Admission of a Partner Model Question Paper

12th Standard EM

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Accountancy

Time : 02:00:00 Hrs
Total Marks : 60
    10 x 1 = 10
  1. Revaluation A/c is a

    (a)

    Real A/c

    (b)

    Nominal A/c

    (c)

    Personal A/c

    (d)

    Impersonal A/c

  2. On revaluation, the increase in the value of assets leads to

    (a)

    Gain

    (b)

    Loss

    (c)

    Expense

    (d)

    None of these

  3. At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of

    (a)

    all the partners

    (b)

    the old partners

    (c)

    the new partner

    (d)

    the sacrificing partne

  4. James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

    (a)

    1:3

    (b)

    3:1

    (c)

    5:3

    (d)

    3:5

  5. Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.

    (a)

    1:3

    (b)

    3:1

    (c)

    2:1

    (d)

    1:2

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

    (a)

    profit

    (b)

    loss

    (c)

    income

    (d)

    expense

  7. Old ratio of profit minus sacrifice ratio will be

    (a)

    New ratio

    (b)

    Old profit sharing ratio

    (c)

    Sacrifice ratio

    (d)

    None of these

  8. _______ is created out of profit to adjust the reduction in the market value of the investments.

    (a)

    Invest fluctuation fund

    (b)

    Capital fund

    (c)

    Fixed capital method

    (d)

    Fluctuating capital fund

  9. ________ ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner.

    (a)

    Old

    (b)

    New

    (c)

    Sacrifice

    (d)

    Agreed

  10. At the time of admission of a new partner, ________ profit ratio should be found out.

    (a)

    old

    (b)

    new

    (c)

    both (a) and (b)

    (d)

    none of these

  11. 2 x 2 = 4
  12. Assertion (A): A Partnership firm suffering from shortage of funds or administrative incapabilities may decide to admit a partner.
    Reason (R): Admission of a partner is one of the modes of reconstituting the firm.
    (a) Both (A) and (R) are true and (R) is correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  13. Assertion (A): The Profit and Loss of Revaluation account shows the net effect on account of revaluation which is transferred to old partners' accounts in their old profit.
    Reason (R): The assets and liabilities appear in the Balance Sheet of the reconstituted firm at their revised values.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  14. 8 x 2 = 16
  15. Mala and Vimala were partners sharing profits and losses in the ratio of 3:2. On 31.3.2017, Varshini was admitted as a partner. On the date of admission, the book of the firm showed a reserve fund of Rs.50,000. Pass the journal entry to distribute the reserve fund.

  16. Anbu and Raju are partners, sharing profits in the ratio of 3:2. Akshai is admitted as a partner. The new profit sharing ratio among Anbu, Raju and Akshai is 5:3:2. Find out the sacrificing ratio.

  17. 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.

  18. Mahesh and Dhanush are partners sharing profits and losses in the ratio of 2:1. Arun is admitted for 1/4 share which he acquired equally from both Mahesh and Dhanush. Calculate the new profit sharing ratio and sacrificing ratio.

  19. Anil, Sunil and Hari are partners in a firm sharing profits in the ratio of 4:3:3. They admit Raja for 20% profit. Calculate the new profit sharing ratio and sacrificing ratio.

  20. What is sacrificing ratio?

  21. Ambika, Dharani and Padma are partners in a firm sharing profits in the ratio of 5:3:2. They admit Ramya for 25% profit. Calculate the new profit sharing ratio and sacrificing ratio.

  22. Praveena and Dhanya are partners sharing profits in the ratio of 7:3. They admit Malini into the firm. The new ratio among Praveena, Dhanya and Malini is 5:2:3. Calculate the sacrificing ratio.

  23. 5 x 3 = 15
  24. 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.

  25. Amudha and Bhuvana are partners who share profits and losses in the ratio of 5:3. Chithra joins the firm on 1st January, 2019 for 3/8 share of profits and brings in cash for her share of goodwill of Rs.8,000. Pass necessary journal entry for adjusting goodwill on the assumption that the fluctuating capital method is followed and the partners withdraw the entire amount of their share of goodwill.

  26. What are the adjustments required at the time of admission of a partner?

  27. Write a short note on accounting treatment of goodwill.

  28. Deepak, Senthil and Santhosh are partners sharing profits and losses equally. They admit Jerald into partnership for 1/3 share in future profits. The goodwill of the firm is valued at Rs.45,000 and Jerald brought cash for his share of goodwill. The existing partners withdraw half of the amount of their share of goodwill. Pass necessary journal entries for adjusting goodwill on the assumption that the fluctuating capital method is followed.

  29. 3 x 5 = 15
  30. Raghu and Sam are partners in a firm sharing profits and losses in the ratio of 3:2. Their balance sheet as on 31st March, 2017 is as follows:

    Liabilities Rs. Rs. Assets Rs. Rs.
    Capital accounts:     Machinery   30,000
    Raghu 40,000   Furniture   10,000
    Sam 30,000 70,000 Stock   10,000
    Sundry creditors   30,000 Debtors 21,000  
          Less: Provision for    
          doubtful debts 1,000 20,000
          Bank   30,000
        1,00,000     1,00,000

    Prakash is admitted on 1.4.2017 subject to the following conditions:
    (a) He has to bring a capital of Rs.10,000
    (b) Machinery is valued at Rs.24,000
    (c) Furniture to be depreciated by Rs.3,000
    (d) Provision for doubtful debts should be increased to Rs.3,000
    (e) Unrecorded trade receivables of ` 1,000 would be brought into books now
    Pass necessary journal entries and prepare revaluation account and capital account of partners after admission.

  31. Ameer and Raja are partners sharing profits in the ratio of 3:2. Their balance sheet is shown as under on 31.12.2018.

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts:     Machinery 60,000
    Ameer 80,000   Furniture 40,000
    Raja 70,000 1,50,000 Debtors 30,000
    Reserve fund   15,000 Stock 10,000
    Creditors   35,000 Prepaid insurance 40,000
          Cash at bank 20,000
        2,00,000   2,00,000

     Rohit is admitted as a new partner who introduces a capital of Rs.30,000 for his 1/5 share in future profits. He brings Rs.10,000 for his share of goodwill.
    Following revaluations are made:
    (i) Stock is to be appreciated to Rs.14,000
    (ii) Furniture is to be depreciated by 5%
    (iii) Machinery is to be revalued at Rs.80,000
    Prepare the necessary ledger accounts and the balance sheet after the admission.

  32. Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 3:2. The balance sheet of the partners on 31.03.2018 is as follows:

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts:     Computer 40,000
    Anbu 4,00,000   Motor car 1,60,000
    Shankar 3,00,000 7,00,000 Stock 4,00,000
    Profit and loss   1,20,000 Debtors 3,60,000
    Creditors   1,20,000 Bank 40,000
    Workmen compensation fund   60,000    
        10,00,000   10,00,000

    Rajesh is admitted for 1/5 share on the following terms:
    (i) Goodwill of the firm is valued at Rs.75,000 and Rajesh brought cash for his share of goodwill.
    (ii) Rajesh is to bring Rs.1,50,000 as his capital.
    (iii) Motor car is valued at Rs.2,00,000; stock at Rs.3,80,000 and debtors at Rs.3,50,000.
    (iv) Anticipated claim on workmen compensation fund is Rs.10,000
    (v) Unrecorded investment of Rs.5,000 has to be brought into account.
    Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission. 

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