Partnership Accounts

01

PYQ 2024

medium

accountancy ID: cbse-cla

Isha and Manish were partners in a firm sharing profits and losses in the ratio of 3:2. With effect from 1 st April, 2023, they agreed to share profits equally. On this date, the goodwill of the firm was valued at Rs. 3,00,000. The necessary journal entry for the treatment of goodwill without opening Goodwill Account will be:

02

PYQ 2024

medium

accountancy ID: cbse-cla

Opening capital of Keshav was:

1

Rs.35,000

2

Rs.39,000

3

Rs.43,000

4

Rs.52,000

03

PYQ 2024

medium

accountancy ID: cbse-cla

Rohit, Udit and Mohit were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Mohit retired. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was Rs.1,80,000. Rohit and Udit agreed to pay him Rs.2,00,000 in full settlement of his claim. Mohit’s share of goodwill in the firm was:

1

Rs.1,80,000

2

Rs.2,00,000

3

Rs.40,000

4

Rs.20,000

04

PYQ 2024

medium

accountancy ID: cbse-cla

Assertion (A): Securities Premium cannot be utilized for writing off loss on sale of a fixed asset. Reason (R): Securities Premium can be applied only for the purposes mentioned in the Companies Act, 2013. Choose the correct option from the following:

1

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

2

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

3

Assertion (A) is false, but Reason (R) is true.

4

Assertion (A) is true, but Reason (R) is false.

05

PYQ 2025

hard

accountancy ID: cbse-cla

Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of 5 : 3. The balance in their fixed capital accounts on 1st April, 2023 were: Parul Rs 6,00,000 and Rajul Rs 8,00,000. The partnership deed provided for allowing interest on capital at 12\% per annum. The net profit of the firm for the year ended 31st March, 2024 was Rs 1,26,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024. Show your working clearly.

06

PYQ 2025

medium

accountancy ID: cbse-cla

Ravi, Mohan and Vinod were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The partnership deed provided that interest on partners’ drawings will be charged @ 12% p.a. Starting from 1st July, 2023, Mohan withdrew ₹20,000 every month for his personal use. For the year ended 31st March, 2024 interest on Mohan’s drawings will be charged for \_\_\_\_\_\_\_\_ months.

1

6

2

6

3

5

4

5

07

PYQ 2025

medium

accountancy ID: cbse-cla

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company, is called:

1

Subscribed but not fully paid up capital

2

Unissued capital

3

Reserve capital

4

Subscribed capital

08

PYQ 2025

medium

accountancy ID: cbse-cla

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. D was admitted as a new partner for share in the profits of the firm. D acquired his share entirely from A. The new profit sharing ratio between A, B, C and D will be:

1

5 : 2 : 2 : 1

2

3 : 3 : 2 : 2

3

3 : 2 : 3 : 2

4

4 : 3 : 2 : 1

09

PYQ 2025

medium

accountancy ID: cbse-cla

Murthy and Madhavan were partners in a firm sharing profits and losses in the ratio of 3 : 1. They admitted Shriniwas as a new partner in the firm. On admission of Shriniwas, there existed a balance of ₹8,00,000 in debtors account and a balance of ₹50,000 in provision for bad debts account. Debtors of ₹60,000 proved bad and hence were written off. It was decided to maintain a provision for bad debts at 10% of the debtors. The revaluation account will be debited by \_\_\_\_\_ on the reconstitution of the firm.

1

₹80,000

2

₹10,000

3

₹84,000

4

₹74,000

10

PYQ 2025

medium

accountancy ID: cbse-cla

Manav, Mayank and Manish were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2024, their Balance Sheet showed a debit balance of ₹60,000 in the Profit and Loss Account. They decided that from 1st April, 2024 they will share profits in the ratio of 2 : 2 : 1. The journal entry for writing off the debit balance of Profit and Loss Account on reconstitution of the firm will be:

1

Manav’s Capital A/c Dr. ₹30,000 Mayank’s Capital A/c Dr. ₹18,000 Manish’s Capital A/c Dr. ₹12,000 To Profit and Loss A/c ₹60,000

2

Manav’s Capital A/c Dr. ₹24,000 Mayank’s Capital A/c Dr. ₹24,000 Manish’s Capital A/c Dr. ₹12,000 To Profit and Loss A/c ₹60,000

3

Mayank’s Capital A/c Dr. ₹6,000 To Manav’s Capital A/c ₹6,000

4

Manav’s Capital A/c Dr. ₹6,000 To Mayank’s Capital A/c ₹6,000

11

PYQ 2025

easy

accountancy ID: cbse-cla

Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mohan was admitted as a new partner for th share in the profits of the firm. Mohan brought ₹ 2,50,000 as his share of capital and ₹ 2,00,000 as his share of goodwill premium. The value of the firm’s goodwill was :

1

₹ 2,00,000

2

₹ 4,50,000

3

₹ 12,50,000

4

₹ 10,00,000

12

PYQ 2025

medium

accountancy ID: cbse-cla

Anisha, Deepa and Charu were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31 st March, 2024, they decided to change their profit-sharing ratio to 2 : 3 : 5. Each partner’s gain or sacrifice due to change in profit-sharing ratio will be:

1

Anisha’s sacrifice; Charu’s gain

2

Anisha’s gain; Charu’s sacrifice

3

Anisha’s sacrifice; Deepa’s gain

4

Deepa’s gain; Charu’s sacrifice

13

PYQ 2025

medium

accountancy ID: cbse-cla

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as:

1

Sweat equity

2

Incorporation cost

3

Private placement of shares

4

Employee stock option plan

14

PYQ 2025

medium

accountancy ID: cbse-cla

The following journal entry appears in the books of Latvion Ltd.: Date Particulars Dr. Amount (₹) Cr. Amount (₹) Bank A/c 4,75,000 Loss on issue of debentures A/c 75,000 To 12% Debentures A/c 5,00,000 To Premium on Redemption of Debentures A/c 50,000 The discount on issue of debentures is:

1

15%

2

5%

3

10%

4

95%

15

PYQ 2025

hard

accountancy ID: cbse-cla

Prakhar and Rajan were partners in a firm sharing profits and losses in the ratio of 3 : 2 with capitals of ₹ 10,00,000 and ₹ 9,00,000 respectively. Siddharth was admitted as a new partner for share in the profits of the firm. The new profit sharing ratio between Prakhar, Rajan and Siddharth was agreed at 12 : 8 : 5. The sacrificing ratio of Prakhar and Rajan will be :

1

3 : 2

2

1 : 1

3

2 : 3

4

10 : 9

16

PYQ 2025

hard

accountancy ID: cbse-cla

Sara and Tara were partners in a firm. Their capitals as on 1st April, 2023 were ₹ 6,00,000 and ₹ 4,00,000 respectively. On 1st October, 2023, Tara withdrew ₹ 1,00,000 for personal use. According to the partnership deed, interest on capital was allowed @ 8% p.a. The amount of interest allowed on Tara’s capital for the year ended 31st March, 2024 was :

1

₹ 28,000

2

₹ 30,000

3

₹ 48,000

4

₹ 32,000

17

PYQ 2025

hard

accountancy ID: cbse-cla

Anubha and Yuvika were partners in a firm sharing profits and losses in the ratio of 3 : 2. From 1st April 2024, they decided to share future profits and losses in the ratio of 2 : 3. On this date, their balance sheet showed a balance of Rs 50,000 in General Reserve and a debit balance of Rs 2,50,000 in Profit and Loss Account. Partners decided to write off Profit and Loss Account but decided not to distribute the General Reserve. Pass the necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

18

PYQ 2025

hard

accountancy ID: cbse-cla

Anuj and Kartik were partners in a firm sharing profits and losses in the ratio of 5 : 4. Anuj withdrew ₹ 20,000 at the beginning of every month starting 1st April, 2023 to 31st March, 2024. Interest on drawings is charged @ 6% p.a. The interest on drawings will be:

1

₹ 4,800

2

₹ 1,200

3

₹ 4,200

4

₹ 3,600

19

PYQ 2025

medium

accountancy ID: cbse-cla

Emily, Flora and Ginni entered into a partnership on 1st October, 2023 with capitals of ₹ 10,00,000 each. The partnership deed provided for interest on capital at 10% p.a. The firm earned a net profit of ₹ 7,50,000 for the year ended 31st March, 2024. The amount of profit transferred to Emily’s capital account was :

1

₹ 2,00,000

2

₹ 1,50,000

3

₹ 6,00,000

4

₹ 2,50,000

20

PYQ 2025

hard

accountancy ID: cbse-cla

Pulkit and Ravinder were partners in a firm sharing profits and losses in the ratio of 3 : 2. Sikander was admitted as a new partner for th share in the profits of the firm. Pulkit, Ravinder and Sikander decided to share future profits in the ratio of 2 : 2 : 1. Sikander brought Rs 5,00,000 as his capital and Rs 10,00,000 as his share of premium for goodwill. The amount of premium for goodwill that will be credited to the old partners' capital accounts will be :

1

Pulkit's Capital Account Rs 10,00,000

2

Pulkit's Capital Account Rs 6,00,000 and Ravinder's Capital Account Rs 4,00,000

3

Pulkit's Capital Account Rs 5,00,000 and Ravinder's Capital Account Rs 5,00,000

4

Pulkit's Capital Account Rs 2,00,000

21

PYQ 2025

hard

accountancy ID: cbse-cla

Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8 : 7 : 5. On 1st October, 2023, Reema advanced a loan of to the firm. There is no partnership deed. The firm's profit for the year ended 31st March, 2024 before charging interest on Reema's loan amounted to . The amount of profit credited to Shikha’s capital account was:

1

₹ 80,000

2

₹ 70,000

3

₹ 50,000

4

₹ 42,500

22

PYQ 2025

medium

accountancy ID: cbse-cla

Eliza, Fenn and Garry were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Fenn was guaranteed Rs 25,000 as his share in the profits. Any deficiency arising on that account was to be met by Eliza. The firm earned a profit of Rs 80,000 for the year ended 31st March, 2024. The amount of profit credited to Fenn's capital account will be :

1

Rs 30,000

2

Rs 40,000

3

Rs 25,000

4

Rs 10,000

23

PYQ 2025

hard

accountancy ID: cbse-cla

Pass necessary journal entries for the following transactions on dissolution of the firm of Rajesh, Somesh and Yogesh after various assets (other than cash) and third party liabilities have been transferred to Realisation Account : (i) Rajesh took over stock of Rs 4,00,000 at a discount of 20\%. (ii) Somesh agreed to take over the firm's furniture, not recorded in the books of the firm at Rs 80,000. (iii) Land and Building of the book value of Rs 60,00,000 was sold for Rs 90,00,000 through a broker who charged 10\% commission. (iv) Ashish, an old customer, whose account for Rs 70,000 was written off as bad in the previous year, paid 60\% of the amount. (v) Sundry Creditors of Rs 3,00,000 were settled at a discount of 10\%. (vi) Realisation expenses amounting to Rs 21,000 were paid by Yogesh.

24

PYQ 2025

easy

accountancy ID: cbse-cla

Sunny and Ujjwal were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024 Timmy was admitted as a new partner for th share in profits which he acquired equally from Sunny and Ujjwal. On the date of Timmy's admission the Balance Sheet of Sunny and Ujjwal showed investments at Rs 5,00,000 and a balance of Rs 2,00,000 in Investment Fluctuation Reserve. Pass necessary journal entries for treatment of Investment fluctuation reserve on the date of Timmy's admission in each of the following cases:

Official Solution

Correct Option: (1)

$Book Value (BV) of Investments = Rs 5,00,000 Investment Fluctuation Reserve (IFR) = Rs 2,00,000 Old Ratio (Sunny : Ujjwal) = 3 : 2 Case (i): Market Value (MV) = Rs 5,00,000 Here, MV = BV. There is no fluctuation in the value of investments. The entire IFR is a free reserve and will be distributed among the old partners in their old profit-sharing ratio. Sunny's Share = Ujjwal's Share = Journal Entry: \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Investment Fluctuation Reserve A/c \hspace{1.3cm} Dr. & 2,00,000 & \indent To Sunny's Capital A/c & & 1,20,000 \indent To Ujjwal's Capital A/c & & 80,000 \textit{(Being IFR distributed among old partners in old ratio 3:2 as market value equals book value)} & & \hline \end{tabular} Case (ii): Market Value (MV) = Rs 3,00,000 Here, MV BV. Fall in value = BV - MV = Rs 5,00,000 - Rs 3,00,000 = Rs 2,00,000. This fall in value (loss) will be absorbed by the IFR. Amount of IFR used to cover the loss = Rs 2,00,000. Remaining IFR = Total IFR - IFR Used = Rs 2,00,000 - Rs 2,00,000 = Rs 0. Since the entire IFR is utilized, nothing is left to distribute to partners. The investment value is reduced. Journal Entry: \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Investment Fluctuation Reserve A/c \hspace{1.3cm} Dr. & 2,00,000 & \indent To Investments A/c & & 2,00,000 \textit{(Being fall in value of investments adjusted against IFR)} & & \hline \end{tabular} Case (iii): Market Value (MV) = Rs 2,00,000 Here, MV BV. Fall in value = BV - MV = Rs 5,00,000 - Rs 2,00,000 = Rs 3,00,000. The fall in value (loss) exceeds the IFR available. Amount of IFR used to cover the loss = Rs 2,00,000 (Full amount). Excess Loss = Total Fall in Value - IFR Used = Rs 3,00,000 - Rs 2,00,000 = Rs 1,00,000. This excess loss of Rs 1,00,000 is debited to the Revaluation Account (as it's a loss on revaluation of asset beyond the specific reserve). Journal Entries: 1. Adjust IFR against the fall in value: \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Investment Fluctuation Reserve A/c \hspace{1.3cm} Dr. & 2,00,000 & Revaluation A/c \hspace{3.7cm} Dr. & 1,00,000 & \indent To Investments A/c & & 3,00,000 \textit{(Being fall in value of investments adjusted against IFR and balance loss debited to Revaluation A/c)} & & \hline \end{tabular} 2. Distribute the Revaluation Loss to old partners in old ratio (3:2): Sunny's Share of Loss = Ujjwal's Share of Loss = \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Sunny's Capital A/c \hspace{3.1cm} Dr. & 60,000 & Ujjwal's Capital A/c \hspace{3.1cm} Dr. & 40,000 & \indent To Revaluation A/c & & 1,00,000 \textit{(Being Revaluation loss distributed among old partners in old ratio 3:2)} & & \hline \end{tabular}$

25

PYQ 2025

hard

accountancy ID: cbse-cla

$Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4:3:1. Their Balance Sheet as at 31st March, 2024 was as follows: (i) Trisha's share of profit was entirely taken by Shanu. (ii) Fixed assets were found to be undervalued by Rs 2,40,000. (iii) Stock was revalued at Rs 2,00,000. (iv) Goodwill of the firm was valued at Rs 8,00,000 on Trisha's retirement. (v) The total capital of the new firm was fixed at Rs 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be. Prepare Revaluation Account and Partners' Capital Accounts.$

Official Solution

Correct Option: (1)

Particulars	Amount (₹)	Particulars	Amount (₹)
Stock (Downward Revaluation)	80,000	Fixed Assets	2,40,000
		Profit on Revaluation:
		Rupal (4/7)	91,429
		Shanu (3/7)	68,571
Total	3,20,000	Total	3,20,000

Particulars	Rupal (₹)	Shanu (₹)	Trisha (₹)	Particulars	Rupal (₹)	Shanu (₹)	Trisha (₹)
To Trisha's Capital(Rupal)		80,000		By Balance b/d	8,00,000	6,00,000	2,00,000
To Trisha's Capital(Shanu)			60,000	By General Reserve	1,28,000	96,000	32,000
To Trisha's Capital				By Revaluation A/c	91,429	68,571
To Balance B/D (Trisha's Capital)			2,40,000	By Goodwill	3,42,857	68,571	2,74,286
To Trisha's Capital			80,000	By Bal B/D			2,20,000
To Balance C/D	7,00,000	11,20,000		By cash	4,00,000	2,51,428
To Cash		44,286		By Bal C/D
Total	12,61,429	10,88,571	4,16,8000	Total	12,61,429	10,88,571	4,16,8000

26

PYQ 2025

easy

accountancy ID: cbse-cla

$Arun, Bashir and Joseph were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Daksh as a new partner who acquired his share entirely from Arun. If Arun sacrificed th from his share to Daksh, Daksh's share in the profits of the firm will be :$

1

2

3

4

Official Solution

Correct Option: (2)

$To determine Daksh's share in the profits, we need to understand the profit-sharing arrangement after Daksh is admitted. The original profit-sharing ratio among Arun, Bashir, and Joseph is 5:3:2. Arun sacrifices th of his share to Daksh. Step-by-step Calculation: Original Share of Arun: Arun's original share = (since total ratio sum = 5+3+2=10, Arun's part is 5) Arun's Sacrifice: Arun sacrifices of his share: Daksh's Share: Daksh acquires this sacrificed share, so his share is . Hence, Daksh's share in the profits of the firm will be .$

27

PYQ 2025

easy

accountancy ID: cbse-cla

$Radhika, Mehar, and Shubha were partners in a firm sharing profits and losses in the ratio of 9:8:7. If Radhika's share of profit at the end of the year amounted to Rs 5,40,000, Shubha's share of profit will be:$

1

$Rs 5,40,000$

2

$Rs 4,80,000$

3

$Rs 60,000$

4

$Rs 4,20,000$

Official Solution

Correct Option: (4)

$To solve the problem, we need to determine Shubha's share of profit based on the given ratio of profit sharing and Radhika's share of profit. The profit-sharing ratio among Radhika, Mehar, and Shubha is given as 9:8:7. Let's assign these ratios to R, M, and S respectively. Hence, Radhika's share = 9 parts, Mehar's share = 8 parts, Shubha's share = 7 parts. We also know Radhika's share of profit at the end of the year is Rs 5,40,000. Using the profit ratio, we can set the equation: Total ratio sum = 9 + 8 + 7 = 24 parts. Now, Radhika's share = of Total Profit. Since of Total Profit = Rs 5,40,000, we can solve for the Total Profit: Let Total Profit = P, then . Solving for P: Now, let's calculate Shubha's share: Shubha's share = of Total Profit. Thus, Shubha's share of profit will be Rs 4,20,000.$

28

PYQ 2025

hard

accountancy ID: cbse-cla

$Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows: On 1st April, 2024, Diya was admitted in the firm for th share in the profits on the following terms: (i) New profit sharing ratio between Bittu, Chintu and Diya was 3 : 3 : 1 . (ii) Fixed Assets were found to be overvalued by ₹ 1,40,000. (iii) Creditors were paid ₹ 4,20,000 in full settlement. (iv) Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque. Prepare Revaluation Account and Partners' Capital Accounts.$

Official Solution

Correct Option: (1)

Particulars	Amount (₹)	Particulars	Amount (₹)
Fixed Assets (Overvaluation)	1,40,000	Creditors (Settlement)	70,000
		Profit on Revaluation:
		Bittu (4/7)	40,000
		Chintu (3/7)	30,000
Total	1,40,000	Total	1,40,000

Particulars	Bittu (₹)	Chintu (₹)	Diya (₹)	Particulars	Bittu (₹)	Chintu (₹)	Diya (₹)
To Revaluation A/c	40,000	30,000		By Balance b/d	8,00,000	6,00,000
To General Reserve A/c (4/7)	1,20,000	90,000		By General Reserve A/c (₹ 2,10,000*4/7)	1,20,000	1,20,000
				By Bank (Capital)			5,60,000
To Bank A/c				By Bank(Goodwill)	5,60,000
				By Partner capital/ premium		5,60,000
To Balance c/d	15,20,000	6,60,000	5,60,000
Total	16,80,000	7,80,000	5,60,000	Total	16,80,000	7,80,000	5,60,000

29

PYQ 2025

medium

accountancy ID: cbse-cla

$Assertion (A): Each partner carrying on the business of the firm is the principal as well as the agent for all the other partners of the firm. Reason (R): There exists a relationship of mutual agency between all the partners. Choose the correct option from the following:$

1

$Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).$

2

$Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).$

3

$Assertion (A) is correct, but Reason (R) is incorrect.$

4

$Assertion (A) is incorrect, but Reason (R) is correct.$

Official Solution

Correct Option: (1)

$In a partnership, each partner acts both as a principal and an agent. This means that: As a principal, a partner is bound by the actions of the other partners. As an agent, they can bind the firm by their own actions done in the course of business. This is known as the principle of mutual agency, which is a fundamental feature of partnership. Therefore: Assertion (A) is true. Reason (R) is also true and clearly explains the basis of Assertion (A). Hence, option (1) is the correct answer.$

30

PYQ 2025

easy

accountancy ID: cbse-cla

$Simar, Tanvi and Umara were partners in a firm sharing profits and losses in the ratio of 5 : 6 : 9. On 31st March, 2024 their Balance Sheet was as follows: Balance sheet of Simar, Tanvi and Umara as at 31st March, 2024 % [Balance Sheet Table - Simplified representation below] % Liabilities: Capitals (S:13L, T:12L, U:14L) = 39L; General Reserve = 7L; Trade Payables = 6L; Total = 52L % Assets: Fixed Assets = 25L; Stock = 10L; Debtors = 8L; Cash = 7L; P A/c (2023-24) = 2L; Total = 52L Liabilities: Capitals (S:13L, T:12L, U:14L) 39L, General Reserve 7L, Trade Payables 6L. Total 52L. Assets: Fixed Assets 25L, Stock 10L, Debtors 8L, Cash 7L, Profit and Loss Account (2023-24) 2L. Total 52L. \textbf{Umara died on 30th June, 2024. The partnership deed provided for the following on the death of a partner:$

Official Solution

Correct Option: (1)

$Part (a): Calculation of Goodwill Profit for the year ended 31st March 2024 is assumed to be the balance shown in the Assets side of the Balance Sheet, which indicates an accumulated loss of Rs 2,00,000 for 2023-24. Profits/(Loss) for the last 5 years: 2019-20: Rs 2,50,000 (Profit) 2020-21: Rs 4,00,000 (Profit) 2021-22: Rs 3,00,000 (Profit) 2022-23: Rs (3,10,000) (Loss) 2023-24: Rs (2,00,000) (Loss - assumed from B/S) Total Profit for 5 years = 2,50,000 + 4,00,000 + 3,00,000 - 3,10,000 - 2,00,000 = Rs 4,40,000 Average Profit = Total Profit / 5 = Rs 4,40,000 / 5 = Rs 88,000 Goodwill = Average Profit No. of years' purchase Goodwill = Rs 88,000 3 = Rs 2,64,000 Goodwill of the firm = Rs 2,64,000 Part (b): Journal Entry for Goodwill Treatment Old Ratio (S:T:U) = 5:6:9 (Total 20 parts) Umara's Share of Goodwill = Total Goodwill Umara's Share Umara's Share = Rs 2,64,000 = Rs 1,18,800 Gaining Ratio of Simar and Tanvi (assuming no change in their mutual ratio) = 5:6. Amount debited to Simar = Umara's Share = Rs 1,18,800 = Rs 54,000 Amount debited to Tanvi = Umara's Share = Rs 1,18,800 = Rs 64,800 Journal Entry: \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Simar's Capital A/c \hspace{3.6cm} Dr. & 54,000 & Tanvi's Capital A/c \hspace{3.6cm} Dr. & 64,800 & \indent To Umara's Capital A/c & & 1,18,800 \textit{(Being Umara's share of goodwill adjusted through gaining partners' capital accounts in their gaining ratio 5:6)} & & \hline \end{tabular} Part (c): Calculation of Umara's Share of Profit till Death Basis: Profit/Loss for the year ended 31st March 2024 = Rs 2,00,000 (Loss). Period: 1st April 2024 to 30th June 2024 = 3 months. Umara's Share of Loss = Total Loss Umara's Ratio Period Umara's Share = Rs 2,00,000 Umara's Share = Rs 90,000 = Rs 22,500 (Loss) Umara's Share of Loss till death = Rs 22,500 Part (d): Journal Entry for Umara's Share of Profit/Loss Since it's a loss, Umara's Capital Account will be debited. Journal Entry: \begin{tabular}{|p{8cm}|r|r|} \hline Particulars & Dr. (Rs) & Cr. (Rs) \hline Umara's Capital A/c \hspace{3.4cm} Dr. & 22,500 & \indent To Profit and Loss Suspense A/c & & 22,500 \textit{(Being Umara's share of estimated loss till the date of death recorded)} & & \hline \end{tabular}$

31

PYQ 2025

easy

accountancy ID: cbse-cla

$Aakash and Baadal entered into partnership on 1st October, 2023 with the capitals of Rs 80,00,000 and Rs 60,00,000 respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ 10\% per annum as per the provisions of the partnership deed. Baadal is given a guarantee that his share of profit, after charging interest on capital will not be less than Rs 7,00,000 per annum. Any deficiency arising on that account shall be met by Aakash. The profit of the firm for the year ended 31st March, 2024 amounted to Rs 13,00,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024.$

Official Solution

Correct Option: (1)

Dr (Particulars)	₹	Cr (Particulars)	₹
To Interest on Aakash’s Capital	4,00,000	By Profit (Net)	13,00,000
To Interest on Baadal’s Capital	3,00,000
To Profit transferred to Aakash’s Capital (½ of ₹6,00,000)	3,00,000
To Profit transferred to Baadal’s Capital (½ of ₹6,00,000)	3,00,000
Total	13,00,000	Total	13,00,000

32

PYQ 2025

medium

accountancy ID: cbse-cla

$Aman, Boman and Chetan were partners in a firm sharing profits and losses in the ratio of 5:3:2. Dinesh was admitted as a new partner who acquired his share entirely from Aman. Aman surrendered th of his share in the profits to Dinesh. Dinesh was admitted for which of the following share in the profits of the firm?$

1

2

3

4

Official Solution

Correct Option: (1)

$To solve this problem, we need to determine the share of profits Dinesh receives in the firm after being admitted as a partner.Aman, Boman, and Chetan originally shared profits in the ratio of 5:3:2. This means:Aman's share = Boman's share = Chetan's share = It is given that Aman surrendered th of his share to Dinesh. Aman's share before surrendering is .To find out what fraction of this Aman gives to Dinesh, we calculate th of :Therefore, Dinesh is admitted with a share in the profits of the firm. The correct answer is .$

33

PYQ 2025

medium

accountancy ID: cbse-cla

$Rambha and Urvashi were partners in a firm sharing profits and losses in the ratio of 13 : 12. From 1 st April, 2024, they decided to share future profits and losses in the ratio of 12 : 13. On this date, their balance sheet showed a debit balance of ₹ 2,50,000 in Advertising Suspense Account and a balance of ₹ 5,00,000 in Contingency Reserve. Partners decide to write off the balance of the Advertising Suspense Account but decide not to distribute Contingency Reserve. Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your working clearly.$

Official Solution

Correct Option: (1)

$1. Calculation of Sacrificing/Gaining Ratio: \ Old Ratio = 13:12, New Ratio = 12:13 \ Rambha: 13/25 to 12/25 → Sacrifice = 13/25 - 12/25 = 1/25 \ Urvashi: 12/25 to 13/25 → Gain = 13/25 - 12/25 = 1/25 \ 2. Journal Entry for Advertising Suspense (Fictitious Asset): \ \begin{tabular}{|l|l|} Particulars & Amount (₹) \ \hline Rambha's Capital A/c Dr. & 1,30,000 \ Urvashi's Capital A/c Dr. & 1,20,000 \ \quad To Advertising Suspense A/c & 2,50,000 \ \hline \end{tabular} \ (Being the fictitious asset written off in old ratio 13:12) \ 3. No entry for Contingency Reserve as it was not to be distributed. % Final Answer Final Answer: \ Advertising Suspense to be written off by partners in old ratio. No adjustment entry is required for Contingency Reserve as per the decision.$

34

PYQ 2025

medium

accountancy ID: cbse-cla

$Bittu and Chintu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their Balance Sheet as at 31 st March, 2024 was as follows: Balance Sheet of Bittu and Chintu as at 31 st March, 2024 Liabilities Amount (₹) Assets Amount (₹) Capitals: Fixed Assets 15,40,000 Bittu 8,00,000 Stock 3,50,000 Chintu 6,00,000 Debtors 1,40,000 General Reserve 2,10,000 Bank 70,000 Creditors 4,90,000 Total 21,00,000 Total 21,00,000 On 1 st April, 2024, Diya was admitted in the firm for 1 ⁄ 7 share in the profits on the following terms: New profit sharing ratio between Bittu, Chintu, and Diya will be 3 : 3 : 1. Fixed Assets were found to be overvalued by ₹ 1,40,000. Creditors were paid ₹ 4,20,000 in full settlement. Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque. Prepare Revaluation Account and Partners’ Capital Accounts.$

Official Solution

Correct Option: (1)

$Revaluation Account Particulars Amount (₹) Particulars Amount (₹) To Fixed Assets (Decrease) 1,40,000 By Creditors (Saving) 70,000 By Loss transferred: Bittu’s Capital A/c 40,000 Chintu’s Capital A/c 30,000 Total 1,40,000 Total 1,40,000 Loss on Revaluation Loss on Revaluation = ₹ 70,000 distributed in 4 : 3 ratio Bittu’s share = ₹ 70,000 \times 4/7 = ₹ 40,000 Chintu’s share = ₹ 70,000 \times 3/7 = ₹ 30,000 Partners’ Capital Accounts Adjustment for General Reserve: Bittu’s share = ₹ 2,10,000 \times 4/7 = ₹ 1,20,000 Chintu’s share = ₹ 2,10,000 \times 3/7 = ₹ 90,000 Adjustment for goodwill premium brought by Diya: Diya brings ₹ 5,60,000 Divided in sacrificing ratio = old ratio - new ratio Old ratio = 4 : 3 New ratio = 3 : 3 : 1 Sacrifice of Bittu = 4/7 - 3/7 = 1/7 Sacrifice of Chintu = 3/7 - 3/7 = 0 Thus entire premium goes to Bittu = ₹ 5,60,000 Capital of Diya = 1/7 of firm’s total capital = 1/7 \times ₹ 21,00,000 = ₹ 3,00,000 Total brought in by Diya = ₹ 3,00,000 + ₹ 5,60,000 = ₹ 8,60,000 Final Answer Revaluation loss ₹ 70,000 distributed and goodwill adjusted. Diya’s capital and premium recorded.$

35

PYQ 2025

medium

accountancy ID: cbse-cla

$Vijay, Ravi and Raman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a new partner for \th share. New profit sharing ratio: 4 : 2 : 3 : 1. Goodwill of the firm = ₹ 6,00,000. Kamal brings his share of goodwill in cash. (i) Calculate the sacrificing ratio (ii) Pass journal entries for goodwill treatment in the books of the firm$

Official Solution

Correct Option: (1)

$(i) Sacrificing Ratio: Old Ratio = 5 : 3 : 2 New Ratio = 4 : 2 : 3 : 1 Total old parts = 10 \to Vijay = 5/10, Ravi = 3/10, Raman = 2/10 Total new parts = 10 \to Vijay = 4/10, Ravi = 2/10, Raman = 3/10, Kamal = 1/10 Sacrifice = Old Share - New Share: Vijay = 5/10 - 4/10 = 1/10 Ravi = 3/10 - 2/10 = 1/10 Raman = 2/10 - 3/10 = -1/10 (Gain) Sacrificing Ratio (Only Vijay and Ravi): 1 : 1 (ii) Journal Entry for Goodwill: Kamal’s share of goodwill = ₹ 6,00,000 \times = ₹ 60,000 This is to be shared between Vijay and Ravi in 1 : 1$

36

PYQ 2025

medium

accountancy ID: cbse-cla

$Daya and Deena were partners in a firm sharing profits and losses in the ratio of 3 : 1. On 1st April, 2023, their capital accounts showed balances of ₹ 5,00,000 and ₹ 6,00,000 respectively. The partnership deed provided for interest on capital @ 12% p.a. Show the treatment of interest on capital in the following cases: [(i)] During the year ended 31st March, 2024, the firm earned a profit of ₹ 2,00,000. [(ii)] During the year ended 31st March, 2024, the firm earned a profit of ₹ 66,000.$

Official Solution

Correct Option: (1)

$Given: Capital of Daya = ₹5,00,000 Capital of Deena = ₹6,00,000 Interest on capital = 12% p.a. Profit-sharing ratio = 3 : 1 Case (i): Profit = ₹2,00,000 Interest on Daya’s capital = Interest on Deena’s capital = Total Interest on Capital = ₹60,000 + ₹72,000 = ₹1,32,000 Since profit (₹2,00,000) is greater than total interest (₹1,32,000), full interest can be paid. Distribution: - Daya gets ₹60,000 - Deena gets ₹72,000 Balance profit = ₹2,00,000 - ₹1,32,000 = ₹68,000 Divide remaining profit in 3 : 1 \to Total parts = 4 - Daya = - Deena = Final distribution: - Daya = ₹60,000 + ₹51,000 = ₹1,11,000 - Deena = ₹72,000 + ₹17,000 = ₹89,000 Case (ii): Profit = ₹66,000 Total interest required = ₹1,32,000 Since profit is less than interest payable, it is distributed in ratio of interest on capital: Total parts = 11 Distribution: - Daya = - Deena = In this case, no further profit is available beyond interest.$

37

PYQ 2025

medium

accountancy ID: cbse-cla

$Gupta, Jain and Singh were partners in 3 : 2 : 1. On 31st March, 2020, Gupta retired. Amount due = ₹ 4,80,000, payable in 4 equal yearly instalments + 10% interest on unpaid balance. Books close on 31st March. Prepare Gupta’s Loan Account.$

Official Solution

Correct Option: (1)

$Installment = ₹ 4,80,000 \div 4 = ₹ 1,20,000 per year Gupta’s Loan Account$

38

PYQ 2025

medium

accountancy ID: cbse-cla

$A, B and C were partners in a firm sharing profits and losses in the ratio of 8 : 5 : 3. It was decided that with effect from 1st April, 2024, profits and losses will be shared in the ratio of 6 : 5 : 5. Due to change in the profit sharing ratio, A’s gain or sacrifice will be:$

1

$gain$

2

$gain$

3

$sacrifice$

4

$sacrifice$

Official Solution

Correct Option: (3)

$Old profit sharing ratio of A, B, C = 8 : 5 : 3 Total = 8 + 5 + 3 = 16 A’s old share = New profit sharing ratio = 6 : 5 : 5 Total = 6 + 5 + 5 = 16 A’s new share = To calculate gain or sacrifice: Gain or sacrifice = Old share - New share = Since the old share is greater than the new share, A is sacrificing .$

39

PYQ 2025

medium

accountancy ID: cbse-cla

$Sona and Mona were partners in a firm sharing profits and losses in the ratio of 4 : 3. On 1stApril, 2024, they admitted Leena as a new partner. The new profit sharing ratio on Leena’s admission was 2 : 3 : 1. Sona’s sacrifice on Leena’s admission was:$

1

$Nil$

2

3

4

Official Solution

Correct Option: (2)

$Old ratio (Sona : Mona) = 4 : 3 Total = 7 Sona’s old share = New ratio (Sona : Mona : Leena) = 2 : 3 : 1 Total = 6 Sona’s new share = Sacrifice = Old Share - New Share = Therefore, Sona’s sacrifice =$

40

PYQ 2025

medium

accountancy ID: cbse-cla

$X Ltd. invited applications for issuing 90,000 equity shares of ₹100 each. The amount per share was payable as follows: On Application - ₹20 On Allotment - ₹50 On First and Final Call - Balance Applications for 2,00,000 shares were received. An applicant who had applied for 5,000 shares paid the entire share money with the application. The total application money received by the company was:$

1

$₹44,00,000$

2

$₹40,00,000$

3

$₹18,00,000$

4

$₹90,00,000$

Official Solution

Correct Option: (1)

$Total applications received = 2,00,000 shares Application money per share = ₹20 So, basic application money = 2,00,000 \times ₹20 = ₹40,00,000 One applicant applied for 5,000 shares and paid full amount (₹100/share). Full money per share = ₹100, so for 5,000 shares: 5,000 \times ₹100 = ₹5,00,000 Out of this, ₹1,00,000 (5,000 \times ₹20) is already included in the ₹40,00,000 above as application money. So, the excess paid = ₹5,00,000 - ₹1,00,000 = ₹4,00,000 This extra ₹4,00,000 is also received with the application. Hence, total application money received = ₹40,00,000 + ₹4,00,000 = ₹44,00,000$

41

PYQ 2025

medium

accountancy ID: cbse-cla

$On 1st April, 2024, the Balance Sheet of Radha and Mohan showed a loan of ₹10,000 given by Mohan to the firm. The firm was dissolved on this date. Mohan’s loan will be discharged by crediting which of the following account?$

1

$Realisation Account$

2

$Mohan’s Capital Account$

3

$Mohan’s Current Account$

4

$Bank Account$

Official Solution

Correct Option: (4)

$When a partnership firm is dissolved, it settles its liabilities and obligations before final distribution of assets among the partners. Loans from partners are not treated as capital contributions; rather, they are classified as external liabilities . These loans must be settled in priority over capital repayment during the dissolution process. Here, the loan of ₹10,000 was provided by Mohan to the firm and is shown as a liability in the firm’s Balance Sheet. This amount must be repaid by the firm using available cash or bank balance, and hence the Bank Account is used for payment. Therefore, the correct journal entry during dissolution would be: Mohan’s Loan A/c Dr. ₹10,000 To Bank A/c ₹10,000 This means the loan is discharged by debiting the liability and crediting the Bank Account . Other options are incorrect: Realisation Account is used to record disposal of assets and payment of external liabilities, not for a partner’s loan. Capital Account and Current Account reflect ownership equity, not external loans. Thus, (D) is the correct answer.$

42

PYQ 2025

medium

accountancy ID: cbse-cla

$Shobha, Kalyani and Kaveri were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. The firm closes its books on 31st March every year. On 30th June, 2024 Kalyani died. On that date, her capital account showed a credit balance of \rupee~3,00,000. On the same date the firm had a General Reserve of \rupee~1,20,000. The partnership deed provided for the following on the death of a partner: (i) Balance in her capital account. (ii) Interest on capital @ 12% p.a. (iii) Her share in the profits of the firm till the date of her death calculated on the basis of previous year’s profits. The profit of the firm for the year ended 31st March, 2024 was \rupee~2,80,000. (iv) Her share in the goodwill of the firm. The goodwill of the firm on Kalyani’s death was valued at \rupee~4,00,000. Prepare Kalyani’s Capital Account to be presented to her executors.$

Official Solution

Correct Option: (1)

$Step 1: Opening balance of Capital Account Given Capital = \rupee~3,00,000 Step 2: Share in General Reserve General Reserve = \rupee~1,20,000 Ratio = 3 : 5 : 2 Kalyani’s share = Step 3: Interest on Capital for 3 months Capital = \rupee~3,00,000, Rate = 12%, Time = 3 months Interest = Step 4: Share in Profit (for 3 months based on previous year) Previous year’s profit = \rupee~2,80,000 Kalyani’s share = Step 5: Share in Goodwill Goodwill of firm = \rupee~4,00,000 Kalyani’s share = Kalyani’s Capital Account (to be presented to her executors) \newpage \begin{verbatim} Dr. KALYANI’S CAPITAL ACCOUNT Cr. ------------------------------------------------------------ Particulars ₹ Amount ₹ Particulars ₹ Amount ------------------------------------------------------------ To Executors A/c ₹ 6,04,000 ₹ By Balance b/d ₹ 3,00,000 ₹ ₹ By Gen. Reserve ₹ 60,000 ₹ ₹ By Int. on Capital ₹ 9,000 ₹ ₹ By Share in Profit ₹ 35,000 ₹ ₹ By Goodwill Share ₹ 2,00,000 ------------------------------------------------------------ Total ₹ 6,04,000 ₹ Total ₹ 6,04,000 \end{verbatim}$

43

PYQ 2025

hard

accountancy ID: cbse-cla

$Suhas and Vilas were partners in a firm with capitals of Rs 4,00,000 and Rs 3,00,000 respectively. They admitted Prabhas as a new partner for th share in future profits. Prabhas brought Rs 2,00,000 as his capital. Prabhas' share of goodwill will be :$

1

$Rs 1,00,000$

2

$Rs 10,00,000$

3

$Rs 9,00,000$

4

$Rs 20,000$

Official Solution

Correct Option: (4)

$Step 1: Calculate Total Capital based on New Partner's Capital (Implied Capital): Prabhas' Capital = Rs 2,00,000 for share. Implied Total Capital of the Firm = Prabhas' Capital / Prabhas' Share Implied Total Capital = Rs 2,00,000 / = Rs 10,00,000. Step 2: Calculate Actual Combined Capital of All Partners: Actual Combined Capital = Suhas' Capital + Vilas' Capital + Prabhas' Capital Actual Combined Capital = Rs 4,00,000 + Rs 3,00,000 + Rs 2,00,000 = Rs 9,00,000. Step 3: Calculate Total Hidden Goodwill: Hidden Goodwill = Implied Total Capital - Actual Combined Capital Hidden Goodwill = Rs 10,00,000 - Rs 9,00,000 = Rs 1,00,000. Step 4: Calculate Prabhas' Share of Hidden Goodwill: Prabhas' Share of Goodwill = Total Hidden Goodwill Prabhas' Profit Share Prabhas' Share of Goodwill = Rs 1,00,000 = Rs 20,000. Conclusion: Prabhas' share of the hidden goodwill is Rs 20,000.$

44

PYQ 2025

easy

accountancy ID: cbse-cla

$Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. If Radhika's share of profit at the end of the year amounted to Rs 5,40,000, Shubha's share of profit will be :$

1

$Rs 5,40,000$

2

$Rs 4,80,000$

3

$Rs 60,000$

4

$Rs 4,20,000$

Official Solution

Correct Option: (4)

$Step 1: Relate Radhika's Share to Her Ratio Part: Profit Sharing Ratio = Radhika : Mehar : Shubha = 9 : 8 : 7. Radhika's share (9 parts) = Rs 5,40,000. Step 2: Find the Value of One Ratio Part: Value of 1 part = Radhika's Profit / Radhika's Ratio Part Value of 1 part = Rs 5,40,000 / 9 = Rs 60,000. Step 3: Calculate Shubha's Share of Profit: Shubha's Ratio Part = 7. Shubha's Share = Value of 1 part Shubha's Ratio Part Shubha's Share = Rs 60,000 7 = Rs 4,20,000. Conclusion: Shubha's share of profit will be Rs 4,20,000.$

45

PYQ 2025

easy

accountancy ID: cbse-cla

$Nandita and Prabha were partners in a firm. Nandita withdrew Rs 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10\% p.a. Interest on Nandita's drawings for the year ended 31st March, 2024 will be :$

1

$Rs 9,000$

2

$Rs 30,000$

3

$Rs 18,000$

4

$Rs 15,000$

Official Solution

Correct Option: (4)

$Step 1: Identify Key Information: Total Drawings = Rs 3,00,000 Interest Rate = 10% p.a. Period = "during the year" (dates not specified). Step 2: Determine the Average Period: When withdrawal dates are not given, interest is calculated for an average period of 6 months. Average Period = 6/12 years. Step 3: Calculate Interest on Drawings: Interest = Total Drawings Rate Average Period Interest = Rs 3,00,000 Interest = Rs 30,000 = Rs 15,000. Conclusion: The interest on Nandita's drawings is Rs 15,000.$

46

PYQ 2025

medium

accountancy ID: cbse-cla

$Assertion (A): The maximum number of partners in a partnership firm is 50. Reason (R): By virtue of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm. The Central Government has prescribed the maximum number of partners in a firm to be 50. Choose the correct option from the following:$

1

$Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).$

2

$Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).$

3

$Assertion (A) is true, but Reason (R) is false.$

4

$Both Assertion (A) and Reason (R) are false.$

Official Solution

Correct Option: (1)

$Step 1: Evaluate Assertion (A): Assertion (A) states the maximum number of partners is 50. While the Partnership Act, 1932, is silent, Rule 10 of the Companies (Miscellaneous) Rules, 2014 (under the Companies Act, 2013) sets the maximum limit at 50. So, Assertion (A) is true. Step 2: Evaluate Reason (R): Reason (R) correctly states that the Companies Act, 2013 (specifically Section 464) empowers the Central Government to set the maximum number (up to 100), and that the Government has prescribed this limit as 50 via rules (Rule 10). So, Reason (R) is true. Step 3: Link Reason (R) to Assertion (A): Reason (R) explains the legal basis (Companies Act empowerment) and the specific action (Government rule setting the limit at 50) that leads to the fact stated in Assertion (A). Therefore, Reason (R) correctly explains Assertion (A). Conclusion: Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation for Assertion (A).$

47

PYQ 2025

medium

accountancy ID: cbse-cla

$Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Maddy for th share in future profits. Maddy brought Rs 8,00,000 as his capital and Rs 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2 : 1 : 1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal's capital was Rs 15,00,000 and Laura's capital was Rs 8,00,000. It was agreed that partners' capitals should be in proportion to their new profit sharing ratio taking Maddy's capital as base. The adjustment was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was :$

1

$Rs 1,00,000$

2

$Rs 8,00,000$

3

$Rs 16,00,000$

4

$Rs 12,00,000$

Official Solution

Correct Option: (1)

$Step 1: Calculate the Total Capital of the New Firm: New Ratio (Kajal : Laura : Maddy) = 2 : 1 : 1. Maddy's share is . Maddy's Capital = Rs 8,00,000 for share. Total Capital of the firm (based on Maddy's capital) = Maddy's Capital / Maddy's Share Total Capital = Rs 8,00,000 / = Rs 8,00,000 4 = Rs 32,00,000. Step 2: Calculate Kajal's Required Capital in the New Firm: Kajal's share in the new ratio = (from 2:1:1). Kajal's Required Capital = Kajal's New Share Total Capital Kajal's Required Capital = . Step 3: Determine the Cash Adjustment for Kajal: Kajal's Existing Capital (after all adjustments) = Rs 15,00,000. Kajal's Required Capital = Rs 16,00,000. Since Required Capital Existing Capital, Kajal needs to bring in cash. Cash to be brought in by Kajal = Required Capital - Existing Capital Cash to be brought in by Kajal = Rs 16,00,000 - Rs 15,00,000 = Rs 1,00,000. Conclusion: The cash brought in by Kajal was Rs 1,00,000.$

48

PYQ 2025

medium

accountancy ID: cbse-cla

$Wayne, Shaan and Bryan were partners in a firm. Shaan had advanced a loan of Rs 1,00,000 to the firm. On 31st March, 2024 the firm was dissolved. After transferring various assets (other than cash \& bank) and outside liabilities to Realisation Account, Shaan took over furniture of book value of Rs 90,000 in part settlement of his loan amount. For the payment of balance amount of Shaan's loan Bank Account will be credited with :$

1

$Rs 1,00,000$

2

$Rs 90,000$

3

$Rs 1,90,000$

4

$Rs 10,000$

Official Solution

Correct Option: (4)

$Step 1: Determine the Unpaid Balance of Shaan's Loan: Total Loan Amount from Shaan = Rs 1,00,000. Value of Furniture taken over by Shaan in part settlement = Rs 90,000. Balance Loan Amount Payable = Total Loan - Value of Asset Taken Over Balance Loan Amount Payable = Rs 1,00,000 - Rs 90,000 = Rs 10,000. Step 2: Record the Payment of the Balance Loan Amount: The firm pays the remaining balance of Rs 10,000 to Shaan using its bank account. The journal entry for this payment is: Shaan's Loan A/c Dr. 10,000 \indent To Bank A/c Cr. 10,000 This entry reduces the liability (Shaan's Loan) and reduces the asset (Bank). Step 3: Identify the Credit to Bank Account: The question asks what the Bank Account will be *credited* with for the payment of the balance amount. As shown in the journal entry, the Bank Account is credited with Rs 10,000. Conclusion: For the payment of the balance amount of Shaan's loan, the Bank Account will be credited with Rs 10,000.$

49

PYQ 2025

easy

accountancy ID: cbse-cla

$Abha and Sara were partners in a firm. Their capitals were: Abha ₹ 3,00,000 and Sara ₹ 2,00,000. The normal rate of return in similar business is 10%. The profits of the firm of Abha and Sara for the last three years were: 2021-22 ₹ 60,000 2022-23 ₹ 90,000 2023-24 ₹ 1,20,000 Calculate goodwill of the firm on the following basis: [(i)] Four years purchase of the average profits for the last three years [(ii)] Capitalisation of super-profits$

Official Solution

Correct Option: (1)

$(i) Four years purchase of average profits: Total profit for 3 years = ₹(60,000 + 90,000 + 1,20,000) = ₹2,70,000 Average profit = ₹ Goodwill = Average Profit \times No. of Years Purchase (ii) Capitalisation of Super Profits: Average profit = ₹90,000 Capital employed = ₹(3,00,000 + 2,00,000) = ₹5,00,000 Normal profit = ₹ Super profit = Average Profit - Normal Profit Goodwill = Super Profit \times$

50

PYQ 2025

medium

accountancy ID: cbse-cla

$Sudha and Sudhir were partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st April, 2023, their fixed capitals were ₹12,00,000 and ₹4,00,000 respectively. On 1st July, 2023, Sudha invested ₹2,00,000 as additional capital. On 1st August, 2023, Sudhir withdrew ₹50,000 from his capital. The partnership deed provided for the following: (i) Interest on capital @ 6% p.a. (ii) Interest on drawings @ 8% p.a. During the year, Sudha withdrew ₹60,000 and Sudhir withdrew ₹40,000 for personal use. After providing interest on capital and charging interest on drawings, the net profit of the firm for the year ended 31st March, 2024 was ₹3,50,000. Prepare Current Accounts of Sudha and Sudhir.$

Official Solution

Correct Option: (1)

$Sudha’s Current Account Dr. Cr. Particulars ₹ Particulars ₹ Drawings 60,000 Interest on Capital 82,000 Interest on Drawings 2,400 Profit transferred to Capital A/c 2,80,000 Total 3,62,000 Balance c/d 2,99,600 Total 3,62,000 Sudhir’s Current Account Dr. Cr. Particulars ₹ Particulars ₹ Drawings 40,000 Interest on Capital 22,500 Interest on Drawings 1,600 Profit transferred to Capital A/c 70,000 Total 92,500 Balance c/d 50,900 Total 92,500 Working Notes: Interest on Sudha’s Capital: ₹12,00,000 \times 6% = ₹72,000 (for full year) Additional ₹2,00,000 \times 6% \times (9/12) = ₹10,000 Total = ₹72,000 + ₹10,000 = ₹82,000 Interest on Sudhir’s Capital: ₹4,00,000 \times 6% = ₹24,000 (full year) Less: ₹50,000 withdrawn on 1st August \to Interest saved for 8 months: ₹50,000 \times 6% \times (8/12) = ₹2,000 Total = ₹24,000 - ₹2,000 = ₹22,000 Interest on Drawings: Sudha: ₹60,000 \times 8% \times (6/12) = ₹2,400 Sudhir: ₹40,000 \times 8% \times (6/12) = ₹1,600 Profit Distribution: ₹3,50,000 in 4:1 ratio = ₹2,80,000 (Sudha), ₹70,000 (Sudhir)$

Dr.		Cr.
Particulars	₹	Particulars	₹
Drawings	60,000	Interest on Capital	82,000
Interest on Drawings	2,400	Profit transferred to Capital A/c	2,80,000
		Total	3,62,000
Balance c/d	2,99,600
Total	3,62,000

Dr.		Cr.
Particulars	₹	Particulars	₹
Drawings	40,000	Interest on Capital	22,500
Interest on Drawings	1,600	Profit transferred to Capital A/c	70,000
		Total	92,500
Balance c/d	50,900
Total	92,500

51

PYQ 2025

hard

accountancy ID: cbse-cla

$Luv and Kush were partners in a firm sharing profits and losses in the ratio of 5 : 4. On 1 st April, 2024, Rishi was admitted as a new partner for share in profits which he acquired equally from Luv and Kush. On the date of Rishi’s admission, the Balance Sheet of Luv and Kush showed debtors of ₹ 9,00,000 and provision for bad and doubtful debts of ₹ 90,000. Pass necessary journal entries for treatment of provision for bad and doubtful debts on the date of Rishi’s admission in each of the following cases: (i) Bad debts amounted to ₹ 60,000. (ii) Bad debts amounted to ₹ 90,000. (iii) Bad debts amounted to ₹ 1,00,000.$

Official Solution

Correct Option: (1)

$Case (i): Bad debts ₹ 60,000 Existing provision = ₹ 90,000 New required provision = ₹ 9,00,000 - ₹ 60,000 = ₹ 8,40,000 \times estimated % of provision Assuming provision rate unchanged, provision remains at ₹ 90,000 (unless stated). Since ₹ 60,000 is actual bad debts: Journal Entry: Provision for Bad & Doubtful Debts A/c Dr. ₹ 60,000 To Debtors A/c ₹ 60,000 (Being bad debts adjusted against provision) Balance in provision after write-off = ₹ 30,000. Case (ii): Bad debts ₹ 90,000 Provision for Bad & Doubtful Debts A/c Dr. ₹ 90,000 To Debtors A/c ₹ 90,000 (Being bad debts adjusted against provision) Provision balance becomes nil. Case (iii): Bad debts ₹ 1,00,000 Provision for Bad & Doubtful Debts A/c Dr. ₹ 90,000 Profit and Loss A/c Dr. ₹ 10,000 To Debtors A/c ₹ 1,00,000 (Being bad debts exceeding provision adjusted) Final Answer: Appropriate entries passed for each scenario.$

Date	Particulars	Dr. Amount (₹)	Cr. Amount (₹)
	Bank A/c	4,75,000
	Loss on issue of debentures A/c	75,000
	To 12% Debentures A/c		5,00,000
	To Premium on Redemption of Debentures A/c		50,000

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Fixed Assets	15,40,000
Bittu	8,00,000	Stock	3,50,000
Chintu	6,00,000	Debtors	1,40,000
General Reserve	2,10,000	Bank	70,000
Creditors	4,90,000
Total	21,00,000	Total	21,00,000

High-Yield Trend

Chapter Questions 51 MCQs

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Given

Working

Profit & Loss Appropriation Account for the year ended 31-03-2024

Guarantee adjustment (outside P&L Appropriation)

Final effect on partners’ capitals (summary)

Answer

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Balance Sheet of Bittu and Chintu as at 31st March, 2024

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Revaluation Account

Loss on Revaluation

Partners’ Capital Accounts

Final Answer

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Sudha’s Current Account

Sudhir’s Current Account

Working Notes:

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Chapter Questions
51 MCQs

Balance Sheet of Bittu and Chintu as at 31^st March, 2024