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Accountancy · 2025 · 1 mark

CBSE 2025 · Region 7 · Set 1 · Q16

Jim and Joy were partners in a firm sharing profits and losses equally. On 1st April, $\displaystyle 2024$, they admitted John as a new partner for $\displaystyle 1$/5th share in the refits of the firm. On the date of John's admission, the Balance Sheet of Jim and Joy showed a debit balance of $\displaystyle 45,000$ in Profit and Loss Account. From the following, what will be the accounting treatment for this balance on John's admission ?

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CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.