12th Standard CBSE Syllabus & Materials
12th Standard CBSE
CBSE 12th Economics Government Budget and the Economy Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Computer Science Interface Python with MySQL - New Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Computer Science Database Concept - New Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Computer Science Data Communication - New Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Computer Science Data Structures - New Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Computer Science Functions - New Previous year Question Papers Study Material - QB365 Set A
Published on: 25/07/2019
Reconstitution of a Partnership Firm - Admission of a Partner
Download CBSE Class 12th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Accountancy
Questions + Answers key
Take MCQ Accountancy Test
1.
Under what circumstances will the premium for goodwill paid by the incoming partner not be recorded in the books of accounts?
2.
State any two circumstances in which sacrificing ratio may be applied.
3.
(a)Ashok and Ramu are partners respectively sharing profits in the ratio of 7:3. Their capitals on 1st January, 2015 were Rs.80,000 and Rs.60,000 respectively. They admitted Vijay into the partnership on that date giving him a 1/5th share in the future profits, which he acquired equally from Ashok and Ramu. Vijay is to bring in Rs.50,000 as his share of capital. Find the new profit sharing ratio. and value the goodwill of the firm.
(b)Record necessary journal entries on Vijay's admission from the above-mentioned transactions.
4.
A and B were partners in a firm sharing profits in the ratio of 3:2. They admitted C and D as new partners. The new profit sharing ratio will be 2:2:1:1. C and D brought Rs.2,75,000 each for their respective capitals and also necessary amount of premium for goodwill in cash. Goodwill was valued at Rs.2,40,000 for the firm. Calculate sacrificing ratio of A and B and pass necessary journal entries for the above transactions in the books of the firm.
5.
A,B and C were partners in a firm sharing profit in the ratio of 5:3:2. On 1.4.2005 they admitted D as a new partner for 1/8th share in the profits of the firm. The new profit sharing ratio of A,B,C and D will be 3:2:2:1. On D's admission the goodwill of the firm was valued at Rs.2,40,000. D brought in cash Rs.1,75,000 for his share of capital. He also brought necessary cash as premium for his share of goodwill.
Calculate sacrifice/gain of A,B and C on D's admission. Also pass necessary journal entries for the above transactions in the books of the firm. Show your calculations clearly.
6.
A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/5th share. C brings Rs.30,000 as capital and Rs.10,000 as goodwill. At the time of admission of C goodwill appears in the balance sheet of A and B at Rs.3,000. New profit sharing of the partners shall be 5:3:2. Pass necessary entries in the books of new firm.
7.
On 1.3.2006 A and C admitted D into the partnership, their profit sharing ratio being 5:4:3 respectively. Assuming before admission, the profit sharing ratio of A and C was equal find the sacrifice ratio.
8.
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.
9.
A and B were partners sharing profits in the ratio of 3:2. On 31st December, 2015, their balance sheet was as follows
Balance Sheet
as at 31st December, 2015
| Liabilities | Amt (RS) | Assets | Amt (RS) | |
|---|---|---|---|---|
| Capital A/cs | Land and Building | 80,000 | ||
| A | 60,000 | Plant and Machinery | 40,000 | |
| B | 50,000 | 1,10,000 | Stock | 22,000 |
| Reserves | 20,000 | Sundry Debtors | 16,000 | |
| Sundry Creditors | 32,000 | Cash | 4,000 | |
| 1,62,000 | 1,62,000 | |||
On the above date, C was admitted into partnership on the following terms
(i) C was to pay RS.40,000 as capital and RS.20,000 as goodwill for 1/4th share in profits.
(ii) Land and Buildings were to be revalued at RS.90,000 and plant and machinery at RS.50,000. Stock was to be written down by RS.4,000. Creditors included RS.1,000 no longer payable.
(iii) Capital of partners of the new firm were to be in the profit sharing ratio and for this purpose current accounts were to be opened.
Prepare revaluation account, partners' capital accounts and balance sheet.
10.
Given below is the Balance Sheet of Krishna and Suresh who are partners in a firm sharing profits in the ratio of 3:2.
| Liabilities | Rs | Assets | Rs | |
|---|---|---|---|---|
| Creditors | 15,000 | Plant & Machinery | 30,000 | |
| Reserves | 5,000 | Patents | 5,000 | |
| Capital Accounts | Furniture | 3,000 | ||
| Krishna | 30,000 | Stock | 16,000 | |
| Suresh | 20,000 | 50,000 | 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 the average profits of the last 4years, which were Rs.10,000; Rs.9,000, Rs.8,000 and Rs.13,000 respectively.
(c)Plant to be written down to Rs.25,000 and patents written up by Rs.8,000.
(d)Unrecorded investment Rs.7,000
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.
11.
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.
12.
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.
1.
When the incoming partner pays his share of goodwill privately to the sacrificing partners, outside the business, then no entry is passed in the books of the firm.
2.
(i) When there is change in profit sharing ratio.
(ii) When a new partner is admitted.
3.
(a)New ratio 3:1:1. Sacrificing Ratio 1:1(given),Hidden firm's goodwill, Rs.60,000 i.e.,(Rs.2,50,000-Rs.1,90,000) Vijay's share of goodwill=Rs.60,000x1/5=Rs.12,000.
(b)(i)Dr.Bank Cr.Vijay's Capital A/c by Rs.50,000
(ii)Vijay's Current A/c Rs.12,000; Cr.Ashok's capital A/c and Ramu's Capital A/c Rs.6,000 each in their sacrificing ratio 1:1.
4.
(i) Dr.Bank A/c Rs.6,30,000; Cr C's Capital A/c Rs.2,75,000, D's Capital A/c by Rs.2,75,000 and Premium for Goodwill Rs.80,000.
(ii) Dr.premium for Goodwill A/c Rs.80,000; Cr.A/c Rs.64,000 and B's Capital A/c Rs.16,000.
[Hint: Sacrificing Ratio 4:1,C's and D's share of goodwill =Rs.40,000(i.e.,Rs.2,40,000x1/6)each]
5.
(i) Dr.Bank A/c Rs.2,05,000; r.D's Capital A/c Rs.1,75,000 and premium for goodwill A/c Rs.30,000.
(ii) Dr.Premium for Foodwill A/c Rs.30,000 and C's Capital A/c Rs.12,000; Cr. A's Capital A/c Rs.30,000 and B's Capital A/c Rs.12,000.
[Hint: A's sacrifice 1/8, B's sacrifice 1/20 and C's gain 1/20]
6.
(i) Dr.Bank A/c by Rs.40,000; Cr. C's Capital A/c by Rs.30,000 and premium for Goodwill A/c Rs.10,000
(ii) Dr.Premium for Goodwill A/c Rs.10,000; Cr.A's capital A/c and B's capital A/c Rs.5,000 each in their sacrificing ratio 1:1
(iii) Dr.A's Capital A/c Rs.1,800 and B's Capital A/c Rs.1,200; Cr.Goodwill Rs.3,000.
7.
Sacrificing Ratio between A and C is 1:2
8.
Sacrificing Ratio between P and Q is 4:2 or 2:1.
9.
Dr Revaluation A/c Cr
| Particulars | Amt (RS) | Particulars | Amt (RS) | |
|---|---|---|---|---|
| To Stock A/c | 4,000 | By Land and Building | 10,000 | |
| To Profit Transferred To | By Plant and Machinery | 10,000 | ||
| A | 10,200 | By Creditors | 1,000 | |
| B | 6,800 | 17,000 | ||
| 21,000 | 21,000 | |||
Dr Partners' Capital Account Cr
| Particulars | A (RS) | B (RS) | C (RS) | Particulars | A (RS) | B (RS) | C (RS) |
|---|---|---|---|---|---|---|---|
| To Balance c/d | 94,200 | 72,800 | 40,000 | By Balance b/d | 60,000 | 50,000 | - |
| By Cash A/c | - | - | 40,000 | ||||
| By Premium for Goodwill A/c | 12,000 | 8,000 | - | ||||
| By Revaluation A/c | 10,200 | 6,800 | - | ||||
| By Reserve A/c | 12,000 | 8,000 | - | ||||
| 94,200 | 72,800 | 40,000 | 94,200 | 72,800 | 40,000 | ||
| To Current A/c | 1,050 | 10,700 | - | By Balance b/d | 94,200 | 72,800 | 40,000 |
| To Balance c/d | 93,150 | 62,100 | 51,750 | By Current A/c | - | - | 11,750 |
| 94,200 | 72,800 | 51,750 | 94,200 | 72,800 | 51,750 |
Adjustment of Capital
Total capital of the firm=94,200+72,800+40,000=RS.2,07,000
New capital of the partners
A=RS.2,07,000\(\times \)9/20=RS.93,150
B=RS.2,07,000\(\times \)6/20=RS.62,100
C=RS.2,07,000\(\times \)5/20=RS.51,750
Balance Sheet
as at 31st December, 2015
| Liabilities | Amt (RS) | Assets | Amt (RS) | |
|---|---|---|---|---|
| Capital A/cs | Land and Building | 90,000 | ||
| A | 93,150 | Plant and Machinery | 50,000 | |
| B | 62,100 | Stock | 18,000 | |
| C | 1,750 | 2,07,000 | Sundry Debtors | 16,000 |
| Current A/cs | Cash (RS.40,000+RS.20,000) | 64,000 | ||
| A | 1,050 | C's Current A/c | 11,750 | |
| B | 10,700 | 11,750 | ||
| Sundry Creditors | 31,000 | |||
| 2,49,750 | 2,49,750 | |||
10.
Profit on Revaluation Rs.10,000; Balance of capital A/cs: Krishna Rs.41,000, Suresh Rs.27,600 and Mohan Rs.10,000; Cash Balance Rs.15,000 and Balance Sheet Total Rs.94,000.
[Hint: 0.7 Mohan's share of goodwill=40,000/4X2x1/5=Rs.4,000]
11.
New profit sharing ratio=2:1:1 ;
Sacrificing ratio=1:1
12.
New profit sharing ratio=12:8:5;
Sacrificing ratio=3:2
12th Standard CBSE Syllabus & Materials
12th Standard CBSE
CBSE 12th Computer Science Python Revision Tour I - New Previous year Question Papers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Business Studies Planning Important Questions And Answers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Business Studies Business Environment Important Questions And Answers Study Material - QB365 Set A
NEW12th Standard CBSE
CBSE 12th Business Studies Principles of Management Important Questions And Answers Study Material - QB365 Set A
CBSE 12th Standard CBSE Subjects
CBSE Standards
