Partnership

Admission

Hard

common

In a partnership, admission of a new partner is followed by retirement within two months but revaluation did not occur at either of the event. What is the most significant risk?

The profit sharing ratio may be distorted.

Sacrificing partners may be over-compensated or under-compensated.

Goodwill may not be distributed.

Retirement dues becomes difficult to calculate.

✅ Correct Option: 2

Revaluation ensures that changes in asset and liability values up to the date of reconstitution are shared by the partners entitled to them in their old ratio. If revaluation is skipped at both admission and retirement, capital balances rest on outdated values, so the sacrificing (and outgoing) partners may be over-compensated or under-compensated relative to their true entitlement.

2026: 20 May Shift 1

Harish and Munish are partners in a firm sharing profits and losses in the ratio of 3:2. Rakesh is admitted into partnership for 1/3 share in profits. He brings in Rs. 50,000 as capital, but not in a position to bring any amount for his share of goodwill which has been valued at Rs. 15,000. Give necessary journal entry for recording goodwill, when there is no goodwill appearing in the books of the firm.

2025: 3 June Shift 1

Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of 3:2. They admitted Daniel as a new partner for 1/4 share. The new profit sharing ratio between Naveen and Ghanshyam will be 2:1. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :

2025: 29 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: 20 May Shift 1

X and Y are partners in a firm sharing profits in the ratio of 3:2. They admitted Z as a new partner for 1/4 share. The new profit sharing ratio between X and Y will be 2:1. Calculate their sacrificing ratio.

2026: 23 May Shift 2

The excess of actual profit over the normal profit is called as

2025: 15 May Shift 2

A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. for what Rs 50,000 extra was asked from C?

In a partnership, admission of a new partner is followed by retirement within two months but revaluation did not occur at either of the event. What is the most significant risk?

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