CBSE-CLASS-XII SERIES Accountancy
Profit Sharing Ratio
25 previous year questions.
Volume: 25 Ques
Yield: High
High-Yield Trend
25
2025 Chapter Questions 25 MCQs
01
PYQ 2025
medium
accountancy ID: cbse-cla
Ashok and Avinash were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2023, their capitals were ₹10,00,000 and ₹15,00,000 respectively. After the accounts for the year ending 31st March, 2024 were prepared, it was discovered that interest on capital at the rate of 10% per annum, as provided for in the partnership deed, was not credited to the partners’ capital accounts before distribution of profits. Had the interest on capital been duly provided, the firm’s divisible profit would have:
1
Reduced by ₹2,50,000
2
Increased by ₹2,50,000
3
No change in the profits
4
Reduced by ₹25,000
02
PYQ 2025
hard
accountancy ID: cbse-cla
Nidhi, Pranav and Ishu were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 4 : 1 : 5. On that date, there was a debit balance of ₹ 4,00,000 in the Profit and Loss Account. The necessary journal entry to show the effect of the above will be :
1
Ishu’s Capital A/c Dr. 1,60,000
To Nidhi’s Capital A/c 40,000
To Pranav’s Capital A/c 1,20,000
To Nidhi’s Capital A/c 40,000
To Pranav’s Capital A/c 1,20,000
2
Profit & Loss A/c Dr. 4,00,000
To Nidhi’s Capital A/c 2,00,000
To Pranav’s Capital A/c 1,60,000
To Ishu’s Capital A/c 40,000
To Nidhi’s Capital A/c 2,00,000
To Pranav’s Capital A/c 1,60,000
To Ishu’s Capital A/c 40,000
3
Nidhi’s Capital A/c Dr. 2,00,000
Pranav’s Capital A/c Dr. 1,60,000
Ishu’s Capital A/c Dr. 40,000
To Profit & Loss A/c 4,00,000
Pranav’s Capital A/c Dr. 1,60,000
Ishu’s Capital A/c Dr. 40,000
To Profit & Loss A/c 4,00,000
4
Nidhi’s Capital A/c Dr. 40,000
Pranav’s Capital A/c Dr. 1,20,000
To Ishu’s Capital A/c 1,60,000
Pranav’s Capital A/c Dr. 1,20,000
To Ishu’s Capital A/c 1,60,000
03
PYQ 2025
medium
accountancy ID: cbse-cla
Ishan, Jatin and Kapil were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Jatin retired and his share was taken up by Ishan and Kapil in the ratio 1 : 1. The new profit-sharing ratio between Ishan and Kapil after Jatin’s retirement will be:
1
5 : 1
2
1 : 1
3
5 : 4
4
7 : 3
04
PYQ 2025
medium
accountancy ID: cbse-cla
Ekta, Faguni and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1. Faguni was guaranteed ₹ 25,000 as her share of profit in the firm. Any deficiency arising on that account was to be met by Ekta. The firm earned a profit of ₹ 90,000 for the year ended 31st March, 2024.
The profit credited to Faguni’s capital account was:
The profit credited to Faguni’s capital account was:
1
₹ 30,000
2
₹ 40,000
3
₹ 25,000
4
₹ 10,000
05
PYQ 2025
medium
accountancy ID: cbse-cla
Akhil, Bajrang and Chinmay were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Dilawar was admitted as a new partner in the firm. Dilawar acquired his share from Akhil and from Bajrang.
Dilawar was admitted for which of the following share in the profits of the firm?
Dilawar was admitted for which of the following share in the profits of the firm?
1
2
3
4
06
PYQ 2025
easy
accountancy ID: cbse-cla
Nandita and Prabha were partners in a firm. Nandita withdrew ₹ 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
₹ 9,000
2
₹ 30,000
3
₹ 18,000
4
₹ 15,000
07
PYQ 2025
medium
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 ₹ 5,40,000, Shubha’s share of profit will be:
1
₹ 5,40,000
2
₹ 4,80,000
3
₹ 60,000
4
₹ 4,20,000
08
PYQ 2025
hard
accountancy ID: cbse-cla
Nishu, Rishu and Kishu were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 5. They decided to share future profits and losses in the ratio of 5 : 8 : 7 with effect from 1st April, 2024. Their Balance Sheet as at 31st March, 2024 showed :
General Reserve ₹ 10,00,000.
Debit Balance of ₹ 2,00,000 in Profit and Loss Account.
Goodwill of the firm was valued at ₹ 20,00,000 and revaluation of assets and liabilities resulted in a profit of ₹ 7,00,000. The partners did not want to distribute the General Reserve and the balance of Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books. Pass a single adjustment entry to give effect to the above. Show your workings clearly.
General Reserve ₹ 10,00,000.
Debit Balance of ₹ 2,00,000 in Profit and Loss Account.
Goodwill of the firm was valued at ₹ 20,00,000 and revaluation of assets and liabilities resulted in a profit of ₹ 7,00,000. The partners did not want to distribute the General Reserve and the balance of Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books. Pass a single adjustment entry to give effect to the above. Show your workings clearly.
09
PYQ 2025
medium
accountancy ID: cbse-cla
Sia, Tisha and Aryan were partners sharing profits and losses in the ratio of 4 : 7 : 1. The firm closes its books on 31st March every year. Tisha died on 1st July, 2024. Sia and Aryan will acquire Tisha’s share in which of the following ratio ?
1
1 : 1
2
4 : 1
3
4 : 7
4
7 : 1
10
PYQ 2025
easy
accountancy ID: cbse-cla
Aman, Suman and Tanvi were partners in a firm sharing profits and losses in the ratio of 9:8:7. They decided to share future profits and losses in the ratio of 7:9:8 with effect from 1st April, 2024. Their Balance Sheet as at 31st March, 2024 showed: (i) Contingency Reserve of ₹ 24,00,000. (ii) Credit Balance of ₹ 12,00,000 in Profit and Loss Account. Goodwill of the firm was valued at ₹ 42,00,000 and Revaluation of assets and liabilities resulted in a loss of ₹ 6,00,000. The partners did not want to distribute the Contingency Reserve and the Balance of the Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books. Pass a single adjustment entry to give effect to the above. Show your workings clearly.
11
PYQ 2025
hard
accountancy ID: cbse-cla
Varsha, Aryan and Nimit were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Varsha retired and surrendered 1/3rd of her share in favour of Aryan and the remaining share in favour of Nimit. The new profit sharing ratio between Aryan and Nimit will be :
1
2 : 1
2
8 : 7
3
1 : 2
4
1 : 1
12
PYQ 2025
easy
accountancy ID: cbse-cla
The firm of Amish, Nitish and Misha, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for some years. Misha wanted that she should get equal share in the profits with Amish and Nitish and she further wished that the change in the profit sharing ratio should come into effect retrospectively for the last three years. Amish and Nitish had agreement for this.
The profits for the last three years were: 2021–22 ₹ 1,15,000; 2022–23 ₹ 1,24,000; 2023–24 ₹ 2,11,000
Show adjustment of profits by means of a single adjustment journal entry. Show your working clearly.
The profits for the last three years were: 2021–22 ₹ 1,15,000; 2022–23 ₹ 1,24,000; 2023–24 ₹ 2,11,000
Show adjustment of profits by means of a single adjustment journal entry. Show your working clearly.
13
PYQ 2025
hard
accountancy ID: cbse-cla
Misha, Sarita and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April 2024, they decided that they will share profits and losses equally. The gain or sacrifice by the partners due to change in profit sharing ratio will be :
1
Misha’s sacrifice 1/6, Isha’s gain 1/6
2
Misha’s gain 1/6, Isha’s sacrifice 1/6
3
Misha’s sacrifice 1/6, Sarita’s gain 1/3, Isha’s sacrifice 1/6
4
Misha’s sacrifice 1/3, Isha’s gain 1/3
14
PYQ 2025
medium
accountancy ID: cbse-cla
Kartik, Inder and Lalit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 2 : 3 : 4. For this purpose, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry to show the effect of the above will be :
1
Lalit’s Capital A/c Dr. 40,000
To Kartik’s Capital A/c 40,000
To Kartik’s Capital A/c 40,000
2
Kartik’s Capital A/c Dr. 40,000
To Lalit’s Capital A/c 40,000
To Lalit’s Capital A/c 40,000
3
Lalit’s Capital A/c Dr. 1,80,000
To Kartik’s Capital A/c 1,80,000
To Kartik’s Capital A/c 1,80,000
4
Kartik’s Capital A/c Dr. 1,80,000
To Lalit’s Capital A/c 1,80,000
To Lalit’s Capital A/c 1,80,000
15
PYQ 2025
medium
accountancy ID: cbse-cla
Emily, Farida and Gauri were partners in a firm sharing profits and losses in the ratio of 4:3:1. Farida was guaranteed Rs 35,000 as her share in the profits in the firm. Any deficiency arising on that account was to be met by Emily. The firm earned a profit of Rs 80,000 for the year ended 31st March 2024. The profit credited to Farida's capital account was:
1
Rs 30,000
2
Rs 35,000
3
Rs 25,000
4
Rs 5,000
16
PYQ 2025
medium
accountancy ID: cbse-cla
Karan Ltd. invited applications for issuing 80,000 equity shares of ₹80 each at par. The amount was payable as follows:
\hspace*{0.5cm}On Application and Allotment – ₹30 per share
\hspace*{0.5cm}On First and Final Call – Balance
Applications for 1,40,000 shares were received. Applications for 20,000 shares were rejected and the money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on first and final call. Ravi, who had applied for 1,200 shares, paid his entire share money along with his application. Chaman, to whom 2,400 shares were allotted, failed to pay the first and final call. Chaman’s shares were forfeited.
Pass necessary journal entries for the above transactions in the books of Karan Ltd. Open ‘Calls-in-Arrears Account’ and ‘Calls-in-Advance Account’, wherever necessary.
\hspace*{0.5cm}On Application and Allotment – ₹30 per share
\hspace*{0.5cm}On First and Final Call – Balance
Applications for 1,40,000 shares were received. Applications for 20,000 shares were rejected and the money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on first and final call. Ravi, who had applied for 1,200 shares, paid his entire share money along with his application. Chaman, to whom 2,400 shares were allotted, failed to pay the first and final call. Chaman’s shares were forfeited.
Pass necessary journal entries for the above transactions in the books of Karan Ltd. Open ‘Calls-in-Arrears Account’ and ‘Calls-in-Advance Account’, wherever necessary.
17
PYQ 2025
medium
accountancy ID: cbse-cla
Ratan, Singh and Sharma were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet on 31st March, 2024 was as follows:Balance Sheet of Ratan, Singh and Sharma as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 90,000 | Bank | 65,000 |
| Outstanding Wages | 10,000 | Stock | 1,50,000 |
| General Reserve | 3,00,000 | Debtors | 90,000 |
| Less: Provision for Doubtful Debts | (5,000) | ||
| 85,000 | |||
| Capital A/cs: | Plant and Machinery | 2,50,000 | |
| Ratan | 3,60,000 | Land and Building | 4,50,000 |
| Singh | 2,40,000 | Profit and Loss A/c | 1,00,000 |
| Sharma | 1,00,000 | ||
| Total | 11,00,000 | Total | 11,00,000 |
On 1st April, 2024 Sharma retired from the firm on the following terms :
(i) Plant and Machinery is revalued at ₹2,00,000.
(ii) Land and Building was to be appreciated by ₹49,500 and provision for bad debts will be maintained at 5% of the debtors.
(iii) Sharma's share in the goodwill of the firm was valued at ₹60,000 and the retiring partner's share was adjusted through the capital accounts of remaining partners.
(iv) Sharma was paid in cash brought by Ratan and Singh in such a way so as to make their capitals proportionate to their new profit sharing ratio.
Prepare Revaluation Account and Partners' Capitals Accounts.
18
PYQ 2025
medium
accountancy ID: cbse-cla
DDG Ltd. invited applications for issuing 75,000 equity shares of ₹75 each at a premium of ₹25 per share. The amount was payable as follows:
On Application and Allotment – ₹40 per share
On First and Final Call – Balance (including premium)
Applications for 1,25,000 shares were received. Applications for 25,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis.
Excess money received with applications was adjusted towards sums due on first and final call. Govind, to whom 1,500 shares were allotted, failed to pay the first and final call. Namita, who had applied for 2,000 shares, also failed to pay the first and final call. Shares of both Govind and Namita were forfeited.
Pass the necessary journal entries for the above transactions in the books of DDG Ltd.
On Application and Allotment – ₹40 per share
On First and Final Call – Balance (including premium)
Applications for 1,25,000 shares were received. Applications for 25,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis.
Excess money received with applications was adjusted towards sums due on first and final call. Govind, to whom 1,500 shares were allotted, failed to pay the first and final call. Namita, who had applied for 2,000 shares, also failed to pay the first and final call. Shares of both Govind and Namita were forfeited.
Pass the necessary journal entries for the above transactions in the books of DDG Ltd.
19
PYQ 2025
medium
accountancy ID: cbse-cla
On 1st April, 2023, Jain and Gupta started a partnership firm with fixed capitals of ₹15,00,000 and ₹12,00,000 respectively. They decided to share profits and losses in the ratio of 3 : 2. On 1st July, 2023, Jain withdrew ₹1,00,000 from his capital and Gupta introduced further capital of ₹2,00,000. Partnership deed provided for interest on capital @ 10% p.a.
During the year Jain withdrew ₹50,000 and Gupta withdrew ₹60,000 for their personal use. Interest on drawings was to be charged @ 18% p.a.
After preparing Profit and Loss Appropriation Account for the year ended 31st March, 2024, ₹72,000 and ₹48,000 were credited respectively to the current accounts of Jain and Gupta as their share of divisible profit.
Prepare Current Accounts of Jain and Gupta.
During the year Jain withdrew ₹50,000 and Gupta withdrew ₹60,000 for their personal use. Interest on drawings was to be charged @ 18% p.a.
After preparing Profit and Loss Appropriation Account for the year ended 31st March, 2024, ₹72,000 and ₹48,000 were credited respectively to the current accounts of Jain and Gupta as their share of divisible profit.
Prepare Current Accounts of Jain and Gupta.
20
PYQ 2025
medium
accountancy ID: cbse-cla
Aman, Raj and Suresh were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 8. Suresh was guaranteed a minimum profit of ₹5,00,000 per year. Any deficiency on this account was to be borne by Aman and Raj equally. The net profit of the firm for the year ended 31st March, 2024 was ₹8,00,000.
Prepare Profit and Loss Appropriation Account of Aman, Raj and Suresh for the year ended 31st March, 2024.
Prepare Profit and Loss Appropriation Account of Aman, Raj and Suresh for the year ended 31st March, 2024.
21
PYQ 2025
medium
accountancy ID: cbse-cla
Pass necessary journal entries in the books of RR Ltd. for issue of debentures in the following cases:
(i) Issued 9,000, 9% debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years.
(ii) Issued 5,000, 11% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.
(i) Issued 9,000, 9% debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years.
(ii) Issued 5,000, 11% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.
22
PYQ 2025
medium
accountancy ID: cbse-cla
Akshay, Reet and Manya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided that in future, they will share the profits and losses in the ratio of 2 : 4 : 3. Identify the gain or sacrifice by the partners due to change in the profit sharing ratio from the following:
1
Akshay’s sacrifice , Reet’s sacrifice , Manya’s gain
2
Akshay’s gain , Reet’s gain , Manya’s sacrifice
3
Akshay’s sacrifice , Reet’s gain , Manya’s gain
4
Akshay’s gain , Reet’s sacrifice , Manya’s sacrifice
23
PYQ 2025
medium
accountancy ID: cbse-cla
Jayant, Vijayant and Anant were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April, 2024, they decided to share the profits in the ratio of 5 : 3 : 2. For this purpose, the goodwill of the firm was valued at 6,00,000. The partners decided to treat goodwill without opening goodwill account.
By what amount will the partners’ accounts be debited or credited?
By what amount will the partners’ accounts be debited or credited?
1
Debit Anant by 6,00,000 and Credit Vijayant by 6,00,000
2
Debit Vijayant by 6,000 and Credit Anant by 6,000
3
Debit Vijayant by 20,000 and Credit Anant by 20,000
4
Debit Anant by 20,000 and Credit Vijayant by 20,000
24
PYQ 2025
medium
accountancy ID: cbse-cla
D, E and F were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. G was admitted as a new partner for th share in the profits of the firm. G acquired his share entirely from F. The new profit sharing ratio among D, E, F and G will be:
1
5 : 2 : 2 : 1
2
2 : 3 : 3 : 2
3
3 : 3 : 2 : 2
4
4 : 3 : 2 : 1
25
PYQ 2025
medium
accountancy ID: cbse-cla
P, Q and R were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. S was admitted as a new partner for share in the profits of the firm. S acquired his share entirely from Q. The new profit sharing ratio among P, Q, R and S will be:
1
2 : 5 : 2 : 1
2
3 : 3 : 2 : 2
3
3 : 2 : 3 : 2
4
3 : 4 : 2 : 1
About Profit Sharing Ratio - CBSE-CLASS-XII
Profit Sharing Ratio is a vital chapter for CBSE-CLASS-XII aspirants. Mastering the concepts covered in this chapter is essential for securing a top rank.
By rigorously practicing the previous year questions associated with this chapter, you can identify high-yield topics, understand the examiner's perspective, and boost your confidence during the actual exam.
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