At the time of reconstitution of a partnership firm, investment worth Rs. 1,500 (not mentioned in the balance sheet) is to be taken into account. The journal entry for this would be: Option 1: Date, Particulars, L.F., Dr. Amount, Cr. Amount, Investment A/c Dr., 1,500, To Partners' capital A/c, 1,500 Option 2: Date, Particulars, L.F., Dr. Amount, Cr. Amount, Investment A/c Dr., 1,500, To Revaluation A/c, 1,500 Option 3: Date, Particulars, L.F., Dr. Amount, Cr. Amount, Revaluation A/c Dr., 1,500, To Investment A/c, 1,500 Option 4: Date, Particulars, L.F., Dr. Amount, Cr. Amount, Partners' Capital A/c Dr., 1,500, To Investment A/c, 1,500

Answer: Date, Particulars, L.F., Dr. Amount, Cr. Amount, Investment A/c Dr., 1,500, To Revaluation A/c, 1,500. Solution: Bringing an unrecorded asset into the books is a gain on reconstitution. The asset is debited at its value of Rs.1,500 and Revaluation A/c is credited, so that the gain reaches the old partners only after the Revaluation Account is closed in their old ratio. Crediting capital accounts directly bypasses that process.

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At the time of reconstitution of a partnership firm, investment worth Rs. 1,500 (not mentioned in the balance sheet) is to be taken into account. The journal entry for this would be:

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Investment A/c Dr.		1,500
	To Partners' capital A/c			1,500

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Investment A/c Dr.		1,500
	To Revaluation A/c			1,500

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Revaluation A/c Dr.		1,500
	To Investment A/c			1,500

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Partners' Capital A/c Dr.		1,500
	To Investment A/c			1,500

✅ Correct Option: 2

Bringing an unrecorded asset into the books is a gain on reconstitution. The asset is debited at its value of $\text{Rs.}1{,}500$ and Revaluation A/c is credited, so that the gain reaches the old partners only after the Revaluation Account is closed in their old ratio. Crediting capital accounts directly bypasses that process.

2026: 21 May Shift 2

In case of admission of a new partner, Match the LIST-I with LIST-II.

LIST-I		LIST-II
A.	Increase in Assets	I. Debit side of Partners' Capital A/c
B.	Adjustment for Accumulated Profits and Losses A/c	II. Credit side of Revaluation A/c
C.	Increase in Liabilities	III. Credit side of Partners' Capital A/c
D.	Existing goodwill written off	IV. Debit side of Revaluation A/c

Choose the correct answer from the options given below.

2025: 22 May Shift 1

A new partner can be admitted:

2026: 11 May Shift 1

Arrange the following accounting treatment steps in order/sequence in case of admission of a partner in a firm.

A. Adjustment of the partner's capital account balance.

B. Transfer of revaluation profit to capital account of partners.

C. Calculation of New Profit Ratio & Gaining Ratio.

D. Transfer of premium of goodwill to old partner's capital account.

Choose the correct answer from the options given below:

2026: 31 May Shift 1

At the time of admission of a new partner, goodwill is adjusted because:

2022: 20 July Shift 1

Plant and Machinery to be shown in Revaluation Account :

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:

At the time of reconstitution of a partnership firm, investment worth Rs. 1,500 (not mentioned in the balance sheet) is to be taken into account. The journal entry for this would be:

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