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A, B and C who… (Class 12 Accountancy SQP 2023-24, Q4a)

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

CBSE Class 12 Accountancy sample paper 2023-24: question 4(a)

From the official CBSE sample question paper for 2023-24, section A, question 4(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q4(a) · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner

A, B and C who were sharing profits and losses in the ratio of 4:3:2 decided to share the future profits and losses in the ratio to 2:3:4 with effect from 1st April 2023. An extract of their Balance Sheet as at 31st March 2023 is:

LiabilitiesAmount(₹)AssetsAmount(₹)
Workmen Compensation Reserve65,000

At the time of reconstitution, a certain amount of Claim on workmen compensation was determined for which B's share of loss amounted to ₹5,000. The Claim for workmen compensation would be:

  1. (A)₹15,000
  2. (B)₹70,000
  3. (C)₹50,000
  4. (D)₹80,000

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

A partner bears a loss only when the claim is more than the reserve.

Hint 2

That excess is shared in the old ratio.

Hint 3

B's old share is 3/9.

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. The claim is met first from the Workmen Compensation Reserve of ₹ 65,000. Any excess is a loss debited to Revaluation A/c and shared in the old ratio 4 : 3 : 2.

  2. B's share of that loss is 3/9 = ₹ 5,000, so the excess is ₹ 15,000 and the claim = ₹ 65,000 + ₹ 15,000 = ₹ 80,000. Option (D).

    1 mark

Answer: (D) ₹80,000

Where the marks are

  • Excess of claim ₹ 15,000 found from B's 3/9 share; claim = ₹ 80,000 (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.