Admission of a partner-Important Questions-4

1. Calculation the new profit sharing ratio and sacrificing ratio

2. Accounting treatment of goodwill;

3. Revaluation of assets and reassessment of liabilities;

4. Accounting treatment of undistributed profits and reserves;

5. Accounting treatment of Workmen Compensation Reserves;

6. Accounting treatment of Investment fluctuation Reserves;

7. Adjustment of Deferred revenue Expenditure

8. Prepare Revaluation Account,

9. Prepare Partners’ Capital Accounts and balance sheet of the reconstituted firm.

10. Adjustment of Capital on the basis of new partner capital or New profit-sharing Ratio.

11. Calculation of New partner’s capital on the basis of old partner’s adjusted capital.

Accounting Treatment of Reserves And Accumulated Profit/Loss At the time of Admission Of A Partner

Admission of a partner-Important Questions-4

Accounting treatment of undistributed profits and reserves 

Question 1.

A, B, and C are partners sharing profits in the ratio of 5 : 3: 2. From April 1, 2022, they admit D as a new partner for 1/5 share of profit. On that date, their books showed a credit balance of ₹1,00,000 in the Profit and Loss Account. Record the necessary journal entries in the books of the firm for the distribution of profits.

Solution:

Admission of a partner-Important Questions-4

Question 2.

A, B, and C are partners sharing profits in the ratio of 5 : 3: 2. From April 1, 2022, they admit D as a new partner for 1/5 share of profit. On that date, their books showed a credit balance of ₹1,00,000 in the Profit and Loss Account and General Reserve of ₹40,000. Record the necessary journal entries in the books of the firm for the distribution of profits and General Reserve.

Solution:

Admission of a partner-Important Questions-4

Question 3.

A, B, and C are partners sharing profits in the ratio of 5 : 3: 2. From April 1, 2022, they admit D as a new partner for 1/5 share of profit. On that date, their books showed:
The credit balance of ₹1,00,000 in the Profit and Loss Account,
General Reserve of ₹40,000,
Workmen Compensation  Reserve of ₹30,000
Investment Fluctuation Reserve of ₹20,000.
Record the necessary journal entries in the books of the firm.

Solution:

Admission of a partner-Important Questions-4

Question 4.

A and B are partners sharing profit in the ratio of 4:3. On lst April 2020 they admit C as a new partner for 1/4 share in profits. On that date, the balance sheet of the firm shows a balance of ₹ 70,000 in general reserve and a debit balance of Profit and Loss A/c of ₹28,000. make the necessary journal entries in the Books of Firm.

Solution:

Admission of a partner-Important Questions-4

Question 5.

A and B are partners sharing profit in the ratio of 4:3. On lst April 2020 they admit C as a new partner for 1/4 share in profits. On that date, the balance sheet of the firm shows a balance of ₹ 56,000 in general reserve and Advertisement Suspense Account of ₹14,000. make the necessary journal entries in the Books of Firm.

Solution:

Admission of a partner-Important Questions-4

Question 6.

Rohit and Soniya are partners sharing profit in the ratio of 3:4. On lst April 2022 they admit Sanjay as a new partner for 1/4 share in profits. On that date, the balance sheet of the firm shows a balance of ₹ 84,000 in general reserve and a debit balance of Profit and Loss A/c of ₹21,000, Advertisement Suspense Account of ₹7,000. make the necessary journal entries.

Question 7.

Rohit and Soniya are partners sharing profit in the ratio of 1:1. On lst April 2022 they admit Sanjay as a new partner for 1/5 share in profits. On that date, the balance sheet of the firm shows a balance of ₹ 24,000 in general reserve, ₹20,000 in Workmen Compensation  Reserve, Investment Fluctuation Reserve ₹30,000, and a debit balance of Profit and Loss A/c of ₹21,000, Advertisement Suspense Account of ₹7,000. make the necessary journal entries in the books of the firm.

Question 8.

Naresh and Suresh are partners in a firm sharing profits and losses in the ratio of 3: 1. On April 1st, 2022, they admitted Rahul as a partner for 1/5th share in the profits of the firm. On the date of admission, the balance sheet showed a General Reserve of ₹ 6,000; a debit balance of ₹ 30,000
in Profit and Loss A/c; Workmen compensation Reserve of `₹ 80,000 and Investment fluctuation Reserve of ₹ 20,000. Make the necessary journal entries in the books of the firm.

Admission of a partner-Important Questions-1

Admission of a partner-Important Questions-2

Important questions of fundamentals of partnership-3

Profit and loss Appropriation Account

Format of Profit and loss Appropriation Account

Hidden Goodwill at the time of Admission of A New Partner

Important questions of fundamentals of partnership

Important questions of fundamentals of partnership-2

Goodwill questions for practice Class 12 ISC & CBSE

Important questions of fundamentals of partnership-5

ACCOUNTING TREATMENT OF GOODWILL AT THE TIME OF ADMISSION OF A NEW PARTNER

Admission of a partner-Important Questions-3

Admission of a partner-Important Questions-2