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Tarun and Tej were… (Class 12 Accountancy 2026, Q4a)

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

CBSE Class 12 Accountancy 2026: question 4(a)

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

Q4(a) · 1 mark · MCQAccounting for Partnership: Basic Concepts

Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, Tej had given a loan of ₹ 50,000 to the firm. The net profit of the firm before charging interest on loan was ₹ 3,75,000. The firm closes its books on 31st March every year. The amount of profit transferred from Profit and Loss Account to Profit and Loss Appropriation Account will be :

  1. (A)₹ 3,75,000
  2. (B)₹ 3,72,000
  3. (C)₹ 4,25,000
  4. (D)₹ 3,78,000

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

Is interest on a partner's loan an appropriation or a charge?

Hint 2

What rate applies without an agreement?

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. Interest on a partner's loan is a charge against profit, at 6% p.a. when nothing is agreed: 50,000 × 6% = ₹ 3,000 for the full year.

  2. Profit transferred to the Appropriation Account = 3,75,000 − 3,000 = ₹ 3,72,000. Option (B).

    1 mark

Answer: (B) ₹ 3,72,000

Where the marks are

  • Interest on loan ₹ 3,000 charged before appropriation (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.