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Joey, Sam and Tex… (Class 12 Accountancy SQP 2024-25, Q14)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 14

From the official CBSE sample question paper for 2024-25, 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

Joey, Sam and Tex were partners sharing profits and losses in the ratio 5:3:2. W.e.f 01 April, 2024 they decided to share future profits and losses in the ratio 2:1:1. For which of the following balances Tex will be credited at the time of reconstitution of firm, if the firm decided to continue with available accumulated profits and losses balances.

  1. (A)General Reserve ₹ 2,00,000 and Profit and Loss (Dr.) ₹ 1,20,000
  2. (B)General Reserve ₹ 2,00,000 and Profit and Loss (Cr.) ₹ 2,50,000
  3. (C)Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Cr.) ₹ 80,000
  4. (D)Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Dr.) ₹ 80,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Is Tex gaining or sacrificing?

Hint 2

A gaining partner pays for profits and is compensated for losses.

Hint 3

Net each pair of balances.

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. If the balances are kept, the gaining partner compensates the sacrificing partners. Tex goes from 2/10 to 1/4, a gain, so he is debited for net accumulated profits and credited for net accumulated losses.

  2. Only (D) is a net loss: Deferred Revenue Expenditure ₹ 50,000 + P&L (Dr.) ₹ 80,000. So Tex is credited. Option (D).

    1 mark

Answer: (D) Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Dr.) ₹ 80,000

Where the marks are

  • Gaining partner is credited only for net accumulated losses (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 2024-25: 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.