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Sidhi, Gyan and Gayatri… (Class 12 Accountancy 2026, Q14)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 14

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 14, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q14 · 1 mark · MCQDissolution of Partnership Firm

Sidhi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 31st March, 2025 their firm was dissolved. At the time of dissolution a debtor amounting to ₹ 25,000 whose debt had been previously written off as bad debt paid 40% of the amount. The accounting treatment for the above transaction will be :

  1. (A)₹ 10,000 will be credited to bad debts recovered account.
  2. (B)₹ 10,000 will be credited to the debtor's personal account.
  3. (C)₹ 10,000 will be credited to realisation account.
  4. (D)₹ 10,000 will be credited to bad debts account.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/1/1.

Hints

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

Hint 1

On dissolution, which account collects all realisations?

Hint 2

Compute 40% of the debt.

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 dissolution all receipts from assets, including bad debts recovered, go through the Realisation Account.

  2. Cash received = 40% of 25,000 = ₹ 10,000, credited to Realisation Account. Option (C).

    1 mark

Answer: (C) ₹ 10,000 credited to realisation account

Where the marks are

  • Realisation A/c credited ₹ 10,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Dissolution of Partnership Firm, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 67/1/1: 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.