Admission of a partner-Important Questions

IMPORTANT QUESTIONS

CHAPTER 5: Admission of a Partner

1. Write the effects of admission of a partner?
2. Define new profit sharing ratio?
3. X and Y are partners sharing profit in the ratio of 3 : 2. They admit Z as a new partner for ⅕^th shares in profit. Calculate the new profit sharing ratio and sacrificing ratio.
4. A and B are partners sharing profits and losses equally. They admit C, as a new partner who acquires his share as ⅕^th from A and ¼^th from B. You are required to calculate the sacrifice ratio and the new profit sharing ratio.
5. On 1^st April 2012 shalu and charu entered into a partnership for sharing profits in the ratio of 4 : 3. They admitted Tanya as a new partner on 1^st April 2012 for ⅕^th share which she acquired equally from shalu and charu. Shalu, charu and Tanya earned a profit at a higher rate than the normal rate of return for the year ended 31^st March 2013. Therefore they decided to expand their business. To meet the additional capital requirement they admitted Anjali as a new partner on 1^st April 2013 for 1/7^th share in profits which he acquired from shalu and charu in 7 : 3 ratio.
   Calculate:-
   
   1. New profit sharing ratio of Shalu Charu and Tanya for the year 2012-13.
   2. New profit sharing ratio of Shalu Charu Tanya and Anjali on Anjali’s admission.
6. A and B are partners sharing profits in the ratio of 3 : 1. C is admitted into partnership for ⅛th profits. Calculate sacrificing and new profit sharing ratio.
7. A, B and C are partners in a firm sharing profits and losses in the ratio of 6 : 3 : 1. They admit D into partnership on 1^st April 2019. New profit sharing ratio among A, B, C & D will be 3 : 3 : 3 : 1. Determine the sacrificing ratio.
8. Following is the balance sheet of W, X and Y who share profits in the ratio of 2 : 2 : 1.
   Balance sheet as on 31^st March 2012
   

   Liabilities	Amount	Assets	Amount
   Sundry creditors Outstanding liabilities General reserve Capital Account Mr. W 24,000 Mr. X 24,000 Mr. Y 10,000	25,700 3,000 13,000 58,000	Land and Building Furniture Stock of goods Sundry Debtors Cash in hand Cash at Bank	50,000 13,000 23,500 11,000 280 1,920

   The partners have agreed to take Mr. Z as a partner with effect from 1^st April 2012 on the following terms:-
   
   1. Mr. Z shall bring 10,000 towards his capital
   2. The value of stock would be increased by 5,000 and furniture should be depreciated by 10%.
   3. Reserves for bad and doubtful debts should be provided at 10% of the debtors
   4. The value of land and building should be enhanced by 20%
   5. The value of the goodwill should be fixed at Rs. 30,000
   6. General Reserve will be transferred to the partner’s capital accounts.
   7. The new profit sharing ratio shall be:-
      W – 5/15, X – 5/15, Y – 3/15, Z – 2/15
   8. The outstanding liabilities include Rs. 2,000 due to Mr. P which has been paid by Mr. W.
      Necessary entries were not made in the books
      Prepare Revaluation Account and the capital accounts of the partners