Important Questions
1. X and Y are partners sharing profit in the ratio of 3 : 2. They admit Z as a new partner for ⅕th shares in profit. Calculate the new profit sharing ratio and sacrificing ratio.
2. On 1st 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 1st April 2012 for ⅕th 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 31st March 2013. Therefore they decided to expand their business. To meet the additional capital requirement they admitted Anjali as a new partner on 1st April 2013 for 1/7th share in profits which he acquired from shalu and charu in 7 : 3 ratio.
Calculate:-
- New profit sharing ratio of Shalu Charu and Tanya for the year 2012-13.
- New profit sharing ratio of Shalu Charu Tanya and Anjali on Anjali’s admission.
3. 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 1st April 2019. New profit sharing ratio among A, B, C & D will be 3 : 3 : 3 : 1. Determine the sacrificing ratio.
4. Explain various methods for the treatment of goodwill on the admission of a new partner?
Sample Questions
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 ⅕th 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 ⅕th from A and ¼th from B. You are required to calculate the sacrifice ratio and the new profit sharing ratio.
5. On 1st 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 1st April 2012 for ⅕th 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 31st March 2013. Therefore they decided to expand their business. To meet the additional capital requirement they admitted Anjali as a new partner on 1st April 2013 for 1/7th share in profits which he acquired from shalu and charu in 7 : 3 ratio.
Calculate:-
- New profit sharing ratio of Shalu Charu and Tanya for the year 2012-13.
- New profit sharing ratio of Shalu Charu Tanya and Anjali on Anjali’s admission.
MCQ
1. P, Q and R were partners in a firm sharing profits and losses in the ratio 2:2: 1. They admitted L as a new partner for 1/5th share in the profits. L was given a guarantee that his share of profit shall be ₹1,00,000. Any deficiency arising on account of guarantee to L will be borne by Q. The profit of the firm during the year ended 31.3.2021 was ₹4,00,000. The amount of deficiency borne by Q was :
(a) Rs. 80000
(b) Rs. 20000
(c) Rs. 1,10,000
(d) Rs. 6667
2. X and Y were partners in a firm sharing profits and losses equally. Their capitals were ₹2,00,000 and ₹3,00,000 respectively. Z was admitted as a new partner for 1/4th share in the profits of the firm. Z bought Rs. 2,00,000 as capital. The goodwill of the firm was:
(a) ₹1,00,000
(b) ₹25,000
(c) ₹2,00,000
(d) ₹7,00,000
3. R and M were partners in a firm, sharing profits and losses in the ratio of 5:3. L was admitted as a new partner for 1/5th share in the profits of the firm. The new profit ratio was 2:2: 1. L brought ₹1,54,000 for his capital and did not bring his share of goodwill premium. Goodwill of the firm on L’s admission was estimated at ₹4,50,000. It was decided not to raise goodwill account on L's admission. Out of the following what will be the correct treatment of goodwill on L’s admission?
(a) Debit L’s current A/c by ₹90,000 and credit R’s and M’s capital A/cs by ₹45,000 each.
(b) Debit L’s current A/c by ₹90,000, Debit M's capital A/c by ₹11,250, credit R’s capital A/c by ₹1,01,250.
(c) Debit L's current A/c by ₹90,000 and credit R’s capital A/c by ₹56,250 and credit M’s capital A/c ₹33,750.
(d) Debit L’s current A/c by ₹4,50,000 and credit R’s and M’s capital A/c by ₹2,25,000 each.
4. Which of the following accounts will be debited for transferring loss on revaluation of assets and reassessment of liabilities at the time of admission of a new partner into the partnership firm :
(a) Old partner’s capital accounts in old profit sharing ratio
(b) Old partners capital accounts in sacrificing ratio
(c) All partners capital accounts (inclupding incoming partner) in new profit sharing ratio
(d) Revaluation account
5. A business earned average profits of ₹60,000 during the last three years. The nonnal rate of return on similar business is 12%. The value of net assets of the business is ₹4,00,000. Its goodwill by capitalisation of Average Profits Method will be :
(a) ₹1,00,000
(b) ₹2,00,000
(c) ₹4,00,000
(d) ₹50,000
