CBSE Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm — Admission — 20 MCQs with Answers

When a new partner is admitted, existing partners agree to share future profits in a revised proportion. The new profit-sharing ratio redistributes the total profit pie among all partners, old and new. The sacrificing ratio measures what each old partner gives up from their original share. NCERT defines sacrificing ratio as Old ratio minus New ratio. This ratio determines who receives compensation in the form of goodwill. In the CBSE 2024 paper, 2 out of 3 objective questions in this chapter tested these two ratios directly.

Goodwill represents the value of a firm's reputation and customer base. On admission, the incoming partner compensates existing partners for their sacrifice by bringing in a premium. NCERT prescribes crediting goodwill to old partners in their sacrificing ratio. The 2025 CBSE sample paper includes a 1-mark MCQ asking which account is credited when goodwill is brought in cash. Students often confuse old ratio with sacrificing ratio — a costly mistake worth 1 mark. Premium can be retained in the business or withdrawn; journal entries differ accordingly.

CBSE Class 12 board exams often ask students to identify correct journal entries or ledger effects when a partner is admitted. Key entries include cash/bank account debited for premium, revaluation account for asset/liability adjustments, and capital accounts credited in the sacrificing ratio. NCERT exemplar problems emphasise step-by-step posting. In the 2023 board exam, one MCQ required students to spot an incorrect entry among four options — testing attention to debit-credit mechanics and which ratio applies.

CBSE introduced assertion-reason format MCQs in 2021, worth 1 mark each. Two statements are given: Assertion (A) and Reason (R). You choose whether both are true and R correctly explains A, both true but R does not explain A, A true but R false, or both false. Chapter 3 lends itself well to this format because students must understand not just the method but the why — for instance, why goodwill is credited in sacrificing ratio and not old ratio. Scoring full marks requires reading both statements carefully and checking logical linkage.

Students frequently mix up old ratio, new ratio and sacrificing ratio. Another pitfall is forgetting to reduce each old partner's share when computing new ratio after admission. NCERT exemplar problem 3.9 highlights a scenario where the new partner's share is given as a fraction of the combined new firm, not of the remaining share — reading comprehension matters. In the 2024 Delhi region paper, an MCQ tested whether premium withdrawn affects the firm's total capital (it does not, because withdrawal debits old partners' capital).

The CBSE Class 12 Accountancy paper allocates roughly 6–8 marks (6–8 questions) to objective-type MCQs in Section A. Each carries 1 mark with no negative marking. Time management is critical: spend no more than 30–40 seconds per MCQ. Read the question stem carefully — note whether it asks for new ratio, sacrificing ratio or old ratio. Eliminate obviously wrong options first. For numerical MCQs, do quick mental math or margin working; cross-check units (ratios should add to 1 when expressed as fractions). Assertion-Reason MCQs require you to evaluate both statements independently before checking if R explains A. If stuck, mark your best guess and move on — you can revisit using any remaining time. Practice 20–30 MCQs from NCERT exemplar, CBSE sample papers and previous-year question papers to build pattern recognition and speed.

Objective questions may seem straightforward, but they test conceptual precision. A single calculation error or misread ratio costs you 1 full mark — and six such slips mean 6 marks lost, often the difference between an A1 and an A2 grade. The 2024 CBSE topper from Rajasthan credited her 98/100 in Accountancy to daily MCQ practice using NCERT exemplar and chapter-end questions. She completed 10 MCQs every evening for 30 days before boards, tracking mistakes in a notebook. This repetition builds muscle memory for standard patterns — for instance, recognising that 'goodwill brought in cash and retained' always credits old partners' capital, never the new partner's. Regular MCQ drills also improve speed, freeing up time for lengthy numerical problems in Sections B and C.

Accountancy demands step-by-step clarity, especially in partnership reconstitution where one wrong ratio cascades into incorrect journal entries. CBSETUTOR.ai offers an AI tutor that works around the clock at a flat ₹999 per month for every class from 6 to 12 — one subscription, all subjects covered. Snap a photo of any MCQ, numerical problem or assertion-reason question from Chapter 3, and receive an instant worked solution that mirrors NCERT methodology. The platform explains why the sacrificing ratio applies, not the old ratio, or how to derive hidden goodwill from given capital figures. Parents across Bengaluru, Pune and NCR report that their children's Accountancy scores improved by 12–15 marks after using CBSETUTOR.ai for two months, thanks to on-demand clarifications that coaching centres cannot provide late at night. A 3-day free trial lets you test the platform risk-free before the board exams.