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At the time of… (Class 12 Accountancy SQP 2024-25, Q4a)

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

CBSE Class 12 Accountancy sample paper 2024-25: question 4(a)

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

At the time of admission of new partner Vasu, Old partners Paresh and Prabhav had debtors of ₹ 6,20,000 and a provision for doubtful debts (PDD) of ₹ 20,000 in their books. As per terms of admission, assets were revalued, and it was found that debtors worth ₹ 15,000 had turned bad and hence should be written off. Which journal entry reflects the correct accounting treatment of the above situation?

  1. (A)Bad Debts A/c Dr. 15,000; To Debtors A/c 15,000; Prov for D. debts A/c Dr. 15,000; To Bad Debts A/c 15,000
  2. (B)Bad Debts A/c Dr. 15,000; To Debtors A/c 15,000; Revaluation A/c Dr. 15,000; To Prov for doubt debts A/c 15,000
  3. (C)Revaluation A/c Dr. 15,000; To Debtors A/c 15,000
  4. (D)Bad Debts A/c Dr. 15,000; To Revaluation A/c 15,000

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 the existing provision enough to absorb the bad debts?

Hint 2

Revaluation is needed only when there is a gain or loss.

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 existing provision of ₹ 20,000 already covers the ₹ 15,000 of bad debts, and no change in the provision is asked for.

  2. Bad debts are written off and charged to the provision, with no effect on the Revaluation Account. Option (A).

    1 mark

Answer: (A) Bad Debts A/c Dr. 15,000; To Debtors A/c 15,000; Prov for D. debts A/c Dr. 15,000; To Bad Debts A/c 15,000

Where the marks are

  • Bad debts set off against the existing provision (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.