Admission of Partner
- X and Y sharing profit and losses in the ratio of 3: 2 Z is admitted with 1/5th Shares in profits of the firm which he gets from X. Find out the new profit sharing ratio ?
(a) 12 : 8: 5
(b) 8 : 12: 5
(c) 2 : 2: 1
(d) 2 : 2 : 2 - A and B are partners sharing profit and losses in the ratio 5 :3 on admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B , C is 7 : 5 : 4. The sacrificing ratio among A and B is:
(a) 3:1
(b) 4: 7
(c) 5: 4
(d) 2: 1 - X and Y are partners sharing profit in the ratio 5 :3 they admitted Z for 1/5 share of profit, for which he paid Rs. 1,20,000 against capital fund and Rs. 60,000 as goodwill. Find the capital balance for each partners taking Z’s Capital as base capital:
(a) 3,00,000 , 1,20,000 and 1,20,000
(b) 3,00,000, 1,20,000 and 1,80,000
(c) 3,00,000, 1,80,000 and 1,20,000
(d) 3,00,000, 1,80,000 and 1,80,000 - General Revenue at time of admission of a new partner is transferred to :
(a) Profit and loss adjustment account
(b) Partner’s capital account
(c) Revaluation account
(d) Memorandum revaluation account - A and B are partners sharing profit is the ratio of 7 : 3. C is admitted as a new partner. A surrenders 1/7 of his share and B surrender 1/3rd of his share in favour of C. The new profit sharing ratio will be:
(a) 6 : 2: 2
(b) 4:1 :1
(c) 3 : 2 : 2
(d) None - The balance of memorandum revaluation account (second part) is transferred to the capital accounts of the partners in:
(a) Capital ratio
(b) Old profit sharing ratio
(c) New profit sharing ratio
(d) Sacrificing sharing ratio - X and Y share profit and losses in the ratio of 4 : 3. They admit Z in the firm with 3 / 7 share which he gets 2 /7 from X and 1/7 form Y.
The new ratio sharing ratio will be:
(a) 7 : 3 : 3
(b) 2 : 2 : 3
(c) 5 : 2 : 3
(d) 2 : 3 : 3 - A and B are partners sharing profit in the ratio 5 :3 They admit C with 1/5 share in profit, which he acquires equally from both 1/10 form A and 1/10 from B. New profit sharing ratio will be:
(a) 21 : 11: 8
(b) 20 : 10 : 4
(c) 15 : 10 : 5
(d) None - A firm has an unrecorded investment of Rs. 5,000. Entry in the firm’s journal on admission of a partners will:
(a) Revaluation A/c Dr. 5,000
To Unrecorded Investment A/c 5,000
(b) Unrecorded investment A/c Dr. 5,000
To Revaluation A/c 5,000
(c) Partner’s Capital A/c Dr. 5,000
To Unrecorded investment – 5,000
(d) None of these - A, B and C share profits and losses in the ratio of 3: 2: 1. D is admitted with 1/6th share which he gets entirely from A. New ratio will be:
(a) 1/3 : 1/3 ∶ 1/6 : 1/6
(b) 3 : 1 : 1 : 1
(c) 2 : 2 : 2 : 1
(d) None - A, B , C are partner sharing profit in the ratio of 4 : 3 : 2. D is admitted for 2/9th share of profit and brings Rs. 30,000 as capital and 10,000 for his share of goodwill. The new profit sharing ratio between partners will be 3 : 2 : 5 : 2. Goodwill amount will be credited in the capital account of:
(a) A only (equally)
(b) A, B and C (equally)
(c) A and B (equally)
(d) A and C (equally) - A and B are partners of a firm sharing profit in the ratio of 3 : 2. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value Rs. 80,000) and building would be depreciated by 20% ( Rs. 2,00,000) Unrecorded debtors of Rs. 1,250 would be bought to books and creditors of Rs. 2,750 died and needn’t to pay anything. What will be the profit/ loss on revaluation?
(a) Loss Rs. 28,000
(b) Loss Rs. 40,000
(c) Profit Rs. 28,000
(d) Profit Rs. 40,000 - X and Y are partners sharing profit in the ratio of 3 : 1 they admit Z as a partner who pays Rs.4,000 as goodwill, the new profit sharing ratio being 2 : 1 : 1 among X, Y, Z. The amount of goodwill will be credited to:
(a) X and Y as Rs. 3,000 and Rs. 1,000
(b) X only
(c) Y only
(d) None - When balance sheet prepared after the new partnership agreement, assets and liability are recorded at:
(a) Original value
(b) Revaluation figure
(c) At Current cost
(d) At Realisable value - A and S are partners sharing profit in the ratio of 5: 3. T joins the firms. R gives 1/4th of share and S gives,1/5th of his share to the new partner. Find out new ratio.
(a) 75:48:37
(b) 45:32:27
(c) 13:7:4
(d) None - A, B , and C are equal partners, they wanted to change the profit sharing ratio into 4 : 3: 2. They raised the goodwill to Rs. 90,000 but want to write it off immediately. The effected account will be:
(a) C’s Capital A/c Dr. 10,000
To A’s Capital A/c 10,000
(b) B’s Capital A/c Dr. 10,000
To A’s Capital A/c 10,000
(c) C’s Capital A/c Dr. 10,000
To B’s Capital A/c 10,000
(d) A’s Capital A/c Dr. 10,000
To C’s Capital A/c 10,000 - A, B and C are partners sharing profit in ratio of 3 : 2 ; 1. They agree to admit D into the firm. A , B and C agreed to give 1/3rd, 1/6th , 1/9th share of profit of D will be:
(a) 1/10
(b) 13/54
(c) 12/54
(d) 10/55 - A and B are partners sharing profit and losses in ratio of 3:2
A’s Capital = Rs. 30,000
B’s Capital = Rs. 15,000
They admit C and agreed to give 1/5th share of Profit to him.
How much C should being in towards his capital ?
(a) Rs. 9,000
(b) Rs. 12,000
(c) Rs. 14,500
(d) Rs. 11,250 - Reserve appearing in the balance sheet will be divided among partners during admission –––––- ratio.
(a) Old
(b) New
(c) Sacrificing
(d) Gaining - X and Y are partners sharing profit equally. Z was admitted for 1/7th share. Calculated new profit sharing ratio.
(a) 2:3:1
(b) 3:3:1
(c) 6:5:2
(d) 1:1:1 - A, B, C and D, are partners sharing their profit and losses equally. They change their profit sharing ratio of 2 : 2 : 1 : 1. How much will C sacrifice ?
(a) 1/6
(b) 1/12
(c) 1/24
(d) None - A and B share profit equally. They admit C with 1/7th share. The new profit sharing ratio of A and B is
(a) 4/7 : 1/7
(b) 3/7 : 3/7
(c) 2/7 : 2/7
(d) None - A and B are partners, C is admitted with 1/5th share C brings Rs. 1,20,000 as his share towards
capital. The total net worth of the firm is:
(a) Rs. 1,00,000
(b) Rs. 4,00,000
(c) Rs. 1,20,000
(d) Rs. 6,00,000 - A and B share profit in the ratio of 3 :2. A’s capital is Rs. 48,000 B’s capital is Rs. 32,000. C is admitted for 1/5th share in profits. What is the amount of capital which C should bring?
(a) Rs. 20,000
(b) Rs. 16,000
(c) Rs. 1,00,000
(d) Rs. 64,000 - A and B share profit in the ratio of 3:4 C was admitted for 1/5th share. Calculate the new profit
sharing ratio.
(a) 3 : 4 : 1
(b) 12 : 16: 7
(c) 16 : 12 : 7
(d) None of these - On account of admission, the assets are revalued and liability are reassessed in ––––––– Account.
(a) Partner’s Capital A/c
(b) Revaluation A/c
(c) Realization A/c
(d) Balance sheet - The opening balance of partner’s capital account is credited with:
(a) Interest on capital
(b) Interest on drawings
(c) Drawings
(d) Share in loss - X and Y share profit / loss in the ratio of 5 :3. Z admitted as partner for 1/5, which he is taking equally from old partners. New profit sharing ratio is :
(a) 21 : 11: 8
(b) 20: 8: 7
(c) 20: 12: 8
(d) 10: 5 : 5 - A and B are partners C is admitted with a guarantee profit of Rs. 10,000 from A with a new profit sharing ratio of 3 : 2 : 1 profit for the year 2009-10 is Rs. 1,20,000. How much profit C will get ?
(a) Rs. 10,000
(b) Rs. 20,000
(c) Rs. 30,000
(d) None of these - On the admission of new partner, which one of the following lying in the balance sheet should be transferred to the capital account of the partners in the old profit sharing ratio?
(a) Bank overdraft
(b) General Reserve
(c) Bill payable
(d) Outstanding expenses - Which account will be prepared at the time of admission of a new partners for giving effect of revaluation of assets and liability without changing the value of assets and liability of old Balance sheet?
(a) P & L Adjustment A/c
(a) Revaluation A/c
(c) Memorandum Revaluation A/c
(d) Realisation A/c - Sacrificing ratio is computed at the time of ––––––––––––––––
(a) Retirement of a partner
(b) Admission of a partner
(c) Insolvency of a partner
(d) Death of a partner - Rahul and Bajaj are partners sharing profit loss in the ratio of 1:2. Birla is admitted in partnership for ½ share of profit and their new profit sharing ratio is 1 : 2: 3. Their sacrificing ratio will be
(a) 1 :3
(b) 2 :1
(c) 3 :1
(d) 1 :2 - A and B are partners sharing profit and loss in the ratio of 5 : 3. C is admitted and on the date of admission brings in cash
70,000 as capital and Rs. 48,000 as goodwill. New profit sharing ratio of A, B, and C are 7 : 5 : 4. The sacrificing ratio amongst A and B would be:
(a) 1 :3
(b) 3 :1
(c) 5 :4
(d) 3 :5