AHSEC Class 12 Accountancy Question Bank: Admission of a Partner for 2023 exam

AHSEC CLASS 12
ACCOUNTANCY QUESTION BANK

UNIT – 5 Admission of a Partner
Questions Asked from 2001 to 2022 exam

Calculation of New Ratio and Sacrifice/Gaining Ratio

1. A and B are two partners sharing profits and losses in the ratio of 3:2. C is admitted as a new partner for 1/5^th share. Calculate new profit sharing ratio and sacrificing ratio.

2. A, B and C are partners sharing profits and losses in the ratio of 4:3:2. They admit D into partnership and the new profit sharing ratio of the old partners is agreed at 2:2:1 respectively. Calculate the gain or sacrifice of the partners.

3. A, B and C are partners sharing profits and losses in the ratio of 4:3:2. They admit D into partnership. A will retained his old share and the new profit sharing ratio of the remaining partners is agreed at 1:1 respectively. Calculate the gain or sacrifice of the partners.

4. A and B are two partners sharing profits and losses as 3:2. They admit C as a new partner for 1/5^th share which he acquires from A and B in the ratio of 2:1. Calculate new profit sharing ratio and sacrificing ratio.

5. A and B are two partners sharing profits and losses as 3:2. They admit C as a new partner for 1/5^th shares which he acquires entirely from A. Calculate new profit sharing ratio and sacrificing ratio.

6. A and B are two partners sharing profits and losses in the ratio of 3:2. They admit C as a new partner for 1/5^th share of the future profit which he has acquired equally from A and B. Find new profit sharing ratio and sacrificing ratio.

7. A and B are two partners sharing profits and losses in the ratio of 3:2. C has admitted as a partner for 3/10^th shares which he has acquired 2/10^th from A and 1/10^th from B. Calculate new profit sharing ratio and sacrificing ratio.

8. A and B are two partners sharing profits and losses in the ratio of 3:2. C has joined the firm as a new partner. A gives 1/4^th of his share and B gives 1/5^th of his share to the new partner. Find new profit sharing ratio.

9. A and B are two partners sharing profits and losses equally. They admit C as a new partner. A has surrendered 1/3^rd of his share and B has surrendered 1/6^th of his share in favour of C. Calculate new profit sharing ratio and sacrificing ratio.

10. A and B are partners sharing profits in the ratio 3: 2. C is admitted as a new partner for 1/5^th share in the future profits. Calculate the new profit sharing ratio.    2016      

11. Amar and Bahadur are partners of a firm sharing profits in the ratio of 3 : 2. They admit Mery as a new partner for ¼th share in the future profits. The new profit sharing ratio between Amar and Bahadur is agreed to be 2 : 1. Calculate their sacrificing ratio.      2018

Treatment of Goodwill in case of admission of a new partner

********************************************

ALSO READ (AHSEC ASSAM BOARD CLASS 12):

1. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE NOTES

2. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION (THEORY)

3. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION BANK (PRACTICAL)

4. AHSEC CLASS 12 ACCOUNTANCY PAST EXAM PAPERS (FROM 2012 TILL DATE)

5. AHSEC CLASS 12 ACCOUNTANCY SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)

6. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE MCQS

********************************************

A. When premium for goodwill brought in cash by new partner

1. P and Q are partners sharing profits and losses in the ratio of 3: 2. The admit C into partnership, C paying a premium of Rs. 10,000 for 1/4^th share of future profits. The new profit sharing ratio is 3: 3: 2. Goodwill is not appearing in the books of account. 50% premium money is withdrawn by the partners. Pass journal entries to record these transactions.

2. A and B are partners sharing profits and losses in the ratio of 3:2. They admit C as new partner for 1/4^th of the profit. C brings Rs. 20,000 as capital ad Rs. 5,000 as premium for goodwill. Give journal entries.

3. X and Y are partners sharing profits and losses in the ratio of 3:2. Z joints the firm as a new partner for 1/4^th future profit. Z brings Rs. 20,000 as capital and required amount of premium. The goodwill of the firm was valued at Rs. 30,000. Give journal entries assuming that partner’s capitals are fixed.

4. A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted as a new partner. He brings Rs. 20,000 as capital and Rs. 5,000 as premium for goodwill. The new profit sharing ratio is 2:2:1. Given journal entries assuming that partner’s capital are fluctuating.

5. A and B are partners sharing profits and losses in the ratio of 3:2. C joins the firm as a new partner. A gives 1/4^th of his share and B gives 1/5^th of his shares. He brings Rs. 25,000 as capital and Rs. 4,600 as premium for goodwill. Premium money is retained in the business. Given journal entries

6. A and B are partners sharing profits and losses in the ratio of 5:4. C is admitted for 1/3^rd share of future profit. C takes 2/9^th from A and 1/9^th from B. C brings Rs. 30,000 as capital and Rs. 6,000 as premium for goodwill. Pass journal entries on C’s admission assuming that partner’s capitals are fixed.

7. A and B are partners sharing profits and losses in the ratio of 3: 2. C is admitted for 1/4^th share. He brings Rs. 30,000 as capital and Rs. 5,000 as premium. As agreed between themselves, A and B decided to share profits and losses equally in future. Half of the premium money is withdrawn by old partners’ given journal entries on C’s admission assuming that partner’s capitals are fluctuating.

8. P and Q are partners sharing profits and losses in the ratio of 4:3. R joins the firm as a new partner for 2/5^th share in future profit which he acquired equally from P and Q. He brings Rs. 25,000 as capital and proportionate amount of goodwill. The goodwill of the firm was valued at 3 years’ purchase of 4 years average profit. The profits for the last 4 years are Rs. 20,000, Rs. 22,000, Rs. 22,500 and Rs. 25,500. Give journal entries for R’s admission.

9. A and B are partners sharing profits and losses in the ratio of 2:1. C joins the firms as a new partner. He brings Rs. 20,000 as capital and Rs. 5,000 as premium for goodwill. The new profit sharing ratio is 3:3:2. Give journal entries assuming partners’ capitals are fluctuating.

10. A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/6^th share. C brings Rs. 20,000 as capital and Rs. 2,000 as a part of his share of goodwill. The goodwill of the firm was valued Rs. 24,000. Pass journal entries.

11. A and B are partners sharing profits and losses in the ratio of 3:2. C joins the firm as a new partner for 1/4^th future profits. He brings Rs. 20,000 as capital and Rs. 5,000 as premium for goodwill. Goodwill already appears in the books at Rs. 10,000. Give journal entries.

12. A and B are partners sharing profits and losses as 2: 1. C and D are admitted and profit sharing ratio becomes 4: 2: 3: 1. Goodwill is valued at Rs. 30,000. D brings required amount for goodwill and LRs. 5,000 cash for capital. C brings in Rs. 5,000 cash and Rs. 6,000 worth of stock as his capital in addition to the required amount of goodwill in cash.  Show necessary journal entries.

13. X and Y are partners sharing profits and losses in the ratio of 3: 2. They admit Z into partnership. Z pays a premium of Rs. 15,000 for 1/4^th share of future profits. The new profit sharing ratio is 3: 3: 2. Goodwill Account appears in the books at Rs. 15,000. Pass journal entries.

14. X and Y are in partnership sharing profits and losses in the ratio 5: 3. They admit Z into partnership and the new profit sharing ratio 4: 3: 3. Agreed value of goodwill is Rs. 22,000 but Goodwill Account appears in the books at Rs. 12,000. Z contributes Rs. 20,000 as capital and necessary amount of premium, half of which is retained in the business. Show the journal entries.

15. A, B and C are partners sharing profits and losses in the ratio of 3: 2: 1. Their respective capitals are Rs. 75,000, Rs. 50,000 and Rs. 25,000. D is admitted into the partnership for 1/6^th share. It was agreed that he will bring Rs. 50,000 as capital and Rs. 25,000 as premium for goodwill. C should retain his original share. D paid in his capital money but in respect of premium he could bring only Rs. 12,500; you are required to: (i) give the journal entries to carry out the above arrangements; (ii) prepare Partners’ Capital Accounts; and (iii) calculate new profit sharing ratio.

16. Arun and Barun are partners in a firm sharing profits and losses in the ratio of 3: 2. Chanda is admitted as a new partner for 1/3^rd of future profits and brings in case Rs. 50,000 as capital and Rs. 30,000 as premium for Goodwill. As between Arun and Barun they decided to share future profits and Losses equally. Calculate sacrificing ratio of Arun and Barun, also pass necessary Journal entries in the books of the firm.

17. X, Y and Z are partners sharing profits in the ratio 3:2:1. It is now agreed that they will share the future profits equally. Goodwill of the firm is valued at Rs. 60,000/- and the same does not appear in the books. Pass necessary journal entries.   2015

18. A and B are partners sharing profits in the ratio of 5:4. They admit C in the firm for 1/4^th Share of profit. C takes 3/16^th from B. C brings in Rs 25,000 as capital and Rs 8,000 as premium for goodwill. The partners withdraw 40% of their respective share of premium. Pass the necessary Journal entries on C’s admission.     (5)             2012

19. Rohan and Sohan are partners sharing profits and losses in the ratio of 3:2. Mohan joins the firm as a new partner for 1/4^th share of future profit. Mohan brings Rs.20000 as capital and required amount of premium. The goodwill of the firm was valued at Rs. 30000. Give journal entries assuming that partner’s capitals are fixed.                5         2013

20. Neer and Sameer are partners in a firm sharing profits in the ratio of 5:3. On 1^st January 2012, their capitals were Rs.35000 and Rs.25000 respectively. On that date, they admitted Varun as a new partner for 1/5^th share in the profit. Varun brought in Rs. 20000 as capital and Rs.8000 for his premium for goodwill. Pass necessary Journal Entries in the books of the firm on Varun’s admission. The new profit sharing ratio will be 3:1:1.       5       2014

When the new partner cannot bring premium for goodwill

1. A and B are partners sharing profits and losses in the ratio of 3:2. They admit C as a new partner for 1/5^th future profits. He brings Rs. 20,000 as capital but is unable to bring premium in cash which is Rs. 10,000. Give journal entries assuming capital is fixed.

2. X and Y are partners sharing profits and losses in 2:1. They admit Z as new partner for 1/5^th share of future profits. Goodwill of the firm was valued at Rs. 30,000. Z brings Rs. 25,000 as capital but was unable to bring premium in cash. Give journal entries.

3. A and B are partners sharing profits and losses in the ratio 3: 2. They admit C as a partner, who is unable to bring goodwill in cash but pays Rs. 16,000 as his capital. Goodwill of the firm is valued at two years’ purchase of three years’ average profits. The profits for the three years were Rs. 10,000, Rs. 8,000 and Rs. 9,000. The new profit sharing ratio will be 1: 3: 1. Make journal entries.

4. A, B and C are partners sharing profits and losses in the ratio of 5: 4: 1 respectively. Two new partners are introduced, D and E. The profits are now to be shared in the ratio of 3: 4: 2: 2: 1 respectively. D is to pay in Rs. 30,000 for his share of the goodwill but E has insufficient cash to pay for goodwill. Both the new partners introduced Rs. 40,000 each as their capital. You are required to pass journal entries (no Goodwill Account is to be opened).

5. X and Y are partners sharing profits and losses in the ratio of 5: 3 and their capital on 1^st March, 2004 were Rs. 15,000 and Rs. 10,000 respectively. On 1^st March, 2004, they decided       to admit Z into partnership for one fourth share in future profit on condition that Z should bring in Rs. 16,000 as Capital in cash. He could not pay the goodwill amount is cash and goodwill of the firm valued at Rs. 9.600. Give Journal entries and prepare the combined Capital A/c of all the partners.

6. Akash and Bikash are partners in a partnership firm are the ratio of 2: 1. On 1^st January, 2008 Chinmoy was admitted as a new partner. Chinmoy is to get 1/10^th of future profits with a guaranteed minimum of Rs. 32,000. Akash and Bikash continue to share profits as before. The amount of profit for the year ended 31^st December, 2008 amounted Rs.2, 00,000. Prepare Profit and Loss Appropriation Account of the firm for the year ended 31^st December, 2008.

7. Ajoy, Bijoy and Chintu were partners sharing profits in the ratio of 3: 2: 1. On the occasion of Ajoy’s retirement, the building, creditors and stock of the firm were revalued at Rs. 90,000, Rs.        18,000 and Rs. 26,000 respectively. Book value of the building creditors and stock were Rs. 70,000, Rs. 20,000 and Rs. 30,000 respectively. Pass necessary Journal entries in the books of the firm for the above.

8. Arun, Barun and Tarun are in partnership business with capital of Rs. 70.000, Rs. 50,000 and Rs. 40,000 respectively. After providing interest on Capital at 8% p.a. they divide profit in the ratio of 3: 2: 1. Arun and Barun guaranteed that Tarun’s share of profit shall not be less than Rs. 12,000.The net profit for the year before providing interest on partners capital was Rs. 55,000. Prepare Profit and Loss appropriation account.

9. Boro and Kalita are partners sharing profit and losses in the ratio of 4 : 3. Limbu is admitted as a new partner. For Limbu’s admission goodwill of the firm is valued at Rs. 35,000. Limbu brings in Rs. 42,000 as capital but he could not bring his premium of goodwill. Boro, Kalita and Limbu will share future profit in the ratio of 2:2:1. Record the above transactions in the books of the firm.

10. A and B are partners sharing profits in the ratio of 5: 4. They admit C in the firm for 1/4^th share of profit. C takes 3/16^th from A and 1/16^th form B. C brings in Rs. 25,000 as capital and Rs. 8,000 as premium for goodwill. The partners withdraw 40% of their respective share of premium. Pass the necessary Journal entries on C‘s admission.

********************************************

ALSO READ (AHSEC ASSAM BOARD CLASS 12):

CHAPTERWISE PRACTICAL IMPORTANT QUESTIONS

********************************************

Admission of a Partner – Preparation of Balance Sheet

Q.1. Joy shankar and Bimal were partners in a firm sharing Profits and Losses in the ratio of 2: 1. With capital of Rs. 60,000 and Rs. 30,000 respectively. They decided to admit Ashok into partnership on condition that he would bring in Rs. 20,000 as his capital and Rs. 6,000 for his share of goodwill for 1/5^th share of profit. Half the amount of goodwill was withdrawn by the existing partners. The Capital of the partners in the new firm were to be arranged in profit sharing ratio or the basis of Ashok's capital and excess or deficit in capital to be adjusted by Cash. Give the necessary Journal entries to record the transaction and show the capital accounts of the partners.

Q.2. Bakul and Gakul were partners in a firm sharing profits and losses in the ratio of 2:1 with capitals of Rs. 40,000 and Rs. 30,000 respectively. They decided to admit Nakul into partnership on condition that he would bring in Rs. 20,000 as his capital and Rs. 6,000 for his share of goodwill for 1/4^th share of profits. Half of the amount of goodwill was withdrawn by the existing partners. The capital of the partners in the new firm were to be arranged in profit sharing ratio on the basis of Nakul’s capital and excess or deficit capital to be adjusted in cash. Give the necessary Journal entries to record the transaction and show the capital accounts of the partners and the cash account.

Q.3. The following is the Balance Sheet of P and R on 1.1.2000. The partners share profits in the ratio 2:1. [H.S.’ 01]

The partners admit S into partnership for 40% share on the following conditions:

1. S will bring Rs. 20,000 as capital.

2. Assets re revalued as follows: Furniture to be reduced by Rs. 1,000. (b) Plant is to be depreciated by 10%. (c) A Provision of 5% to be raised against Sundry Debtors. (d) Stock to be appreciated to Rs. 12,500

3. Goodwill of the firm is valued at Rs. 6,000.

                Give journal entries and draw the Balance Sheet after the admission of S.                           

Q.4. Jadu and Madhu share profits of a business in the ratio 2:1. The following was their Balance Sheet on 31^st December, 2018. [H.S.’ 07]

On 1^st January, 2006, Hari was admitted into the firm as a new partner on the following conditions:

a)      Hari will get 1/3^rd of future profit.

b)      He will bring Rs. 20,000 as capital and Rs. 6,000 as premium for Goodwill.

c)       Partners will withdraw half of the premium money.

d)      Machinery is to be appreciated by 10%, stock to be reduced by Rs. 600 and Reserve for doubtful debts is to be credited at 5% on debtors.         

Q.5. X and Y share profits and losses in the ratio 2: 1. Their position on 31^st December, 2002 was as follows: [H.S.;’04]

Balance Sheet of X and Y

It was decided to admit Z as a new partner for 1/8^th of future profits on 1^st January, 2003. Z shall bring Rs. 2,000 as his capital and Rs. 1,500 as his goodwill, to be retained in the business. At the time of Z’s admission it was decided to revalue the assets and liabilities as under: Freehold property Rs. 4,000 and Furniture Rs. 300. In addition to these, a provision for doubtful debts for Rs. 350 and a provision for outstanding expenses for Rs. 600 are to be made. Draft necessary Journal entries.

Q.6. A and B are partners of a firm sharing profits in the ratio of 3:1. The following is their Balance Sheet as on 31.12.2003:

On 1^st January, 2004. C is admitted into the firm as a new partner. He brings in Rs. 25,000 of which Rs. 5,000 is premium for goodwill. On C’s admission, fixed assets are revalued at Rs. 24,500 which provision for doubtful debts ins to be increased by Rs. 500. The new profit sharing ratio among the partners is 2:1:1. Capital of the new firm is to be adjusted on the basis of new partner’s capital.

Q.7. X and Y share profit and losses in the ratio of 2:1. Their position on 31^st December 2002 was as follows: [AHSEC:  2004]

Balance Sheet X and Y

It was decided to admit Z as a new partner for 1/8^th of future profits on 1^st January, 2003. Z shall bring Rs. 2,000 as his capital and Rs. 1,500 as his goodwill, to be retained in the business. At the time of Z’s admission it was decided to revalue the assets and liabilities as under: Freehold Property Rs. 4,000; Furniture Rs. 300. In addition to these, a provision for doubtful debts for Rs. 350 and a provision for outstanding expenses of Rs. 600 are to be made. Draft necessary Journal entries.                  

Q.8. Following is the Balance Sheet on 31^st December, 1990 of Sushil and Satish who are in partnership sharing profits and losses in the ratio 3: 2 respectively.  [A.H.S.E.C – 1991]

Balance Sheet as on 31.12.90

They admit Samir into partnership with effect from 1^st January, 1991 on the following conditions:

a)      Samir is to bring in Rs. 6,000 as capital and Rs. 4,800 for two-sevenths share of goodwill, both the sums remaining in the business.

b)      Freehold premises have been revalued at Rs. 15,000. Stock is to be discounted at 10% and provision for doubtful debts to be reduced by Rs. 1,000.

Pass Journal Entries in the books of the firm to record the transaction relating to Samir’s admission and prepare the balance sheet of Sushil, Satish, and Samir on 1^st January, 1991.                  

Q.9. Ram and Shyam share profits of a business in the ratio of 2: 1. They admit Rahim into the firm for ¼ shares in the profits. On the date of admission of Rahim, the Balance Sheet of the firm was as follows:  [A.H.S.E.C – 1999]

Terms of Rahim’s admission were as follows:

a)      Rahim will bring Rs. 20,000 as capital and 6,000 as premium for goodwill.

b)      Partners will withdraw half of the premium money.

c)       Machinery is to be appreciated by 10% stock is to be reduced by Rs. 600 and reserve for doubtful debts is to be created at 5% on debtors. Give journal entries and prepare Balance Sheet after Rahim’s admission.       

Q.10. Milu and Nilu are partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 1^st April, 2006 was as follows:                       [A.H.S.E.C – 1993]

On this date, Pilu was admitted as a partner. He paid Rs. 30,000 towards his capital but was unable to bring his share of goodwill of Rs. 6,000 in cash. The new profit sharing ratio is 3:3:2. Pass journal entries in the books of the firm and show the capital accounts of the partners and Balance Sheet of the new firm.       

Q.11. Mina and Nina were partners sharing profits and losses in the ratio of 2: 1. Their Balance Sheet as on 1^st June, 1996 was as follows: [A.H.S.E.C – 1997]

Balance Sheet of Mina and Nina as on 1 – 6 – 1996

On that date, Lina was admitted as a new partner. Lina paid Rs. 30,000 towards her Capital but was unable to pay anything for goodwill in cash. It was agreed that the goodwill will be valued at Rs. 21,000 for the purpose of admission. The new profit sharing ratio among Mina, Nina and Lina was 3:2:1 respectively. Investment is valued at Rs. 16,000. Pass journal entries to record the above transactions and show the Balance Sheet of the new firm.

Q.12. Bose and Das are partners in a firm. Their Balance Sheet as on 31^st March, 1997 was as follows:

On that date they decided to admit Mishra into partnership on the following terms:

a)      That Mishra was to bring in Rs. 3,000 as premium for goodwill for 1/5^th share in the future profits;

b)      That furniture was valued at Rs. 700;

c)       That Rs. 500 of the debtors is written off as irrecoverable debt and a 10% provision be made for doubtful debts.

d)      Investments worth Rs. 1,200 were to be taken into account.

e)      That Mishra was to bring in capital to the extent of his share of the total capital in the firm after adjustments.

Pass Journal entries to record the necessary adjustments for the admission of Mishra and prepare the opening Balance Sheet of the firm.

Q.13. A and B are partners sharing profits and losses A – 75% and B – 25% respectively. Their Balance sheet as on 31.03.2012 is given below:  5                       2013

X was admitted as a new partner on the following terms:

(i) That Plant and machinery is to be reduced by 25%.

(ii) Furniture is to be depreciated by 10%.

(iii) Bad debts amounted to Rs.1750 and are to be written off.

(iv) There was an unrecorded typewriter valued at Rs.5000.

(v) Outstanding legal charges estimated at Rs.1250.

Prepare a Revaluation Account.

Q.14. Ram and Shyam are partners sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 31-03-2014 is given below:     3+2+3=8         2015

Balance Sheet

As on 31-03-2014

Hari was admitted as a new partner on the following conditions:-

a)      That Hari bring Rs. 40,000/- for his capital and Rs. 20,000/- for the premium.

b)      That Hari will get 1/3^rd share in future profit.

c)       That the value of stock is be reduced by Rs. 7,000/-

d)      That the value of Plant and Machinery is to be depreciated by 20%.

e)      Furniture is to be reduced by 10%.

f)       Bad debts amounted to Rs. 2,000/- and are to be written off.

g)      There was an unrecorded computer valued at Rs. 10,000/- and the same is to be brought into books now.

Prepare a Pre-valuation Account, Partner’s Capital Account and the re-constituted Balance Sheet after Hari’s admission.

********************************************

ALSO READ (AHSEC ASSAM BOARD CLASS 12):

1. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE NOTES

2. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION (THEORY)

3. AHSEC CLASS 12 ACCOUNTANCY IMPORTANT QUESTION BANK (PRACTICAL)

4. AHSEC CLASS 12 ACCOUNTANCY PAST EXAM PAPERS (FROM 2012 TILL DATE)

5. AHSEC CLASS 12 ACCOUNTANCY SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)

6. AHSEC CLASS 12 ACCOUNTANCY CHAPTERWISE MCQS

********************************************

Q.15. A and B are two partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31^st March, 2015 was as follows: 2016

Balance Sheet

On 01-4-2015, C was admitted as a new partner for 1/4^th share in the future profits on the following conditions:

a)      C will bring Rs. 20,000/- as Capital and Rs. 6,000/- as premium for goodwill.

b)      The Land & Buildings will be revalued at Rs. 35,000/-

c)       Plant & Machinery and Furniture will be depreciated by 5% and 10% respectively.

d)      Stock will be reduced by Rs. 2,000/-

Give Journal entries and prepare the Balance Sheet of the firm after C’s admission.                                        

Q.16. Ram and Shyam are partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 1^st April, 2016 was us under:                  2017

Balance Sheet

On that date, Barun was admitted as a new partner. He paid Rs. 30,000/- towards his capital, but was unable to bring his share of Goodwill of Rs. 6,000/- in cash. The new profit sharing ratio was agreed to be 3:2:2.

Pass Journal entries in the books of the new firm and show the Balance Sheet of the new firm.                                                

Q.17. A and B are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31^st March, 2017 was as follows: 2018

Balance Sheet

C was admitted as new partner on the following terms and conditions:

1)      C will bring Rs. 15,000/- for capital and Rs. 5,000/- for his share of Goodwill for 1/6^th share in the future profits.

2)      The value of stock to be reduced by Rs. 2,000/- and that of Machinery be increased by Rs. 8,000/-

3)      The value of furniture to be fixed at Rs. 9,000/-

Pass journal entries in the books of the firm and prepare the Balance Sheet of the new firm.                     

Q.18. Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio 3 : 2. Their Balance Sheet as on 31^st December, 2018 was as under:  2019

Balance Sheet

On that date Kailash was admitted as a new partner. He paid Rs. 40,000 as his capital and Rs. 20,000 for his share of goodwill. The new profit sharing ratio was agreed to be 2 : 1 : 1.

Pass Journal Entries in the books of the firm and show the Balance Sheet of the new firm.

Q.19. Jugal and Govind are partners in a firm sharing profits and losses in the ratio 2 : 1. Their Balance Sheet as on 1^st June, 2019 was as under:          2020

Balance Sheet

On the date Khirod was admitted as a new partner. He paid Rs. 30,000 towards his capital but unable to pay anything for goodwill in cash. It was agreed that goodwill will be valued at Rs. 21,000. The new profit sharing ratio among Jugal, Govind and Khirod was agreed at 3 : 2 : 1 respectively. Pass Journal Entries to record the above transactions and show the Balance Sheet of the new firm.

Q.20. Ram and Mohan are partners sharing profits and losses equally. Their Balance Sheet on 1^st April, 2021 was follows:    2022

Balance Sheet

They decided to admit Sanjoy into partnership for 1/3^rd share on the following terms:

(1)       Machinery and Buildings were revalued at Rs. 20,000 and Rs. 42,000 respectively.

(2)       Creditors were reduced by Rs. 2,000.

(3)       Provision for doubtful debts on debtors is to be created at Rs. 1,000.

(4)       Sanjoy is to bring in Rs. 40,000 as his capital and Rs. 24,000 as premium for goodwill.

Pass journal entries for the above information and prepare Balance Sheet of the firm after the admission of Sanjoy.