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X, Y and Z were… (Class 12 Accountancy SQP 2024-25, Q22)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 4 marks · Very short answer

CBSE Class 12 Accountancy sample paper 2024-25: question 22

From the official CBSE sample question paper for 2024-25, section A, question 22, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q22 · 4 marks · Very short answerReconstitution of a Partnership Firm – Retirement/Death of a Partner

X, Y and Z were partners sharing profits and losses equally. Y died on 1st October, 2023 and total amount transferred to Y’s executors was ₹ 15,60,000. Y’s executors were being paid ₹ 3,60,000 immediately and balance was to be paid in four equal quarterly instalments, together with Interest @ 6% p.a. Pass entries till payment of first two instalments.

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

Interest is charged only on the unpaid balance after the immediate payment.

Hint 2

Quarterly instalments: 3 months of interest each time.

Hint 3

The balance falls by ₹ 3,00,000 after each instalment.

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. 1st October, 2023

    ParticularsDr. (₹)Cr. (₹)
    Y's Capital A/c Dr.15,60,000
    To Y's Executors A/c15,60,000
    (Being amount due transferred to executors)
    Y's Executors A/c Dr.3,60,000
    To Bank A/c3,60,000
    (Being immediate payment made)
    1 mark

  2. 31st December, 2023: balance ₹ 12,00,000 in four quarterly instalments of ₹ 3,00,000. Interest for the quarter = ₹ 12,00,000 × 6% × 3/12 = ₹ 18,000.

    ParticularsDr. (₹)Cr. (₹)
    Interest A/c Dr.18,000
    To Y's Executors A/c18,000
    (Being interest due)
    Y's Executors A/c Dr.3,18,000
    To Bank A/c3,18,000
    (Being first instalment with interest paid)
    1½ marks

  3. 31st March, 2024: interest on ₹ 9,00,000 for 3 months = ₹ 13,500.

    ParticularsDr. (₹)Cr. (₹)
    Interest A/c Dr.13,500
    To Y's Executors A/c13,500
    (Being interest due)
    Y's Executors A/c Dr.3,13,500
    To Bank A/c3,13,500
    (Being second instalment with interest paid)
    1½ marks

Answer: Transfer ₹ 15,60,000 and pay ₹ 3,60,000; 31.12.2023 interest ₹ 18,000, pay ₹ 3,18,000; 31.03.2024 interest ₹ 13,500, pay ₹ 3,13,500

Where the marks are

  • Transfer and immediate payment (1 mark)
  • First instalment with interest (1½ marks)
  • Second instalment with interest (1½ marks)

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 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.