AfterBoards Logo
Skip to main contentSkip to solution

CUET Accountancy 2025 PYQs13 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 13 May Shift 2

Admission

past year questions, Partnership, CUET Accountancy 2025 13 May Shift 2

Medium

Arrange in correct sequence at a time of admission of partner-

(A) Adjustments of capital accounts.

(B) Valuation of goodwill

(C) Calculation of new profit sharing ratio and sacrificing ratio.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

When a new partner is admitted to a partnership firm, the adjustments must follow a logical sequence:

First: Calculate new profit sharing ratio and sacrificing ratio (C)

The new profit sharing ratio determines how profits will be shared among all partners (old + new) after admission. The sacrificing ratio shows the proportion in which old partners sacrifice their share in favour of the new partner.

Sacrificing Ratio = Old Ratio - New Ratio

This calculation must come first because the sacrificing ratio is needed for the next step.

Second: Valuation of goodwill (B)

Once the sacrificing ratio is known, goodwill is valued and adjusted. The new partner compensates the old partners for their sacrifice by bringing in their share of goodwill. This compensation is distributed among old partners in their sacrificing ratio (not old profit sharing ratio).

Without knowing the sacrificing ratio from step (C), goodwill cannot be properly adjusted among the partners.

Third: Adjustment of capital accounts (A)

After all other adjustments are complete (goodwill, revaluation of assets and liabilities, accumulated reserves and profits), the capital accounts are finally adjusted. Partners' capitals are brought in proportion to their new profit sharing ratio if required.

This must be done last because it depends on the completion of all prior adjustments.

Therefore, the correct sequence is (C) → (B) → (A).

Correct Answer: Option 4

Related questions:

2025: 27 May Shift 2

________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

2022: 20 July Shift 1

At the time of admission of a partner, if nothing is specified then new partner acquires his share from old partners.

2023: 28 May Shift 1

Goodwill brought by Suraj will be distributed as :

2026: 12 May Shift 1

Sachin and Sohail, are partners, sharing profits in the ratio of 2:1. Sonam is admitted into the firm for 1/4 share of profits. Sonam brings in Rs. 20,000 in respect of his capital. The capitals of old partners, Sachin and Sohail, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners capital should be according to the new profit-sharing ratio. What would be the new profit sharing ratio of Sachin, Sohail, and Sonam?

2025: 3 June Shift 1

The journal entries recorded for revaluation of assets and reassessment of liabilities are given here, find the correct :

(A) For increase in the value of an asset

Asset A/c Dr.

To Revaluation A/c

(B) For reduction in the value of an asset

Revaluation A/c Dr.

Asset A/c

(C) For increase in the amount of a liability

Liability A/c Dr.

To Revaluation A/c

(D) For recording in the amount of a unrecorded liability

Revaluation A/c Dr.

To Liability A/c

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Riya and Kiya are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Siya on Jan. 1, 2025 as a new partner for 1/5th share in the future profits. Siya brought Rs. 60,000 as his capital and the necessary amount of goodwill. Calculate Siya's share of goodwill.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Accountancy Past Year Questions (Topic-Wise)