CBSE Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm — Admission Worksheet with Answers

When a new partner is admitted into an existing partnership firm, the firm undergoes reconstitution. The admission triggers several accounting adjustments. First, the new profit-sharing ratio must be determined — this is the ratio in which all partners (old and new) will share future profits. Second, the sacrificing ratio is calculated to identify the proportion of profit the old partners give up in favour of the incoming partner. Third, goodwill — the value of the firm's reputation and customer base — must be valued and accounted for, either by bringing it in cash or adjusting it through partners' capital accounts. Fourth, any accumulated profits, reserves, and revaluation of assets and liabilities are settled among the old partners in their old profit-sharing ratio before the new partner joins. Understanding these mechanics is essential for solving numerical problems and case studies that appear regularly in the CBSE Class 12 board exam.

This worksheet is pitched at a moderate difficulty level, suitable for students who have completed the NCERT Class 12 Accountancy Chapter 3 and revised the fundamental concepts of new profit ratio, sacrificing ratio, and goodwill adjustments. The multiple-choice questions test conceptual clarity and quick calculation ability, while the short-answer and long-answer questions require detailed journal entries, ledger postings, and step-by-step working. The case-study problem integrates multiple concepts and mirrors the analytical questions now common in CBSE board papers. Students are advised to attempt this worksheet in examination conditions — in a quiet space, without reference to notes — to build time-management skills and exam temperament. Allocate approximately 90 minutes for the entire worksheet, including the case study. Aim to spend 1 minute per MCQ, 3–4 minutes per fill-in-the-blank or short-answer question, 8–10 minutes per long-answer question, and 12–15 minutes on the case study. After completing, review the answer key carefully to understand each step and correct any conceptual gaps.

Multiple-choice questions are a staple of the CBSE Class 12 Accountancy board exam and serve to test both conceptual understanding and the ability to perform quick calculations. In this section, you will encounter six questions covering the core principles of admission of a partner: identification of new profit ratio versus sacrificing ratio, recognition of the correct accounting treatment for goodwill, and understanding of how reserves and revaluation balances are distributed. Each MCQ has four options; select the one correct answer. Pay close attention to keywords such as 'sacrificing ratio', 'new profit ratio', 'premium for goodwill', and 'revaluation account'. These questions mirror the style and difficulty of recent CBSE board papers and are designed to be solved in approximately one minute each. Practice under timed conditions to build speed and accuracy. After attempting all six, cross-check your answers with the detailed answer key provided at the end of this worksheet to understand the logic behind each correct option and learn from any mistakes.

Fill-in-the-blank questions test your recall of key definitions, formulas, and accounting principles from NCERT Class 12 Accountancy Chapter 3. In this section, you will complete five statements by inserting the correct term or phrase. These questions require precise knowledge of terminology such as 'sacrificing ratio', 'premium method', 'revaluation account', 'gaining ratio', and 'hidden goodwill'. Unlike MCQs, there are no options to guide you, so you must draw directly on your conceptual memory. This format is excellent practice for the board exam, where clarity and accuracy in terminology earn full marks. Read each incomplete sentence carefully, identify the missing concept, and write your answer neatly. After completing all five, verify your responses against the answer key. If you made any errors, revisit the relevant section in your NCERT textbook or class notes to consolidate your understanding. Mastery of these terms is essential not only for fill-in-the-blank questions but also for articulating answers clearly in short-answer and long-answer questions.

Section C combines two question types commonly seen in CBSE Class 12 Accountancy exams: match-the-following and true/false statements. In the match-the-following subsection, you are given two columns — Column A lists scenarios or terms, and Column B lists corresponding definitions or treatments. Your task is to correctly pair each item in Column A with the appropriate item in Column B. This tests your ability to connect concepts, such as linking 'goodwill brought in cash' with 'credited to old partners in sacrificing ratio'. In the true/false subsection, you evaluate statements about admission of a partner and mark each as True or False. These statements often contain subtle wordings designed to test deep conceptual clarity, such as whether revaluation profit is shared by all partners or only old partners. Approach each statement methodically, recalling the exact NCERT principles. Both question types require careful reading and precise recall. After completing this section, refer to the answer key for correct matches and true/false answers, along with brief explanations to reinforce your learning.

Short-answer questions in CBSE Class 12 Accountancy typically carry 3 marks and require you to show clear working, prepare journal entries, or calculate specific figures such as new profit ratio, sacrificing ratio, or distribution of goodwill. In this section, you will solve five such problems, each designed to test a discrete concept from Chapter 3. For example, one question may ask you to calculate the sacrificing ratio when profit shares are given, another may require you to pass a journal entry for goodwill brought in cash, and a third may ask you to prepare the revaluation account when certain asset and liability adjustments are provided. Structure your answers clearly: write the formula or principle, show step-by-step calculations, and present the final answer in the required format (ratio, journal entry, or account). Marks are awarded for method as well as accuracy, so even if your final answer is incorrect, clear working can earn partial credit. Aim to spend 3–4 minutes per question. After attempting all five, cross-check your solutions with the answer key, paying special attention to the format of journal entries and the logic of ratio calculations.

Long-answer questions in the CBSE Class 12 Accountancy board exam carry 5 or 6 marks and assess your ability to integrate multiple concepts, prepare comprehensive accounts, and demonstrate higher-order thinking skills (HOTS). In this section, you will tackle three such problems. A typical long-answer question on admission of a partner might ask you to: (i) calculate the new profit-sharing ratio and sacrificing ratio, (ii) prepare the revaluation account, (iii) pass journal entries for goodwill and adjustment of reserves, and (iv) prepare the partners' capital accounts after admission. These questions are multi-step and require careful organization. Start by reading the entire question and noting all data points. Then work methodically through each requirement, labeling your answers clearly (e.g., 'Step 1: New Profit Ratio', 'Step 2: Revaluation Account'). Use the formats prescribed in NCERT for ledger accounts and journal entries. Higher-order thinking comes into play when the question does not explicitly state goodwill but you must calculate it from implied information (hidden goodwill). Allocate 8–10 minutes per question, and ensure your final answer is complete and well-presented. The answer key provides model solutions with full working.

Case-study questions are now a regular feature of the CBSE Class 12 Accountancy board exam and typically carry 4 marks. A case study presents a real-world scenario involving a partnership firm and embeds multiple sub-questions that test your understanding of several related concepts. In this worksheet, the case study focuses on the admission of a new partner into an existing firm. You will be given a narrative describing the old partnership arrangement, the terms of admission (share of profit, capital contribution, goodwill), and any additional information such as revaluation of assets, treatment of reserves, or adjustments to capital accounts. Following the narrative, you will answer four sub-questions (1 mark each), which may ask you to calculate the new profit ratio, identify the sacrificing ratio, determine the amount of goodwill to be credited to each old partner, or prepare a specific journal entry. The key to solving case-study questions is to read the scenario carefully, extract all relevant data, and apply NCERT principles step by step. Allocate 12–15 minutes for the case study, including time to read and analyze the passage. The answer key provides detailed solutions for all four sub-questions.

The answer key is the most important learning tool in this worksheet. It provides the correct answer to every question — MCQ, fill-in-the-blank, match-the-following, true/false, short-answer, long-answer, and case-study — along with step-by-step explanations, working, and the reasoning behind each solution. For MCQs, the key explains why the correct option is right and why the other three are wrong. For calculation-based questions, it shows every arithmetic step, formula application, and the final answer in the required format. For journal entries and ledger accounts, the key follows NCERT formats precisely, including correct debit/credit placement, narration style, and account titles. Use the answer key not merely to tick right or wrong, but as a study guide. If you made an error, read the explanation carefully to understand the underlying concept. If you got a question right, verify that your method matches the model solution. This active review process is what transforms worksheet practice into deep learning and exam readiness. At CBSETUTOR.ai, students can upload their worksheet attempts via photo and receive instant, personalized feedback from an AI tutor available 24×7, all for a flat fee of ₹999/month across Classes 6–12, with a 3-day free trial to explore the platform.

Mastering the numerical and theoretical aspects of admission of a partner requires consistent practice, immediate feedback, and personalized guidance — precisely what CBSETUTOR.ai delivers. The platform offers a 24×7 AI tutor that students can access anytime, from anywhere, using their smartphone or computer. Simply take a photo of any question from this worksheet (or from your textbook, school assignment, or previous year paper), upload it to the app, and receive a step-by-step solution within seconds. The AI tutor explains not only the final answer but also the method, the formula, and the NCERT principle behind each step. If you are stuck on calculating the sacrificing ratio, confused about the journal entry for hidden goodwill, or unsure how to prepare the revaluation account, the AI tutor walks you through the entire process interactively. Unlike pre-recorded video lectures, this is a personalized, on-demand learning experience tailored to your exact doubt. All of this is available at a flat fee of ₹999 per month for any class from 6 to 12 — no hidden charges, no per-question fees, no separate pricing for different subjects. New users can start with a 3-day free trial to experience the quality and convenience before committing. Thousands of CBSE students across India are already using CBSETUTOR.ai to clarify doubts instantly, practice smarter, and score higher in board exams.

To get the maximum benefit from this worksheet, approach it with the same discipline and focus you would bring to the actual board exam. First, print the worksheet or keep it open on one device while you write answers on paper — avoid the temptation to scroll to the answer key prematurely. Second, set a timer for 90 minutes and attempt all sections in sequence, simulating exam conditions. Third, for calculation questions, show every step of your working; even if you make an arithmetic error, clear method earns partial marks in the board exam. Fourth, use NCERT terminology and formats consistently: write 'sacrificing ratio' not 'sacrifice ratio', use the standard journal entry format with narration, and prepare accounts in T-format as taught in class. Fifth, after completing the worksheet, take a short break before reviewing the answer key; this helps you approach your own work with fresh eyes. Sixth, for every mistake, write a correction note in your notebook, including the concept, the correct method, and a reminder of the error you made. Finally, reattempt any questions you got wrong without looking at the answer key, to reinforce learning. This active, disciplined practice is what separates top scorers from average performers in CBSE board exams.