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X and Y are… (Class 12 Accountancy SQP 2023-24, Q14)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2023-24: question 14

From the official CBSE sample question paper for 2023-24, section A, question 14, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q14 · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner

X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share of goodwill and he is required to bring proportionate capital for 1/3rd share in profits. The capital contribution of Z will be:

  1. (A)₹24,000.
  2. (B)₹19,000.
  3. (C)₹12,667.
  4. (D)₹14,000.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Proportionate capital is worked out on the old partners' capitals after all adjustments.

Hint 2

The goodwill premium is credited to the old partners first.

Hint 3

The old partners hold 2/3 after Z joins.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Z's ₹ 10,000 premium for goodwill is credited to X and Y, so their capitals become ₹ 18,000 + ₹ 20,000 + ₹ 10,000 = ₹ 48,000 for a 2/3 share.

  2. Total capital = ₹ 48,000 × 3/2 = ₹ 72,000; Z's 1/3 = ₹ 24,000. Option (A).

    1 mark

Answer: (A) ₹24,000.

Where the marks are

  • Old capitals after crediting goodwill give total ₹ 72,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Reconstitution of a Partnership Firm – Admission of a Partner, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.