Skip to content

John and Sourabh… (Class 12 Accountancy SQP 2025-26, Q16)

questionbuddy.in/q/cbse-12-accountancy-2025-26-sqp-q16-john-sourabh-partners-sharing-profit

AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 16

From the official CBSE sample question paper for 2025-26, section A, question 16, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q16 · 1 mark · MCQCompetency-basedReconstitution of a Partnership Firm – Admission of a Partner

John and Sourabh were partners sharing Profit &Loss equally. They decided to share future Profit &Loss in the ratio 3:2. Their manager Arya met with an accident in the office itself and his claim for compensation amounted to ₹. 50,000. The firm had a Workmen Compensation Reserve of ₹. 80,000. Which of the following statement holds true at the time of reconstitution?

  1. (A)₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in old ratio.
  2. (B)₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be distributed amongst partners in new ratio.
  3. (C)₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be credited to Revaluation Account.
  4. (D)₹ 50,000 will be provided as workmen claim out of Workmen Compensation Reserve and balance ₹ 30,000 will be carried forward in the books of the firm without any treatment.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

The reserve was built from profits earned under the old ratio.

Hint 2

Provide for the claim first; who owns what is left?

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. On a change in profit sharing ratio, the actual workmen compensation claim (₹ 50,000) is met out of the Workmen Compensation Reserve.

  2. The excess reserve of ₹ 30,000 belongs to the old partners and is credited to them in the old ratio. Option (A).

    1 mark

Answer: (A) ₹ 50,000 provided for the claim; ₹ 30,000 distributed in the old ratio

Where the marks are

  • Excess reserve distributed in old ratio (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 2025-26: 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.