Partnership

Admission

Easy

common

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner for 1/3 share, the sacrificing ratio between A and B is

3:2

1:1.

2:3.

3:1

✅ Correct Option: 1

Given Information:

Old ratio of A and B = 3:2
C is admitted for 1/3 share

Finding Old Shares:

A's old share = $\frac{3}{5}$

B's old share = $\frac{2}{5}$

Finding New Shares:

C's share = $\frac{1}{3}$

Remaining share for A and B = $1 - \frac{1}{3} = \frac{2}{3}$

This remaining share will be divided between A and B in their old ratio of 3:2.

A's new share = $\frac{2}{3} \times \frac{3}{5} = \frac{6}{15} = \frac{2}{5}$

B's new share = $\frac{2}{3} \times \frac{2}{5} = \frac{4}{15}$

Calculating Sacrifice:

Sacrifice = Old Share - New Share

A's sacrifice = $\frac{3}{5} - \frac{2}{5} = \frac{1}{5}$

B's sacrifice = $\frac{2}{5} - \frac{4}{15} = \frac{6}{15} - \frac{4}{15} = \frac{2}{15}$

Sacrificing Ratio:

Sacrificing Ratio = A's sacrifice : B's sacrifice

= $\frac{1}{5} : \frac{2}{15}$

= $\frac{3}{15} : \frac{2}{15}$

= 3:2

The sacrificing ratio remains the same as the old profit sharing ratio because both partners sacrificed in the same proportion as they were sharing profits earlier.

2026: 29 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	General Reserve	I.	Old Share - New Share
B.	Sacrificing Ratio	II.	Credit to Revaluation A/c
C.	Increase in value of Asset	III.	Debit to Revaluation A/c
D.	Increase in value of Liability	IV.	Accumulated Profit

Choose the correct answer from the options given below:

2025: 22 May Shift 2

Arrange the steps in proper sequence to calculate Goodwill through Super profits Method.

(A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(B ) Calculate the average profit.

(D) Multiply super profits by the given number of years purchased.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Arrange the steps of method, Capitalization of Average for the calculation of goodwill, in the correct sequence:

(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows:

Average Profits × 100/Normal Rate of Return

(B) Ascertain the average profits based on the past few years' performance.

(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).

Firms' Capital = Total Assets (excluding goodwill) – Outside Liabilities

Where outside Liabilities include both long term and short term Liabilities

(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.

Choose the correct answer from the options given below:

2026: 29 May Shift 1

Arun and Anuj are partners sharing profits in the ratio of 2:1. Varun was admitted for 1/4 share, half of which was given by Arun and the remaining was contributed by Anuj. Goodwill of the firm is valued at Rs. 40,000. How much of the goodwill will be credited to old partners' capital account?

2025: 13 May Shift 2

In this case Average profit is -

2026: 29 May Shift 2

Arrange the following steps in the correct accounting sequence when hidden goodwill is adjusted through capital accounts:

A. Calculate the actual total capital of all the partners including the new partner.

B. Calculate the firm's total capital on the basis of new partners share

C. Determine the difference between the two capitals.

D. Determine new profit sharing ratio

Choose the correct answer from the options given below:

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner for 1/3 share, the sacrificing ratio between A and B is

Solution

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