Partnership

Admission

Medium

common

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:

₹ 5,000 will be borne by X

₹ 5,000 will be borne by Y

₹ 5,000 will be borne by X and Y in 3:2 ratio

₹ 5,000 will be borne by X and Y in equal ratio

✅ Correct Option: 3

Z's entitled share = $\frac{1}{4}$ × ₹1,00,000 = ₹25,000

Z's guaranteed minimum = ₹30,000

Deficiency = ₹30,000 - ₹25,000 = ₹5,000

When a new partner is admitted with a guaranteed minimum profit, any shortfall between the guaranteed amount and actual share must be compensated by the old partners. This deficiency is borne by the old partners in their old profit sharing ratio, unless stated otherwise in the partnership agreement.

Since X and Y are the old partners sharing profits in 3:2 ratio, they will bear the deficiency of ₹5,000 in the same ratio.

X's share of deficiency = ₹5,000 × $\frac{3}{5}$ = ₹3,000

Y's share of deficiency = ₹5,000 × $\frac{2}{5}$ = ₹2,000

Verification of final profit distribution:

Partner	Calculation	Amount (₹)
Z	Guaranteed amount	30,000
X	(1,00,000 - 30,000) × 3/5	42,000
Y	(1,00,000 - 30,000) × 2/5	28,000
Total		1,00,000

The deficiency of ₹5,000 is borne by X and Y in 3:2 ratio.

2025: 2 June Shift 2

For the right to get a share in future profits of a partnership firm, a newly admitted partner will have to bring :-

2026: 12 May Shift 1

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 and does not bring his share of goodwill in cash. Choose the correct journal entry from the following:

Particulars	Dr. Amount	Cr. Amount
Sam's Current A/c Dr.	34,000
To Hem's Capital A/c		20,400
To Nem's Capital A/c		13,600

Particulars	Dr. Amount	Cr. Amount
Sam's Current A/c Dr.	22,000
To Hem's Capital A/c		13,200
To Nem's Capital A/c		8,800

Particulars	Dr. Amount	Cr. Amount
Sam's Capital A/c Dr.	22,000
To Hem's Capital A/c		13,200
To Nem's Capital A/c		8,800

Particulars	Dr. Amount	Cr. Amount
Sam's Current A/c Dr.	22,000
To Hem's Current A/c		13,200
To Nem's Current A/c		8,800

2023: 20 June Shift 2

Arrange the following statements in proper sequence in context of admission of partner.

A. Finalising terms for admission of new partner

B. Calculation of sacrificing/ gaining ratio

C. Finalising balance in partner's capital A/c

D. Calculation of new profit sharing ratio

E. Valuation and adjustment of goodwill

Choose the correct answer from the options given below:

2025: 27 May Shift 2

The profit for the five years of a firm are as follows:

Year	Profit (Rs.)
2013	4,00,000
2014	3,98,000
2015	4,50,000
2016	4,45,000
2017	5,00,000

Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.

2025: 27 May Shift 2

The profit or loss on revaluation of assets and liabilities are distributed in

2025: 24 May Shift 1

The accumulated profits and reserves are transferred to:

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

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