Partnership

Admission

Easy

common

For reduction in the value of an asset, correct journal entry will be:

Asset A/c Dr.

To Revaluation A/c

P&L Appropriation A/c Dr.

To Asset A/c

Partners' Capital A/c Dr.

To Asset A/c

Revaluation A/c Dr.

To Asset A/c

✅ Correct Option: 4

A fall in asset value is a loss on revaluation. The asset account is credited to reduce its book value and Revaluation Account is debited, so that the net loss is later shared by the partners in their old ratio.

2022: 16 July Shift 2

Revaluation Account is :-

2025: 29 May Shift 2

The new partner acquired the rights on admission into the firm. He acquires :

(A) Rights in past profits of firm before admission.

(B) Right to share in the future profits of the firm.

(D) The right to carry on competing business.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

If the premium for goodwill is paid to the old partners directly / privately by the new partner, what journal entry will be recorded in the books of Partnership Firm :-

2025: 13 May Shift 1

L and M are partners sharing profits in the ratio 3:2. N is admitted as a partner for 1/5th of the share which is acquired from L. Goodwill of the firm is valued at Rs. 40,000 on N's admission. N will have to pay for Goodwill:

2024

On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at:

2025: 29 May Shift 2

Kim and Sim are partners in a firm sharing profits in 4:3 ratio. They admitted Pim as a new partner for 1/4 share in the profits, which he acquired in the ratio of 3:2 from Kim and Sim. Determine the new profit sharing ratio of the partners.

For reduction in the value of an asset, correct journal entry will be:

Solution

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