Partnership

Admission

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common

On the admission of a new partner increase in the value of assets is debited to:

Revaluation Account

Assets Account

Old Partners' Capital Account

All Partners' Capital Account

✅ Correct Option: 2

An increase in the value of an asset raises the asset balance, so the Asset A/c is debited and Revaluation A/c is credited (a revaluation gain). Revaluation A/c is debited only for decreases in assets or increases in liabilities. The net revaluation profit is later credited to the old partners in their old ratio.

2026: 23 May Shift 2

Ankita and Anjali share profits in the ratio of 3:2. Anshu is admitted into partnership for 1/4 share. The new profit sharing ratio is 9:6:5. What will be the sacrificing ratio of Ankita and Anjali?

2026: 31 May Shift 1

Ambar, Bimla and Tara are partners in a firm sharing profits in the ratio of 3:2:1. Adnan is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from Ambar and 1/8 from Bimla. The total capital of the firm is agreed upon as Rs. 1,20,000 and Adnan is to bring in cash equivalent to 1/4 of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of Ambar, Bimla and Tara after all adjustments are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the cash brought in or paid to each partner.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

The profit 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. The goodwill of the firm on the basis of 4 years purchase of 5 years average profits is-

2026: 31 May Shift 1

The term Number of Years' Purchase means:

2025: 14 May Shift 1

Required capitals of all partners is:

2026: 19 May Shift 1

Which of the following is incorrect ?

On the admission of a new partner increase in the value of assets is debited to:

Solution

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