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Sultan, Singh and Tulsi… (Class 12 Accountancy 2026, Q18a)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 3 marks · Short answer

CBSE Class 12 Accountancy 2026: question 18(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 18(a), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q18(a) · 3 marks · Short answerAccounting for Partnership: Basic Concepts

Sultan, Singh and Tulsi were partners in a firm sharing profits and losses in the ratio of 9 : 7 : 4. Their fixed capitals were ₹ 6,00,000, ₹ 5,00,000 and ₹ 4,00,000. The partnership deed provided that interest on partners capital accounts will be allowed at 10% per annum. After the final accounts for the year were prepared, it was found that interest on capital was allowed @ 12% per annum.

Pass the necessary adjusting journal entry.

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

Only the extra 2% needs to be reversed.

Hint 2

The amount reversed is profit, shared 9 : 7 : 4.

Hint 3

With fixed capitals, use current accounts.

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. Excess interest given at 2% (12% − 10%): Sultan ₹ 12,000, Singh ₹ 10,000, Tulsi ₹ 8,000 = ₹ 30,000. This ₹ 30,000 should have been profit, shared 9 : 7 : 4: ₹ 13,500, ₹ 10,500, ₹ 6,000.

    ½ mark

  2. Adjustment table

    PartnerExcess interest to reverse, Dr. (₹)Profit to give, Cr. (₹)Net effect (₹)
    Sultan12,00013,5001,500 Cr.
    Singh10,00010,500500 Cr.
    Tulsi8,0006,0002,000 Dr.
    Total30,00030,000Nil
    1½ marks

  3. Capitals are fixed, so the adjustment goes through current accounts.

    ParticularsDr. (₹)Cr. (₹)
    Tulsi's Current A/c Dr.2,000
    To Sultan's Current A/c1,500
    To Singh's Current A/c500
    (Being excess interest on capital rectified)
    1 mark

Answer: Tulsi's Current A/c Dr. ₹ 2,000 to Sultan's Current A/c ₹ 1,500 and Singh's Current A/c ₹ 500

Where the marks are

  • Excess interest worked out (½ mark)
  • Adjustment table with net effect (1½ marks)
  • Adjusting entry through current accounts (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 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.