Solutions of CBSE sample paper 2025-26 is given in this page with explanation and working notes. This will help students to understand the concepts and to know how to answer the questions. You need not to write explanation of MCQs in your exams. It is given here just for your better understanding.
Solutions of sample paper with explanation and working notes
Question 1 to 16 (Part A)
Solution 1 :- D. Capital Introduced
Explanation: It is quite obvious that Drawings or Losses will not credit capital account and opening balance will be brought down from previous year. So, the option left by which capital account is credited during the year is Capital Introduced.
OR
Solution 1 :- A. Both A and R are correct and R is the correct explanation of A.
Explanation: Fluctuating capital account may have Debit (Negative) or Credit (Positive) balance. As if Losses and Drawings are more than the capital balance it will lead to debit balance of fluctuating capital account.
Solution 2 :- D. A Rs 35,000 and B Rs 35,000
Explanation :-
Loss distribution of A, B and C
A : 1,25,000 x 5/10 = Rs 62,500
B : 1,25,000 x 3/10 = Rs 37,500
C : 1,25,000 x 2/10 = Rs 25,000
Deficiency of C = (25,000) + (60,000 x 9/12) = 25,000 + 45,000
= Rs 70,000
Deficiency of C is to be borne by A and B equally.
Hence, A and B will borne Rs 35,000 and Rs 35,000 respectively.
Solution 3 :- C. Rs 8,000
Explanation :- Capital Reserve = [(Total amount forfeited/No. of shares forfeited) x No. Of shares reissued] – Reissue discount
= (12,000/6,000) x 4,000 – 0
= 2 x 4,000 – 0
= Rs 8,000
OR
Solution 3 :- C. Rs 12,000
Explanation :- Total Amount received on Share Forfeited = 15,000 x 6 = Rs 90,000
Amount transferred to Capital Reserve = 13,000 x 6 = Rs 78,000
Amount of Share Forfeited Balance = Rs (90,000 – 78,000) = Rs 12,000
Solution 4 :- C. Goodwill Rs 1,00,000
Explanation :-
Goodwill = Consideration paid – Net Value of Business
= (30,000 x 95) + (10,00,000) – (45,00,000 – 7,50,000)
= 28,50,000 + 10,00,000 – 37,50,000
= 38,50,000 – 37,50,000
= Rs 1,00,000
OR
Solution 4 :- B. 4,20,000
Explanation :-
Purchase Consideration = 2,20,000 + (16,000 x 12.5)
= Rs 4,20,000
Solution 5 :- C. Debited by Rs 10,000
Explanation :–
Book Value of Investment = 2,50,000
Market Value of Investment = 80,000 + 1,10,000 = Rs 1,90,000
Entry :- Investment Fluctuation Reserve A/c Dr. 50,000
Revaluation A/c Dr. 10,000
To Investment A/c 60,000
Therefore, Revaluation account is debited by Rs 10,000
Solution 6 :- B. Rs 3,00,000
Explanation :–
Capital Employed = 10,00,000 + 8,00,000 + 7,00,000 = Rs 25,00,000
Normal Profit = Capital Employed x Normal Rate of Return/100
= 25,00,000 x 10/100
= Rs 2,50,000
Average Profit = 2,30,000 + 50,000 = Rs 2,80,000
Super Profit = Average Profit – Normal Profit
= 2,80,000 – 2,50,000
= Rs 30,000
Goodwill = Super Profit x 100/Normal Rate of Return
= 30,000 x 100/10
= Rs 3,00,000
Solution 7 :- B. Rs 1,600
Explanation :-
Interest on Drawings from Tyke = 80,000 x 6/100 x 4/12
= Rs 1,600
Solution 8 :- D. 3 : 1
Explanation :-
A’s new share = 7/10 + 1/20 = 7/10 + 1/20 = 15/20
C’s new share = 1/10 + (2/10 – 1/20) = 1/10 + 3/20 = 5/20
New ratio of A and C is 15 : 5 or 3 : 1
OR
Solution 8 :- A. 29 : 11
Explanation :-
X’s new share = 5/10 + (3/10 x 1/2) + (3/20 x 1/2) = 5/10 + 3/20 + 3/40
= 29/40
Z’s new share = 2/10 + (3/20 x 1/2) = 2/10 + 3/40
= 11/40
New Profit sharing ratio of X and Z is 29 : 11
Solution 9 :- B. Rs 35,000
Explanation :- Realisation Account will be debited by Rs (20,000 + 15,000)
Solution 10 :- B. Rs 3,60,000
Explanation :- Total Capital of the firm = 5/1 x 3,00,000
= Rs 15,00,000
Barun’s Capital after Revaluation = Total Capital – Charan’s Capital – Arun’s Capital
= 15,00,000 – 3,00,000 – 8,40,000
= Rs 3,60,000
OR
Solution 10 :- B. Rs 1,00,000
Explanation :-
Goodwill of the firm = Total Capital of the firm – General Reserve – Deferred Revenue Expenditure
= (7,20,000 + 2,80,000 + 4,00,000) – 5,00,000 – 4,00,000
= 14,00,000 – 9,00,000
= Rs 5,00,000
Ojsav’s share of Goodwill = 20% of 5,00,000
= Rs 1,00,000
Solution 11 :- B. 16,00,000
Working Notes :–
Let the Actual Value of building be x
x + 25x/100 = 20,00,000
125x/100 = 20,00,000
x = 20,00,000 x 100/125
x = Rs 16,00,000
Hence, Building will be shown at Rs 16,00,000 in the Balance Sheet of Reconstituted firm.
Solution 12 :- C. Rs 8,00,000; Rs 1,00,000
Explanation :- Loss on Issue of Debentures = (60,000 x 5 + 60,000 x 10)
= 3,00,000 + 6,00,000
= Rs 9,00,000
Firstly, It will be written off from Securities Premium and balance from Statement of Profit and loss.
Hence, Rs 8,00,000 will be written off out of Securities Premium and Balance Rs 1,00,000 from Statement of Profit and Loss.
Solution 13 :- A. Debit; Rs 6,00,000
Explanation :- Debit Balance will be there in Profit and Loss Account amounting to Rs 6,00,000 as Writing off Loss on Issue of Debenture will increase the Loss of Statement of Profit and Loss.
Solution 14 :- C. Rs 6,00,000 ; Non-Current Liabilities
Explanation :- Premium on Redemption of Debentures account will have a balance of Rs (60,000 x 10),I.e, Rs 6,00,000 and it will be treated as Non-Current Liabilities in the first year.
Solution 15 :- C. Realisation Loss Rs 60,000
Explanation :-
Amount of Realisation Gain/Loss = Value of Assets – Realised Value
= (2,00,000 + 80,000 + 70,000 + 40,000 + 10,000) – 3,40,000
= 4,00,000 – 3,40,000
= Rs 60,000
There will be Realisation Loss of Rs 60,000 as Value of Assets is More than the Realised Value of Asset.
Solution 16 :- A. Rs 50,000 will be provided as workmen claim out of Workmen Compensation
Reserve and balance Rs 30,000 will be distributed amongst partners in old
ratio.
Question 27 to 30 (Part B)
Solution 27 :- C. Rs (10,000)
Solution 28 :- C. Rs 1,00,000
Explanation :-
Let Cost of Revenue from Operations be x
Cost of Revenue from Operations = Revenue from Operations – Gross Profit
x = 5,00,000 – 25x/100
125x/100 = 5,00,000
x = 5,00,00,000/125
x = 4,00,000
Inventory Turnover Ratio = Cost of Revenue from Operations/Average Inventory
5 = 4,00,000/Average Inventory
Average Inventory = Rs 80,000
Average Inventory = Opening Inventory + Closing Inventory/2
80,000 = Opening Inventory + 60,000/2
1,60,000 – 60,000 = Opening Inventory
Rs 1,00,000 = Opening Inventory
OR
Solution 28 :- D. A is incorrect but R is correct.
Solution 29 :- D. Proposed Dividend added in Net Profit after tax will be Rs 1,80,000 and outflow of
Dividend paid in financing activities will be Rs 1,70,000.
OR
Solution 29 :- D. Rs 2,70,000
Solution 30 :- B. Dividend Received