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Jain and Gupta were… (Class 12 Accountancy 2026, Q22a)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 4 marks · Long answer

CBSE Class 12 Accountancy 2026: question 22(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 22(a), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q22(a) · 4 marks · Long answerReconstitution of a Partnership Firm – Admission of a Partner

Jain and Gupta were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 1st April, 2024, Agarwal was admitted as a new partner for 1/5th share in the profits of the firm with a minimum guaranteed amount of ₹ 75,000. Any deficiency arising out of this account will be borne by Jain and Gupta in the ratio of 1 : 3. During the year ended 31st March, 2025, the firm earned a net profit of ₹ 3,00,000.
Prepare Profit and Loss Appropriation Account of Jain, Gupta and Agarwal for the year ended 31st March, 2025.

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

First give each partner his share in the profit ratio.

Hint 2

The deficiency is shared 1 : 3, not in the profit 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. Agarwal's 1/5 share = ₹ 60,000, so the deficiency against his ₹ 75,000 guarantee is ₹ 15,000, borne by Jain and Gupta in 1 : 3 (₹ 3,750 and ₹ 11,250). Jain and Gupta share the remaining 4/5 in 3 : 1: ₹ 1,80,000 and ₹ 60,000.

    1 mark

  2. Profit and Loss Appropriation Account for the year ended 31st March, 2025

    Particulars₹Particulars₹
    To Jain's Capital A/c (1,80,000 − 3,750)1,76,250By Profit and Loss A/c (net profit)3,00,000
    To Gupta's Capital A/c (60,000 − 11,250)48,750
    To Agarwal's Capital A/c (60,000 + 3,750 + 11,250)75,000
    3,00,0003,00,000
    3 marks

Answer: Jain ₹ 1,76,250, Gupta ₹ 48,750, Agarwal ₹ 75,000 (deficiency ₹ 15,000 borne 1 : 3)

Where the marks are

  • Deficiency ₹ 15,000 split 1 : 3 (1 mark)
  • Jain ₹ 1,76,250 (1 mark)
  • Gupta ₹ 48,750 (1 mark)
  • Agarwal ₹ 75,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Reconstitution of a Partnership Firm – Admission 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.