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Guru and Prakash were… (Class 12 Accountancy 2026, Q4a)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 4(a)

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

Q4(a) · 1 mark · MCQReconstitution of a Partnership Firm – Admission of a Partner

Guru and Prakash were partners in a firm sharing profits and losses in the ratio of 7 : 3. They admitted Anu as a new partner for 1/4th share in the profits of the firm. On the date of Anu's admission, the Profit and Loss Account of Guru and Prakash showed a credit balance of ₹ 40,000. The necessary journal entry for its treatment will be :

  1. (A)Profit and Loss A/c Dr. 40,000; To Guru's Capital A/c 21,000; To Prakash's Capital A/c 9,000; To Anu's Capital A/c 10,000
  2. (B)Profit and Loss A/c Dr. 40,000; To Guru's Capital A/c 28,000; To Prakash's Capital A/c 12,000
  3. (C)Guru's Capital A/c Dr. 21,000; Prakash's Capital A/c Dr. 9,000; Anu's Capital A/c Dr. 10,000; To Profit and Loss A/c 40,000
  4. (D)Guru's Capital A/c Dr. 28,000; Prakash's Capital A/c Dr. 12,000; To Profit and Loss A/c 40,000

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

Who earned the accumulated profit?

Hint 2

Use the old ratio, and leave the new partner out.

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. A credit balance in Profit and Loss Account is a past profit belonging to the old partners, so it goes to them in their old ratio 7 : 3; Anu gets nothing.

  2. Guru = 40,000 × 7/10 = ₹ 28,000; Prakash = ₹ 12,000. Profit and Loss A/c Dr. ₹ 40,000 to the two capitals. Option (B).

    1 mark

Answer: (B) Profit and Loss A/c Dr. ₹ 40,000; To Guru's Capital ₹ 28,000; To Prakash's Capital ₹ 12,000

Where the marks are

  • Credit balance to old partners in old ratio (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.