Time 2 hours 45 marks

General Instruction:

Q.1 to 10 are carry 1 marks

Q.11 to 15 are carry 3 marks

Q.16 to 17 are carry 4 marks

Q.18 to 19 are carry 6 marks

Q.1) Shiv and Mohan are sharing profits and losses in the ratio of 5:3. They admit Jea as a partner and give her 3/10
share of the profits. This share she will get 1/5th from Shiv and 1/10th from Mohan. The new profit sharing ratio will
be

a) 5:6:3 b) 2:4:6

c) 17:11:12 d) 18:24:38

Q.2) Unrecorded assets or liabilities are transferred to

a) Partner’s capital account b) Revaluation account

c) Profit & Loss account d) Partners’ capital account

Q.3) A firm has an unrecorded investment of 10,000. Journal entry to record the unrecorded investment on
admission of a partner will be:

a) Revaluation a/c dr. 10,000

To Unrecorded investment a/c 10,000

b) Unrecorded investment a/c dr. 10,000

To Revaluation a/c 10,000

c) Partner’s capital a/c dr. 10,000

To Unrecorded investment a/c 10,000

d) None of these

Q.4) X and Y are partners sharing profit and losses in the ratio of 3:2. Z was admitted for the 1/5th share and for this
he brings 1,50,000 as capital. If capital are to be proportionate to profit sharing ratio the respective capitals of the
partners will be:

a) 3,00,000 : 3,00,000 : 1,50,000 b) 3,60,000 : 2,40,000 : 1,50,000

c) 1,50,000 : 1,50,000 : 1,50,000 d) 1,50,000 : 2,00,000 : 4,00,000

Q.5) when goodwill existing in the books is written off at the time of admission of a partner it is transferred to
partners’ capital account in their

a) Old profit sharing ratio b) New profit sharing ratio

c) Sacrificing ratio d) Gaining ratio

Q.6) A and B are partners sharing profits in the ratio of 2:3, they admit C as a partner for 1/4th share the sacrificing
ratio of A and B will be

a) 2:3 b) 1:1

c) 3:2 d) 2:1

Q.7) Mita and Sumit are partners in a firm with capital of 6,00,000 and 4,00,000 respectively. Keshav was admitted as
a new partner for 1/5th share in the profits of the firm. Keshav brought 40,000 as his share of goodwill premium and
3,00,000 of his capital. The amount of goodwill premium credited to Sumit will be

a) 20,000 b) 24,000

c) 16,000 d) 40,000

Q.8) Anita and Babita were partners sharing profit and losses in the ratio of 3:1. Savita was admitted for 1/5th share
in the profits. Savita was unable to bring her share of goodwill premium in cash. The journal entry recorded for
goodwill premium is given below

Savita current a/c dr. 24,000

To Anita Capital a/c 8,000

To Babita capital a/c 16,000

(Adjustment of goodwill premium on Savita Admission)

The new profit sharing ratio of Anita, Babita and Savita will be

a) 41:7:12 b) 13:12:10

c) 3:1:1 d) 5:3:2

Q.9) For which of the following situations old profit sharing ratio of partners is used at the time of admission of a new
partner?

a) When new partner brings only a part of his share of goodwill

b) When new partner is not able to bring his share of goodwill

c) When at the time of admission goodwill already exists in the balance sheet

d) when new partner brings his share of goodwill in cash

Q.10) Ganga and Jamuna are partners sharing profits in the ratio of 2:1. They admit Saraswati for 1/5th share in
future profits. On the date of admission, Ganga’s capital was 1,02,000 and Jamuna’s capital was 73,000. Saraswati
brings 25,000 as her share of goodwill and she agrees to contribute proportionate capital in the new firm. How much
capital will be done brought by Saraswati?

a) 43,750 b) 37,500

c) 50,000 d) 40,000

Q.11) Girija, Yatin and Zubin are partners sharing profits and losses in the ratio of 5:3:2. They admit Suresh into
partnership and give him 1/5th share of profit. Find the new profit-sharing ratio.

Q.12) A and B are partners sharing profits and losses in the proportion of 7:5. They agree to admit C, their manager
into partnership who is to get 1/6th share in the profits. He takes this share as 1/24th from A and 1/8th from B.
Calculate new profit-sharing ratio.
Q.13) A, B and C are partners sharing profit in the ratio of 2:2:1. D is admitted as a new partner for 1/6th share. C will
retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio.

Q.14) Amit and Vidya are partners sharing profits in the ratio of 3:2. They admit Chintan into partnership who
acquires 1/5th of his share from Amit and 4/25th share from Vidya. Calculate new profit-sharing ratio and sacrificing
ratio.

Q.15) A and B were partners in a firm sharing profits and losses in the ratio of 3:2. They admitted C as a new partner
for 3/7th share in the profit and the new profit-sharing ratio will be 2:2:3. C brought 2,00,000 as his capital an
1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate
sacrificing ratio and pass necessary journal entries for the above transaction in the books of the firm.

Q.16) A, B and C were partners sharing profits and losses in the ratio of 6:3:1. They take D into partnership with effect
from 1st April,2023. The new profit-sharing ratio between A, B, C and D will be 3:3:3:1. They also decide to record the
effect of the following without affecting their book value by passing an adjustment entry:

General reserve 1,50,000

Contingency reserve 60,000

Profit & loss (cr.) 90,000

Advertisement suspense 1,20,000

Pass the necessary journal entry through the partner’s current account

Q.17) X, Y and Z are equal partners with capital of 15,000; 17,500; and 20,000 respectively. They agree to admit W
into equal partnership upon payment in cash 15,000 for 1/4th share of the goodwill and 18,000 as his capital, both
sums to remain in the business. The liabilities of the old firm were 30,000 and the assets apart from cash consist of
Motor 12,000; Furniture 4,000; Stock 26,500 and Debtors 37,800. The motors and Furniture were revalued at 9,500
and 3,800 respectively.

Pass journal entries to give effect to the above arrangement and also show balance sheet of the new firm.

Q.18) X and Y are partners sharing profit in the ratio of 2:1. Their balance sheet as at 31st March, 2023 was:

Liabilities Amount Assets Amount

Sundry creditors 25,000 Cash 5,000
General reserve 18,000 Sundry debtors 15,000
Capital a/c Stock 10,000
X 75,000 Investment 8,000
Y 62,000 1,37,000 Printer 5,000
Fixed assets 1,37,000
1,80,000 1,80,000
They admit Z into partnership on 1st April, 2023 on the following terms:

a) Z bring in 40,000 as his capital and he is given 1/4h share in profits

b) Z bring in 15,000 for goodwill, half of which is withdrawn by old partners.

c) Investments are valued at 10,000. X takes over investments at this value.

d) Printer is to be reduced (depreciated) by 20% and fixed assets by 10%

e) An unrecorded stock on 31st March, 2023 is 1,000

f) By bringing in or withdrawing cash, the capital of X and Y are to be made proportionate to that of Z on their profit-
sharing basis.

Pass journal entries, Prepare Revaluation Account, Capital Account and New Balance Sheet of the Firm.
Q.19) Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2:1. On 31st March, 2018,
their balance sheet was as follows:

Liabilities Amount Assets Amount

Capital a/c Plant and machinery 1,75,000
Raman 1,40,000 Furniture and fixtures 65,000
Rohit 1,00,000 2,40,000 Stock 47,000
WCR 40,000 Debtors 1,10,000
Creditors 1,60,000 Less PFDD 7,000 1,03,000
Bank balance 50,000
4,40,000 4,40,000
On the above date, Saloni was admitted in the partnership firm. Raman surrendered 2/5th of his share and Rohit
surrendered 1/5th of his share in favour of Saloni. It was agreed that:

i) Plant and machinery will be reduced by 35,000 and furniture and fixtures will be reduced to 58,500

ii) Provision for bad debts doubtful debts will be increased by 3,000

iii) A claim for 16,000 for Workmen compensation was admitted

iv) A liability of 2,500 included in creditors is not likely to arise

v) Saloni will bring 42,000 as her share of goodwill premium and proportionate capital.

Prepare revaluation account, partners’ capital account and the new firm balance sheet.