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L and M were… (Class 12 Accountancy SQP 2026-27, Q8)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2026-27: question 8

From the official CBSE sample question paper for 2026-27, section A, question 8, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q8 · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner

L and M were partners sharing profits in the ratio of 5:3. They admitted N as a new partner and on the date of admission, firm had Investments of ₹3,00,000 and Investment Fluctuation Reserve of ₹40,000. On the same date;
• M took over 40% of investments at ₹1,10,000.
• The remaining investments were revalued at ₹1,50,000.
Identify the effect on the Revaluation Account.

  1. (A)Credited ₹10,000
  2. (B)Debited ₹10,000
  3. (C)Credited ₹5,000
  4. (D)No effect on revaluation A/c

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

Find the total fall in value of all investments.

Hint 2

The reserve meets a fall before Revaluation A/c is touched.

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. M takes 40% (book value ₹ 1,20,000) at ₹ 1,10,000, a fall of ₹ 10,000; the other 60% (₹ 1,80,000) is revalued at ₹ 1,50,000, a fall of ₹ 30,000. Total fall = ₹ 40,000.

  2. The Investment Fluctuation Reserve of ₹ 40,000 absorbs the whole fall, so nothing reaches the Revaluation Account. Option (D).

    1 mark

Answer: (D) No effect on revaluation A/c

Where the marks are

  • Total fall equals the reserve (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 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.