Partnership

Admission

Easy

common

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

(C) Adjustment of partners' capital

(D) New profit sharing ratio and Sacrificing ratio

Choose the correct answer from the options given below:

(D), (A), (C), (B)

(A), (D), (C), (B)

(C), (A), (D), (B)

(C), (A), (B), (D)

✅ Correct Option: 1

The new profit sharing ratio and sacrificing ratio must be settled first, because the sacrificing ratio decides how goodwill is credited. Goodwill is then valued and adjusted, followed by adjustment of partners' capitals, and the reconstituted balance sheet is prepared last once all figures are settled.

2026: 21 May Shift 1

Identify the factor affecting value of goodwill highlighted in the following statement

"The monopoly condition or limited competition enables the concern to earn high profits which leads to higher value of goodwill."

2026: 29 May Shift 2

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D. Find out the cash to be brought in or withdrawn by old partners after all adjustments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

2026: 11 May Shift 1

Riya and Kiya are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Siya on Jan. 1, 2025 as a new partner for 1/5th share in the future profits. Siya brought Rs. 60,000 as his capital and the necessary amount of goodwill. Calculate Siya's share of goodwill.

2026: 12 May Shift 1

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

2026: 12 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Goodwill	(I) Amount brought by new partner to compensate old partners
(B) Sacrificing ratio	(II) Advantage of reputation, enabling firm to earn super profits
(C) New profit sharing ratio	(III) Ratio in which old partner give up their share
(D) Premium for Goodwill	(IV) Ratio after reconstitution of partnership

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Sachin and Sohail, are partners, sharing profits in the ratio of 2:1. Sonam is admitted into the firm for 1/4 share of profits. Sonam brings in Rs. 20,000 in respect of his capital. The capitals of old partners, Sachin and Sohail, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners capital should be according to the new profit-sharing ratio. What would be the new profit sharing ratio of Sachin, Sohail, and Sonam?

Solution

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