✓ Board-verified
Accountancy · 2025 · 3 marks
Reconstitution of a Partnership Firm – Admission of a PartnerAdjustment for Accumulated Profits and Losses3 marksshort answer
CBSE 2025 · Region 2 · Set 1 · Q18
Sunny and Ujjwal were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. On 1st April, $\displaystyle 2024$ Timmy was admitted as a new partner 1th . . . . .. for - share $\displaystyle 111$ profits which he acquired equally from Sunny and U]]wal. $\displaystyle 5$ On the date of Timmy's admission the Balance Sheet of Sunny and Ujjwal showed investments at ₹ $\displaystyle 5,00,000$ and a balance of ₹ $\displaystyle 2,00,000$ in Investment Fluctuation Reserve. Pass necessary journal entries for treatment of Investment fluctuation reserve on the date of Tlmmy's admission in each of the following cases : Market value of Investments was ₹ $\displaystyle 5,00$,000. <i? ($\displaystyle 11$) Market value of Investments was ₹ $\displaystyle 3,00$,000. (iii) Market value of Investments was ₹ $\displaystyle 2,00$,000.
Marking-scheme solution
Books of Sunny and Ujjwal
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
(i) $\displaystyle 2024$ Investment Fluctuation Reserve A/c Dr. $\displaystyle 2,00,000$
Apr1 To Sunny’s Capital A/c $\displaystyle 1,20,000$
To Ujjwal’s Capital A/c $\displaystyle 80,000$
(Investment Fluctuation Reserve distributed among old
partners in their old profit sharing ratio)
$\displaystyle 5$
(ii) ” Investment Fluctuation Reserve A/c Dr. $\displaystyle 2,00,000$
To Investments A/c $\displaystyle 2,00,000$
(Decrease in the value of investments met out of
Investment Fluctuation Reserve)
(iii)
” Investment Fluctuation Reserve A/c Dr. $\displaystyle 2,00,000$
Revaluation A/c Dr. $\displaystyle 1,00,000$
To Investments A/c $\displaystyle 3,00,000$
(Decrease in the value of investments met out of
Investment Fluctuation Reserve and the balance out of
Revaluation account)
Practice Reconstitution of a Partnership Firm – Admission of a Partner →All Reconstitution of a Partnership Firm – Admission of a Partner questions
More from Reconstitution of a Partnership Firm – Admission of a Partner
- Asha and Indra were partners in a firm sharing profits and losses in the ratio of 3: 2. Their Balance Sheet…2026
- Devki and Neena were partners in a firm sharing profits and losses in the ratio of 4:3. Amar was admitted as…2026
- Alex, Benn and Cole were partners in a firm sharing profits and losses in 1th the ratio of 5: 3: 2. They…2024
- Sanjay and Vijay were partners in a firm sharing profits and losses in the ratio of 4: 3. On 1st April, 2025…2026
- The goodwill of a firm was valued on the basis of 3 years purchase of average profits for the last four…2023
- Mansi and Uma were partners in a firm and their capitals were 4,00,000 and ₹ 2,00,000 respectively. Normal…2026
- Atul, Beena and Sita were partners in a firm sharing profits and losses in the ratio of 8: 7: 5. Damini was…2024
- P hawana and Vedika were partners in a firm sharing profits and losses in the ratio of 5: 4. From 1st April,…2025
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.