Partnership

Admission

Easy

common

Goodwill, if existing in the books of the firm, is written off at the time of admission of a partner, and is:

To be debited among old partners in their old profit sharing ratio.

To be debited among remaining partners in their new profit sharing ratio.

To be debited among gaining partners in their old profit sharing ratio.

To be credited among old partners in their old profit sharing ratio.

✅ Correct Option: 1

Existing goodwill in the books is a past asset belonging to the old partners alone, so before admission it is written off by debiting the old partners' capital accounts in their old profit sharing ratio and crediting Goodwill A/c. The new partner has no claim to it, and crediting the old partners would reverse the correct treatment.

2026: 21 May Shift 2

Sometimes, at the time of admission, the old partners agree that their capital should also be adjusted to be proportionate to their profit sharing ratio on the basis of the new partner's capital. Identify the correct sequence to be followed:

A. Ascertain the total capital of the firm on the basis of the new partner's capital.

B. Compare old partners' capital with adjusted capital of old partners.

C. Ascertain capital of old partners after all adjustments like interest on capital, salary, etc.

D. Ascertain deficiency or surplus capital of partners.

Choose the correct answer from the options given below:

2025: 14 May Shift 1

Required capitals of all partners is:

2022: 16 July Shift 2

Revaluation Account is :-

2026: 19 May Shift 1

Hema and Nema 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 Sama on Jan. 1, 2025 as a new partner for 1/4 share in the future profits. Sama brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm

2023: 28 May Shift 1

What is Amrita's share in workmen compensation fund ?

2025: 2 June Shift 2

In the case of guarantee of profit ,the sequence of Steps to be followed are.

(A) divide the profit in the given ratio.

(B) prepare profit and loss appropriation account as usual.

(D) find the deficiency.

Choose the correct answer from the options given below:

Goodwill, if existing in the books of the firm, is written off at the time of admission of a partner, and is:

Solution

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