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Mr. Rinku and Mrs. Pinky… (Class 12 Accountancy 2026, Q26b)

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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(b)

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

Q26(b) · 6 marks · Long answerDissolution of Partnership Firm

Mr. Rinku and Mrs. Pinky were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, their balance sheet was as follows :

Balance Sheet of Mr. Rinku and Mrs. Pinky as at 31st March, 2025

LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors86,000Cash at Bank43,000
Mrs. Rinku's Loan20,000Stock20,000
Pinky's Husband's Loan30,000Investments30,000
Investment Fluctuation Fund12,000Debtors 50,000
Less : Provision for doubtful debts 5,00045,000
General Reserve30,000Building3,40,000
Capitals :
Mr. Rinku 1,00,000
Mrs. Pinky 2,00,0003,00,000
4,78,0004,78,000

On the above date the firm was dissolved and the following transactions took place :
(i) Mr. Rinku agreed to pay Mrs. Rinku's loan and took away stock for ₹ 16,000.
(ii) Mrs. Pinky took half of the investments at 10% less. Debtors realised ₹ 44,000, Building realised ₹ 4,00,000, Creditors were paid ₹ 5,000 less and the remaining investments were sold for ₹ 19,000. An old furniture not recorded in the books of the firm was taken over by Mrs. Pinky for ₹ 18,000. Realisation expenses amounted to ₹ 6,000.
Prepare Realisation Account.

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

A partner who pays a firm's liability himself is credited in his capital account.

Hint 2

Assets taken over by partners are credited to Realisation and debited to their capitals.

Hint 3

Do not forget the unrecorded furniture.

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. Workings. Mr. Rinku pays his wife's loan himself (Realisation Dr., Rinku's Capital Cr. ₹ 20,000) and takes stock at ₹ 16,000. Mrs. Pinky takes half the investments (₹ 15,000) at 10% less = ₹ 13,500. Creditors are paid 86,000 − 5,000 = ₹ 81,000. The Investment Fluctuation Fund and the provision for doubtful debts are closed to Realisation Account.

    1 mark

  2. Realisation Account

    Particulars₹Particulars₹
    To Stock20,000By Creditors86,000
    To Investments30,000By Mrs. Rinku's Loan20,000
    To Debtors50,000By Pinky's Husband's Loan30,000
    To Building3,40,000By Investment Fluctuation Fund12,000
    To Mr. Rinku's Capital A/c (Mrs. Rinku's loan)20,000By Provision for Doubtful Debts5,000
    To Bank A/c (creditors)81,000By Mr. Rinku's Capital A/c (stock)16,000
    To Bank A/c (Pinky's husband's loan)30,000By Mrs. Pinky's Capital A/c (investments)13,500
    To Bank A/c (realisation expenses)6,000By Mrs. Pinky's Capital A/c (old furniture)18,000
    To Gain on Realisation: Mr. Rinku's Capital51,900By Bank A/c (debtors)44,000
    To Gain on Realisation: Mrs. Pinky's Capital34,600By Bank A/c (building)4,00,000
    By Bank A/c (investments)19,000
    6,63,5006,63,500
    4 marks

  3. Gain on realisation ₹ 86,500 is shared 3 : 2: Mr. Rinku ₹ 51,900, Mrs. Pinky ₹ 34,600.

    1 mark

Answer: Realisation gain ₹ 86,500 (Mr. Rinku ₹ 51,900, Mrs. Pinky ₹ 34,600); account totals ₹ 6,63,500

Where the marks are

  • Assets and liabilities transferred (1 mark)
  • Payments, takeovers and realisations (4 marks)
  • Gain ₹ 86,500 shared 3 : 2 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Dissolution of Partnership Firm, 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.