Partnership

Admission

Medium

Match List-I with List-II

List-I List-II
(A) Accumulated Profits/Losses (I) New Ratio
(B) Share of goodwill at the time of admission of a partner (II) Gaining Ratio
(C) Division of profits after admission of a partner (III) Old Ratio
(D) Share of goodwill at the time of retirement/death of a partner (IV) Sacrificing Ratio

Choose the correct answer from the options given below:

List-I	List-II
(A) Accumulated Profits/Losses	(I) New Ratio
(B) Share of goodwill at the time of admission of a partner	(II) Gaining Ratio
(C) Division of profits after admission of a partner	(III) Old Ratio
(D) Share of goodwill at the time of retirement/death of a partner	(IV) Sacrificing Ratio

(A) - (III), (B) - (II), (C) - (I), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) - (I), (B) - (IV), (C) - (III), (D) - (II)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

✅ Correct Option: 2

(A) Accumulated Profits/Losses → (III) Old Ratio

Accumulated profits (like reserves, general reserve, profit & loss account credit balance) or accumulated losses are distributed among the existing partners in their old profit sharing ratio before the admission, retirement, or death of a partner.

(B) Share of goodwill at the time of admission of a partner → (IV) Sacrificing Ratio

When a new partner is admitted, the existing partners sacrifice a portion of their share in favor of the incoming partner. The new partner compensates them by bringing goodwill, which is distributed among the old partners in their sacrificing ratio.

Sacrificing Ratio = Old Ratio - New Ratio

(C) Division of profits after admission of a partner → (I) New Ratio

After a new partner is admitted, all future profits and losses are shared among all partners (including the new partner) in the new profit sharing ratio as agreed upon.

(D) Share of goodwill at the time of retirement/death of a partner → (II) Gaining Ratio

When a partner retires or dies, the remaining partners gain their share of profit. The retiring/deceased partner's share of goodwill is compensated by the continuing partners in their gaining ratio.

Gaining Ratio = New Ratio - Old Ratio

The correct matching is: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Option 2 is correct.

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:

2023: 29 May Shift 2

Read the following facts about admission of a partner.

A. A new partner acquires his share from the old partners that reduces the old partners share in profits.

B. The partner's capital must be adjusted so as to be proportionate to their new profit sharing ratio.

C. Assets and Liabilities may be revalued and reassessed on admission of a partner.

D. Adjustment for Reserves and Accumulated profits/loss is done.

E. Profit sharing ratio of existing partners may change on admission of a new partner.

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Arrange the following steps for calculation of goodwill using the Super Profit Method:

(A) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

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

(D) Calculate the average profit.

Choose the correct answer from the options given below:

2025: 27 May Shift 1

Which of the following is NOT a method of valuation of goodwill?

2026: 31 May Shift 1

Ambar, Bimla and Tara are partners in a firm sharing profits in the ratio of 3:2:1. Adnan is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from Ambar and 1/8 from Bimla. The total capital of the firm is agreed upon as Rs. 1,20,000 and Adnan is to bring in cash equivalent to 1/4 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 Ambar, Bimla and Tara after all adjustments are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the cash brought in or paid to each partner.

Choose the correct answer from the options given below:

2025: 22 May Shift 2

X and Y are partners sharing profits in the ratio 3:2. Z is entered into the business for 1/4th share of profits, with the guarantee of minimum profits of ₹ 30,000. Profit earned by the business for the year ended March 31st, 2024 is ₹ 1,00,000. Amount of deficiency, if any, will be borne by:

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)