CBSE Class 12 Accountancy 2026: question 18
Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 18, for 3 marks. Try it first; the hints and our step-by-step solution are below.
Q18 · 3 marks · Short answerReconstitution of a Partnership Firm – Retirement/Death of a Partner
Naik, Vinay and Vibhuti were partners in a firm sharing profits and losses in the ratio of 4 : 2 : 3. On 31st March, 2025, their Balance Sheet was as follows :
Balance Sheet of Naik, Vinay and Vibhuti as at 31st March, 2025
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Patents | 54,000 | |
| Naik 1,20,000 | Land and Building | 2,07,000 | |
| Vinay 1,20,000 | Stock | 1,08,000 | |
| Vibhuti 1,20,000 | 3,60,000 | Debtors | 81,000 |
| General Reserve | 45,000 | Cash at bank | 54,000 |
| Creditors | 99,000 | ||
| 5,04,000 | 5,04,000 |
Naik retired from the firm on the above date on the following terms :
(i) Goodwill of the firm was valued at ₹ 1,80,000 and the same was to be treated without opening goodwill account.
(ii) Revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 18,000.
(iii) Amount payable to Naik was transferred to his loan account.
Pass necessary journal entries for general reserve, revaluation of assets and reassessment of liabilities and goodwill on Naik's retirement.
Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.
Hints
Open one hint at a time and try again before the next.
Hint 1
Reserves and revaluation results belong to all partners in the old ratio.
Hint 2
Naik's share of goodwill is paid by the gainers in the ratio 2 : 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 mark
General Reserve ₹ 45,000 in 4 : 2 : 3
Particulars Dr. (₹) Cr. (₹) General Reserve A/c Dr. 45,000 To Naik's Capital A/c 20,000 To Vinay's Capital A/c 10,000 To Vibhuti's Capital A/c 15,000 (Being general reserve distributed in old ratio) - 1 mark
Revaluation loss ₹ 18,000 in 4 : 2 : 3
Particulars Dr. (₹) Cr. (₹) Naik's Capital A/c Dr. 8,000 Vinay's Capital A/c Dr. 4,000 Vibhuti's Capital A/c Dr. 6,000 To Revaluation A/c 18,000 (Being revaluation loss shared in old ratio) - 1 mark
Goodwill. Naik's share = 1,80,000 × 4/9 = ₹ 80,000, borne by Vinay and Vibhuti in their gaining ratio 2 : 3.
Particulars Dr. (₹) Cr. (₹) Vinay's Capital A/c Dr. 32,000 Vibhuti's Capital A/c Dr. 48,000 To Naik's Capital A/c 80,000 (Being Naik's share of goodwill adjusted)
Answer: General Reserve ₹ 45,000 to Naik ₹ 20,000, Vinay ₹ 10,000, Vibhuti ₹ 15,000; revaluation loss Dr. ₹ 8,000, ₹ 4,000, ₹ 6,000; Vinay ₹ 32,000 and Vibhuti ₹ 48,000 Dr. to Naik ₹ 80,000 for goodwill
Where the marks are
- General reserve entry (1 mark)
- Revaluation loss entry (1 mark)
- Goodwill adjustment in gaining ratio (1 mark)
Revise the chapter
- Chapter: Reconstitution of a Partnership Firm – Retirement/Death of a Partner (notes, formulas, where marks are lost and every past question)
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