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

At what figures, the assets and liabilities appear the books of reconstituted firm in case a revaluation account is prepared?

Why is profit or loss on revaluation not transferred to the incoming partner's capital account?

Pawan and Jayashree are partners. Bindu is admitted for 1/4th share. What is the ratio in which pawn and Jayashree will sacrifice their share of profit in favour of Bindu?

Why does a new partner bring in the capital into the firm?

X and Y are partners. Y wants to admit his son K into business. Can K become the partner of the firm? Give reason.

State with reason, whether at the time of admission of a partner, partnership is dissolved or partnership firm is dissolved.

How is a new partner admitted to the firm?

B and C were partners in a firm sharing profits and losses in the ratio of 4:3. They admitted D as a new partner for 1/4th share in the profits which he acquired from B and C in 3:4ratio. D brought Rs.1,80,000 for his capital and Rs.42,000 for his 1/4th share in goodwill. Calculate new profit ratio of B,C and D and pass necessary journal entries for the above transactions on D's admission in the books of the firm.

(a)A and B are partners in a firm sharing profits in the ratio of 3:2. C is admitted as a partner. A and B surrender 1/2 of their respective shares in favour of C. Find the new profit sharing ratio and also the sacrificing ratio.

(b)C is a bring his share of premium for goodwill in cash. The goodwill of the firm is estimated at Rs.40,000. Pass necessary entries for the record od goodwill in the above case.

Hari, Ravi and kavi were partners in a firm sharing profits in the ratio of 3:2:1. They admitted Guru as a new partner for 1/7th share in the profits. The new profit sharing ratio will be 2:2:2:1 respectively. Guru brought Rs.3,00,000 for his capital and Rs.45,000 for his 1/7th share of goodwill. Showing your workings clearly,pass necessary journal entries in the books of the firm for the above mentioned transactions.

P and Q are partners in a firm sharing profits in the ratio of 7:5. They admit R as a partner in the firm. The new profit sharing ratio among P,Q and P,Q and R is 1:1:2. Calculate the sacrificing ratio.

Navya and Kavya are partners in a firm sharing profits and losses equally. They admitted Raju as a partner for 1/5th share of profit. Raju brought into partnership 'book debts' amounting to RS.40,000 (less provision for doubtful debts of 5%). The goodwill of his connections valued at RS.80,000 and the balance amount in cash, borrowed from his Hemraj, so as to take his capital of RS.2,40,000. Show the journal entry in the books of the firm.

P and Q who share profits in the ratio of 3:2 had capitals of RS.4,00,000 and RS.3,00,000 respectively. They agree to admit R into partnership from 1st April, 2015 on the following terms in return for 1/3rd share in future profits.
(i) That R should bring in RS.4,00,000 as capital.
(ii) That as R is unable to bring in his share of goodwill in cash, goodwill of the firm is valued at RS.3,00,000.

Asha and Nisha are partners sharing profits in the ratio of 2:1. Asha's son Ashish was admitted for 1/4th share, of which 1/8th was gifted by Asha to her son. The remaining was contributed by Nisha. Goodwill of the firm is valued at RS.40,000. How much of the goodwill will be credited to the old partner's capital accounts?  

A and B are partners sharing profits in the ratio of 5:4. They admit C for 1/10th share, which he acquires in equal proportion from both A and B. Find new profit sharing ratio.

A, B and C share profits in the ratio of 3:2:1. Upon admission of D, they agreed to share future profits as 2:2:1:1. Calculate sacrificing ratio.

A and B are partners sharing profits in the ratio of 5:3. They admit C for 1/4th share and agree to share future profits between them in the ratio of 2:1. Calculate new profit sharing ratio and sacrificing ratio.

A and B are partners sharing profits in the ratio of 3:2. They admit C for a share which equals 20 paise in a rupee. Calculate new profit sharing ratio and sacrificing ratio.

The balance sheet of X and Y who share profits and losses in the ratio of 3:2, at 31st March, 2015 was as follows
                                                           Balance Sheet
                                                     as at 31st March, 2015

They decided to admit Z on that date for 1/4th share on the following terms
(i) New profit sharing ratio will be 6:9:5. Z bring in capital equal to 1/4th of the total capital of the new firm.
(ii) Goodwill of the firm is to be valued at 4 years' purchase of the average super profits of the last three years. Average profits of the last three years are RS.70,000, while the normal profit that can be earned with the capital employed is RS.30,000. No goodwill is to appear in the books. Z brings in RS.24,000 cash out of his share of goodwill.
(iii) Patents to be written down to RS.3,000 and stock is undervalued by RS.2,000. 20% of general reserve to be written back as no longer payable.
(iv) Out of the amount of insurance which was debited entirely to profit and loss account, RS.10,000 be carried forward as an unexpired insurance. Unaccounted accrued income of RS.2,000 to be provided for. A debtor whose dues of RS.10,000 were written-off as bad debts, paid 80% in full settlement. A claim of RS.6,000 on account of workmen's compensation to be provided for.
(v) The market value of investments was RS.90,000. Half of the investments were to be taken over by old partners in their old profit sharing ratio.
Prepare the revaluation account, capital accounts of the partners and the balance sheet of the new firm.

Vijay and Ajay are partners sharing profits in the ratio of 3:2. They admit Naresh as a new partner. Vijay gives 1/3rd of his share while Ajay gives 1/10th from his share. The balance sheet is given below
                                                      Balance Sheet
                                                          as at ......

Terms of Naresh's admission are as follows
(i) Naresh's loan will be converted into his capital. Naresh brings in 60% of his share of goodwill in cash.
(ii) Goodwill is to be valued at 2 years' purchase of super profit of last three completed years. profit were -Year I Rs. 48,00,000, Year II Rs. 93,00,000, Year III Rs. 1,38,00,000. The normal profits are RS..63,00,000. No goodwill appear in the books of new firm.
(iii) Land and buildings was found undervalued by RS.5,00,000. Stock was found overvalued by RS.7,00,000. Provision for doubtful debts is to be made equal to 5% of the debtors.
(iv) Claim on account of workmen compensation is RS.1,00,000. An unaccounted accrued income of RS.1,00,000 be provided for. A debtor whose dues of RS.5,00,000 were written-off as bad debts, paid RS.4,00,000 in full settlement.
(v) Capital accounts of the partners be readjusted on the basis of their profit sharing ratio and any excess or deficiency be adjusted in cash.
Prepare revaluation account, partners' capital accounts and the balance sheet.