Skip to content

Kiran, Raveena and Hina… (Class 12 Accountancy 2026, Q22)

questionbuddy.in/q/cbse-12-accountancy-2026-67-1-1-q22-kiran-raveena-hina-partners-firm

AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 4 marks · Long answer

CBSE Class 12 Accountancy 2026: question 22

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 22, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q22 · 4 marks · Long answerReconstitution of a Partnership Firm – Retirement/Death of a Partner

Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. As per the terms of the partnership deed, on the death of any partner, the goodwill of the firm will be calculated on the basis of four times the average profits of the last three years. Hina died on 1st July 2025. The Profits for the last three years were :

2022-23 ₹ 4,75,000

2023-24 ₹ 4,05,000

2024-25 ₹ 3,20,000

Hina's share of profit upto the date of death was to be calculated on the basis of previous year's profit.

  1. (i)

    Calculate goodwill of the firm and Hina's share of goodwill.

    1 mark
  2. (ii)

    Calculate Hina's share in the profits of the firm till the date of her death.

    1 mark
  3. (iii)

    Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Hina's share of profit at the time of her death.

    2 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

Average the three years' profits, then multiply by 4.

Hint 2

Use 2024-25 profit and count months to 1st July.

Hint 3

Continuing partners gain in their old ratio 5 : 3.

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) Average profit = (4,75,000 + 4,05,000 + 3,20,000)/3 = ₹ 4,00,000. Goodwill = 4 × 4,00,000 = ₹ 16,00,000; Hina's share = 2/10 × 16,00,000 = ₹ 3,20,000.

    1 mark

  2. (ii) Hina's profit share from 1st April to 1st July 2025 (3 months), on last year's profit: 3,20,000 × 2/10 × 3/12 = ₹ 16,000.

    1 mark

  3. (iii) Goodwill is borne by Kiran and Raveena in their gaining ratio 5 : 3.

    ParticularsDr. (₹)Cr. (₹)
    Kiran's Capital A/c Dr.2,00,000
    Raveena's Capital A/c Dr.1,20,000
    To Hina's Capital A/c3,20,000
    (Being Hina's share of goodwill adjusted)
    1 mark
  4. ParticularsDr. (₹)Cr. (₹)
    Profit and Loss Suspense A/c Dr.16,000
    To Hina's Capital A/c16,000
    (Being Hina's share of profit till date of death)
    1 mark

Answer: (i) Goodwill ₹ 16,00,000; Hina's share ₹ 3,20,000 (ii) ₹ 16,000 (iii) Kiran ₹ 2,00,000 and Raveena ₹ 1,20,000 Dr. to Hina ₹ 3,20,000; P&L Suspense Dr. ₹ 16,000 to Hina

Where the marks are

  • Goodwill and Hina's share (1 mark)
  • Profit till death (1 mark)
  • Goodwill entry (1 mark)
  • P&L Suspense entry (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Reconstitution of a Partnership Firm – Retirement/Death of a Partner, 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.