Admission of New Partner- Test 3

In the capitalisation of average profit method, goodwill in found by deducting the average capital employed form the total value of the firm.

All accumulated profits and reserves are to be transferred to the profit and loss adjustment account on admission of a new partners.

The contingent liability becoming a certain liability will be debited to Revaluation account at the time of admission of a partner.

When the goodwill is to be raised in the books of accounts, the capital accounts of all the old partners are to be credited in their old profit sharing ratios.

In case of memorandum revaluation account, the balance of its second part is taken to the capital accounts of the old partners only.

X and Y are sharing profits and losses in the ratio of 3:2. X is admitted into the firm with 1/6th share in the profits for which he brings Rs.5,000. Hence X’s adjusted capital will be Rs. 15,000

When all the partners agree that assets and liabilities will be shown in the balance sheet at the original figure during admission of a partner, a Memorandum Revaluation Account is prepared.

Profit and Loss account appearing on the assets side of a Balance Sheet shows the undistributed profits.

Adjustment for goodwill can be made privately by the partners without passing any entries in the books of accounts.

Goodwill has realisable value

Revaluation of assets and liabilities is compulsory at the time of admission of a new partner.

On admission of a partner, the total sacrifice of the old partners is always equal to the gain of the new partner.

X and Y are partners sharing profits in the ratio of 1:3. A is admitted as a partner with 1/4 share in the profits, The new profits sharing raio of X, Y and A will be

A and B share profits in the ratio of 7:3, X is admitted as a new partner entitled to 3/7 share in the firm. X takes 1/7 share from A and 2/7 from B. The new ratio of A, B and X will be

X, Y and Z are in a partnership with a profit sharing ratio of 5 : 4 : 3. A is admitted as a new partner for 1/6 the share. The sacrificing ratio of X, Y and Z will be

X, Y and Z are partner sharing profits and losses in ratio of 4 : 3 : 2 A is admitted for 1/10 share. The new ratio is

A and B who are partners, share profits in the ratio of 7 : 3. C is admitted as a new partner. A surrenders 1/7th of his share and B surrenders 1/3 of his share in favour of C. The new profit-sharing ratio will be

A and B are partners sharing profits in the ratio of 1/2 and 1/2. C is admitted for 1/3 share. The new ratio is

X and Y are partners in the ratio of 2 : 1. Z join the firm for 1/4 share. The new profit sharing ratio will

R and K are partners sharing profits in the ratio of 4 : 3. S joins and the new ratio of R, K and S is 7 : 4 : 3. What is the sacrificing ratio ?

P and Q are partners sharing profits in the ratio 3 : 2. They admit R as new partner with 1/5 share to be taken from P and Q equally. The new profit sharing ratio will be

The profit-sharing ratio of A and B is 5:3. If C is admitted as a partner sharing 1/5 of the profits, the sacrificing ratio is

R and S are partners in a firm sharing profits in the ratio of 7 : 5 M is admitted on 1/6 share which he takes 1/24 from R and 1/8 from S. What is the new profit sharing ratio ?

A and B are partners sharing profits and losses in the ratio of 2.5. They admit C on the condition that he will bring good will in case which is distributed between A and B C’s share in future profits or losses is to be one-fourth. The new profit sharing ratio of A, B and C will be

A and B are partners in a firm sharing profits in the ratio of 3 : 2. They admit C as new partner for 1/3 shares in the profit of the firm. The new profit sharing ratio of A, B and C is

The profit sharing ratio of A, B and C who are partners in firm is 4 : 3 : 2. After D is admitted, the sacrificing ratio will be

A and B are equal partners. They admit C into partnership for 1/7th share, their new profit sharing ratio will be

X and Y are sharing profit in the ratio of 7 : 3. Z was admitted on 3/7 share in the profits. The new profit sharing ratio of the partner’s will be

X and Y are sharing profits in the ratio of 4:3 Z joints and new ratio among X, Y and Z is 7 : 4 : 3. The sacrificing ratio between X and Y will be :

A and B are partners sharing profits in the ratio of 7 : 3, X was admitted on 3/7 share in the profits, the new profit sharing ratio of the partners will be: