of shares — at par and at a premium, calls in arrears and in advance, forfeiture and reissue (shares are not issued at a discount).
• Issue of debentures — at par, premium or discount, terms of redemption, interest on debentures, and writing off discount or loss on issue.
• Financial statements — Balance Sheet equation: Assets = Liabilities + Capital.

Accounting Ratios

• Current Ratio = Current Assets / Current Liabilities.
• Quick Ratio = Quick Assets / Current Liabilities.
• Debt-Equity Ratio = Long-term Debt / Shareholders Funds.
• Gross Profit Ratio = (Gross Profit / Revenue) x 100.
• Net Profit Ratio = (Net Profit / Revenue) x 100.
• Return on Investment = (Net Profit before Interest and Tax / Capital Employed) x 100.

Based on the CBSE Class 12 Accountancy syllabus 2026-27 (cbseacademic.nic.in).