D.A.

V PUBLIC SCHOOL, PRACTICE SET 3

Test / Exam Name: Test 4 Standard: 12th Commerce Subject: Accountancy

Student Name: Section: Roll No.:
Questions: 6 Time: 01:00 hh:mm Marks: 30

Q1. A and B are partners in a firm sharing profit and losses in the ratio of 3 : 1. On 1st April, 2018 their 8 Marks
position was as given below:

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They admit C into partnership with  6
th share in profits upon the following terms:
1. Goodwill is to be valued at one year's purchase of the five year's average profits which were ₹
20,000, ₹ 30,000, ₹ 30,000, ₹ 40,000 and ₹ 60,000 respectively.
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2. C agrees to contribute of the combined capital of A and B in the new firm.
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3. Plant is to be written down to ₹ 80,000 and Patents written up to ₹ 12,000. A provision of 2% on
debtors is required, A liability of ₹ 5,000 included in Sundry Creditors is not likely to arise.
Give the Journal entries and Balance Sheet after the admission of C.

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Q2. A and B are partners in a firm. They share profits and losses as  5
th and  5
th  respectively. Below is 8 Marks
given the Balance Sheet of the firm as at 31st March, 2018:

C wants to join the firm from 1st April, 2018. He is willing to pay goodwill premium to partners
amounting to ₹ 20,000. In return he will be allowed to share th of the future profits of the firm which
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he acquires equally from A and B. The following revaluation of the assets is agreed upon: Plant to be
reduced to ₹ 60,000, stock to ₹ 65,000 and debtors to ₹ 50,000 (₹ 10,000 proved bad debts). The new
partner is to introduce 50% of the adjusted capitals of the existing partners. You are required to give
journal entries recording. the above transactions. Give also the opening balance sheet of the new firm
and new profit sharing ratio.

Q3. A and Z are partners in a firm sharing profits in the ratio of 7 : 3. Their Balance Sheet as on 31.3.2016 8 Marks
was as follows:
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On the above date B was admitted for  4
th  share in the profits on the following terms:
1. B will bring ₹ 90,000 as his capital and ₹ 30,000 as his share of goodwill premium, half of which
will be withdrawn by A and Z.
2. Debtors ₹ 4,500 will be written off and a provision of 5% will be created on debtors for bad and
doubtful debts.
3. Outstanding wages will be paid off.
4. Stock will be depreciated by 10%, furniture by ₹ 1,500 and machinery by 8%.
5. Investments of ₹ 7,500 not shown in the Balance Sheet will be recorded.
6. A creditor of ₹ 6,300 not recorded in the books was to be taken into account.
Pass necessary journal entries for the above transactions in the books of the firm on B’s admission.

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Q4. A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the firm for th share in
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4 Marks
profits which he takes th from A and th from B. C brings in only 60% of his share of firm's
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goodwill. Goodwill of the firm has been valued at ₹ 1,00,000. Pass necessary journal entries to record
this arrangement.

Q5. X and Y shared profits in the ratio of 3 : 1. They admit Z to one third share in the future profits. What 1 Mark
will be the new profit sharing ratio?

Q6. A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill 1 Mark
of the firm is valued at ₹ 3,00,000 and C brings ₹ 30,000 as his share of goodwill in cash which is
entirely credited to the Capital Account of A. New profit sharing ratio will be:
1. 3 : 2 : 1
2. 6 : 3 : 1
3. 5 : 4 : 1
4. 4 : 5 : 1