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Accountancy · 2023 · 1 mark
Reconstitution of a Partnership Firm – Admission of a PartnerAdjustment for Accumulated Profits and Losses1 markmcq
CBSE 2023 · Region 5 · Set 1 · Q14
Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be $\displaystyle 3$ : $\displaystyle 3$ : $\displaystyle 2$ : 2. An extract of their Balance Sheet as at 31st March, $\displaystyle 2022$ is given below : Amount Amount Liabilities Assets (₹) (₹) Investment $\displaystyle 80,000$ Investments $\displaystyle 90,000$ Fluctuation Reserve (Market Value ₹ $\displaystyle 80,000$) Which of the following is the correct accounting treatment of 'investment fluctuation reserve' at the time of Subhash's admission ?
Official answer
From CBSE’s own marking scheme for this paper.
(D)
Investment Fluctuation Reserve A/c Dr. $\displaystyle 80,000$ To Investments A/c $\displaystyle 10,000$ To Indu's Capital A/C $\displaystyle 28,000$ To Vijay's Capital A/C $\displaystyle 21,000$ To Pawan's Capital A/c: $\displaystyle 21,000$
Marking-scheme solution
(D)
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( `) Amount ( `)
Investment Fluctuation Reserve A/c Dr. $\displaystyle 80,000$
To Investments A/c $\displaystyle 10,000$
To Indu’s Capital A/c $\displaystyle 28,000$
To Vijay’s Capital A/c $\displaystyle 21,000$
To Pawan’s Capital A/c $\displaystyle 21,000$
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.