Partnership

Admission

Easy

common

Any change in the profit sharing ratio among existing partners may not involve adjustments in respect of:

Revaluation of assets and liabilities

Transfer of accumulated profit and losses to partners' capital accounts in the old profit sharing ratio

Realisation of assets and discharge of liabilities

Adjustment of partners' capitals, if specified, so as to make them proportionate to the new profit sharing ratio

✅ Correct Option: 3

A change in ratio is a reconstitution; the firm continues in business. Revaluation, distribution of reserves and capital adjustments are all required. Realisation of assets and discharge of liabilities happens only on dissolution, so it is not involved here.

2025: 22 May Shift 2

Abhiram and Ragini are partners sharing profits in the ratio of 3:2. They admit Arun a new partner for 1/5th share in the future profits of the firm which he gets equally from Abhiram and Ragini. Calculate the new profit sharing ratio of Abhiram, Ragini and Arun.

2026: 21 May Shift 1

The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio. Identify the correct statements regarding sacrificing ratio.

(A) Sacrifice by a Partner = New Share of Profit – Old Share of Profit

(B) This ratio is calculated for all the partners i.e. old and incoming

(C) The ratio is normally clearly given as agreed among the partners, which could be the old ratio, equal sacrifice, or a specified ratio

(D) Sacrifice by a Partner = Old Share of Profit – New Share of Profit

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Sum of the product/ Total weights	(I) Normal Profit
(B) Firm Capital X Rate of return/100	(II) Weighted Average Profit
(C) Bank A/c Dr. To Premium for Goodwill A/c	(III) Amount of goodwill withdrawn by sacrificing partners
(D) Sacrificing Partners' Capital A/c Dr. To Bank A/c	(IV) Amount brought by new partner as his share of goodwill

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Navya and Nitya are partners sharing profits in the ratio 3 : 2, with capitals of ₹1,00,000 and ₹50,000 respectively. Hardik is admitted for a 1/5 share in profits, and is to bring in capital proportionate to his share, based on the combined capital of the firm after his admission. The amount Hardik will contribute as capital is:

2026: 13 May Shift 1

Which of the following statements are correct?

(A) When a new partner is admitted into partnership firm, sacrificing ratio is used to distribute new partner's share of goodwill.

(B) Hidden goodwill is the excess of Total Capital of the new firm (based on new partner's capital) over the actual combined capital of all the partners.

(C) When a new partner is admitted into partnership firm, the new partner compensates the old partners for their loss of share in the divisible profits of the firm for which he brings in an additional amount that is called as Premium for Goodwill.

(D) Employees' Provident Fund should be distributed among the old partners at the time of admission of a new partner.

Choose the correct answer from the options given below:

2025: 14 May Shift 1

D will bring in cash as his capital:

Any change in the profit sharing ratio among existing partners may not involve adjustments in respect of:

Solution

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