Ravi Sirs Nimble Education for ISC,CBSE,ICSE, IB, AS & A

Levels

Contact : 9033311500, 8866611600

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Admission and Goodwill
Time: 60 min.
------------------------------------------------------------------------------------------------------------------------------------------------Question 1
[2]
A & B are partners in the ratio of 7:3. As sacrifices 2/7 of his share & B 1/7 of his share in favor of C. Find the
new PSR and Sacrificing ratio.
Question 2
[3]
A & B are partners in the 5:3. They admitted C for share. A & B to share future profits equally. C brings Rs
120,000 as capital and Rs 60,000 as premium for goodwill. The goodwill is withdrawn by partners. Give
journals.
Question 3
[2]
Give journal entry for distribution of Profit & Loss (Dr) balance of Rs 60,000 where A & B are partners in ratio of
3:2. C is admitted as a partner and new sharing ratio is 3:2:1
Question 4
[12]
A & B are partners in the ratio as follows: to A, 1/3 to B and 1/6 is carried to reserves. They admit C into
partner on 1.4.2009. The Balance sheet as on that was as follows:
Liabilities
Amount
Amount
Assets
Amount
Amount
Creditors
160,000 Bank
20,000
Outstanding expenses
12,000 Debtors
220,000
Reserves
90,000 Stock
180,000
Capital A
318,000
Plant & Machinery
150,000
B
200,000 518,000 Building
200,000
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10,000
780,000
780,000
The following are the terms of admission:
(i)Stock is undervalued by 10%. Depreciate Rs 30,000 on plant, creditors include a contingent liability of Rs
50,000 which was settled by court of law at Rs 43,000.
(ii)In respect of debtors the following is to be considered
(a)Rs 15,000 due from Ram is bad to full extent
(b)Rs 40,000 due from shyam only 40% is expected to be recovered
(iii)Goodwill is Rs 60,000. C does not bring his share of goodwill
(iv)C gets 1/5 share equally from A & B. He is to bring capital in proportion to his capital.
(v)The partners decided to donate 5% of profits to NGO for clean society project.
Prepare Revaluation a/c, Capital a/c and Balance sheet after admission of C.
Question 5
P & Q are partners in the ratio of 5:3. The Balance sheet is as follows:
Liabilities
Amount
Amount
Assets
Capital P
250,000 Land & Building

[12]
Amount

Amount
300,000

Ravi Sirs Nimble Education for ISC,CBSE,ICSE, IB, AS & A

Levels

Contact : 9033311500, 8866611600

Ravi Sirs Nimble Education for ISC,CBSE,ICSE, IB, AS & A

Levels

Contact : 9033311500, 8866611600

Q
Profit & Loss
Workmen Compensation
Reserve
Creditors

150,000 Machinery
200,000
130,000 Stock
70,000
Debtors
30,000
60,000 Cash
10,000
50,000 Advertise expenditure
30,000
640,000
640,000
They admit R for 1/3 share which he acquires from P & Q in the ratio of 3:1. R brings Rs 400,000 as his capital.
Goodwill is to be calculated on the basis his capital and profits. Give journals and prepare Balance sheet.
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Ravi Sirs Nimble Education for ISC,CBSE,ICSE, IB, AS & A

Levels

Contact : 9033311500, 8866611600