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A, B and C are… (Class 12 Accountancy SQP 2026-27, Q24)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Case-based

CBSE Class 12 Accountancy sample paper 2026-27: question 24

From the official CBSE sample question paper for 2026-27, section A, question 24, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q24 · 6 marks · Case-basedCompetency-basedReconstitution of a Partnership Firm – Admission of a Partner

A, B and C are partners sharing profits and losses in the ratio of 4:3:3. They decided to change their profit-sharing ratio to 3:2:5 with effect from 1st April 2026.

Balance Sheet of A, B and C as at 31st March 2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors1,20,000Land & Building4,00,000
General Reserve90,000Machinery2,00,000
Profit & Loss A/c60,000Stock1,50,000
A's Capital3,00,000Debtors1,00,000
B's Capital2,50,000Cash1,70,000
C's Capital2,00,000
10,20,00010,20,000

Additional Information:
1. Goodwill of the firm is valued at ₹1,50,000.
2. Land & Building is revalued at ₹4,50,000.
3. A provision for doubtful debts @5% is to be created on debtors.
4. An unrecorded liability of ₹20,000 is discovered.

Based on the above information answer the following MCQs:

  1. I

    The net sacrifice made by partners (in terms of share of profit) is:

    1. (A)A sacrifices 1/10 and B sacrifices 1/10; C gains 1/5
    2. (B)A gains 1/10; B gains 1/10; C sacrifices 1/10
    3. (C)A sacrifices 1/10; B gains 1/10; C gains 1/5
    4. (D)A gains 1/10, B gains 1/10; C sacrifices 1/5
    1 mark
  2. II

    Which of the following journal entries is correct for treatment of goodwill?

    1. (A)A's Capital A/c Dr. To C's Capital A/c
    2. (B)A's Capital A/c Dr. B's Capital A/c Dr. To C's Capital A/c
    3. (C)C's Capital A/c Dr. To A's Capital A/c To B's Capital A/c
    4. (D)C's Capital A/c Dr. A's Capital A/c Dr. To Goodwill A/c
    1 mark
  3. III

    The amount of goodwill to be compensated by gaining partner(s) is:

    1. (A)₹45,000
    2. (B)₹30,000
    3. (C)₹75,000
    4. (D)₹1,50,000
    1 mark
  4. IV

    The net gain on revaluation will be:

    1. (A)₹25,000
    2. (B)₹20,000
    3. (C)₹5,000
    4. (D)₹30,000
    1 mark
  5. V

    General Reserve and Profit & Loss Account will be distributed in:

    1. (A)New ratio
    2. (B)Gaining ratio
    3. (C)Old ratio
    4. (D)Sacrificing ratio
    1 mark
  6. VI

    After all adjustments, the balance of C's capital will be?

    1. (A)₹2,22,500
    2. (B)₹2,35,000
    3. (C)₹3,00,000
    4. (D)₹3,50,000
    1 mark

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

Compare old and new shares with denominator 10.

Hint 2

Only the gaining partner pays for goodwill.

Hint 3

Revaluation gain, reserves and accumulated profit are shared in the old ratio.

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. Old 4 : 3 : 3, new 3 : 2 : 5. A: 4/10 − 3/10 = 1/10 sacrifice; B: 3/10 − 2/10 = 1/10 sacrifice; C: 5/10 − 3/10 = 1/5 gain. (A)

    1 mark

  2. II. The gaining partner compensates the sacrificing partners: C's Capital A/c Dr. to A's and B's Capital A/cs. (C)

    1 mark

  3. III. C pays for his 1/5 gain: ₹ 1,50,000 × 1/5 = ₹ 30,000. (B)

    1 mark

  4. IV. Land & Building +₹ 50,000; provision 5% of debtors −₹ 5,000; unrecorded liability −₹ 20,000. Net gain = ₹ 25,000. (A)

    1 mark

  5. V. Reserves and accumulated profits were earned under the old ratio, so they go to partners in the old ratio. (C)

    1 mark

  6. VI. C: ₹ 2,00,000 + general reserve 3/10 × 90,000 = ₹ 27,000 + P&L 3/10 × 60,000 = ₹ 18,000 + revaluation gain 3/10 × 25,000 = ₹ 7,500 − goodwill ₹ 30,000 = ₹ 2,22,500. (A)

    1 mark

Answer: I (A) A and B sacrifice 1/10 each, C gains 1/5; II (C); III (B) ₹ 30,000; IV (A) ₹ 25,000; V (C) old ratio; VI (A) ₹ 2,22,500

Where the marks are

  • 1 mark for each of the six answers (6 marks)

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 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.