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Shree and Hari were… (Class 12 Accountancy 2026, Q20)

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

CBSE Class 12 Accountancy 2026: question 20

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 20, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q20 · 3 marks · Short answerAccounting for Partnership: Basic Concepts

Shree and Hari were partners in a firm sharing profits and losses in the ratio of 2 : 3. Their fixed capitals were ₹ 4,00,000 and ₹ 3,00,000 respectively. The partnership deed provided that Hari is to be allowed a commission of 5% of net profit.

The net profit of the firm for the year ended 31st March, 2025 was ₹ 1,00,000.

Pass the following journal entries in the books of the firm :

  1. (i)

    For crediting Hari's commission to his current account.

    1½ marks
  2. (ii)

    For transferring the commission to Profit and Loss Appropriation Account.

    1½ marks

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

Commission is 5% of the net profit given.

Hint 2

With fixed capitals, use the current account.

Hint 3

The commission account is closed to the appropriation account.

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. Commission = 5% of ₹ 1,00,000 = ₹ 5,000. Capitals are fixed, so it goes to Hari's Current Account.

    ParticularsDr. (₹)Cr. (₹)
    Hari's Commission A/c Dr.5,000
    To Hari's Current A/c5,000
    (Being commission credited to Hari's current account)
    1½ marks
  2. ParticularsDr. (₹)Cr. (₹)
    Profit and Loss Appropriation A/c Dr.5,000
    To Hari's Commission A/c5,000
    (Being commission transferred to Profit and Loss Appropriation Account)
    1½ marks

Answer: (i) Hari's Commission A/c Dr. ₹ 5,000 to Hari's Current A/c (ii) P&L Appropriation A/c Dr. ₹ 5,000 to Hari's Commission A/c

Where the marks are

  • Commission credited to current account (1½ marks)
  • Commission closed to appropriation account (1½ marks)

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.