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Ikka, Dukka and… (Class 12 Accountancy SQP 2024-25, Q9)

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

CBSE Class 12 Accountancy sample paper 2024-25: question 9

From the official CBSE sample question paper for 2024-25, section A, question 9, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q9 · 1 mark · MCQAccounting for Partnership: Basic Concepts

Ikka, Dukka and Teeka were partners sharing profits and losses in the ratio of 2:2:1. Their fixed Capital balances were ₹ 5,00,000; ₹ 4,00,000 and ₹ 3,00,000 respectively. For the year ended March 31, 2024 profits of ₹ 84,000 were distributed without providing for Interest on Capital @ 10% p.a as per the partnership deed. While passing an adjustment entry, which of the following is correct?

  1. (A)Teeka will be debited by ₹ 4,200
  2. (B)Teeka will be credited by ₹ 4,200
  3. (C)Teeka will be credited by ₹ 6,000
  4. (D)Teeka will be debited by ₹ 6,000

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 profit enough to pay full interest on capital?

Hint 2

When profit is short, share it in the ratio of the interest due.

Hint 3

Compare with what Teeka already received.

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. Interest on capital at 10% would be ₹ 50,000 + ₹ 40,000 + ₹ 30,000 = ₹ 1,20,000, more than the profit of ₹ 84,000. Interest is an appropriation, so the profit is shared in the interest ratio 5 : 4 : 3: Teeka gets ₹ 21,000.

  2. Teeka was given 1/5 × ₹ 84,000 = ₹ 16,800, so he is credited ₹ 4,200. Option (B).

    1 mark

Answer: (B) Teeka will be credited by ₹ 4,200

Where the marks are

  • Profit short of interest is shared in the interest ratio (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Partnership: Basic Concepts, 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.