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Rama, a partner… (Class 12 Accountancy SQP 2024-25, Q8a)

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

CBSE Class 12 Accountancy sample paper 2024-25: question 8(a)

From the official CBSE sample question paper for 2024-25, section A, question 8(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q8(a) · 1 mark · MCQDissolution of Partnership Firm

Rama, a partner took over Machinery of ₹ 50,000 in full settlement of her Loan of ₹ 60,000. Machinery was already transferred to Realisation Account. How it will effect the Realisation Account?

  1. (A)Realisation Account will be credited by ₹ 60,000
  2. (B)Realisation Account will be credited by ₹ 10,000
  3. (C)Realisation Account will be credited by ₹ 50,000
  4. (D)No effect on Realisation Account

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

The asset is taken over against the full loan, not its book value.

Hint 2

Which account is debited when the loan is settled?

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. A partner's loan is not transferred to Realisation A/c. Rama gives up her loan of ₹ 60,000 in exchange for machinery already in the Realisation A/c.

  2. The entry is Rama's Loan A/c Dr. ₹ 60,000 to Realisation A/c, so Realisation is credited ₹ 60,000. Option (A).

    1 mark

Answer: (A) Realisation Account will be credited by ₹ 60,000

Where the marks are

  • Value given up (loan ₹ 60,000) credited to Realisation (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.