AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Long answer

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

From the official CBSE sample question paper for 2024-25, section A, question 25, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q25 · 6 marks · Long answerDissolution of Partnership Firm

Sunny and Bobby were partners in a firm sharing profits and losses in the ratio of 3:2, their balance sheet as at 31st March, 2012:

Liabilities	Amount	Assets	Amount
Creditors	1,90,000	Bank	5,000
Bills Payable	1,10,000	Fixed Deposits	70,000
Employees provident fund	50,000	Stock	86,000
Mrs. Sunny’s Loan	55,000	Investments	1,04,000
Bobby’s Loan	85,000	Debtors 1,77,000 less Provision for D/D 12,000	1,65,000
Investment Fluctuation Fund	30,000	Other Fixed Assets	3,80,000
Capitals: Sunny 2,20,000; Bobby 1,20,000	3,40,000	Deferred Revenue Expenditure	35,000
		Sunny’s Loan	15,000
	8,60,000		8,60,000

The firm was dissolved on 31st March, 2012. The assets were realized and the liabilities were paid as under:
(a) Sunny promised to pay off Mrs. Sunny’s Loan
(b) Bobby took away stock at 20% discount and 80% of the investments at 10% discount.
(c) Dharam, a debtor of Rs. 60,000 had to pay the amount due 2 months after the date of dissolution. He was allowed a discount of 9% p.a. for making immediate payment.
(d) Creditors were paid Rs.1,75,000 in full settlement of their claim.
(e) 90% of Other fixed assets realised Rs. 1,98,000 and remaining were realised at discount of 15%.
(f) Balance of investments were sold at 75% value and Fixed Deposits were realised at 110%.
(g) There was an old furniture which has been written off completely from the books, Bobby took away the same for Rs. 41,000 against his loan and balance to him was given in cash.
(h) Realisation expenses Rs. 20,000 were paid by Sunny and Bobby equally on behalf of the firm.
You are required to prepare Realisation A/c

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

Only third-party assets and liabilities go to the Realisation A/c. Partners' loans and fictitious assets do not.

Hint 2

An unrecorded asset taken by a partner against his loan is credited to the Realisation A/c through that loan account.

Hint 3

Work out each realisation separately (stock, investments, debtors, fixed assets), then balance the account and share the result 3:2.

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.

Verified: two independent solves agreeChecked 2026-11-01

Workings:
- Bobby takes stock $86, 000 \times 80% = 68, 800$ and investments $1, 04, 000 \times 80% \times 90% = 74, 880$ , total ₹1,43,680.
- Debtors: discount to Dharam $= 60, 000 \times 9% \times \frac{2}{12} = 900$ , so debtors realise $1, 77, 000 - 900 = ₹1, 76, 100$ .
- Other fixed assets: $1, 98, 000 + (3, 80, 000 \times 10% \times 85%) = 1, 98, 000 + 32, 300 = ₹2, 30, 300$ .
- Remaining investments $20, 800 \times 75% = ₹15, 600$ ; fixed deposits $70, 000 \times 110% = ₹77, 000$ .
- Deferred revenue expenditure, Sunny's loan (asset) and Bobby's loan are not taken to the Realisation A/c.
2 marks

Realisation Account

Dr. Particulars	₹	Cr. Particulars	₹
To Fixed Deposits	70,000	By Provision for Doubtful Debts	12,000
To Stock	86,000	By Creditors	1,90,000
To Investments	1,04,000	By Bills Payable	1,10,000
To Debtors	1,77,000	By Employees' Provident Fund	50,000
To Other Fixed Assets	3,80,000	By Mrs. Sunny's Loan	55,000
To Sunny's Capital A/c (Mrs. Sunny's loan)	55,000	By Investment Fluctuation Fund	30,000
To Bank A/c (Creditors 1,75,000 + B/P 1,10,000 + EPF 50,000)	3,35,000	By Bank A/c (Debtors 1,76,100 + Other F.A. 2,30,300 + Investments 15,600 + F.D. 77,000)	4,99,000
To Sunny's Capital A/c (expenses)	10,000	By Bobby's Capital A/c (stock & investments)	1,43,680
To Bobby's Capital A/c (expenses)	10,000	By Bobby's Loan A/c (old furniture)	41,000
		By Loss on Realisation: Sunny 57,792; Bobby 38,528	96,320
	12,27,000		12,27,000

4 marks

Answer: Loss on realisation ₹96,320: Sunny ₹57,792, Bobby ₹38,528; Realisation A/c totals ₹12,27,000

Where the marks are

Correct valuation of assets taken by Bobby ₹1,43,680 and debtors ₹1,76,100 (1 mark)
Other fixed assets ₹2,30,300, investments ₹15,600, FD ₹77,000 (1 mark)
Assets, provision, liabilities and IFF correctly transferred; Mrs. Sunny's loan through Sunny's capital (1.5 marks)
Payments of liabilities, expenses and furniture against Bobby's loan correctly recorded (1.5 marks)
Loss ₹96,320 shared 3:2, Sunny ₹57,792, Bobby ₹38,528 (1 mark)

Revise the chapter

Chapter: Dissolution of Partnership Firm (notes, formulas, where marks are lost and every past question)
Topic: Realisation Account

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

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