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Anshul, Babita and… (Class 12 Accountancy SQP 2023-24, Q17)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2023-24: question 17

From the official CBSE sample question paper for 2023-24, section A, question 17, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q17 · 3 marks · Short answerReconstitution of a Partnership Firm – Retirement/Death of a Partner

Anshul, Babita and Chander were partners in a firm running a successful business of car accessories. They had agreed to share profits and losses in the ratio of 1/2 : 1/3 : 1/6 respectively. After running business successfully and without any disputes for 10 years, Babita decided to retire due to old age and the Anshul and Chander decided to share future profits and losses in the ratio of 3 : 2. The accountant passed the following journal entry for Babita share of goodwill and missed some information. Fill in the missing figures in the following Journal entry and calculate the gaining ratio.

DateParticularsL.FDrCr
Anshul's Capital A/c Dr----------
Chander's Capital A/c Dr21,000
To Babita's Capital A/c------------
(Chander's share of Goodwill debited to the amounts of continuing partners in their gaining ratio)

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

Convert 1/2 : 1/3 : 1/6 into a whole-number ratio first.

Hint 2

Gain = new share − old share for each continuing partner.

Hint 3

Chander's debit is his gain share of Babita's goodwill; scale it up.

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. Gaining ratio. Old ratio 1/2 : 1/3 : 1/6 = 3 : 2 : 1. New ratio of Anshul and Chander 3 : 2. Gain: Anshul 3/5 − 1/2 = 1/10 = 3/30; Chander 2/5 − 1/6 = 7/30. Gaining ratio = 3 : 7.

    1 mark

  2. Chander's ₹ 21,000 is 7/10 of Babita's share of goodwill, so Babita's share = ₹ 21,000 × 10/7 = ₹ 30,000 and Anshul's 3/10 = ₹ 9,000.

    1 mark

  3. Completed entry

    ParticularsDr. (₹)Cr. (₹)
    Anshul's Capital A/c Dr.9,000
    Chander's Capital A/c Dr.21,000
    To Babita's Capital A/c30,000
    (Being Babita's share of goodwill debited to the continuing partners in their gaining ratio)
    1 mark

Answer: Gaining ratio 3 : 7; Anshul's Capital A/c Dr. ₹ 9,000, Chander's Capital A/c Dr. ₹ 21,000, to Babita's Capital A/c ₹ 30,000

Where the marks are

  • Gaining ratio 3 : 7 (1 mark)
  • Anshul ₹ 9,000 (1 mark)
  • Babita credited ₹ 30,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Reconstitution of a Partnership Firm – Retirement/Death 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.