AHLCON PUBLIC SCHOOL

Session 2023-24
Assignments
CLASS: XII

SUBJECT: ACCOUNTANCY

TOPIC: ADMISSION OF A PARTNER

Multiple choice Questions: One mark each

1. In case of admission of a partner, the entry for unrecorded investment will be :

a. Debit Partners Capital a/c and credit investments a/c
b. Debit revaluation a/c credit Investment a/c
c. Debit Investment a/c and credit Revaluation a/c
d. None of the above
2. Goodwill of the firm of A and B is valued at ₹ 30,000. It is appearing in the books at ₹
12,000. C is admitted for ¼ shares. What amount he is supposed to bring for
goodwill?
a. ₹ 3,000
b. ₹ 4,500
c. ₹ 7,500
d. ₹ 10,500
3. Disha and Abha were partners in a firm. Farad was admitted as a new
partner for 1/5th share in the profits of the firm. Farad brought
proportionate capital; Capitals of Disha and Abha after all adjustments
were 64,000 and 46,000 respectively. Capital brought by Farad was
(a) 22,000 (b) 27,500 (c) 55,000 (d) 28,000
4. Ramesh and Suresh are partners sharing profits in the ratio of 2:1 respectively.
Ramesh’s capital is ₹ 1, 02,000 and Suresh’s Capital is ₹ 73,000. They admit Mahesh
and agree to give him 1/5 share in future profits. Mahesh brings ₹ 14,000 as his
share of goodwill. He agrees to contribute capital in the new profit sharing ratio.
How much capital will be brought by Mahesh?
a. ₹ 43,750
b. ₹ 45,000
c. ₹ 47,250
d. ₹ 48,000
5. A and B are in partnership sharing in the ratio of 3:2. They take C as a new partner.
Goodwill of the firm is valued at ₹ 3, 00,000 and C brings ₹ 30,000 as his share of
goodwill in cash which is entirely credited to the Capital Account of A. New profit
sharing ratio will be:
 a. [Link]
b. [Link]
c. [Link]
d. [Link]
6. Sacrificing ratio is used to distribute _________ in case of admission of a partner:
a. Reserves
b. Goodwill
c. Revaluation profit
d. Balance in Profit and Loss account
7. A, B and C are partners sharing profits in ratio of [Link]. They agree to admit D into
the firm. A, B and C agreed to give 1/3rd, 1/6th, 1/9th share of their profit. The share
of profit of D will be:
a. 1/10
b. 11/54
c. 12/54
d. 13/54
8. A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share
remaining profits in the ratio of 3:2. Find the profit sharing ratio of A,B,C and D.
a. [Link]
b. [Link]
c. 2.5:2.[Link]
d. [Link]
9. A and B are partners sharing profits and losses in the ratio of 5:3. On admission, C
brings ₹ 70,000 as cash and ₹ 43,000 against Goodwill. New profit ratio between A,B
and C is [Link]. The sacrificing ratio of A and B is:
a. 3:1
b. 1:3
c. 4:5
d. 5:9
10. Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3:1.
Chaman was admitted as a new partner for 1/6th share in the profits. Chaman
acquired 2/5th of his share from Amit. How much share did Chaman acquire from
Beena?
a. 1/5
b. 2/5
c. 3/10
d. 1/10
11. A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They
admitted C as a new partner. The new profit sharing ratio between A,B and C was
[Link]. A surrendered 2/5th of his share in favour of C. B’s sacrifice is:
a. 2/8
b. 1/8
c. 1/4
d. 3/8
Three/Four Marks Questions

1. A and B were partners in a firm sharing profits in the ratio of 3:2. They
admitted Z and M as new partners. The new profit sharing ratio will be
[Link]. Z and M brought in Rs.11,00,000 each for their respective capitals
and also necessary amount of premium for goodwill in cash. Goodwill was
valued at Rs.9,60,000 for the firm. Calculate the sacrificing ratio of X and Y
and pass necessary journal entries for the above transactions in the books
of the firm.
2. .Kabir and Farid are partners in a firm sharing profits in the ratio of 3:1
on 1-4-2019. they admitted Manik into partnership for 1/4th share in the
profits of the firm. Manik brought his share of goodwill premium in cash.
Goodwill of the firm was valued on the basis of 2 years purchase of last
three years average profits. The profits of last three years were
2016-17 90,000
2017-18 1, 30,000
2018-19 86,000

During the year 2018-19 there was a loss of 20,000 due to fire which was
not accounted for while calculating the profit.
Calculate the value of goodwill and pass the necessary journal entries for
the treatment of goodwill.

3. Ashu and Bindu are partners in a firm sharing profits in the ratio of 3 : 2.
Chameli is admitted as a partner. Ashu and Bindu surrender 1/2 of their
respective shares in favour of Chameli. Find the new profit sharing ratio
and also the sacrificing ratio. Chameli is to bring his share of premium for
goodwill in cash. The goodwill of the firm is estimated at Rs.80, 000. Pass
necessary entries to record goodwill in the above case.
4. AK and BK are partners in a firm sharing profits in the ratio of 5 : 3. They
admit CK into the partnership for 3/10th share in profits, which he takes
1/10th from AK and 1/10th from BK. CK brings in Rs.15,000 as premium in
cash out of his share of Rs.39,000. Goodwill account does not appear in
the books of AK and BK. Give necessary journal entries.
X and Y are partners in a firm sharing profits in 3:2 ratio. They admitted Z
as a new partner and the new profit sharing ratio will be [Link]. Z brought
Rs.20,000 for her share of goodwill. Goodwill already appeared in the
books at Rs.10,000. Give necessary journal entries.
5. Vinod and David are partners in a firm sharing profits in the ratio of 3:2.
On January 1, 2014 they admit Kumar as a new partner for 1/6th share in
the future profits. Kumar brought Rs.1,00,000 for his capital but could not
bring any amount for goodwill. The firm’s goodwill on Kumar’s admission
was valued at Rs.75, 000. Give necessary journal entries.
6. VK and KK are partners in a firm sharing profits in the ratio of 2:3. On
January 1, 2014 they admit PK as a new partner for 1/4th share in the
 profits. PK brought Rs.80,000 as capital and Rs.18,000 for his 1/4th share
in profits. The new profit sharing ratio of VK, KK and PK will be [Link]. VK
and KK decided to withdraw the premium paid by PK. Record necessary
journal entries.

7. EK and FK were partners in a firm sharing profits in the ratio of 3 : 1. They

admitted GK as a new partner on 1.3.2005 for 1/3rd share. It was decided
that EK, FK and GK will share future profits equally. GK brought Rs.50,000
in cash and Machinery worth Rs.70,000 for his share of profit as premium
for goodwill. Showing your working clearly, give necessary entries.
8. X and Y are partners sharing profits in the ratio of 4:3. They admit Z as a
new partner. The profit sharing ratio of X, Y and Z will be [Link]. Calculate
the gain or sacrifice of old partners.
9. A, B, C and D are in partnership sharing profits and losses in the ratio of
[Link] respectively. E joins the partnership for 20% share. A, B, C
and D would share profits in future in 3/10; 4/10; 2/10; 1/10. Calculate
the new profit sharing ratio after E’s admission.
10. X and Y divide profits and losses in the ratio of 3:2. Z is admitted in the
firm as new partner with 1/6th share, which he acquires, from X and Y in
the ratio of 1:1. Calculate new profit sharing ratio of all partners.
Six/Eight Marks Questions

1. P and S are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet
on 31st March 2013 was as follows:
Liabilities Rs Assets Rs

Bank overdraft 20,000 Cash 8,000

Creditors 30,000 Debtors 30,000
Provision for bad debts 1,000 Bills Receivable 40,000
General Reserve 15,000 Stock 50,000
V’s Loan 20,000 Building 90,000
1,00,000 1,48,000
P’s capital 1,80,000 Land
S’s capital
3,66,000 3,66,000
V is admitted into the partnership giving her 1/8th share in profits subject to the
following terms:
(i) V’s Loan will be converted into his capital.
(ii) The Goodwill of the firm was valued at Rs.80,000 and V brought his share of
goodwill premium in cash.
(iii) Provision for bad debts was to be made equal to 5% of the debtors.
 (iv) Stock was to be depreciated by 5%.
(v) (v) Land was to be appreciated by 10%.
Prepare Revaluation A/c, Partners’ Capital A/c and the balance sheet of new firm.
2. Ram and Shyam are partners in a firm sharing profits in the ratio of 3:1. Their
Balance Sheet on 31st March 2013 was as follows:
Liabilities Rs Assets Rs

Creditors 2,800 Cash 2,000

Workmen’s Compensation 1,200 Debtors 48,000
Fund
2,000 Less : Provision 4,800 6,000
General reserve
6,000 Stock 3,000
Ram’s capital 5,000
4,000 Investments
Shyam’s capital
16,000 16,000
Mohan is admitted into the partnership giving her 1/5th share in profits subject to the
following terms:
a. Mohan shall bring in Rs.6, 000 as his share of premium.
b. That unaccounted accrued income of Rs.100 is provided for.
c. The Market Value of Investment was Rs.4, 500.
d. A debtor whose dues of Rs.500 were written off as bad debts paid
Rs.400 in full settlement.
e. A claim of Rs.200 on account of workmen’s compensation to be
provided for. Mohan to bring to Rs.5, 000 as his share of capital.
Prepare Revaluation A/c, Partners’ Capital A/c and the balance sheet of new firm.
3. Krishna and Suresh are partners in a firm sharing profits in the ratio of 3: 2. Their
[6] balance sheet was as follows on 31.3.2013:
Liabilities Amount Assets Amount

General Reserve 5,000 Plant & Machinery 30,000

Sundry Creditors 15,000 Patents 5,000
Capitals : Krishna 30,000 Furniture 3,000
Suresh 20,000
50,000 Stock 16,000
Debtors 15,000
Cash 1,000

70,000 70,000

On that date Mohan is admitted as a partner for 1/5th share on the following
terms:
 (a) He is to contribute Rs.14,000 as his share of capital which
includes his share of premium for goodwill.
(b) Goodwill is valued at 2 years purchase of the average profits of
the last 4 years, which were Rs.10,000; Rs.9,000; Rs.8,000 and Rs.13,000
respectively.
(c) Plant & Machinery to be written down to Rs.25,000 and patents
written up by Rs.8,000.
Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm.
4. A and B are partners in a firm sharing profits in the ratio of 2:1. Their Balance Sheet
on (6) 31st March 2013 was as follows:
Liabilities Rs Assets Rs

Bills Payable 10,000 Cash in Hand 10,000

Sundry creditors 58,000 Cash at Bank 40,000
Outstanding expenses 2,000 Sundry Debtors 60,000
1,80,000
A’s capital Stock in Hand 40,000
1,50,000 1,00,000
B’s capital Plant and Machinery
1,50,000
Building
4,00,000 4,00,000

C is admitted into the partnership giving her 1/4th share in profits subject to the
following terms:
a. C will bring in Rs.1, 00,000 as his capital and Rs.60,000 as his share of
goodwill for 1/4th share in profits.
b. Plant is to be appreciated to Rs.1, 20,000 and the value of buildings is to
be appreciated by 10%.
c. Stock is found overvalued by Rs.4, 000.
d. A Provision for bad and doubtful debts is to be created at 5% of
debtors.
e. Creditors were unrecorded to the extent of 10,000.
Prepare necessary ledgers, Balance Sheet and Journal entries.

5. Ram and Shyam were partners in a firm sharing profits in the ratio of 3: 2.
On 31. 3. 2013. Their Balance Sheet was as follows:
 Liabilities Amount Assets Amount

Sundry Creditors 10,000 Plant and Machinery 10,000

Workmen Compensation fund 5,000 Land and Building 8,000
General Reserve 15,000 Debtors 12,000
Capitals : Ram 10,000 Less: Provision 1,000 11,000
Shyam 10,000 20,000 Stock 12,000
Cash 9,000

50,000 50,000

On the above date Mohan was admitted as a new partner in the firm on the following
terms:
(i) Provision of doubtful debts would be increased by Rs.2, 000.
(ii) The value of land and building would be increased to Rs.18, 000.
(iii) The value of stock would be increased by Rs.4, 000.
(iv) The liability against Workmen’s Compensation Fund is determined at Rs.2,
000.
(v) Mohan brought in as his share of goodwill Rs.10, 000 in cash.
(vi) Mohan would bring further cash as would make his capital equal to 20% of
the total capital of new firm after the above revaluation and adjustments are
carried out.
Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm.
6. A and B are partners in a firm sharing profits in the ratio of 3: 2. Their balance sheet
was as follows on 31.3.2013:
Liabilities Amount Assets Amount

General Reserve 10,000 Goodwill 5,000

Sundry Creditors 50,000 Plant & Machinery 65,000
Capitals : A 60,000 Furniture 15,000
B 50,000 1,10,000 Investments 20,000
Stock 20,000
Debtors 30,000
Cash 15,000

1,70,000 1,70,000

On that date C is admitted as a partner on the following terms:

 (a) C is to bring capital Rs.40, 000 and Goodwill Rs.15, 000.
(b) Partners agreed to share the future profits in the ratio of [Link].
(c) Investments will be appreciated by 20% and furniture depreciated
by 10%.
(d) One customer who owed the firm Rs.2, 000 becomes insolvent
and nothing could be realized from him.
(e) Creditors will be written back by Rs.2, 000.
(f) Outstanding bills for repairs Rs.1, 000 will be provided for.
(g) Interest accrued on investments Rs.2, 000.
(h) Capital of the partners shall be proportion to their profit sharing
ratio. For this
Adjustments to be made through cash.
Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm.

7. A and B are partners in a firm sharing profits in the ratio of 3:1. Their Balance Sheet
on [6] 31st March 2013 was as follows:
Liabilities Rs Assets Rs

Creditors 70,000 Land and Building 40,000

General reserve 10,000 Plant and Machinery 70,000
A’s capital 50,000 Investments 26,000
B’s capital 80,000 Stock 30,000
Debtors 35,000
Less : Provision 1,000 34,000
Cash 10,000

2,10,000 2,10,000
C is admitted into the partnership giving her 1/4th share in profits. C to bring Rs.60,
000 as her capital, subject to following terms:
(i) Goodwill of the firm to be valued at Rs.24,000
(ii) Land and Building were valued at Rs.65,000 and Plant and Machinery at
Rs.60,000
(iii) Provision for bad and doubtful debts was found in excess by Rs.400
(iv) A Liability of Rs.1, 200 included in sundry creditors was not likely to arise.
(v) The Capitals of the partners be adjusted on the basis of C’s contribution of
capital.
(vi) Excess of shortfall, if any to be transferred to Current Accounts.
Prepare Revaluation A/c, Partners’ Capital A/cs and the balance sheet of new firm.