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Accountancy · 2026 · 6 marks
CBSE 2026 · Region 2 · Set 2 · Q25
Mitali and Karan were partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March, 2025 was as follows:…
Mitali and Karan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$:2. Their Balance Sheet as on 31st March, $\displaystyle 2025$ was as follows :
Balance Sheet of Mitali and Karan as on 31st March, $\displaystyle 2025$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Machinery | $\displaystyle 8,00,000$ | |
| Mitali $\displaystyle 8,00,000$ | Furniture | $\displaystyle 5,00,000$ | |
| Karan $\displaystyle 5,00,000$ | $\displaystyle 13,00,000$ | Investments | $\displaystyle 1,50,000$ |
| Investment Fluctuation fund | $\displaystyle 20,000$ | Debtors $\displaystyle 1,10,000$ Less provision for doubtful debts $\displaystyle 10,000$ | $\displaystyle 1,00,000$ |
| Bank loan | $\displaystyle 1,30,000$ | Stock | $\displaystyle 80,000$ |
| Creditors | $\displaystyle 2,00,000$ | Cash | $\displaystyle 20,000$ |
| $\displaystyle 16,50,000$ | $\displaystyle 16,50,000$ |
On 1st April, $\displaystyle 2025$, Nitin was admitted for $\displaystyle 1$/$\displaystyle 4$ share in the profits of the firm on the following terms :
(i)
Nitin will bring ₹ $\displaystyle 3,00,000$ as Capital and ₹ $\displaystyle 1,50,000$ for his share of goodwill premium in cash.
(ii)
Stock was sold at ₹ $\displaystyle 70$,000.
(iii)
Machinery was found to be overvalued by ₹ $\displaystyle 8$,500.
(iv)
All debtors were found to be good, hence provision for doubtful debts was not required.
(v)
A liability of ₹ $\displaystyle 3,500$ included in creditors is not likely to arise.
(vi)
The market value of the investments was ₹ $\displaystyle 1,40$,000.
(vii)
The new profit sharing ratio between Mitali, Karan and Nitin will be $\displaystyle 2$:$\displaystyle 2$:1.
Pass necessary journal entries for the above transactions on Nitin's admission.
Raghav, Meeta and Pranav were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$:$\displaystyle 3$:2. Their balance sheet as at 31st March, $\displaystyle 2025$ was as follows :
Balance Sheet of Raghav, Meeta and Pranav as on 31st March, $\displaystyle 2025$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Plant and Machinery | $\displaystyle 4,30,000$ | |
| Raghav $\displaystyle 2,50,000$ | Furniture | $\displaystyle 1,60,000$ | |
| Meeta $\displaystyle 2,00,000$ | Stock | $\displaystyle 90,000$ | |
| Pranav $\displaystyle 1,50,000$ | $\displaystyle 6,00,000$ | Debtors $\displaystyle 80,000$ Less provision for doubtful debts $\displaystyle 2,000$ | $\displaystyle 78,000$ |
| General Reserve | $\displaystyle 40,000$ | ||
| Bills payable | $\displaystyle 30,000$ | Cash | $\displaystyle 32,000$ |
| Creditors | $\displaystyle 1,20,000$ | ||
| $\displaystyle 7,90,000$ | $\displaystyle 7,90,000$ |
On 1st April, $\displaystyle 2025$, Pranav retired from the firm on the following terms :
(i)
Plant and Machinery was found to be undervalued by ₹ $\displaystyle 20$,000.
(ii)
Furniture was revalued at ₹ $\displaystyle 1,62$,000.
(iii)
The provision for doubtful debts on debtors was to be created @ $\displaystyle 5$%.
(iv)
Goodwill of the firm was valued at ₹ $\displaystyle 4,00,000$ and the same was to be adjusted through the capital accounts of the remaining partners.
(v)
Pranav was paid in cash brought in by Raghav and Meeta in such a way so as to make the capital proportionate to the new profit sharing ratio.
Prepare Revaluation Account and Partners' Capital Accounts.
Marking-scheme solution
(a)
Books of Mitali, Karan and Nitin
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
$\displaystyle 2025$
Apr.1 Cash/ Bank A/c Dr. $\displaystyle 4,50,000$
To Nitin’s Capital A/c $\displaystyle 3,00,000$
To Premium for goodwill A/c $\displaystyle 1,50,000$
(Capital and premium for goodwill brought by Nitin)
” Premium for goodwill A/c Dr. $\displaystyle 1,50,000$
To Mitali’s Capital A/c $\displaystyle 1,50,000$
(Premium for goodwill transferred to sacrificing partner,
when new ratio $\displaystyle 2$:$\displaystyle 2$:$\displaystyle 1$)
Alternate Entry
” Premium for goodwill A/c Dr. $\displaystyle 1,50,000$
To Mitali’s capital A/c $\displaystyle 90,000$
To Karan’s capital A/c $\displaystyle 60,000$
(Premium for goodwill transferred to sacrificing partner,
when new partner’s share is $\displaystyle 1$/$\displaystyle 4$)
” Cash/ Bank A/c Dr. $\displaystyle 70,000$
Revaluation A/c Dr. $\displaystyle 10,000$
To Stock A/c $\displaystyle 80,000$
(Stock sold for ₹ $\displaystyle 70,000$ and loss transferred to
revaluation account)
Alternatively the following two entries may be passed-
” Cash/ Bank A/c Dr. $\displaystyle 70,000$
To Stock A/c $\displaystyle 70,000$
(Stock sold for ₹ $\displaystyle 70,000$)
” Revaluation A/c Dr. $\displaystyle 10,000$
To Stock A/c $\displaystyle 10,000$
(Loss on sale of stock transferred to revaluation
account)
” Revaluation A/c Dr. $\displaystyle 8,500$
To Machinery A/c $\displaystyle 8,500$
(Decrease in value of machinery by ₹ $\displaystyle 8,500$ )
” Provision for doubtful debts A/c Dr. $\displaystyle 10,000$
Creditors A/c Dr. $\displaystyle 3,500$
To Revaluation A/c $\displaystyle 13,500$
(Provision for doubtful debts not required and a liability
included in creditors not likely to arise)
Alternatively the following two entries may be passed-
” Provision for doubtful debts A/c Dr. $\displaystyle 10,000$
To Revaluation A/c $\displaystyle 10,000$
(Provision for doubtful debts not required)
” Creditors A/c Dr. $\displaystyle 3,500$
To Revaluation A/c $\displaystyle 3,500$
(A liability included in creditors not likely to arise)
” Mitali’s Capital A/c Dr. $\displaystyle 3,000$
Karan’s Capital A/c Dr. $\displaystyle 2,000$
To Revaluation A/c $\displaystyle 5,000$
(Loss on revaluation debited to old partners’ capital
accounts in old ratio)
” Investments Fluctuation Fund A/c Dr. $\displaystyle 20,000$
To Investment A/c $\displaystyle 10,000$
To Mitali’s Capital A/c $\displaystyle 6,000$
To Karan’s Capital A/c $\displaystyle 4,000$
(Decrease in value of Investments met out of Investment
fluctuation Fund and balance credited to old partners’
capital accounts in the old ratio)
Q. 25. (b) Raghav, Meeta and Pranav were partners……….
Ans.
Books of Raghav, Meeta and Pranav
Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Provision for doubtful debts $\displaystyle 2,000$ By Plant & Machinery A/c $\displaystyle 20,000$
A/c
To Gain transferred to: By Furniture A/c $\displaystyle 2,000$
Raghav’s Capital A/c $\displaystyle 10,000$
Meeta’s Capital A/c. $\displaystyle 6,000$
Pranav’s Capital A/c $\displaystyle 4,000$
$\displaystyle 20,000$
$\displaystyle 63,500$ $\displaystyle 63,500$
Dr. Partners’ Capital Accounts Cr.
Particulars Raghav Meeta Pranav Particulars Raghav Meeta Pranav
(₹) (₹) (₹) (₹) (₹) (₹)
To Pranav’s $\displaystyle 50,000$ $\displaystyle 30,000$ - By Balance b/d $\displaystyle 2,50,000$ $\displaystyle 2,00,000$ $\displaystyle 1,50,000$
Capital A/c
To Cash/ Bank - - $\displaystyle 2,42,000$ By General $\displaystyle 20,000$ $\displaystyle 12,000$ $\displaystyle 8,000$
A/c Reserve A/c
To Balance c/d $\displaystyle 4,12,500$ $\displaystyle 2,47,500$ By Revaluation $\displaystyle 10,000$ $\displaystyle 6,000$ $\displaystyle 4,000$
A/c (gain)
By Raghav’s - - $\displaystyle 50,000$
Capital A/c
By Meeta’s - - $\displaystyle 30,000$
Capital A/c
By Cash/ Bank $\displaystyle 1,82,500$ $\displaystyle 59,500$ -
A/c
$\displaystyle 4,62,500$ $\displaystyle 2,77,500$ $\displaystyle 2,42,000$ $\displaystyle 4,62,500$ $\displaystyle 2,77,500$ $\displaystyle 2,42,000$
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.