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Nandini, Shweta and Hiren… (Class 12 Accountancy 2026, Q20)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 3 marks · Short answer

CBSE Class 12 Accountancy 2026: question 20

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 20, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q20 · 3 marks · Short answerReconstitution of a Partnership Firm – Retirement/Death of a Partner

Nandini, Shweta and Hiren were partners in a firm sharing profits and losses in the ratio of 9 : 7 : 4. On 1st April, 2025, Shweta retired. On the date of Shweta's retirement, there existed a balance of ₹ 1,00,000 in Workmen's Compensation Fund.
Pass necessary journal entries for treatment of Workmen's Compensation Fund on Shweta's retirement in each of the following cases :
(i) Claim on account of Workmen's Compensation was estimated at ₹ 1,20,000.
(ii) Claim on account of Workmen's Compensation was estimated at ₹ 80,000.
(iii) Claim on account of Workmen's Compensation was estimated at ₹ 1,00,000.

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

The fund first meets the estimated claim.

Hint 2

A shortfall is a revaluation loss; a surplus belongs to all partners in the old ratio.

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) Claim ₹ 1,20,000 exceeds the fund; the extra ₹ 20,000 is a loss charged to Revaluation A/c.

    ParticularsDr. (₹)Cr. (₹)
    Workmen's Compensation Fund A/c Dr.1,00,000
    Revaluation A/c Dr.20,000
    To Provision for Workmen's Compensation Claim A/c1,20,000
    (Being claim of ₹ 1,20,000 provided)
    1 mark

  2. (ii) Claim ₹ 80,000: the surplus ₹ 20,000 goes to all partners in 9 : 7 : 4.

    ParticularsDr. (₹)Cr. (₹)
    Workmen's Compensation Fund A/c Dr.1,00,000
    To Provision for Workmen's Compensation Claim A/c80,000
    To Nandini's Capital A/c9,000
    To Shweta's Capital A/c7,000
    To Hiren's Capital A/c4,000
    (Being claim provided and surplus fund credited to partners)
    1 mark

  3. (iii) Claim ₹ 1,00,000 uses up the whole fund.

    ParticularsDr. (₹)Cr. (₹)
    Workmen's Compensation Fund A/c Dr.1,00,000
    To Provision for Workmen's Compensation Claim A/c1,00,000
    (Being claim equal to the fund provided)
    1 mark

Answer: (i) Fund ₹ 1,00,000 + Revaluation ₹ 20,000 to Provision ₹ 1,20,000 (ii) Fund ₹ 1,00,000 to Provision ₹ 80,000 and capitals ₹ 9,000, ₹ 7,000, ₹ 4,000 (iii) Fund ₹ 1,00,000 to Provision ₹ 1,00,000

Where the marks are

  • Case (i) with excess claim to Revaluation (1 mark)
  • Case (ii) with surplus to partners in 9 : 7 : 4 (1 mark)
  • Case (iii) (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 67/5/1: 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.