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Accountancy · 2026 · 3 marks
Accounting for Partnership: Basic ConceptsMaintenance of Capital Accounts of Partners3 marksshort answer
CBSE 2026 · Region 2 · Set 1 · Q18
Sarita and Veena were partners in a firm sharing profits and losses in the ratio of 3:2. The balance in their capital and current accounts as on 1st…
Sarita and Veena were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$:2. The balance in their capital and current accounts as on 1st April, $\displaystyle 2024$ were as under : Particulars Sarita of) Veena ($\displaystyle 1$) Capital Accounts $\displaystyle 4,00,000$ $\displaystyle 3,00,000$ Current Accounts $\displaystyle 80,000$ (Cr.) $\displaystyle 60,000$ (D1-) The partnership deed provided that Sarita was to be paid salary @ ₹ $\displaystyle 2,000$ per month whereas Veena was to get commission of? $\displaystyle 30,000$ for the year. Interest on capital was to be allowed @ $\displaystyle 8$% p.a. The drawings of Sarita and Veena for the year ended $\displaystyle 31$" March, $\displaystyle 2025$ were ₹ $\displaystyle 20,000$ and ₹ $\displaystyle 15,000$ respectively. After preparing Profit and Loss Appropriation Account for the year ended 31st March, $\displaystyle 2025$, ₹ $\displaystyle 36,000$ and ₹ $\displaystyle 24,000$ were credited respectively to the current accounts of Sarita and Veena as their share of divisible profit. Prepare Current Accounts of Sarita and Veena.
Manya, Vivek and Vishal were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$:$\displaystyle 3$:2. With effect from 1st April, $\displaystyle 2025$, they decided to share future profits and losses in the ratio of $\displaystyle 3$:$\displaystyle 5$:2. Their Balance Sheet as at 31st March, $\displaystyle 2025$ showed the following balances : (i) General Reserve ₹ $\displaystyle 2,40$,000. (ii) Debit balance of ₹ $\displaystyle 60,000$ in Profit and Loss Account. Goodwill of the firm was valued at ₹ $\displaystyle 6,00,000$ and revaluation of assets and re-assessment of liabilities resulted in a gain of ₹ $\displaystyle 2,00$,000. Partners decided to distribute the amount of General Reserve and Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books. Pass necessary journal entries to give effect to the above.
Marking-scheme solution
(a)
Dr. Partners’ Current Accounts Cr.
Particulars Sarita Veena Particulars Sarita Veena
(₹) (₹) (₹) (₹)
To Balance b/d - $\displaystyle 60,000$ By Balance b/d $\displaystyle 80,000$ -
To Drawings $\displaystyle 20,000$ $\displaystyle 15,000$ By Salary A/c $\displaystyle 24,000$ -
A/c By Commission A/c - $\displaystyle 30,000$
By Interest on Capital $\displaystyle 32,000$ $\displaystyle 24,000$
To Balance c/d $\displaystyle 1,52,000$ $\displaystyle 3,000$ A/c
By Profit & Loss
$\displaystyle 36,000$ $\displaystyle 24,000$
Appropriation A/c
(share of profit)
$\displaystyle 1,72,000$ $\displaystyle 78,000$ $\displaystyle 1,72,000$ $\displaystyle 78,000$
Q. (b) Manya, Vivek and Vishal were partners in a firm…
Ans. (b)
Books of Manya, Vivek and Vishal
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
$\displaystyle 2025$ General Reserve A/c Dr. $\displaystyle 2,40,000$
Apr.1 To Manya’s Capital A/c $\displaystyle 1,20,000$
To Vivek’s Capital A/c $\displaystyle 72,000$
To Vishal’s Capital A/c $\displaystyle 48,000$
(General Reserve distributed among the partners in
old profit sharing ratio)
” Manya’s Capital A/c Dr. $\displaystyle 30,000$
Vivek’s Capital A/c Dr. $\displaystyle 18,000$
Vishal’s Capital A/c Dr. $\displaystyle 12,000$
To Profit & Loss A/c $\displaystyle 60,000$
(Debit balance of Profit & Loss A/c distributed
among the partners in old profit sharing ratio)
” Vivek’s Capital A/c Dr. $\displaystyle 1,60,000$
To Manya’s Capital A/c $\displaystyle 1,60,000$
(Adjustment made for goodwill and gain on
revaluation)
Alternatively, the following $\displaystyle 2$ entries may be passed
in place of the above entry-
” Vivek’s Capital A/c Dr. $\displaystyle 1,20,000$
To Manya’s Capital A/c $\displaystyle 1,20,000$
(Goodwill adjusted on change in profit sharing ratio)
” Vivek’s Capital A/c Dr. $\displaystyle 40,000$
To Manya’s Capital A/c $\displaystyle 40,000$
(Revaluation gain adjusted through partners’ capital
accounts on change in profit sharing ratio)
Working Notes:
Manya Vivek Vishal
Old Share $\displaystyle 5$/$\displaystyle 10$ $\displaystyle 3$/$\displaystyle 10$ $\displaystyle 2$/$\displaystyle 10$
(-) New Share $\displaystyle 3$/$\displaystyle 10$ $\displaystyle 5$/$\displaystyle 10$ $\displaystyle 2$/$\displaystyle 10$
= Sacrificing Share $\displaystyle 2$/$\displaystyle 10$ -$\displaystyle 2$/$\displaystyle 10$ (gain) -
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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.