Partnership

Admission

Easy

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B. The total capital of the firm is agreed upon as Rs. 1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively.

D will bring in cash as his capital:

Rs. 30,000

Rs. 40,000

Rs. 20,000

Rs. 35,000

✅ Correct Option: 1

The question asks for the cash that D will bring as his capital.

Given that:

Total capital of the firm = Rs. 1,20,000
D is to bring cash equivalent to 1/4th of the total capital

D's Capital = $\frac{1}{4}$ × Rs. 1,20,000 = Rs. 30,000

This is a direct calculation based on D's share in the firm's total capital. Since D is admitted for 1/4th share in profits and the partners have agreed that the total capital should be Rs. 1,20,000, D must contribute his proportionate share of this amount.

The capitals of other partners (Rs. 40,000 + Rs. 35,000 + Rs. 30,000 = Rs. 1,05,000) plus D's capital of Rs. 30,000 equals the agreed total capital of Rs. 1,20,000.

Answer: Option 1 - Rs. 30,000

2025: 24 May Shift 1

The accumulated profits and reserves are transferred to:

2026: 19 May Shift 1

Hema and Nema 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 Sama on Jan. 1, 2025 as a new partner for 1/4 share in the future profits. Sama brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm

2024

If there is no claim against Workmen Compensation Reserve, it is __________ at the time of admission of a partner.

2025: 24 May Shift 1

Match List-I with List-II

List-I	List-II
Revaluation of assets and reassessment of liabilities at the time of admission of a new partner	Journal Entry
(A) For increase in the value of an asset	(I) Revaluation A/c Dr. To Asset A/c
(B) For reduction in the amount of a liability	(II) Revaluation A/c Dr. To Liability A/c
(C) For reduction in the value of an asset	(III) Asset A/c Dr. To Revaluation A/c
(D) For appreciation in the amount of a liability	(IV) Liability A/c Dr. To Revaluation A/c

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

For computing Goodwill by capitalisation of Average Profit method, the following sequence would be followed:

A. Capitalise the average profit on the basis of Normal Rate of Return

B. Ascertain the firm's Capital - Total Assets - Outside Liabilities

C. Ascertain the average profits based on past years' performance

D. Compute the volume of Goodwill

Choose the correct answer from the options given below:

2025: 4 June Shift 2

Hem and Nem 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 Sam on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital. Sam share of goodwill will be:

D will bring in cash as his capital:

Solution

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