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Accountancy · 2026 · 6 marks
Reconstitution of a Partnership Firm – Admission of a PartnerAdjustment for Accumulated Profits and Losses6 markslong answer
CBSE 2026 · Region 5 · Set 1 · Q26
Promil, Kamlesh and Ritika were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. From 1st April, 2025 they decided to share…
Promil, Kamlesh and Ritika were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. From 1st April, $\displaystyle 2025$ they decided to share future profits in the ratio of $\displaystyle 2$ : $\displaystyle 3$ : 5. On 31st March, $\displaystyle 2025$, their Balance Sheet was as follows : Balance Sheet of Promil, Kamlesh and Ritika as at
31st March, $\displaystyle 2025$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Sundry Creditors | $\displaystyle 3,00,000$ | Bank | $\displaystyle 1,80,000$ |
| General Reserve | $\displaystyle 1,60,000$ | Sundry Debtors | $\displaystyle 1,20,000$ |
| Capitals : | Stock | $\displaystyle 2,40,000$ | |
| Promil $\displaystyle 2,80,000$ | Land and Building | $\displaystyle 5,60,000$ | |
| Kamlesh $\displaystyle 2,20,000$ | |||
| Ritika $\displaystyle 1,40,000$ | $\displaystyle 6,40,000$ | ||
| $\displaystyle 11,00,000$ | $\displaystyle 11,00,000$ |
It was agreed that : (i) Land and Building will be valued at $\displaystyle 6,62$,000. (ii) A provision of $\displaystyle 5$% on debtors will be made for bad and doubtful debts. (iii) Goodwill of the firm will be valued at $\displaystyle 1,80,000$ and the same will be treated without opening goodwill account. (iv) The value of stock will be reduced to $\displaystyle 2,00$,000. Showing your working clearly, pass necessary journal entries for the above transactions in the books of the firm.
Mr. Rinku and Mrs. Pinky were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2025$, their balance sheet was as follows : Balance Sheet of Mr. Rinku and Mrs. Pinky as at
31st March, $\displaystyle 2025$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | $\displaystyle 86,000$ | Cash at Bank | $\displaystyle 43,000$ |
| Mrs. Rinku's Loan | $\displaystyle 20,000$ | Stock | $\displaystyle 20,000$ |
| Pinky's Husband's Loan | $\displaystyle 30,000$ | Investments | $\displaystyle 30,000$ |
| Investment Fluctuation Fund | $\displaystyle 12,000$ | Debtors $\displaystyle 50,000$ | |
| General Reserve | $\displaystyle 30,000$ | Less : | |
| Capitals : | Provision for doubtful debts $\displaystyle 5,000$ | $\displaystyle 45,000$ | |
| Mr. Rinku $\displaystyle 1,00,000$ | Building | $\displaystyle 3,40,000$ | |
| Mrs. Pinky $\displaystyle 2,00,000$ | $\displaystyle 3,00,000$ | ||
| $\displaystyle 4,78,000$ | $\displaystyle 4,78,000$ |
On the above date the firm was dissolved and the following transactions took place : (i) Mr. Rinku agreed to pay Mrs. Rinku's loan and took away stock for $\displaystyle 16$,000. (ii) Mrs. Pinky took half of the investments at $\displaystyle 10$% less. Debtors realised $\displaystyle 44,000$, Building realised $\displaystyle 4,00,000$, Creditors were paid $\displaystyle 5,000$ less and the remaining investments were sold for ₹ $\displaystyle 19$,000. An old furniture not recorded in the books of the firm was taken over by Mrs. Pinky for ₹ $\displaystyle 18$,000. Realisation expenses amounted to $\displaystyle 6$,000. Prepare Realisation Account.
Marking-scheme solution
Books of Promil, Kamlesh and Ritika
Journal
Date Particulars L. Dr. Cr.
F. Amount Amount
(₹) (₹)
$\displaystyle 2025$ General Reserve A/c Dr. $\displaystyle 1,60,000$
April $\displaystyle 1$ To Promil’s Capital A/c $\displaystyle 80.000$
To Kamlesh’s Capital A/c $\displaystyle 48,000$
To Ritika’s Capital A/c $\displaystyle 32,000$
(General reserve transferred to all partners
in old ratio)
,, Revaluation A/c Dr. $\displaystyle 46,000$
To Provision for Bad Debts A/c $\displaystyle 6,000$
To Stock A/c $\displaystyle 40,000$
(Revaluation account debited for creating
provision for bad debts and reduction in
stock)
,, Land and Building A/c Dr. $\displaystyle 1,02,000$
To Revaluation A/c
(Land and building revalued) $\displaystyle 1,02,000$
,, Revaluation A/c Dr. $\displaystyle 56,000$
To Promil’s Capital A/c $\displaystyle 28,000$
To Kamlesh’s Capital A/c $\displaystyle 16,800$
To Ritika’s Capital A/c $\displaystyle 11,200$
(Gain on revaluation transferred to all
partners in old ratio)
Ritika’s Capital A/c Dr. $\displaystyle 54,000$
To Promil’s Capital A/c $\displaystyle 54,000$
(Adjustment entry for goodwill made)
Working Notes:
Calculation of sacrifice/gain:
Sacrificing share = Old Share - New Share
Promil : $\displaystyle 5$/$\displaystyle 10$ - $\displaystyle 2$/$\displaystyle 10$ = $\displaystyle 3$/$\displaystyle 10$ Sacrifice
Kamlesh: $\displaystyle 3$/$\displaystyle 10$ - $\displaystyle 3$/$\displaystyle 10$ = Nil
Ritika: $\displaystyle 2$/$\displaystyle 10$ - $\displaystyle 5$/$\displaystyle 10$ = ($\displaystyle 3$/$\displaystyle 10$) Gain
Q.(b) Mr. Rinku and Mrs. Pinky were partners in a firm………………………….
Ans.
Books of Mr. Rinku and Mrs. Pinky
Dr. Realisation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Sundry Assets: By Sundry liabilities:
Stock $\displaystyle 20,000$ Creditors $\displaystyle 86,000$
Investments $\displaystyle 30,000$ Mrs. Rinku’s Loan $\displaystyle 20,000$
Debtors $\displaystyle 50,000$ Pinky’s Husband’s Loan $\displaystyle 30,000$
Building $\displaystyle 3,40,000$ $\displaystyle 4,40,000$ Investment Fluctuation
Fund $\displaystyle 12,000$
To Rinku’s Capital A/c: Provision for doubtful
Mrs Rinku’s loan $\displaystyle 20,000$ debts $\displaystyle 5,000$ $\displaystyle 1,53,000$
To Cash/Bank A/c:
Creditors $\displaystyle 81,000$ By Rinku’s Capital A/c – Stock $\displaystyle 16,000$
Pinky’s Husband’s By Pinky’s Capital A/c- $\displaystyle 13,500$
Loan $\displaystyle 30,000$ $\displaystyle 1,11,000$ Investments
To Cash/Bank A/c:
Realisation expenses
$\displaystyle 6,000$ By Pinky’s Capital A/c- $\displaystyle 18,000$
Old furniture
Gain on Realisation By Cash/Bank A/c:
transferred to: Debtors $\displaystyle 44,000$
Mr. Rinku’s Capital $\displaystyle 51,900$ Building $\displaystyle 4,00,000$
Mrs. Pinky’s Capital $\displaystyle 34,600$ Investment $\displaystyle 19,000$ $\displaystyle 4,63,000$
$\displaystyle 86,500$
$\displaystyle 6,63,500$ $\displaystyle 6,63,500$
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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.