Question Bank for 12th Class Accountancy Admission of a Partner Case Baesd - Reconstitution Of a Partnership Firm : Admission of a Partner

Date	Particulars			L. F.	Debit	Credit
	Cash A/c		Dr.		3,50,000
		To Mokshi's Capital A/c				3,00,000
		To Premium for Goodwill A/c				1,00,000
	(Being capital and premium brought by new partner)
	Premium for Goodwill A/c		Dr.		1,00,000
	Shivangi's Capital A/c		Dr.		40,000
		To Navya's Capital A/c				1,40,000
	(Being premium adjusted)

Total Goodwill of the firm:

A)

1,00,000

B)

2,00,000

C)

3,00,000

D)

4,00,000

View Solution

10)

Sacrifice/Gain of the partners:

A)

Shivangi Sacrifice 7/15 and Navya Gain 2/15

B)

Shivangi Gain 2/15 and Navya Sacrifice 7/15

C)

Gain of Shivangi and Navya 2:1

D)

Sacrifice of Shivangi and Navya 2:1

View Solution

11)

New Profit Sharing Ratio :

A)

4:3:2

B)

3:2:1

C)

2:2:1

D)

1:1:1

View Solution

12)

From the above information find out 13 to 16 :

Ridhi, Param and Yashika were partners sharing profits and losses in the ratio of 3:3:2. They agree to admit Mohit as a new partner in the firm for 1/5th share. New profit-sharing ratio was decided by the partners and added to the agreement. New partner could bring only 75% of his share of premium in cash. Following entries were passed at if time of admission.

Date	Particulars			L.F.	Debit	Credit
	Cash A/c		Dr.		5,00,000
		To Mohit's Capital A/c				4,10,000
		To Premium for Goodwill A/c				90,000
	(Being capital and premium brought by new partner)
	Yashika's Capital A/c		Dr.		20,000
	Premium for Goodwill A/c		Dr.		90,000
	Mohit's Current A/c		Dr.		30,000
	(unpaid premium)
		To Ridhi's Capital A/c				1,20,000
		To Param's Capital A/c				20,000
	(Being premium adjusted)

Total Goodwill of the firm:

A)

4,50,000

B)

5,00,000

C)

5,50,000

D)

6,00,000

View Solution

13)

Yashika's Gain share:

A)

1/10

B)

1/20

C)

1/30

D)

1/40

View Solution

14)

Sacrifice Share of Ridhi and Param:

A)

3:1

B)

4:1

C)

5:1

D)

6:1

View Solution

15)

New Profit Sharing Ratio:

A)

41 : 21 : 34 : 24

B)

21 : 41 : 34 : 24

C)

21 : 41 : 24 : 34

D)

21 : 34 : 41 : 24

View Solution

16)

You are required to find out 17 to 19 : On 1.1.2015, Uday and Kaushal entered into partnership with fixed capitals of Rs.7,00,000 and Rs.3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1.1.2017. Govind brought Rs.10,00,000 as capital and the new profit sharing ratio decided was 3:2: 5. On 1.1.2019, another new partner Hari was admitted with a capital of Rs.8,00,000 for 1/10th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1.4.2021 Govind died and his share was taken over by Uday and Hari equally. The sacrificing ratio of Uday and Kaushal on Govind's admission:

A)

3 : 2

B)

2 : 3

C)

3 : 1

D)

2:1

View Solution

17)

New profit sharing ratio of Uday, Kaushal, Govind and Hari on Hari's admission:

A)

8 : 5 : 14 : 3

B)

14 : 8 : 5 : 3

C)

5 : 8 :14 : 3

D)

3 :5: 8 : 14

View Solution

18)

New profit sharing ratio of Uday, Kaushal and Hari on Govind's death:

A)

3:2:1

B)

1:2:3

C)

3:1:2

D)

3:1:2

View Solution

19)

You are required to find out 20 to 21: On 1.4.2018, Sahil and Charuentered into partnership for sharing profits in the ratio of 4 : 3. They admitted Tanu as a new partner on 1-4-2020 for 1/5th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31.3.2021. Therefore, they decided to expand their business. To meet the requirements of additional capital they admitted Puneet as a new partner on 1.4.2021 for 1/7th share in profits which he acquired from Sahil and Charu in 7 : 3 ratio. New profit sharing ratio of Sahil, Charu and Tanu for the year 2020-21:

A)

23 : 33 : 14

B)

14 : 33 : 23

C)

33 : 23 : 14

D)

33 : 32 : 31

View Solution

20)

New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission:

A)

10:10:13:7

B)

5:7:10:13

C)

13:12:7:5

D)

13:10:7:5

View Solution

21)

Karan and Varun were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their fixed capitals were Rs. 2,00,000 and Rs.3,00,000 respectively. On 1st April.2021 Kishore was admitted as a new partner for 1/4th share in the profits. Kishore brought Rs.2,00,000 for his capital which was to be kept fixed like the capitals of Karan and Varun. Kishore acquired his share of profit from Varun. Calculate goodwill of the firm on Kishore's admission and the new profit sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of Goodwill on Kishore's admission considering that Kishore did not bring his share of goodwill premium in Cash. Kishore's share of Premium for goodwill:

A)

20,000

B)

25,000

C)

30,000

D)

40,000

View Solution

22)

New Profit Sharing Ratio:

A)

3:4:5

B)

5:4:3

C)

4:5:3

D)

4:3:5

View Solution

23)

Varun's Current Account will be:

A)

Debited with Rs.25,000

B)

Credited with Rs.25,000

C)

Debited with Rs.15,000

D)

Credited with Rs.15,000

View Solution

24)

P, Q and R were partners in a firm sharing profits and losses equally. S was admitted as a new partner for 1/4th share in the profits. The total capital of the new firm as agreed between P, Q, R and S was Rs. 2,00,000 and S brought in cash equivalent to 1/4th of this amount as his capital. The capitals of P, Q and R were also to be adjusted in their profit sharing ratio by bringing in or paying off cash as the case may be. The capitals of P, Q and R after doing adjustments related to revaluation of assets and reassessment of liabilities were Rs.40,000; Rs.50,000 and Rs.60,000 respectively. Additional Capital introduced OR withdrawal by P:

A)

Introduced Rs.20,000

B)

Withdrawal Rs.20,000

C)

Introduced Rs.10,000

D)

Withdrawal Rs.10,000

View Solution

25)

Additional Capital introduced OR withdrawal by Q:

A)

Introduced Rs.20,000

B)

Withdrawal Rs.20,000

C)

Introduced Rs.10,000

D)

Nil (Nothing introduced OR withdrawn)

View Solution

26)

Additional Capital introduced OR withdrawal by R:

A)

Introduced Rs.20,000

B)

Withdrawal Rs.20,000

C)

Introduced Rs.10,000

D)

Withdrawal Rs.10,000

View Solution

27)

Which of the following entry is not correct:

A)

Cash/ Bank A/c Dr. 50,000; S's capital A/c Cr. 50,000

B)

Cash/ Bank A/c Dr. 10,000; P's capital A/c Cr. 10,000

C)

R's Capital A/c Dr. 10,000; Cash/ Bank A/c Cr. 10,000

D)

Cash/ Bank A/c Dr. 40,000; S's capital A/c Cr. 40,000

View Solution

28)

You are required to answer the following 29 to 32:

X and Y are sharing profits in the ratio of 5:4. They admit Z as a new partner for 1/6th share in the profits. New ratio agreed upon is 3:2:1. Z brings Rs.2,00,000 as capital but unable to bring premium for goodwill in cash.
At the time of admission of Z, Goodwill to be valued by Capitalization of average profit of last 3 years.
At the year ending 31st March 2019	Profit Rs.39,000 (including abnormal loss of Rs.9,000)
At the year ending 31st March 2020	Profit Rs.83,000 (including abnormal gain of Rs.8,000)
At the year ending 31st March 2021	Profit Rs.72,000
On 1st April 2021, the firm had assets of Rs.8,00,000, Creditors Rs.3,60,000, General Reserve Rs.40,000, Partners capital Accounts Balance Rs.4,00,000.
Normal rate of return expected 13% from this type of business.

Average Adjusted Profit will be:

A)

62,333

B)

62,000

C)

63,000

D)

65,000

View Solution

29)

Capitalised value of average profit:

A)

65,000

B)

6,50,000

C)

5,00,000

D)

8,450

View Solution

30)

Net Assets will be:

A)

4,40,000

B)

4,00,000

C)

Nil

D)

8,00,000

View Solution

31)

Z's share of premium for goodwill:

A)

40,000

B)

30,000

C)

20,000

D)

10,000

View Solution

32)

You are Required to answer the following question from the above information 33 to 37. Gagan Nayyar from Sultanpur lodhi (Punjab) and Anurag from Delhi are partners. They share profits equally. During the year, 2020-21 due to Covid-19 Lockdown they faced liquidity crisis and run short of funds. Therefore, on 1st April, 2021 they decided to admit Paras Aggarwal from Mumbai for 1/4th share in the future profits. Balance Sheet (31.3.2021)

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital A/cs:			Land and Building		2,70,000
Gagan	4,35,000		Furniture		1,80,000
Anurag	2,00,000	6,35,000	Machinery		2,00,000
Employees Provident Fund		90,000	Current Investment		1,00,000
Investment Fluctuation Reserve		20,000	Sundry Debtors	80,000	80,000
Workmen Compensation Reserve		1,05,000	Less: Provision for Doubtful debts	(8,000)	72,000
			Cash
					28,000
		8,50,000			8,50,000

On the same date the assets were to be revalued and liabilities were to be reassessed respectively. (i) Land and Building undervalued by 30,000, Furniture is to be Appreciated to 120%, Machinery to be reduced to 80%. Investment revalued at Rs.70,000. (ii) There Were Bad debts of Rs.4,000 written off, Provision for Doubtful debts @ 5% to be made. (iii) Employees Provident fund is to be increased by 10,000 (iv) Workmen Compensation claim is determined at Rs.1,20,000 Calculate the rate by which Land and Building is Undervalued?

A)

15%

B)

25%

C)

11.11%

D)

10%

View Solution

33)

Value of Furniture and Machinery shown in the Revaluation A/c?

A)

Furniture Credited and Machinery Debited by Rs.2,16,000 and 1,60,000 respectively

B)

Furniture Debited and Machinery Credited by Rs.36,000 and 40,000 respectively

C)

Furniture Credited and Machinery Debited by Rs.36,000 and 40,000 respectively

D)

Furniture Credited and Machinery Debited by Rs.36,000 and 1,60,000 respectively

View Solution

34)

Calculate the amount of Provision for doubtful debts to be transferred to Revaluation Account?

A)

Debited to Revaluation A/c by Rs.400

B)

Credited to Revaluation A/c by Rs.200

C)

Debited to Revaluation A/c by Rs.200

D)

Debited to Revaluation A/c by Rs.3,800

View Solution

35)

Excess of Workmen Compensation Claim over the Workmen Compensation Reserve is shown in the:

A)

Credit side of the Revaluation Account

B)

Debit side of partners capital Account

C)

Credit side of partners capital Account

D)

Debit side of Revaluation Account

View Solution

36)

Calculate Gain/ Loss of Revaluation Account?

A)

Loss of Rs.8,800

B)

Gain of Rs.1,200

C)

Loss of Rs.16,800

D)

Loss of Rs.68,800

View Solution

37)

You are required to answer the following questions 38 to 43:

Gagan from Punjab and Abhiraj from Rajasthan started a business in partnership 3 years back. They share profits in the ratio of 3:2. With a view to Expand their business they decided to admit a new partner Akshit from Delhi for 1/4th share in future profits which he acquires equally from Gagan and Abhiraj. At the time of admission, the Balance Sheet stood as follows:

Liabilities	Amount	Assets	Amount
Capital A/cs:		Land and Building	3,30,000
Gagan 3,80,000		Machinery	2,00,000
Abhiraj 2,20,000	6,00,000	Motor car	1,20,000
Workmen Compensation Reserve	1,80,000	Stock	35,000
Investment Fluctuation Reserve	10,000	Debtors 43,000
Creditors	30,000	Less: Provision for
		Doubtful debts 2,000	41,000
		Current Investment	80,000
		Bank	14,000
	8,20,000		8,20,000

Akshit bring Rs.4,75,000 as his capital and Rs.25,000 as his share of goodwill. Following adjustments to be considered:

(i) Land and Building was overvalued by 10 %. Motor Car is to be reduced by 15 %. Machinery to be appreciated by 20%.

(ii) Stock includes an obsolete item of Rs.3,000 to be written off. Investment revalued at Rs.90,000 and Creditors Rs.8,000 not likely to be paid.

(iii) Bad debts of Rs.1,000 to be written off. Provision to be created on debtor for 5%.

(iv) There was a claim of Rs.2,00,000 against the workmen compensation reserve out of which Claim of Rs.1,65,000 accepted by the firm.

Amount of Land and Building to be shown in Revaluation Account:

A)

Credit side of Revaluation Account Rs.33,000

B)

Credit side of Revaluation Account Rs.30,000

C)

Debit side of Revaluation Account Rs.33,000

D)

Debit side of Revaluation Account Rs.30,000

View Solution

38)

Value of Motor Car and Machinery to be shown in Revaluation Account:

A)

Motor Car Dr. side 40,000 and Machinery Cr. Side 18,000

B)

Motor Car Dr. side 18,000 and Machinery Cr. Side 40,000

C)

Motor Car Dr. side 24,000 and Machinery Cr. Side 30,000

D)

Motor Car Dr. side 30,000 and Machinery Cr. Side 24,000

View Solution

39)

Debtors to be shown in Balance Sheet?

A)

43,000

B)

42,000

C)

40,000

D)

39,900

View Solution

40)

Investment Fluctuation Reserve to be distributed in:

A)

Sacrificing Ratio

B)

Old Ratio

C)

New Ratio

D)

Equally

View Solution

41)

Workmen Compensation Reserve Rs.15,000 to be shown in:

A)

Revaluation Account

B)

Balance Sheet

C)

Old Partners Capital Account

D)

All Partners Capital Account

View Solution

42)

Gain OR Loss on Revaluation Account:

A)

Loss 4,100

B)

Gain 2,900

C)

Gain 68,900

D)

Gain 5,900

View Solution

43)

You are required to answer the following questions 44 to 45: X, Y and Z are partners. They admit M as a new partner. M brings only 50% of his share of premium for goodwill in cash for his 1/10th Share in profits. Other information: Profit and Loss A/c Dr. Balance Rs.18,000 was debited to the capital account of X Rs.9,000; Y Rs.6,000 and Z Rs.3,000. Premium for goodwill credited to the partners, out of which 50% was withdrawn by them as follows: X withdrew Rs.7,500; Y Rs.5,000 and Z Rs.2,500. New profit sharing ratio of the partners:

A)

9:6:3:1

B)

9:6:3:2

C)

9:6:3:4

D)

9:6:3:5

View Solution

44)

Goodwill of the firm at the time of admission of new partner:

A)

6,00,000

B)

30,000

C)

60,000

D)

3,00,000

View Solution

45)

You are required to answer the following questions 46 to 47: X and Y are partners. They admit Z for 3/10th share in the future profits of the firm. Other information: Partners' Capital Account (Extract only)

Particulars	X	Y	Z	Particulars	X	Y	Z
				By General Reserve	12,000	8,000	-
				By Premium for Goodwill A/c	10,000	5,000	-

New profit sharing ratio of the partners:

A)

3:2:1

B)

1:1:1

C)

4:3:1

D)

4:3:3

View Solution

46)

Goodwill of the firm at the time of admission of new partner:

A)

60,000

B)

50,000

C)

15,000

D)

75,000

View Solution

47)

You are required to answer the following questions 48 to 51: X and Y are sharing profits in the ratio of 3:2. They admit Z as a new partner. Additional information: A's Sacrifice was 1/10 and B's Sacrifice was 1/10 Balance Sheet (at the time of admission)

Liabilities	Amount	Asset	Amount
		Building	5,22,000
		Furniture	81,000
		Stock	60,000
Revaluation Account
Particulars	Amount	Particulars	Amount
To Building	72,000	By Furniture	9,000
		By Stock	20,000

New profit sharing ratio of the partners:

A)

1:1:1

B)

3:2:1

C)

5:3:2

D)

5:4:3

View Solution

48)

Furniture was undervalued by:

A)

6%

B)

8%

C)

10%

D)

12%

View Solution

49)

Stock was undervalued By:

A)

12%

B)

15%

C)

20%

D)

25%

View Solution

50)

Building overvalued by:

A)

10%

B)

12%

C)

14%

D)

16%

View Solution

51)

You are required to answer the following questions 52 to 59 :

Ram and Shyam are partners in a firm sharing profits in the ratio of 3:1. Their Balance sheet as at 31st March 2021 was as follows:

Liabilities		Amount	Assets		Amount
Capital A/cs: Ram	6,000		Investment		5,000
Shyam	4,000	10,000	Stock		3,000
Creditors		2,800	Debtors	6,500
Workmen Compensation Reserve		1,200	Less: Provision for Doubtful debts	500	6,000
General Reserve		2,000	Cash at Bank		2,000
		16,000			16,000

They decided to admit Mohan as a partner in a firm on 1st April 2021 for 1/5th share on the following terms:

(i) Mohan to bring Rs.5,000 as his capital. Goodwill of the firm valued at Rs.30,000 and Mohan will bring his share premium in cash.

(ii) That unaccounted accrued income of Rs.100 be provided for.

(iii) Investment was revalued at Rs.4,500.

(iv) A debtor whose dues of Rs.500 was written off as bad debts, now paid Rs.400 in full settlement.

(v) A claim of Rs.200 on account of workmen compensation to be provided for.

New Profit Sharing Ratio of the partners:

A)

3:1:1

B)

3:2:1

C)

3:1:2

D)

3:3:2

View Solution

52)

Shyam's Capital Account Debited/Credited with premium for goodwill:

A)

4500 credit side

B)

1500 credit side

C)

6000 debit side

D)

1500 debit side

View Solution

53)

Gain/Loss on Revaluation Account:

A)

Gain 500

B)

Gain 700

C)

Loss 500

D)

No Gain/No Loss

View Solution

54)

Amount of workmen compensation reserve debited/credited to Shyam's Capital Account:

A)

Credit 250

B)

Debit 250

C)

Credit 750

D)

Credit 200

View Solution

55)

Closing Balance of Ram's Capital Account:

A)

12,000

B)

12,750

C)

13,000

D)

13,250

View Solution

56)

Closing Balance of Shyam's Capital Account:

A)

6,250

B)

6,500

C)

6,750

D)

6,200

View Solution

57)

Final amount of Debtors to be shown in Balance Sheet of reconstituted firm:

A)

6,000

B)

6,400

C)

5,500

D)

5,900

View Solution

58)

Total of Balance Sheet will be:

A)

25,000

B)

26,000

C)

27,000

D)

28,000

View Solution

59)

You are required to answer the following questions 60 to 65 :

Gagan and Megha are partners, sharing profits in the ratio of 2:1. To meet the requirement of capital they decided to admit a new partner Nishant for 1/3rd share in profit.

At the time of admission, the Balance Sheet stood as follows:

Liabilities		Amount	Assets		Amount
Capital A/cs:			Freehold Property		2,40,000
Gagan	2,10,000		Plant and Machinery		1,60,000
Megha	3,90,000	6,00,000	Building		1,00,000
Investment Fluctuation Reserve		18,000	Furniture		80,000
Creditors		25,000	Debtors	55,000
Bills Payable		42,000	Less: Provision for	5,000
Outstanding Salaries		15,000	Doubtful debts		50,000
			Current investment		45,000
			Cash in hand		25,000
		7,00,000			7,00,000

Nishant brings Rs.2,30,000 as his capital and Rs.70,000 for premium for goodwill. Following adjustments to be considered:

(i) Freehold property to be appreciated by Rs.30,000. Plant and Machinery reduced to 1,20,000. Building is appreciated to 130%. Insurance premium paid during the year included Rs.2,000 unexpired insurance.

(ii) A debtor whose account was written off as bad debts for Rs.8,400 before two years, now paid 50% amount in cash.

(iii) A creditor to whom 9,000 was payable, draw a bill of exchange for 3 months, which was duly accepted.

(iv) Megha took investment costing Rs.12,000 and remaining investment valued at Rs.38,000.

(v) A claim received and accepted by the firm for workmen, compensation Rs.75,000.

New Ratio among the partners:

A)

4:2:3

B)

2:1:1

C)

3:2:1

D)

5:3:2

View Solution

60)

Value of Fixed Assets to be shown in the credit side of Revaluation Account:

A)

60,000

B)

30,000

C)

1,60,000

D)

1,00,000

View Solution

61)

Investment to be shown in Revaluation Account:

A)

12,000 Debit Side

B)

38,000 Credit side

C)

26,000 Credit side

D)

5,000 Credit side

View Solution

62)

Final value of creditors to be shown in Balance Sheet:

A)

25,000

B)

16,000

C)

34,000

D)

9,000

View Solution

63)

Debtors to be shown in the Balance Sheet:

A)

55,000 - 5,000 = 50,000

B)

55,000 - 5,000 + 4,200 = 54,200

C)

55,000 + 4,200 = 59,200

D)

55,000 - 8,400 = 46,600

View Solution

64)

Gain OR Loss on Revaluation Account:

A)

47,800 Loss

B)

43,800 Loss

C)

Gain 33,200

D)

46,800 Loss

View Solution

65)

Based on the above information you are required to answer the following questions 66 to 69. Sterling enterprises is a partnership business with Ryan, Williams and Sania as partners engaged in production and sales of electrical items and equipment. Their capital contributions were Rs.50,00,000, Rs.50,00,000 and Rs.80,00,000 respectively with the profit the sharing ratio of 5:5:8. As they are now looking forward to expanding their business, it was decided that they would bring in sufficient cash to double their respective capitals. This was duly followed by Ryan and Williams but due to unavoidable reasons Sania could not do so and ultimately it was agreed that to bridge the shortfall in the required capital a new partner should be admitted who would bring in the amount that Sania could not bring and that the new partner would get share of profits equal to half of Sania's share which would be sacrificed by Sania only. Consequent to this agreement Ejaz was admitted and he brought in the required capital and Rs.30,00,000 as premium for goodwill. What will be the new profit-sharing ratio of Ryan, Williams, Sania and Ejaz?

A)

1:1:1:1

B)

5:5:8:8

C)

5:5:4:4

D)

None of the above

View Solution

66)

What is the amount of capital brought in by the new partner Ejaz?

A)

Rs.50,00,000

B)

Rs.80,00,000

C)

Rs.40,00,000

D)

Rs.30,00,000

View Solution

67)

What is the value of the goodwill of the firm?

A)

Rs.1,35,00,000

B)

Rs.30,00,000

C)

Rs.1,50,00,000

D)

Cannot be determined from the given data.

View Solution

68)

What will be correct journal entry for distribution of Premium for Goodwill brought in by Ejaz?

A)

(a)	Ejaz Capital A/c ……… Dr.	30,00,000
	To Sania’s Capital A/c		30,00,000
	(Being ……………….)

B)

(b)	Premium for Goodwill A/c ……… Dr.	30,00,000
	To Sania’s Capital A/c		30,00,000
	(Being ……………….)

C)

(c)	Premium for Goodwill A/c ……… Dr.	30,00,000
	To Reyan’s Capital A/c		8,33,333
	To William’s Capital A/c		8,33,333
	To Ejaz’s Capital A/c		13,33,333
	(Being ……………….)

D)

(d)	Premium for Goodwill A/c ……… Dr.	30,00,000
	To Reyan’s Capital A/c		10,00,000
	To William’s Capital A/c		10,00,000
	To Ejaz’s Capital A/c		10,00,000
	(Being ……………….)

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12th Class Accountancy Admission of a Partner Question Bank

done Case Baesd - Reconstitution Of a Partnership Firm : Admission of a Partner Total Questions - 68

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Case Baesd - Reconstitution Of a Partnership Firm : Admission of a Partner

Case Baesd - Reconstitution Of a Partnership Firm : Admission of a Partner Total Questions - 68