Admission of New Partner- Test 6

A new partner can be admitted into the partnership with the consent of

At the time of admission of a new partner, Goodwill raised should be written off in

The old profit-sharing ratio minus the new profit-sharing ratio will give one the

When a new partner is admitted to partnership, the proportion in which existing partners surrender their share of profit is called

If partners decide not to change book value of Assets and Liabilities on admission of new partner, then account prepared to adjust Profit/Loss arising on account of change in value of Assets & Liabilities is:

In the absence to an agreement to the contrary, it is implied that old partners will contribute to new partner’s share of profit in the ratio of

The balance in P & L adjustment account on admission of partner is transferred to

Goodwill raised by the partners at the time of admission of a partner will be written off in

For X to be admitted as a nominal partner in a firm of A and B, X

Z is admitted in a firm for a 1/4 share in the profits for which he brings Rs.30,000 for goodwill. It will be taken away by the old partner X and Y in

The balance in the Investment Fluctuation Fund, after meeting the loss on revaluation of investments, at the time of admission will be transferred to

If the incoming partner is to bring his share of goodwill in cash, and there exists any balance in goodwill account, then this goodwill account is to be written off among old partners in

When Memorandum revaluation account is prepared on admission of a partners

When the incoming partner brings his share of goodwill in cash, it is adjusted by crediting to

The liabilities are revalued upwards on the admission of a partners

The assets are brought downwards on admission of a partners.

Decrease in the value of Bills Payable on the admission of a partner

When the incoming partner brings his share of goodwill in cash and it is further decided to show goodwill at Rs.5,000 in books of accounts, then the amount required to be shown in the new balance sheet will be raised in

Sacrificing ratio is used at the time of

Premium method is used for goodwill treatment in the case of

X,Y and Z are partners in a Firm. If B is to be admitted as a new partner.

Assertion:- on the admission of a partner, when a new partner brings his share of goodwill in cash, it is distributed to old partner in the old ratio.

Reasoning:- Prior to the admission the old partners were sharing profit or loss in the old ratio.

Profit on revaluation is _________ to old partner’s capital accounts in the ______ ratio

For any decrease in the value of a liability, the ______ account is to be __________.

A new partner is admitted for getting more finance, skill and influence.

Revaluation account is a nominal account

Since Goodwill is an asset, its revaluation is effected through Revaluation Account

When there is no change in existing partners Inter.se ratio, old profit sharing ratio itself in sacrificing ratio.

When the top of the Memorandum Revaluation Account shows profit, the bottom also profit.

When goodwill account in appearing in the books at a proper value, the new partner has to pay proportionate amount by way of goodwill to the old partners.