Azad, Vijay and Amit are partners sharing profits and losses in the proportion of \(\frac{1}{4}, \frac{1}{8} \text { and } \frac{10}{16}\). Calculate the new profit sharing ratio between continuing partners if (a) Azad retires; (b) Vijay retires; (c) Amit retires.

Distinguish between calls-in-arrears and calls-in-advance.

Madhu, Neha and Tina are partners sharing profits in the ratio of 5:3:2. Calculate new profit sharing ratio and gaining ratio if
1. Madhu retires
2. Neha retires
3. Tina retires

The capital of the firm of Anu and Benu is Rs. 1,00,000 and the market rate of interest is 15%. Annual salary to partners is Rs. 6,000 each. The profits for the last 3 years were Rs. 30,000; Rs. 36,000 and Rs. 42,000. Goodwill is to be valued at 2 years purchase of the last 3 years’ average super profits. Calculate the goodwill of the firm.

Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of 3:2. They admit Rohan as a new partner for 1/5th share. The goodwill of the firm is valued at RS.30,000. Goodwill already appears in the books at RS.15,000. Rohan brings in 60% of his share of goodwill and RS.1,20,000 as his capital in cash. The amount of goodwill brought in cash is withdrawn by the concerned partners to the extent of 30% of what is credited to them. The profits for the first year of new partnership amounted to RS.60,000.
Give necessary journal entries to adjust goodwill and to distribute profits.

X, Y and Z entered into partnership on 1st July, 2014 to share profits and losses in the ratio of 3 : 2 : 1. X personally guaranteed that Z's share of profit after charging interest on capital @ 6% would not be less than Rs.36,000 per annum.The capital contributed by X - Rs.2,00,000, Y - Rs.1,00,000 and z - Rs.1,00,000.
Profit for the year ended on 31st March, 2015 was rs.1,38,000. Prepare profit and loss appropriation account.

Out of (i), partner's loan appears on the liabilities side of the balance sheet of the firm and the capital account of such partner shows a debit balance, how will you deal with such a loan?

Pass the necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account :
(i) Bank Loan Rs. 12,000 was paid.
(ii) Stock worth Rs. 16,000 was taken over by partner Q.
(iii) Partner P paid a creditor Rs. 4,000.
(iv) An asset not appearing in the books of accounts realised Rs. 1,200.
(v) Expenses of realisation Rs. 2,000 were paid by partner Q.
(vi) Profit on realisation Rs. 36,000 was distributed between P and Q in 5 : 4 ratio.

A, B and C were partners sharing profits in the ratio of 6:4:5. Their capitals were A Rs.1,00,000, B-Rs.80,000 and C-Rs.60,000. On 1st April 2009, B retired from the firm and the new profit sharing ratio between A and C was decided as 11:4. On B's retirement the goodwill of the firm was valued at Rs.1,80,000. Showing your calculations clearly, pass necessary journal entry for the treatment of goodwill on B's retirement.

Given below is the Balance Sheet of A and B, who are carrying on partnership business as on March 31,2017. A and B share profits in the ratio of 2:1.

C is admitted as a partner on the date of the balance sheet on the following terms:
1. C will bring in Rs 1,00,000 as his capital and Rs 60,000 as his share of goodwill for 1/4 share in profits.
2. Plant is to be appreciated to Rs 1,20,000 and the value of buildings is to be appreciated by 10%.
3. Stock is found overvalued by Rs 4,000.
4. A provision for doubtful debts is to be created at 5% of debtors.
5. Creditors were unrecorded to the extend of Rs 1,000.
Record revaluation Account, partners’ capital accounts, and the Balance
Sheet of the constituted firm after admission of the new partner.

Explain why it is considered better to make a partnership agreement in writing.

P, Q and R commenced business on 1st April, 2013 with capitals of 5,00,000, Rs 4,00,000 and Rs3,00,000 respectively. profits and losses were shared in the ratio of 4:3:3. Interest on capitals was paid at 5% per annum. During 2013-14 and 2014-15, they earned profit of Rs2,00,000 and Rs2,50,000 (before allowing interest on capital). Drawings of each partner were Rs50,000 per year. On 31st March, 2015, the firm was dissolved. Creditors on that date were Rs 1,20,000. The assets realised Rs13,00,000 net. Give necessary accounts to close the books of the firm.

Batra Ltd issued 20,000 shares of Rs 100 each at a premium pf Rs 25 per share, payable as follows
Rs 20 per share on application
Rs 45 per share on allotment (including premium Rs15)
Rs 60 per share on first and final call (including premium Rs 10)
The issue was oversubscribed by 10,000 shares. Applications of 8,000 shares were allotted only 1,000 shares and applications of 1,000 shares were sent letters of regret. Excess amount received at the time of application was to be adjusted only against and overpayments exceeding the amount due on allotment were to be Pass necessary entries in the books of the firm.

'Software Ltd.' Invited applications for issuing  70,000 equity shares of Rs.10 each on which Rs.7 per share were called up, which payable as follows:
On application - Rs.2 per share
On allotment    - Rs.3 per share
On first call       - The balance
The amount was received as follows:
On 40,000 shares - Rs.7 per share
On 20,000 shares - Rs.5 par share
On 10,l000 shares - Rs.2 per share
The directors for feited 30,000 shares on which less Rs.7 per share were received. Later on the forfeited shares were re-issued at Rs.5 per share, as Rs.7 per share were received. Later on the forfeited shares were re-issued at Rs.5 per share, as Rs.7 per share paid up.
Pqss necessary journal entries for the above transactions in the company.

X and Y were partners in a firm sharing profits in the ratio of 3:2 on 31.3.2014 their Balance Sheet was as follows:

On the above date Z was admitted as a new partner in the firm for 1/4 share in the profits on the following terms:

(i)Z will bring Rs.1,20,000 for his capital and Rs.20,000 for his share as premium for goodwill.

(ii)Machinery was to be depreciated by 10% and land and Building was to be appreciated by Rs.30,000.

(iii)Stock was overvalued by Rs.20,000

(iv)A provision of 5% was to be created for doubtful debts.

(v)Salary outstanding was Rs.5,000

Prepare Revaluation Account,Partners' Capital Accounts and the Balance Sheet of the new firm.

John Ibrahm, a partner in Modern Tours and Travels withdrew money during the year ending March 31, 2017 from his capital account, for his personal use. Calculate interest in drawings in each of the following alternative situations, if rate of interest is 9 per cent per annum.
(a) If he withdrew Rs. 3,000 per month at the beginning of the month.
(b) If an amount of Rs. 3,000 per month was withdrawn by him at the end of each month.
(c) If the amounts withdrawn were : Rs. 12,000 on June 01, 2016, Rs. 8,000; on August 31, 2016, Rs. 3,000; on September 30, 2016, Rs. 7,000, on November 30, 2016, and Rs. 6,000 on January 31, 2017.

Archie,Betty and Veronica are partners sharing profits in the ratio of 3:2:1 With effect from 1st April 2015 they decide to share profits in the ratio of 2:2:1 Their balance sheet as at 31st March,2015 

For the above purpose ,it was agreed that
(a) Plant and machinery should be written down by Rs 25,000.
(b)Stock is found overvalued by 10% It was decided to reduce its value accordingly
(c)Land and building has to be appreciated by 25%.(d)Creditors amounting to be Rs 5,500 are not likely to claim their amount.
(d)Creditors amounting to Rs 5,500 are not likely to claim their account.
(e) Goodwill at the time of reconstitution, is to be valued at 3 years purchase of average profits of last five years,which were Rs 22,500.
You are required to give effect to the above adjustments.
(i) By opening revaluation account         
(ii) By passing a single adjustment entry

Versha Ltd. purchased the running business of Vikram Ltd. consisting of total assets of ₹10,00,000 and liabilities of ₹2,00,000. Versha Ltd. paid ₹2,00,000 immediately in cash and balance by issuing 7,000 shares of ₹100 each at a premium of ₹20 per share. The goodwill account will be debited by 

Elite Ltd. issued ₹20,000, 9% debentures of ₹100 each at a discount of 10%, redeemable at a premium. On issue of these debentures. 'loss on issue of debentures. account' was debited with ₹4,00,000. The premium on redemption of debentures is 

Maira Ltd. took over assets of ₹12,00,000 and liabilities of ₹4,00,000 of Subav Ltd. for an agreed purchase consideration of ₹9,00,000.  The amount was payable by issue of 11% debentures of 100 each at 10% discount.  The number of debentures issued will be 

X and Y share profits in the ratio of 3:2. Z was admitted as a partner who sets 1/5 share. New profit sharing ratio, if Z acquires 3/20 from X and 1/20 from Y would be:

If company wants to calculate amount forfeited on reissued shares, then which amongst the given formula will be used?

Capital which is called only at the time of winding-up of the company is called

When an asset is taken over by a partner, his capital account is

Partners may dissolve a firm by mutual agreement. This is specified in Section of the Act.

Decrease in liability at the time of retirement of partner is

The ratio in which ·the retiring partner's share of goodwill is debited to the capital accounts of continuing partners' is

'N and 'B' were partners in a firm. They share profits in 2 : 3 ratio. They close their accounts on 31st December every year. 'Nwithdrew a fixed sum of Rs.2,000 at the beginning of every month starting form 1st July, 2017. You have to calculate interest on drawings while rate of interest is 12%.

In a firm, 10% of net profit after deducting all adjustments, including reserve is transferred to general reserve. The net profit after all adjustments but before transfer to general reserve is t 44,000. Calculate the amount which is to be transferred to reserve

On the reconstitution of a firm change in the value of assets is called ________

The circumstances when change in profit sharing ratio is needed:

A person who declares by word of mouth as partner of the firm is called:

Loss on realization is:

Partners equity is effected due to:

At the time of admission an incoming partner contributes as goodwill:

Share allotment is a:

Which is not a method to calculate the goodwill?

Read the following hypothetical extract of Rehan Limited and answer the given questions on the basis of the same:

1.Current Ratio for the year 2020 will be_______________ (Choose the correct alternative)

2.Quick Ratio for the year 2018 will be______________(Choose the correct alternative)

3.Inventory turnover ratio for the year 2020 will be______(Choose the correct alternative)

4.Cost of Revenue from Operations for the year 2020 would be ________(Choose the correct alternative)

Read the following hypothetical text and answer the given questions:
Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was Rs.1,20,000 and Rs.80,000 respectively. At the end of first year their profit was Rs. 1,20,000 before allowing the remuneration of Rs..3,000 per quarter to Amit and Rs..2,000 per half year to Mahesh. Such a promising performance for first year was encouraging, therefore, they decided to expand the area of operations. For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of Rs. 2,500. Sundaram was asked to introduce Rs.1,30,000 for capital and Rs..70,000 for premium for goodwill. Besides this Sundaram was required to provide Rs.1,00,000 as loan for two years. Sundaram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner
1.Remuneration will be transferred to _______________ of Amit and Mahesh at the end of the accounting period.

2.Upon the admission of Sundaram the sacrifice for providing his share of profits would be done

3.Sundaram will be entitled to a remuneration of _____________at the end of the year.
4.While taking up the accounting procedure for this reconstitution the accountant of the firm Mr. Suraj Marwaha faced a difficulty. Solve it be answering the following: For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at the rate of ____________.