Admission of a Partner Model Question Paper

12th Standard EM

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Accountancy

Time : 01:00:00 Hrs
Total Marks : 50
    5 x 1 = 5
  1. On revaluation, the increase in the value of assets leads to

    (a)

    Gain

    (b)

    Loss

    (c)

    Expense

    (d)

    None of these

  2. Which of the following statements is not true in relation to admission of a part

    (a)

    Generally mutual rights of the partners change

    (b)

    The profits and losses of the previous years are distributed to the old partners

    (c)

    The firm is reconstituted under a new agreement

    (d)

    The existing agreement does not come to an end

  3. When an unrecorded liabilities is brought into books, is results in

    (a)

    profit

    (b)

    loss

    (c)

    income

    (d)

    expense

  4. The revaluation profit or loss is transferred to the old partner's capital accounts, in their

    (a)

    Old ratio

    (b)

    New ratio

    (c)

    Sacrifice ratio

    (d)

    Gain ratio

  5. When A and B sharing profits and losses in the ratio of 3:2, they admit C as a partner giving him 1/3 share of profits. This will 'be given by A and B.

    (a)

    Equality

    (b)

    In the ratio of their capitals

    (c)

    In the ratio of their profits

    (d)

    None of these

  6. 5 x 2 = 10
  7. Ravi and Kumar share profits and losses in the ratio of 7:3. Christy is admitted as a new partner with 3/7 share which he acquires 2/7 from Ravi and 1/7 from Kumar. Calculate the new profit sharing ratio and sacrificing ratio.

  8. Suresh and Dinesh are partners sharing profits in the ratio of 3:2. They admit Ramesh as a new partner. Suresh surrenders 1/5 of his share in favour of Ramesh. Dinesh surrenders 2/5 of his share in favour of Ramesh. Calculate the new profit sharing ratio and sacrificing ratio.

  9. Vimal and Athi are partners sharing profits in the ratio of 2:1. Jeyam is admitted for 1/4 share in the profits. Calculate the new profit sharing ratio and sacrificing ratio.

  10. What is meant by admission of a partner?

  11. The value of Plant and machinery increased by 10%. State whether revaluation account will be debited or credited.

  12. 5 x 3 = 15
  13. Rajesh and Ramesh are partners sharing profits in the ratio 3:2. Raman is admitted as a new partner and the new profit sharing ratio is decided as 5:3:2. The following revaluations are made. Pass journal entries and prepare revaluation account.
    (a) The value of building is increased by Rs.15,000.
    (b) The value of the machinery is decreased by Rs.4,000.
    (c) Provision for doubtful debt is made for Rs.1,000.

  14. Sriram and Raj are partners sharing profits and losses in the ratio of 2:1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made:
    (i) Increase the value of stock by Rs.5,000
    (ii) Bring into record investment of Rs.7,000 which had not been recorded in the books of the firm.
    (iii) Reduce the value of office equipment by Rs.10,000
    (iv) A provision would also be made for outstanding wages for Rs.9,500.
    Give journal entries and prepare revaluation account.

  15. Vasu and Devi are partners sharing profits and losses in the ratio of 3:2. They admit Nila into partnership for 1/4 share of profit. Nila pays cash ` 3,000 towards her share of goodwill. The new ratio is 3:3:2. Pass necessary journal entry on the assumption that the fixed capital system is followed.

  16. Varun and Barath are partners sharing profits and losses 5:4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1:1:1. Dhamu’s share of goodwill is valued at Rs.15,000 of which he pays Rs.10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.

  17. Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm at Rs.30,000. By assuming fluctuating capital method, pass the necessary journal entry if the partners decide to
    (a) write off the entire amount of existing goodwill
    (b) write off Rs.20,000 of the existing goodwill.

  18. 4 x 5 = 20
  19. Anand and Balu are partners in a firm sharing profits and losses in the ratio of 7:3. Their
    balance sheet as on 31st March, 2018 is as follows:

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts:     Land 60,000
    Anand 50,000   Stock 40,000
    Balu 30,000 80,000 Debtors 20,000
    Sundry creditors   20,000 Cash in hand 10,000
    Profit and loss A/c   30,000    
        1,30,000   1,30,000

    Chandru is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.20,000 for 1/4 share in the future profit subject to the following adjustments:
    (a) Stock to be depreciated by Rs.3,000
    (b) Provision for doubtful debts to be created for Rs.2,000.
    (c) Land was to be appreciated by Rs.10,000
    Prepare revaluation account and capital account of partners after admission. 

  20. The balance sheet of Rekha and Mary on 31st March 2018 is as follows:

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts     Buildings 50,000
    Rekha 50,000   Stock 8,000
    Mary 30,000 80,000 Sundry debtors 60,000
    General reserve   40,000 Cash at bank 32,000
    Workmen compensation fund   10,000    
    Sundry creditors   20,000    
        1,50,000   1,50,000

     They share the profits and losses in the ratio of 3:1.They agreed to admit Kavitha into the partnership firm for 1/4 share of profit which she gets entirely from Rekha.
    Following are the conditions:
    (i) Kavitha has to bring Rs.20,000 as capital. Her share of goodwill is valued at 4,000. She
    could not bring cash towards goodwill.
    (ii) Depreciate buildings by 10%
    (iii) Stock to be revalued at Rs.6,000
    (iv) Create provision for doubtful debts at 5% on debtors
    Prepare necessary ledger accounts and the balance sheet after admission.

  21. Eswari and Ranikumari are partners sharing profits and losses in the ratio of 7:5. They agree to admit Chitra into partnership. Eswari surrenders \(\frac{1}{7}\) th of her share and Ranikumari \(\frac{1}{5}\) th of her share in the favour of Chitrao Calculate the New profit ratio and the sacrificing ratio.

  22. Kavitha and Radha are partners of a firm sharing profits and losses in the ratio of 4:3. They admit Deepa on 1.1.2019. On that date, their balance sheet showed debit balance of profit and loss account being accumulate loss
    Rs. 1,40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

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