Partnership

Admission

Medium

common

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively. They agreed to share profits in the ratio of 3:2. The books are closed on March 31, every year. They admit Ravi on October 1, 2019 in the partnership, who bring Rs 12,00,000 as capital and Sameer also introduced additional capital Rs 3,00,000 on that date. Interest on partner's capital is provided @5% p.a. The amount of interest on the capital of Sameer for the year 2019-20 is-

Rs. 82,500

Rs. 90,000

Rs. 82,000

Rs. 75,000

✅ Correct Option: 1

Since Sameer introduced additional capital on October 1, 2019, his capital balance changed during the year. Interest needs to be calculated separately for two periods.

Period 1: April 1, 2019 to September 30, 2019 (6 months)

Capital: Rs 15,00,000

Interest = $15,00,000 × \frac{5}{100} × \frac{6}{12}$

Interest = Rs 37,500

Period 2: October 1, 2019 to March 31, 2020 (6 months)

Capital: Rs 15,00,000 + Rs 3,00,000 = Rs 18,00,000

Interest = $18,00,000 × \frac{5}{100} × \frac{6}{12}$

Interest = Rs 45,000

Total Interest on Sameer's Capital for 2019-20

= Rs 37,500 + Rs 45,000 = Rs 82,500

The additional capital introduced by Sameer on October 1 earns interest only for 6 months (October to March), while his original capital earns interest for the full year. This is why we calculate interest in two parts based on the time period for which different capital amounts were maintained in the business.

2026: 13 May Shift 2

Akash and Nitesh are partner's sharing profits in the ratio of 2:1. Kamlesh was admitted for 1/4 share, of which 1/8 was gifted by Akash. The remaining was contributed by Nitesh. The goodwill of the firm is valued at Rs. 1,60,000. How much amount of premium for goodwill will be credited to Nitesh's Capital Account?

2025: 3 June Shift 1

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 :

2025: 15 May Shift 2

A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. for what Rs 50,000 extra was asked from C?

2026: 31 May Shift 1

At the time of admission of new partner Vasu, old partners Paresh and Prabhat had debtors of Rs. 6,20,000 and a provision for doubtful debts of Rs. 20,000 in their books. As per terms of admission, assets were revalued, and it was found that debtors worh Rs. 15,000 had turned bad and hence should be written off. Which journal entry reflects the correct accounting treatment of the above situation?

2026: 13 May Shift 2

Jitesh, Kamal and Lakhan are partners, sharing profits in the ratio of 3:2:1. Farhan is admitted in the firm for 1/6th share in profits. Lakhan would retain his original share. The new profit sharing ratio between Jitesh, Kamal, Lakhan and Farhan will be:

2026: 11 May Shift 2

Arrange the following steps being used in calculating goodwill of the firm by Capitalisation of Super Profits.

A. Calculate normal profits on capital employed and average profit for past years.

B. Multiply the super profits by the required rate of return multiplier, i.e. Goodwill = Super Profits × 100/Normal Rate of Return

C. Calculate super profits by deducting normal profits from average profits.

D. Calculate capital of the firm, which is equal to total assets (excluding goodwill and fictitious assets) minus outside liabilities

Choose the correct answer from the options given below:

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