CBSE Class 12 Accountancy 2026: question 23
Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 23, for 6 marks. Try it first; the hints and our step-by-step solution are below.
Q23 · 6 marks · Long answerDissolution of Partnership Firm
Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2025, their Balance Sheet was as follows :
Balance Sheet of Ravneet and Manmeet as on 31st March, 2025
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 4,50,000 | Cash at Bank | 2,50,000 |
| Capitals : | Stock | 2,50,000 | |
| Ravneet 5,00,000 | Debtors | 2,00,000 | |
| Manmeet 3,00,000 | 8,00,000 | Plant & Machinery | 5,50,000 |
| 12,50,000 | 12,50,000 |
On the above date, the firm was dissolved. The plant and machinery was sold at ₹ 4,87,000 and stock at 20% less than the book value. Debtors realised ₹ 1,40,000.
Ravneet agreed to bear all realisation expenses for which he was allowed a commission of ₹ 9,000. Actual realisation expenses amounted to ₹ 7,500.
Prepare Realisation Account and Partners' Capital Accounts.
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
Ravneet pays the actual expenses himself; only his commission enters the firm's books.
Hint 2
Loss on realisation is shared 7 : 3.
Hint 3
Check: bank 2,50,000 + receipts − creditors = payments to partners.
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.
- ½ mark
Workings. Stock realises 80% of 2,50,000 = ₹ 2,00,000. Ravneet bears the expenses himself, so the firm pays none; his commission of ₹ 9,000 is a realisation expense credited to his capital.
- 3½ marks
Realisation Account
Particulars ₹ Particulars ₹ To Stock 2,50,000 By Creditors 4,50,000 To Debtors 2,00,000 By Bank A/c (plant and machinery) 4,87,000 To Plant and Machinery 5,50,000 By Bank A/c (stock) 2,00,000 To Bank A/c (creditors) 4,50,000 By Bank A/c (debtors) 1,40,000 To Ravneet's Capital A/c (commission) 9,000 By Loss: Ravneet's Capital A/c 1,27,400 By Loss: Manmeet's Capital A/c 54,600 14,59,000 14,59,000 - 2 marks
Partners' Capital Accounts
Particulars Ravneet (₹) Manmeet (₹) Particulars Ravneet (₹) Manmeet (₹) To Realisation A/c (loss) 1,27,400 54,600 By Balance b/d 5,00,000 3,00,000 To Bank A/c 3,81,600 2,45,400 By Realisation A/c (commission) 9,000 5,09,000 3,00,000 5,09,000 3,00,000
Answer: Realisation loss ₹ 1,82,000 (Ravneet ₹ 1,27,400, Manmeet ₹ 54,600); final payments Ravneet ₹ 3,81,600, Manmeet ₹ 2,45,400
Where the marks are
- Workings for stock and commission (½ mark)
- Realisation Account (3½ marks)
- Capital accounts closed by payment (2 marks)
Revise the chapter
- Chapter: Dissolution of Partnership Firm (notes, formulas, where marks are lost and every past question)
- Topic: Realisation Account
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