Partnership

Admission

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Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of 3:2. They admitted Daniel as a new partner for 1/4 share. The new profit sharing ratio between Naveen and Ghanshyam will be 2:1. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :

1:1:1

2:1:1

2:1:2

2:1:3

✅ Correct Option: 2

Daniel is admitted for 1/4 share of profits.

Remaining share available for Naveen and Ghanshyam = $1 - \frac{1}{4} = \frac{3}{4}$

This remaining share of $\frac{3}{4}$ is to be divided between Naveen and Ghanshyam in the ratio 2:1.

Naveen's share = $\frac{3}{4} \times \frac{2}{3} = \frac{2}{4} = \frac{1}{2}$

Ghanshyam's share = $\frac{3}{4} \times \frac{1}{3} = \frac{1}{4}$

Daniel's share = $\frac{1}{4}$

New Profit Sharing Ratio:

Naveen : Ghanshyam : Daniel = $\frac{1}{2} : \frac{1}{4} : \frac{1}{4}$

Multiplying by 4 to remove fractions:

= 2 : 1 : 1

Verification: $\frac{2}{4} + \frac{1}{4} + \frac{1}{4} = \frac{4}{4} = 1$ ✓

The correct answer is Option 2: 2:1:1

2025: 14 May Shift 1

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

2026: 21 May Shift 2

If the partners decide to withdraw the amount of premium for goodwill credited to their capital account, the following entry will be passed:

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(Items to be adjusted on admission)	(side of account.)
(A) Existing goodwill	(i) Debit of capital account.
(B) Increase in value of assets.	(ii) Debit of revaluation account.
(C) Decrease in value of assets.	(iii) Credit of revaluation account.
(D) New partner capital.	(iv) Credit of capital account.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

For the right to acquire share in the assets and profits of the partnership firm, the new partner brings:

2025: 3 June Shift 1

Arrange the following steps which involve the Super Profits Method of valuation of goodwill in the correct sequence:

(A) Calculate the average profit.

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

(D) Calculate the super profits by deducting normal profit from the average profits.

Choose the correct answer from the options given below:

2026: 21 May Shift 2

"Sometimes a partner is admitted into the firm with a guarantee of a certain minimum amount by way of their share in the profits of the firm." Identify which of the following is incorrect about such assurance.

Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of 3:2. They admitted Daniel as a new partner for 1/4 share. The new profit sharing ratio between Naveen and Ghanshyam will be 2:1. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :

Solution

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