Partnership

Admission

Easy

common

At the time of admission of a new partner, if Profit and Loss Account debit balance exist in the books, then which of the following entry will be done in order to distribute it?

Profits and Loss A/c Dr.

To Old Partners' Capital A/c

Profit and Loss A/c Dr.

To All Partners' Capital A/c (including new)

Old Partners' Capital A/c Dr.

To Profit and Loss A/c

All Partners' Capital A/c (including new) Dr.

To Profit and Loss A/c

✅ Correct Option: 3

A debit balance in the Profit and Loss Account is an accumulated loss earned before admission, so only the old partners bear it, in their old profit sharing ratio. The new partner has no claim or liability for pre-admission results.

To write it off, the old partners' capitals are reduced and the asset-side balance is removed by crediting it: Old Partners' Capital A/c Dr. To Profit and Loss A/c.

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:

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?

2022: 20 July Shift 1

Provision for Doubtful debts to be shown in Revaluation Account :

2026: 21 May Shift 1

Arrange the sequence of following important adjustments which require attention at the time of admission of a new partner.

(A) Valuation and adjustment of goodwill

(B) Balance sheet of Reconstituted firm

(D) New profit sharing ratio and Sacrificing ratio

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Which of the following factors leads to a higher goodwill for firms?

(A) Firms having long term contracts for supply of materials

(B) Firms with efficient management

(D) Firms which do not have competitive advantages

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Shubham and Gill are partners in a firm sharing profits in the ratio of 5:3. They admit Hardik as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. What will be the sacrificing ratio of Shubham and Gill?

At the time of admission of a new partner, if Profit and Loss Account debit balance exist in the books, then which of the following entry will be done in order to distribute it?

Solution

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