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S, D and A are… (Class 12 Accountancy SQP 2026-27, Q22A)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2026-27: question 22(A)

From the official CBSE sample question paper for 2026-27, section A, question 22(A), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q22(A) · 4 marks · Long answerAccounting for Partnership: Basic Concepts

S, D and A are partners, sharing profits in the ratio of 5 : 2 : 3. Their fixed capitals are:
S – ₹1,00,000
D – ₹50,000
A – ₹50,000
As per the partnership deed, S is entitled to a commission of 10% of net profit after charging such commission. However, while preparing the accounts for the year ended 31st March 2026, this commission was not provided. The net profit of the firm was ₹1,10,000.
On the basis of above information:
I. Calculate the correct amount of commission payable to S.
II. Pass the necessary journal entry that the accountant would have passed for distribution of profits without providing commission to S.
III. Pass the necessary adjusting journal entry at the beginning of the next year to rectify the above-mentioned error.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Commission "after charging such commission" = profit × rate / (100 + rate).

Hint 2

Capitals are fixed, so use current accounts.

Hint 3

Compare what each partner should have got with what was credited.

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. I. Commission at 10% of profit after commission = ₹ 1,10,000 × 10/110 = ₹ 10,000.

    1 mark

  2. II. Entry passed without the commission (capitals fixed, so through current accounts):

    ParticularsDr. (₹)Cr. (₹)
    Profit and Loss Appropriation A/c Dr.1,10,000
    To S's Current A/c55,000
    To D's Current A/c22,000
    To A's Current A/c33,000
    (Being profit distributed in 5 : 2 : 3)
    1 mark

  3. Adjustment table

    ParticularsS (₹)D (₹)A (₹)Total (₹)
    Commission to be credited10,00010,000
    Correct profit share (1,00,000 in 5 : 2 : 3)50,00020,00030,0001,00,000
    Less: profit already credited(55,000)(22,000)(33,000)(1,10,000)
    Net effect5,000 (Cr.)2,000 (Dr.)3,000 (Dr.)Nil
    1 mark

  4. III. Adjusting entry (1st April, 2026)

    ParticularsDr. (₹)Cr. (₹)
    D's Current A/c Dr.2,000
    A's Current A/c Dr.3,000
    To S's Current A/c5,000
    (Being adjustment for omitted commission)
    1 mark

Answer: Commission ₹ 10,000; original entry P&L Appropriation Dr. ₹ 1,10,000 to S ₹ 55,000, D ₹ 22,000, A ₹ 33,000; adjustment D Dr. ₹ 2,000 and A Dr. ₹ 3,000 to S ₹ 5,000

Where the marks are

  • Commission ₹ 10,000 (1 mark)
  • Original distribution entry (1 mark)
  • Adjustment table (1 mark)
  • Adjusting entry (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 2026-27: 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.