Partnership

Admission

Easy

common

In admission of a partner, arrange the following in a sequence for adjustment of capital:

A. Calculate required capitals of old partners

B. Calculate firm's new capital

C. Calculate new profit sharing ratio

D. Find out the cash to be brought in or withdrawn by old partners after all adjustments

Choose the correct answer from the options given below:

A, C, D, B

C, B, A, D

B, A, C, D

C, B, D, A

✅ Correct Option: 2

The new ratio must be known first (C) because capitals are to be proportionate to it. Then the firm's total new capital is worked out (B), from which each old partner's required capital is derived (A). Comparing required capital with the adjusted existing capital gives the cash to be brought in or withdrawn (D).

2025: 13 May Shift 2

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

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: 16 May Shift 1

At the time of Reconstitution, Goodwill already appearing in books of accounts is distributed among partners in_______.

2026: 13 May Shift 2

Kishor and Kunal were partners sharing profits and losses in the ratio of 5:3. On 1st April, 2026 they admitted Kushagra as a new partner and new ratio was decided as 3:2:1. Goodwill of the firm was valued as ₹ 18,00,000. Kushagra couldn't bring any amount for goodwill. The journal entry for the same would be:

2026: 12 May Shift 1

In case of admission of a partner, Match List-I with List-II.

List-I	List-II
(A) For Unrecorded Liability	(I) Revaluation A/c Dr. To Asset A/c
(B) For Over-Valuation of Asset	(II) Partners' Capital A/c Dr. To Revaluation A/c
(C) For transferring loss on revaluation	(III) Revaluation A/c Dr. To Liability A/c
(D) For Under-Valuation of Asset	(IV) Asset A/c Dr. To Revaluation A/c

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Abhay and Sumant are partners sharing profit in the ratio of 2:1. Aakriti was admitted for 1/4 share, half of which was given by Abhay and the remaining was contributed by Sumant. The goodwill of the firm is valued at Rs. 40,000. How much of the goodwill will be credited to the old partner's capital account?

Solution

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