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Rusting, a partner… (Class 12 Accountancy SQP 2024-25, Q17)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2024-25: question 17

From the official CBSE sample question paper for 2024-25, section A, question 17, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q17 · 3 marks · Short answerDissolution of Partnership Firm

Rusting, a partner of a firm under dissolution was to get a remuneration 2% of the total assets realised other than cash and 10% of the amount distributed to the partners. Sundry assets (including Cash ₹ 8,000) realised at ₹ 1,16,000 and sundry liabilities to be paid ₹ 31,340. Calculate Rustings’s remuneration and Show your workings clearly. Also pass necessary journal entry for remuneration.

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

Leave cash out of "assets realised".

Hint 2

What is left after paying outside liabilities all belongs to the partners.

Hint 3

Remuneration to a partner is debited to Realisation and credited to his capital.

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. 2% of assets realised other than cash: ₹ 1,16,000 − ₹ 8,000 = ₹ 1,08,000; 2% = ₹ 2,160.

    1 mark

  2. 10% of the amount distributed to partners. After paying liabilities, everything left goes to the partners (Rusting's remuneration is itself credited to a partner): ₹ 1,16,000 − ₹ 31,340 = ₹ 84,660; 10% = ₹ 8,466. Total remuneration = ₹ 2,160 + ₹ 8,466 = ₹ 10,626.

    1 mark

  3. Entry

    ParticularsDr. (₹)Cr. (₹)
    Realisation A/c Dr.10,626
    To Rusting's Capital A/c10,626
    (Being remuneration payable to Rusting)
    1 mark

Answer: Remuneration ₹ 10,626 (₹ 2,160 + ₹ 8,466); Realisation A/c Dr. ₹ 10,626 to Rusting's Capital A/c

Where the marks are

  • 2% on non-cash assets realised ₹ 2,160 (1 mark)
  • 10% of ₹ 84,660 = ₹ 8,466 (1 mark)
  • Journal entry (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Dissolution of Partnership Firm, 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.