Partnership

Admission

Easy

common

X and Y are partners in a firm sharing profit and loss in the ratio of 2:1. Z is admitted for 1/4 share in profits but could not bring any amount for goodwill. The account that will be debited for this entry will be:

Z's Capital Account

X's and Y's Capital Account

Bank Account

Z's Current Account

✅ Correct Option: 4

NCERT states that when a new partner does not bring his share of goodwill in cash, the amount not brought is debited to the incoming partner's Current Account, while the sacrificing partners' Capital Accounts are credited in their sacrificing ratio.

Since Z cannot bring any amount for goodwill, Z's Current Account will be debited. Therefore, Option 4 is correct.

2025: 30 May Shift 1

The profits for the five years of a firm are as follows – year 2013 Rs. 4,00,000;year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

2026: 11 May Shift 1

Aman, Baman and Chaman are partners in a firm sharing profits in the ratio of 3:2:1. Daman is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from Aman and 1/8th from Baman. Daman is to bring in cash equivalent to 1/4th of the total capital of the firm as his capital. The capitals of Aman, Baman and Chaman after all adjustments related to revaluation profit, goodwill and reserves, are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the capital brought in by Daman on the basis of old partners' capital balances.

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: 29 May Shift 2

When goodwill has to be inferred from the arrangement of capital and profit sharing ratio, it is called.

2026: 31 May Shift 1

Ajay, Bijoy and Payal are partners in a firm sharing profits in the ratio of 3:2:1. Sunil is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from Ajay and 1/8 from Bijoy. The total capital of the firm is agreed upon as Rs. 1,20,000 and Sunil is to bring in cash equivalent to 1/4 of this amount as his capital. The new profit sharing ratio of Ajay, Bijoy, Payal and Sunil will be:

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Increase in the value of each asset will be shown	I.	it indicates net gain, which will be transferred to the capital accounts of the old partners in old ratio.
B. If the closing balance of revaluation account shows a credit balance then	II.	it indicates net loss which will be transferred to the capital accounts of the old partners in old ratio.
C. Decrease in the value of each asset will be shown	III.	on credit side of Revaluation account
D. If the closing balance of revaluation account shows a debit balance then	IV.	on debit side of Revaluation account

Choose the correct answer from the options given below:

X and Y are partners in a firm sharing profit and loss in the ratio of 2:1. Z is admitted for 1/4 share in profits but could not bring any amount for goodwill. The account that will be debited for this entry will be:

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