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Promil, Kamlesh and… (Class 12 Accountancy 2026, Q26a)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 6 marks · Long answer

CBSE Class 12 Accountancy 2026: question 26(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 26(a), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q26(a) · 6 marks · Long answerReconstitution of a Partnership Firm – Admission of a Partner

Promil, Kamlesh and Ritika were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2025 they decided to share future profits in the ratio of 2 : 3 : 5. On 31st March, 2025, their Balance Sheet was as follows :

Balance Sheet of Promil, Kamlesh and Ritika as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors3,00,000Bank1,80,000
General Reserve1,60,000Sundry Debtors1,20,000
Capitals :Stock2,40,000
Promil 2,80,000Land and Building5,60,000
Kamlesh 2,20,000
Ritika 1,40,0006,40,000
11,00,00011,00,000

It was agreed that :
(i) Land and Building will be valued at ₹ 6,62,000.
(ii) A provision of 5% on debtors will be made for bad and doubtful debts.
(iii) Goodwill of the firm will be valued at ₹ 1,80,000 and the same will be treated without opening goodwill account.
(iv) The value of stock will be reduced to ₹ 2,00,000.

Showing your working clearly, pass necessary journal entries for the above transactions in the books of the firm.

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

On a change in ratio, reserves and revaluation results go in the old ratio.

Hint 2

Find who sacrifices and who gains: Kamlesh is unaffected.

Hint 3

The gainer compensates the sacrificer for goodwill.

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. General Reserve ₹ 1,60,000 in old ratio 5 : 3 : 2

    ParticularsDr. (₹)Cr. (₹)
    General Reserve A/c Dr.1,60,000
    To Promil's Capital A/c80,000
    To Kamlesh's Capital A/c48,000
    To Ritika's Capital A/c32,000
    (Being general reserve distributed in old ratio)
    1 mark

  2. Decrease in assets: provision 5% of 1,20,000 = ₹ 6,000; stock 2,40,000 → 2,00,000 = ₹ 40,000.

    ParticularsDr. (₹)Cr. (₹)
    Revaluation A/c Dr.46,000
    To Provision for Bad and Doubtful Debts A/c6,000
    To Stock A/c40,000
    (Being provision created and stock reduced)
    1 mark

  3. Increase in Land and Building (5,60,000 → 6,62,000)

    ParticularsDr. (₹)Cr. (₹)
    Land and Building A/c Dr.1,02,000
    To Revaluation A/c1,02,000
    (Being land and building revalued)
    1 mark

  4. Revaluation gain = 1,02,000 − 46,000 = ₹ 56,000 in 5 : 3 : 2

    ParticularsDr. (₹)Cr. (₹)
    Revaluation A/c Dr.56,000
    To Promil's Capital A/c28,000
    To Kamlesh's Capital A/c16,800
    To Ritika's Capital A/c11,200
    (Being revaluation gain shared in old ratio)
    1 mark

  5. Working (gain/sacrifice). Promil 5/10 − 2/10 = 3/10 sacrifice; Kamlesh 3/10 − 3/10 = nil; Ritika 2/10 − 5/10 = 3/10 gain.

    1 mark

  6. Goodwill ₹ 1,80,000 × 3/10 = ₹ 54,000

    ParticularsDr. (₹)Cr. (₹)
    Ritika's Capital A/c Dr.54,000
    To Promil's Capital A/c54,000
    (Being goodwill adjusted on change in profit sharing ratio)
    1 mark

Answer: General Reserve to partners ₹ 80,000, ₹ 48,000, ₹ 32,000; revaluation gain ₹ 56,000 (₹ 28,000, ₹ 16,800, ₹ 11,200); Ritika Dr. ₹ 54,000 to Promil for goodwill

Where the marks are

  • General reserve (1 mark)
  • Revaluation loss items (1 mark)
  • Land and building (1 mark)
  • Revaluation gain distributed (1 mark)
  • Gain/sacrifice working (1 mark)
  • Goodwill entry (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.