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John, Honey and Racob… (Class 12 Accountancy 2026, Q7a)

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

CBSE Class 12 Accountancy 2026: question 7(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 7(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q7(a) · 1 mark · MCQReconstitution of a Partnership Firm – Retirement/Death of a Partner

John, Honey and Racob were partners in a firm sharing profits and losses equally. On 31st July, 2025 John died. His share in the profits of the firm from the date of last balance sheet till the date of his death will be :

  1. (A)Debited to Profit and Loss Account
  2. (B)Credited to Profit and Loss Account
  3. (C)Debited to Profit and Loss Suspense Account
  4. (D)Credited to Profit and Loss Suspense 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

The firm's Profit and Loss Account for the year is not ready yet.

Hint 2

Which side of the suspense account records an amount owed to the deceased?

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. Books are not closed on the date of death, so the deceased partner's share of profit is brought in through a temporary Profit and Loss Suspense Account.

  2. Entry: Profit and Loss Suspense A/c Dr. to John's Capital A/c, i.e. the share is debited to Profit and Loss Suspense Account. Option (C).

    1 mark

Answer: (C) Debited to Profit and Loss Suspense Account

Where the marks are

  • Profit and Loss Suspense A/c debited (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.