Q1)Enlist any two modes of reconstitution of partnership other
than retirement and death of partner.
Q2)What moral values do we learn from Revaluation Account?
Q3)State whether the following statement is true or false.‘A
new partner can be admitted into a partnership firm with the consent of
majority of partners.’
Q4)Rohan and Ali are two equal partners in a partnership firm.
On April 01, 2012, their manager Steve died. Due to the poor financial
condition of Steve's wife Kim, Rohan decided to admit her (Kim) as a partner. Identify
the values involved in this scene.
Q5)Mention any two rights that are acquired by a newly admitted
partner in a partnership firm.
Q6)What is the logic behind revaluing assets and liabilities at
the time of admission of a new partner?
Q7)In which ratio, the revaluation profit is distributed among
the old Partners’ Capital Account? Pass the necessary Journal entry of
distribution of the revaluation profit.
Q8)Ankita and Babita are partners in a firm sharing profits and
losses in the ratio of 2:1. Their capital balances are Rs 1,40,000 each. They
agreed to admit Savitri for
th share of profit in the firm on
the condition that Savitri will bring Rs 1,20,000 as her share of capital.
Calculate the Savitri’s share of goodwill.
th share of profit in the firm on
the condition that Savitri will bring Rs 1,20,000 as her share of capital.
Calculate the Savitri’s share of goodwill.
Q9)Rohit and Javed are partners in a partnership firm sharing
profits and losses in the ratio of 2:1. They agreed to admit Manu forth share in the firm. The profit
sharing ratio becomes 2:1:1. Manu was to bring Rs 1,50,000 and Rs 18,000 as his
share of capital and goodwill. But Manu was able to brought only Rs 12,000 as
goodwill. The books of old partnership firm showed goodwill of Rs 45,000. Pass
the necessary Journal entries, assuming that no goodwill account will appear in
the books of the new firm after the admission of Manu.
th share in the firm. The profit
sharing ratio becomes 2:1:1. Manu was to bring Rs 1,50,000 and Rs 18,000 as his
share of capital and goodwill. But Manu was able to brought only Rs 12,000 as
goodwill. The books of old partnership firm showed goodwill of Rs 45,000. Pass
the necessary Journal entries, assuming that no goodwill account will appear in
the books of the new firm after the admission of Manu.
Q10)Anand
and Vivek were partners in a firm sharing profits and losses equally. They
admitted Prem as a new partner. They agreed to share future profits and losses
in the ratio of 4:2:1. Prem was to bring Rs 50,000 as his share of
goodwill. Calculate the sacrificing ratio of the old partners and pass the
necessary Journal entries.
Q11)Calculate new and sacrificing ratio in each of the following
cases.
(i)A and B are partners sharing profits and losses in the
ratio 7:3. They admitted C for 1/5th share.
(ii) A and B are partners sharing
profits and losses in the ratio 7:3. They admitted C for 1/5th
share, which he takes 1/3rd from A and 2/3rd from
B.
(iii) A and B are partners sharing profits and losses in the ratio 7:3.
They admitted C for 1/5th share, which he takes equally from A and
B.
(iv) A and B are partners sharing profits and losses in the ratio 7:3. C
is admitted in the firm. A surrenders 1/10th of his share and B
surrenders 1/8th of his share in favour of C.
Q12)Pass Journal entries in each of the following cases.
(i)
A
and B are partners sharing profits and losses in the ratio 5:3. They admitted C
for 1/5th share in the firm. C is to bring Rs 10,000 as capital and
Rs 4,000 as his share of goodwill. At the time of C’s admission, goodwill
appeared in the books at Rs 16,000.
(ii)
A and B are partners sharing profits and
losses in the ratio 3:2. They admitted C for 1/4th share which he
takes equally from A and B. C’s share of capital and goodwill is Rs 30,000 and
Rs 10,000. He brought stock of Rs 12,000, Debtors of Rs 15,000 and rest of
the amount in cash as his share of capital and goodwill.
(iii)
A and B are partners sharing profits and losses in the ratio 2:1. C is admitted
for 1/6th share. C brings Rs 20,000 as capital and nothing for
goodwill. C's share of goodwill is Rs 6,000.
(iv)
A and B were partners sharing profits and losses in the ratio 3:2. C was
admitted for 1/8th share in future profits. His share of goodwill
was Rs 10,000. C brought only 50% of his share of goodwill in cash and 80% of
which was withdrawn by A and B immediately.
(v)
A and B are partners sharing profit and loss in the ratio 4:1. Their capitals
are fixed. Due to financial difficulty, they decided to admit C for 1/5th
share in the firm. C is to bring Rs 50,000 as his share of capital and Rs
12,000 as his share of goodwill. C was not able to bring his share of
goodwill.
(vi)
A and B are partners sharing profits and losses in the ratio 8:6. They admitted
C for 1/4th share. C brought Rs 14,000 as his share of goodwill
which was immediately withdrawn by A and B.
Q13)Pass Journal entries in each of the following cases.
(i)
A and B are partners sharing profits and losses in the ratio 5:3. They admitted
C for 1/5th share in the firm. C is to bring Rs 10,000 as capital
and Rs 4,000 as his share of goodwill. At the time of C’s admission, goodwill
appeared in the books at Rs 16,000.
(ii)
A and B are partners sharing profits and losses in the ratio 3:2. They admitted
C for 1/4th share which he takes equally from A and B. C’s share of
capital and goodwill is Rs 30,000 and Rs 10,000. He brought stock of Rs
12,000, Debtors of Rs 15,000 and rest of the amount in cash as his share
of capital and goodwill.
(iii)
A and B are partners sharing profits and losses in the ratio 2:1. C is admitted
for 1/6th share. C brings Rs 20,000 as capital and nothing for
goodwill. C's share of goodwill is Rs 6,000.
(iv)
A and B were partners sharing profits and losses in the ratio 3:2. C was
admitted for 1/8th share in future profits. His share of goodwill
was Rs 10,000. C brought only 50% of his share of goodwill in cash and 80% of
which was withdrawn by A and B immediately.
(v)
A and B are partners sharing profit and loss in the ratio 4:1. Their capitals
are fixed. Due to financial difficulty, they decided to admit C for 1/5th
share in the firm. C is to bring Rs 50,000 as his share of capital and Rs
12,000 as his share of goodwill. C was not able to bring his share of
goodwill.
(vi)
A and B are partners sharing profits and losses in the ratio 8:6. They admitted
C for 1/4th share. C brought Rs 14,000 as his share of goodwill
which was immediately withdrawn by A and B.
Q14)P and Q are partners sharing profits and losses in the ratio
3:2. On December 31, 2010, they admitted S for 1/5th share in the firm.
On the date of S admission the Balance Sheet of the firm was as given below.
|
Balance Sheet
|
|||||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
Capital
|
|
Sundry Debtors
|
30,000
|
|
|
|
P
|
50,000
|
|
Less: Provision for
|
|
|
|
Q
|
30,000
|
80,000
|
Doubtful
Debt
|
1,500
|
28,500
|
|
|
|
Bills Receivable
|
6,000
|
||
|
General Reserve
|
10,000
|
Cash in hand
|
12,000
|
||
|
Workmen Compensation Reserve
|
10,000
|
Stock
|
30,000
|
||
|
Sundry Creditors
|
30,000
|
Investment
|
10,000
|
||
|
Bank Overdraft
|
10,000
|
Patents
|
2,000
|
||
|
10% Bank Loan
|
50,000
|
Land and Building
|
40,000
|
||
|
|
|
Machinery
|
30,000
|
||
|
|
|
Goodwill
|
20,000
|
||
|
|
|
Profit and Loss
|
11,500
|
||
|
|
1,60,000
|
|
1,60,000
|
||
|
|
|
|
|
||
S brings
Rs 40,000 as capital and required amount of his share of goodwill in cash. As
per the deed, goodwill of the new firm will be equal to the difference between
new firm’s capital on the basis the basis of S’s share and the capital of all
partners after making adjustments of undistributed items and revaluation profit
and loss.
The
following adjustments are to be made at the time S’s admission.
(i)
Interest on loan outstanding for three months.
(ii) A
worker being injured on-duty, has to be paid Rs 7,000 as compensation.
(iii)
Provision for Doubtful Debt is no more required.
(iv)
Patents not to be shown in the books of the new firm.
(v)
Creditors of Rs 2,000 remained unclaimed.
Pass
necessary Journal entries and prepare Revaluation Account, Partners’ Capital
Accounts and the Balance Sheet after admission of S.
Q15)X and Y were partners in a business sharing profits and
losses in the ratio 3:2. They admitted Z for1/4th share. On the date
of Z’s admission the Balance Sheet was as given below.
|
Balance Sheet
|
||||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
Sundry Creditors
|
15,000
|
Cash
|
2,000
|
|
|
Outstanding Expenses
|
2,000
|
Sundry Debtors
|
6,000
|
|
|
Capital :
|
|
Stock
|
8,000
|
|
|
X
|
40,000
|
|
Investment
|
12,000
|
|
Y
|
33,000
|
73,000
|
Machinery
|
20,000
|
|
|
|
Building
|
40,000
|
|
|
|
|
Goodwill
|
2,000
|
|
|
|
90,000
|
|
90,000
|
|
|
|
|
|
|
|
C brought
Rs 30,000 as his share of capital but unable to brought Rs 10,000 as his share
of goodwill.
On C’s
admission, Creditors were increased by Rs 2,000, Debtors Rs 200 proved bad,
Building appreciated by 10%.
In the new
firm, capital of the all partners was to be kept in proportion of their profit
sharing ratio and any surplus or deficiency in the capital is to be adjusted by
opening partners’ current account.
C’s share
of capital was taken as base for determining the capital of the new firm.
Pass
necessary Journal entries and prepare Revaluation Account, Partners Capital
Account and Balance Sheet.
Q16)Gopal and Dilip were partners in a firm sharing profits and
losses equally. On March 31, 2010, their Balance Sheet stands as below.
|
Balance
Sheet
|
||||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
Creditors
|
1,00,000
|
Stock
|
50,000
|
|
|
Capital:
|
|
Debtors
|
1,10,000
|
|
|
Gopal
|
1,50,000
|
|
Fixed Assets
|
2,40,000
|
|
Dilip
|
1,50,000
|
3,00,000
|
|
|
|
|
4,00,000
|
|
4,00,000
|
|
|
|
|
|
|
|
On
the above date, Kapil was admitted for
rd share in the firm on the basis
of the following terms.
rd share in the firm on the basis
of the following terms.
a.
Stock to be reduced by Rs 5,000
b.
A person owed Rs 10,000 to the business became insolvent, his official receiver
will pay 50% amount in the next year and the remaining amount has been declared
as bad.
c.
There was an unrecorded asset worth Rs 10,000.
Prepare
the Revaluation Account to record the above terms.
Q17)Malvika and Arpita were partners sharing profits and losses
in the ratio of 3:2. They admited Disha for
th share in the firm’s profit. On
the date of admission, the capital account balances of Malvika and Arpita were
Rs 2,50,000 and Rs 2,00,000 respectively, General Reserve Rs 1,00,000, Profit
and Loss (Dr.) Rs 50,000. Disha was to bring in sufficient cash in order to
make her capital 25% of the firm’s capital after adjusting all the above
adjustments. Calculate the capital account balances of all the three partners
by preparing Partners’ Capital Account. Also show the working notes properly.
th share in the firm’s profit. On
the date of admission, the capital account balances of Malvika and Arpita were
Rs 2,50,000 and Rs 2,00,000 respectively, General Reserve Rs 1,00,000, Profit
and Loss (Dr.) Rs 50,000. Disha was to bring in sufficient cash in order to
make her capital 25% of the firm’s capital after adjusting all the above
adjustments. Calculate the capital account balances of all the three partners
by preparing Partners’ Capital Account. Also show the working notes properly.
Q18)Payal owned a business. Her Balance sheet as on March 31,
2010 is:
|
Balance
Sheet
|
|||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
Bills
Payable
|
70,000
|
Cash in
Hand
|
30,000
|
|
Sundry
Creditors
|
70,000
|
Cash at
Bank
|
50,000
|
|
Salaries
Outstanding
|
20,000
|
Sundry
Debtors
|
90,000
|
|
General
Reserve
|
40,000
|
Stock
|
70,000
|
|
Capital
|
3,00,000
|
Machinery
|
1,00,000
|
|
|
|
Building
|
1,60,000
|
|
|
5,00,000
|
|
5,00,000
|
|
|
|
|
|
She
admitted Swati into partnership on April 01, 2011 on the following terms.
a. The
profits of the firm was decided to be shared in the ratio of 2:1.
b. She
need to bring her share of capital in the form of Machinery of Rs 2,00,000 and
goodwill in form of cash of Rs 50,000.
c.
Building is to be appreciated by 20%
d. A
provision for doubtful debts is to be created by 5% on Debtors
e.
Machinery to be depreciated by 10%
Prepare
Revaluation Account, Capital Account and Balance Sheet.
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