12th – Book Keeping & Accountancy Admission of a Partner

1. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 3:2. C is admitted as a new Partner for 1/5th Share. Value
of Goodwill is `40,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the Partners decide to retain it.
b. C brings in his share of Goodwill and the Partners decide to retain 50%
c. C brings in his share of Goodwill (the Partners decided to sacrifice equally.)
d. C brings in his share of Goodwill. (Assume Goodwill already appeared in Balance Sheet at `5,000)
e. C pays the amount privately to both the partners.
f. C is unable to bring his share of Goodwill and Partners decide to raise it.
g. C is unable to bring his share of Goodwill and Partners decide to raise and write it off.
h. C is unable to bring his share of Goodwill and Partners decide to raise it. (Assume that Goodwill already
appeared in Balance Sheet at `10,000)
i. C is unable to bring his share of Goodwill and Partners decide to raise and write it off (Assume that
Goodwill already appeared in Balance Sheet at `10,000)

2. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 3:2. C is admitted as a new Partner. Value of Goodwill is
`45,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the new ratio was decided to be [Link]
b. C brings in his share of Goodwill and the new ratio was decided to be [Link]
c. C brings in his share of Goodwill and the new ratio was decided to be [Link]
3. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 2:1. C is admitted as a new Partner for 1/4th Share. Value
of Goodwill is `60,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the Partners decide to retain it.
b. C brings in his share of Goodwill and the Partners decide to retain 50%
c. C brings in his share of Goodwill (the Partners decided to sacrifice equally.)
d. C brings in his share of Goodwill. (Assume Goodwill already appeared in Balance Sheet at `6,000)
e. C pays the amount privately to both the partners.
f. C is unable to bring his share of Goodwill and Partners decide to raise it.
g. C is unable to bring his share of Goodwill and Partners decide to raise and write it off.
h. C is unable to bring his share of Goodwill and Partners decide to raise it. (Assume that Goodwill already
appeared in Balance Sheet at `9,000)
i. C is unable to bring his share of Goodwill and Partners decide to raise and write it off (Assume that
Goodwill already appeared in Balance Sheet at `9,000)

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 1
 12th – Book Keeping & Accountancy Admission of a Partner
4. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 2:1. C is admitted as a new Partner. Value of Goodwill is
`1,08,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the new ratio was decided to be [Link]
b. C brings in his share of Goodwill and the new ratio was decided to be [Link]
c. C brings in his share of Goodwill and the new ratio was decided to be [Link]

5. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 3:2. C is admitted as a new Partner for 1/5th Share. Value
of Goodwill is `1,00,000. Show the treatment of Goodwill in following cases (Prepare Goodwill Account in
each case, also comment on whether it will be shown in Balance Sheet or not, if yes then at which value):
a. C brings in his share of Goodwill and the Partners decide to retain it.
b. C brings in his share of Goodwill and the Partners decide to retain 50%
c. C brings in his share of Goodwill (the Partners decided to sacrifice equally.)
d. C brings in his share of Goodwill. (Assume Goodwill already appeared in Balance Sheet at `40,000)
e. C pays the amount privately to both the partners.
f. C is unable to bring his share of Goodwill and Partners decide to raise it.
g. C is unable to bring his share of Goodwill and Partners decide to raise and write it off.
h. C is unable to bring his share of Goodwill and Partners decide to raise it. (Assume that Goodwill already
appeared in Balance Sheet at `20,000)
i. C is unable to bring his share of Goodwill and Partners decide to raise and write it off (Assume that
Goodwill already appeared in Balance Sheet at `20,000)

6. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 3:2. C is admitted as a new Partner. Value of Goodwill is
`1,00,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the new ratio was decided to be [Link]
b. C brings in his share of Goodwill and the new ratio was decided to be [Link]
c. C brings in his share of Goodwill and the new ratio was decided to be [Link]

7. Goodwill Adjustments:
A & B are Partners sharing Profits and Losses in 5:3. C is admitted as a new Partner. Value of Goodwill is
`56,000. Show the treatment of Goodwill in following cases.
a. C brings in his share of Goodwill and the new ratio was decided to be [Link]
b. C brings in his share of Goodwill and the new ratio was decided to be [Link]
c. C brings in his share of Goodwill and the new ratio was decided to be [Link]

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 2
 12th – Book Keeping & Accountancy Admission of a Partner
8. The Balance Sheet of Virat and Rohit who shared Profits & Losses equally was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 60,000
Virat 1,00,000 Plant & Machinery 70,000
Rohit 1,40,000 2,40,000 Furniture 24,000
Sundry Debtors 26,000
Creditors 34,000 Stock 40,000
Bills Payable 26,000 Cash 80,000
3,00,000 3,00,000

On 1st April 2019, Yuvi joins the firm as a third partner for 1/5th share of future profits on the following
terms and condition:
(i) Goodwill is valued at `2,00,000, Yuvi to bring is share of Goodwill in cash.
(ii) Yuvi to bring in `1,00,000 as Capital.
(iii) A provision of 10% to be created on Sundry Debtors.
(iv) Land & Building to be valued at `80,000.
(v) Stock and Plant & Machinery to be reduced by 20%
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

9. The Balance Sheet of Sachin and Sehwag who shared Profits & Losses equally was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 1,60,000
Sachin 2,00,000 Plant & Machinery 1,80,000
Sehwag 3,00,000 5,00,000 Furniture 1,42,000
Sundry Debtors 1,16,000
Creditors 1,20,000 Stock 50,000
Bills Payable 52,000 Cash 24,000
6,72,000 6,72,000

On 1st April 2019, Dravid joins the firm as a third partner for 1/4th share of future profits on the following
terms and condition:
(i) Goodwill is valued at `1,00,000, Dravid to bring is share of Goodwill in cash.
(ii) Dravid to bring in `2,00,000 as Capital.
(iii) A provision of 5% to be created on Sundry Debtors.
(iv) Land & Building to be valued at `1,90,000 and Furniture at `1,36,000
(v) Stock and Plant & Machinery to be reduced by 10%
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 3
 12th – Book Keeping & Accountancy Admission of a Partner
10. The Balance Sheet of Vashi and Chitti who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 3,40,000
Vashi 5,00,000 Plant & Machinery 1,65,000
Chitti 3,00,000 8,00,000 Furniture 2,45,000
General Reserve 60,000 Sundry Debtors 1,82,000
Creditors 2,86,000 Stock 1,84,000
Bills Payable 13,000 Bank 43,000
11,59,000 11,59,000
On 1st April 2019, Robot joins the firm as a third partner for 1/6th share of future profits on the following
terms and condition:
(i) Robot to bring in `2,50,000 as Capital.
(ii) Goodwill is valued at `1,20,000, Robot to bring is share of Goodwill in cash.
(iii) A provision of 3% to be created on Sundry Debtors.
(iv) Land & Building to be valued at `3,90,000 and Furniture at `2,41,000
(v) Stock to be increased by 10% and Plant & Machinery to be reduced by 20%
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

11. The Balance Sheet of Kohli & Dhoni who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 1,20,000
Kohli 1,50,000 Plant & Machinery 1,15,000
Dhoni 2,50,000 4,00,000 Furniture 98,000
Sundry Debtors 43,000
Creditors 1,20,000 Investments 75,000
Bills Payable 52,000 Stock 81,000
General Reserve 40,000 Cash & Bank 80,000
6,12,000 6,12,000
On 1st April 2019, Hardik joins the firm as a third partner for 1/5th share of future profits on the following
terms and condition:
(i) Hardik to bring in `90,000 as Capital.
(ii) Goodwill is valued at `80,000, Hardik to bring is share of Goodwill in cash and the Partners decided
to withdrew 50% of Goodwill immediately.
(iii) A provision of 5% to be created on Sundry Debtors.
(iv) Stock was undervalued by 10% and Investments overvalued by 20%.
(v) Furniture to be depreciated by 15% and Building to be appreciated by 20%
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 4
 12th – Book Keeping & Accountancy Admission of a Partner
12. The Balance Sheet of Vicky & Kaushal who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 45,000
Vicky 90,000 Plant & Machinery 30,000
Kaushal 90,000 1,80,000 Furniture 30,000
Sundry Debtors 42,000
Creditors 35,000 Investments 63,000
Bills Payable 17,000 Stock 30,000
General Reserve 25,000 Cash & Bank 17,000
2,57,000 2,57,000
On 1st April 2019, Kartik joins the firm as a third partner for 1/4th share of future profits on the following
terms and condition:
i. Kartik to bring in `70,000 as Capital.
ii. Goodwill is valued at `60,000, Kartik to bring is share of Goodwill in cash and the Partners decided
to withdrew 50% of Goodwill immediately.
iii. A provision of 5% to be created on Sundry Debtors.
iv. Stock was overvalued by 20% and Investments undervalued by 10%.
v. Furniture to be depreciated by 10% and Building to be appreciated by 20%
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

13. The Balance Sheet of Neil & Nitin who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 72,000
Neil 1,00,000 Plant & Machinery 60,000
Nitin 1,00,000 2,00,000 Furniture 10,000
Sundry Debtors 42000
Creditors 14,000 Less: RDD -2000 40,000
Bills Payable 3,000 Stock 25,000
General Reserve 10,000 Cash & Bank 20,000
2,27,000 2,27,000
On 1st April 2019, Mukesh joins the firm as a third partner for 1/2 share of future profits on the following
terms and condition:
i. Mukesh to bring in `1,50,000 as Capital and `40,000 as his share of Goodwill by RTGS
ii. Plant & Machinery revalued at `48,000
iii. RDD to be increased upto `4,000
iv. Stock was undervalued by 20%
v. Building was taken by Neil for `90,000
vi. The partners decide to retain half of the amount of Goodwill in the Business.
vii. The old partners decide to sacrifice equally.
Prepare necessary ledger accounts
Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 5
 12th – Book Keeping & Accountancy Admission of a Partner
14. The Balance Sheet of Jack & Jill who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 52,000
Jack 80,000 Plant & Machinery 40,000
Jill 50,000 1,30,000 Furniture 15,000
Sundry Debtors 31000
Creditors 12,000 Less: RDD -3000 28,000
Bills Payable 5,000 Stock 18,000
General Reserve 8,000 Cash & Bank 2,000

1,55,000 1,55,000

On 1st April 2019, Hill joins the firm as a third partner for 1/3 share of future profits on the following terms
and condition:
i. Hill to bring in `1,20,000 as Capital and `30,000 as his share of Goodwill by RTGS
ii. Plant & Machinery revalued at `45,000
iii. RDD to be increased upto `4,000
iv. Stock was overvalued by 20%
v. Building was taken by Jack for `70,000
vi. The partners decide to retain half of the amount of Goodwill in the Business.
vii. The old partners decide to sacrifice equally.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 6
 12th – Book Keeping & Accountancy Admission of a Partner
15. The Balance Sheet of Hrithik & Tiger who shared Profits & Losses equally was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 68,000
Hrithik 90,000 Plant & Machinery 52,000
Tiger 60,000 1,50,000 Furniture 12,000
Sundry Debtors 35000
Creditors 32,000 Less: RDD -2500 32,500
Bills Payable 9,000 Stock 27,000
General Reserve 18,000 Cash & Bank 17,500

2,09,000 2,09,000

On 1st April 2019, Vicky joins the firm as a third partner for 1/4 share of future profits on the following
terms and condition:
i. Vicky to bring in `80,000 as Capital and `20,000 as his share of Goodwill
ii. Plant & Machinery revalued at `61,000
iii. RDD to be increased upto `4,200
iv. Stock was undervalued by 20% and Building undervalued by 15%
v. Furniture was taken by Tiger for `10,000
vi. The partners decide to retain half of the amount of Goodwill in the Business.
vii. The old partners decide to sacrifice equally.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 7
 12th – Book Keeping & Accountancy Admission of a Partner
16. The Balance Sheet of Monika & Rachel who shared Profits & Losses in 3:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 40,000
Monika 1,50,000 Bills Receivable 90,000
Rachel 1,62,000 3,12,000 Fixtures 60,000
Sundry Debtors 1,50,000
Creditors 90,000 Less: RDD -15,000 1,35,000
General Reserve 88,000 Stock 90,000
Cash & Bank 75,000

4,90,000 4,90,000

On 1st April 2019, Phoebe joins the firm for 1/5th share of future profits on the following terms and
condition:
i. Phoebe introduced `1,20,000 as her Capital
ii. Phoebe would pay cash for Goodwill which would be based on 4 year’s purchase of past profits of
5 years.
iii. Assets revalued as: Fixtures `45,000, Bills Receivable `1,20,000, Stock `60,000, Debtors at book
value less a provision of 20%
iv. Bills payable of `15,000 have been omitted from the books.
v. Building was overvalued by 25%
vi. Profits for the last 5 years were as under:
`60,000, `45,000, `75,000, `30,000 and `45,000
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 8
 12th – Book Keeping & Accountancy Admission of a Partner
17. The Balance Sheet of Neha & Sonu who shared Profits & Losses in 2:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 90,000
Neha 1,20,000 Bills Receivable 50,000
Sonu 1,32,000 2,52,000 Fixtures 80,000
Sundry Debtors 90,000
Creditors 1,10,000 Less: RDD -5,000 85,000
General Reserve 78,000 Stock 60,000
Cash & Bank 75,000

4,90,000 4,40,000

On 1st April 2019, Tony joins the firm for 1/6th share of future profits on the following terms and condition:
i. Tony introduced `1,40,000 as his Capital
ii. Tony would pay cash for Goodwill which would be based on 3 year’s purchase of past profits of 5
years.
iii. Assets revalued as: Fixtures `56,000, Bills Receivable `52,000, Stock `55,000, Debtors at book
value less a provision of 10%
iv. Bills payable of `8,000 have been omitted from the books.
v. Building was overvalued by 20%
vi. Profits for the last 5 years were as under:
`40,000, `35,000, `55,000, `35,000 and `45,000
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 9
 12th – Book Keeping & Accountancy Admission of a Partner
18. The Balance Sheet of Abby and Gabby who shared Profits & Losses in 2:3 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 2,40,000
Abby 2,40,000 Bills Receivable 81,000
Gabby 3,50,000 5,90,000 Fixtures 1,60,000
Sundry Debtors 1,40,000
Creditors 1,30,000 Less: RDD -6,000 1,34,000
General Reserve 58,000 Stock 1,10,000
Bills Payable 32,000 Cash & Bank 85,000

8,10,000 8,10,000

On 1st April 2019, Shabby joins the firm for 1/5th share of future profits on the following terms and
condition:
i. Shabby introduced `2,80,000 as his Capital
ii. Shabby would pay cash for Goodwill which would be based on 2.5 year’s purchase of past profits
of 4 years.
iii. Assets revalued as: Fixtures `1,52,000, Bills Receivable `85,000, Debtors at book value less a
provision of 10%
iv. Bills payable of `12,000 have been omitted from the books.
v. Building was undervalued by 20% and Stock overvalued by 10%
vi. Profits for the last 4 years were as under:
`80,000, `95,000, `1,25,000 and `90,000
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 10
 12th – Book Keeping & Accountancy Admission of a Partner
19. The Balance Sheet of Ella & Emma who shared Profits & Losses in 3:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Land & Building 30,000
Ella 32,000 Bills Receivable 30,000
Emma 48,000 80,000 Fixtures 42,000
Debtors 13,000
Creditors 20,000 Less: RDD -1,000 12,000
General Reserve 24,000 Stock 20,000
Workmen Compensation
30,000 Cash & Bank 20,000
Reserve

1,34,000 1,34,000

On 1st April 2019, Enna joins the firm for 1/5th share of future profits on the following terms and condition:
i. Enna introduced `30,000 as her Capital
ii. Goodwill of the firm was valued at `1,00,000. Mia being unable to bring her share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. The Market value of Land & Building be taken at `40,000
iv. Workmen’s Compensation Reserve to be increased by `10,000
v. RDD to be maintained at 5%
vi. Stock is overvalued by 25%
vii. Bills payable of `4,000 have been omitted from the books.
viii. Unaccounted Accrued Income of `200 to be accounted for.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 11
 12th – Book Keeping & Accountancy Admission of a Partner
20. The Balance Sheet of Kylie & Miley who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 40,000
Kylie 62,000 Bills Receivable 20,000
Miley 58,000 1,20,000 Fixtures 35,000
Debtors 28,000
Creditors 30,000 Less: RDD -3,000 25,000
General Reserve 25,000 Stock 45,000
Workmen Compensation
20,000 Cash & Bank 30,000
Reserve

1,95,000 1,95,000

On 1st April 2019, Lily joins the firm for 1/4th share of future profits on the following terms and condition:
i. Lily introduced `50,000 as her Capital
ii. Goodwill of the firm was valued at `80,000. Lily being unable to bring her share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. The Market value of Building be taken at `55,000
iv. Workmen’s Compensation Reserve to be increased by `8,000
v. RDD to be maintained at 5%
vi. Stock is undervalued by 10%
vii. Bills payable of `4,500 have been omitted from the books.
viii. Unaccounted Accrued Income of `400 to be accounted for.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 12
 12th – Book Keeping & Accountancy Admission of a Partner
21. The Balance Sheet of Elleza & Emerson who shared Profits & Losses in 3:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 54,000
Elleza 75,000 Bills Receivable 19,000
Emerson 85,000 1,60,000 Fixtures 45,000
Debtors 35,000
Creditors 48,000 Less: RDD -4,000 31,000
General Reserve 28,000 Stock 92,000
Workmen Compensation
35,000 Cash & Bank 30,000
Reserve
2,71,000 2,71,000

On 1st April 2019, Elizabeth joins the firm for 1/5th share of future profits on the following terms and
condition:
i. Elizabeth introduced `80,000 as her Capital
ii. Goodwill of the firm was valued at `60,000. Elizabeth being unable to bring her share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. Building was undervalued by 10% and Stock overvalued by 25%
iv. Workmen’s Compensation Reserve to be increased by `5,000
v. RDD to be maintained at 5%
vi. Bills payable of `4,000 have been omitted from the books.
vii. Unaccounted Accrued Income of `800 to be accounted for.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 13
 12th – Book Keeping & Accountancy Admission of a Partner
22. The Balance Sheet of Steve & Mark who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 1,05,000
Steve 1,95,000 Bills Receivable 28,000
Mark 1,05,000 3,00,000 Fixtures 54,000
Debtors 85,000
Creditors 48,000 Less: RDD -4,000 81,000
General Reserve 32,000 Stock 1,52,000
Workmen Compensation
45,000 Patents 4,000
Reserve
Bank Loan 39,000 Profit and Loss Account 8,000
Cash & Bank 32,000

4,64,000 4,64,000

On 1st April 2019, Matthews joins the firm for 1/5th share of future profits on the following terms and
condition:
i. He should bring in `1,80,000 as his Capital
ii. Goodwill of the firm was valued at `90,000. Matthews being unable to bring his share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. Building to be valued at `1,12,000 and Patents are now useless. Fixtures reduced to `51,000 and
Stock increased by `9,000
iv. Workmen’s Compensation Reserve to be increased by `3,000
v. RDD to be increased upto `6,000
vi. Creditors of `3,000 have been omitted from the books.
vii. Unaccounted Accrued Income of `900 to be accounted for.
viii. Zed, a customer, whose dues were written off 2 years ago, now paid `5,000.
ix. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 14
 12th – Book Keeping & Accountancy Admission of a Partner
23. The Balance Sheet of Hulk and Henry who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 75,000
Hulk 95,000 Bills Receivable 14,500
Henry 85,000 1,80,000 Fixtures 65,000
Debtors 34,000
Creditors 24,500 Less: RDD -3,000 31,000
General Reserve 15,000 Stock 52,000
Workmen Compensation
15,000 Patents 2,000
Reserve
Bank Loan 45,000 Profit and Loss Account 8,000
Cash & Bank 32,000

2,79,500 2,79,500

On 1st April 2019, Hilton joins the firm for 1/4th share of future profits on the following terms and
condition:
i. He should bring in `70,000 as his Capital
ii. Goodwill of the firm was valued at `40,000. Hilton being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building to be valued at `98,000 and Patents are now useless. Fixtures reduced to `61,000 and
Stock increased by `10,000
iv. Workmen’s Compensation Reserve to be increased by `1,000
v. RDD to be increased upto `4,500
vi. Creditors of `2,500 have been omitted from the books.
vii. Unaccounted Accrued Income of `900 to be accounted for.
viii. Vento, a customer, whose dues were written off 3 years ago, now paid `3,000.
ix. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 15
 12th – Book Keeping & Accountancy Admission of a Partner
24. The Balance Sheet of Daniel and Lauren who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 1,50,000
Daniel 1,90,000 Bills Receivable 29,000
Lauren 1,76,000 3,66,000 Fixtures 1,30,000
Debtors 68,000
Creditors 49,000 Less: RDD -4,000 64,000
General Reserve 30,000 Stock 99,000
Workmen Compensation
18,000 Patents 5,000
Reserve
Bank Loan 45,000 Cash & Bank 49,000
Profit and Loss Account 18,000

5,26,000 5,26,000

On 1st April 2019, Nicole joins the firm for 1/5th share of future profits on the following terms and
condition:
i. He should bring in `1,50,000 as his Capital
ii. Goodwill of the firm was valued at `70,000. Nicole being unable to bring his share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. Building to be valued at `98,000 and Patents are now useless. Fixtures reduced to `61,000 and
Stock increased by `10,000
iv. Workmen’s Compensation Reserve to be increased by `9,000
v. RDD to be increased upto `4,500
vi. Creditors of `9,500 have been omitted from the books.
vii. Unaccounted Accrued Income of `10,000 to be accounted for.
viii. Mira, a customer, whose dues were written off 3 years ago, now paid `9,000.
ix. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 16
 12th – Book Keeping & Accountancy Admission of a Partner
25. The Balance Sheet of Tom & Jerry who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 2,43,000
Tom 1,40,000 Bills Receivable 29,000
Jerry 1,60,000 3,00,000 Fixtures 1,30,000
Debtors 45,000
Creditors 55,000 Less: RDD -4,000 41,000
General Reserve 40,000 Stock 66,000
Workmen Compensation
22,000 Patents 4,000
Reserve
Bank Loan 1,23,000 Cash & Bank 49,000
Profit and Loss Account 22,000

5,62,000 5,62,000

On 1st April 2019, Ben joins the firm for 1/5th share of future profits on the following terms and condition:
i. He should bring in `1,50,000 as his Capital and `40,000 as his share of Goodwill.
ii. Building is undervalued by 10% and Patents are now useless. Fixtures reduced to `1,15,000 and
Stock is overvalued by 20%
iii. Workmen’s Compensation Reserve to be increased by `2,000
iv. RDD to be maintained @ 5%
v. Creditors of `4,000 have been omitted from the books.
vi. Unaccounted Accrued Income of `6,000 to be accounted for.
vii. Scooby, a customer, whose dues were written off 2 years ago, now paid `3,500.
viii. The Partners decided to retain 50% of the amount of Goodwill.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 17
 12th – Book Keeping & Accountancy Admission of a Partner
26. The Balance Sheet of Anna & Elsa who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 72,000
Anna 90,000 Bills Receivable 25,000
Elsa 76,000 1,66,000 Investments 50,000
Debtors 29,000
Creditors 38,000 Less: RDD -4,000 25,000
General Reserve 24,000 Stock 40,000
Investment Fluctuation
3,000 Patents 5,000
Reserve
Bank Loan 40,000 Cash & Bank 49,000
Profit and Loss Account 15,000 Goodwill 20,000

2,86,000 2,86,000

On 1st April 2019, Olaf joins the firm for 1/5th share of future profits on the following terms and condition:
i. He should bring in `70,000 as his Capital
ii. Goodwill of the firm was valued at `50,000. Olaf being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building to be valued at `89,000 and Patents are now useless. Investments reduced to `45,000
and Stock increased by `6,000
iv. RDD to be maintained @ 5%
v. Creditors of `2,500 have been omitted from the books.
vi. Unaccounted Accrued Income of `10,000 to be accounted for.
vii. Dee, a customer, whose dues were written off 3 years ago, now paid `1,500.
viii. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 18
 12th – Book Keeping & Accountancy Admission of a Partner
27. The Balance Sheet of Ross & Chandler who shared Profits & Losses in 2:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 42,000
Ross 50,000 Bills Receivable 12,000
Chandler 40,000 90,000 Investments 32,000
Debtors 22,000
Creditors 24,000 Less: RDD -3,000 19,000
General Reserve 18,000 Stock 20,000
Investment Fluctuation
2,000 Patents 3,000
Reserve
Bank Loan 30,000 Cash & Bank 22,000
Profit and Loss Account 6,000 Goodwill 20,000

1,70,000 1,70,000

On 1st April 2019, Joey joins the firm for 1/4th share of future profits on the following terms and condition:
i. He should bring in `35,000 as his Capital
ii. Goodwill of the firm was valued at `44,000. Joey being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building to be valued at `55,000 and Patents are now useless. Investments reduced to `29,000
and Stock increased by `4,500
iv. RDD to be maintained @ 5%
v. Creditors of `1,500 have been omitted from the books.
vi. Unaccounted Accrued Income of `2,000 to be accounted for.
vii. Ell, a customer, whose dues were written off 3 years ago, now paid `500.
viii. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 19
 12th – Book Keeping & Accountancy Admission of a Partner
28. The Balance Sheet of Ahana & Ajeeta who shared Profits & Losses in 3:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 54,000
Ahana 80,000 Bills Receivable 8,000
Ajeeta 80,000 1,60,000 Investments 29,000
Debtors 39,000
Creditors 35,000 Less: RDD -3,000 36,000
General Reserve 25,000 Stock 22,000
Investment Fluctuation
3,000 Patents 4,000
Reserve
Bank Loan 50,000 Cash & Bank 86,000
Profit and Loss Account 6,000
Goodwill 28,000

2,73,000 2,73,000

On 1st April 2019, Amaya joins the firm for 1/5th share of future profits on the following terms and
condition:
i. She should bring in `60,000 as his Capital
ii. Goodwill of the firm was valued at `40,000. Amaya being unable to bring her share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. Building is undervalued by `8,000 and Patents are now useless. Investments reduced to `24,000
and Stock increased by `4,500
iv. RDD to be maintained @ 5%
v. Creditors of `800 have been omitted from the books.
vi. Unaccounted Accrued Income of `1,200 to be accounted for.
vii. Wye, a customer, whose dues were written off 2 years ago, now paid `900.
viii. The Partners decided not to show Goodwill in the Books.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 20
 12th – Book Keeping & Accountancy Admission of a Partner
29. The Balance Sheet of Ricky & Symonds who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 42,000
Ricky 50,000 Furniture 20,000
Symonds 40,000 90,000 Investments 32,000
Debtors 19,000
Creditors 22,000 Less: RDD -1,000 18,000
General Reserve 18,000 Stock 19,000
Investment Fluctuation
2,000 Patents 1,200
Reserve
Bank Loan 40,000 Cash & Bank 28,800
Profit and Loss Account 3,000
Goodwill 8,000

1,72,000 1,72,000

On 1st April 2019, Lee joins the firm for 1/5th share of future profits on the following terms and condition:
i. He should bring in `20,000 as his Capital
ii. Goodwill of the firm was valued at `30,000. Lee being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building is undervalued by `6,000 and Patents are now useless. Investments reduced to `26,000
and Stock increased by `4,500
iv. RDD to be maintained @ 5%
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base through Cash Account.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 21
 12th – Book Keeping & Accountancy Admission of a Partner
30. The Balance Sheet of Ell and Emm who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 89,000
Ell 90,000 Furniture 24,700
Emm 80,000 1,70,000 Investments 38,000
Debtors 42,000
Creditors 42,000 Less: RDD -2,000 40,000
General Reserve 20,000 Stock 42,000
Investment Fluctuation
3,000 Patents 1,500
Reserve
Bank Loan 50,000 Cash & Bank 28,800
Profit and Loss Account 3,000
Goodwill 18,000

2,85,000 2,85,000

On 1st April 2019, Enn joins the firm for 1/4th share of future profits on the following terms and condition:
i. He should bring in `50,000 as his Capital
ii. Goodwill of the firm was valued at `40,000. Enn being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `31,000 and
Stock increased by `5,500
iv. RDD to be maintained @ 5%
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base by transferring the surplus to their respective Loan Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 22
 12th – Book Keeping & Accountancy Admission of a Partner
31. The Balance Sheet of Vasu and Basu who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 1,90,000
Vasu 1,90,000 Furniture 43,000
Basu 1,80,000 3,70,000 Investments 63,000
Debtors 1,53,000
Creditors 1,44,000 Less: RDD -7,000 1,46,000
General Reserve 75,000 Stock 1,72,000
Investment Fluctuation
5,000 Patents 5,000
Reserve
Bank Loan 80,000 Cash & Bank 32,000
Profit and Loss Account 5,000
Goodwill 18,000

6,74,000 6,74,000

On 1st April 2019, Akhil joins the firm for 1/5th share of future profits on the following terms and condition:
i. He should bring in `1,20,000 as his Capital
ii. Goodwill of the firm was valued at `60,000. Akhil being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `59,000 and
Stock increased by `8,500
iv. RDD to be maintained @ 5%
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base by transferring the Balances to their respective Current Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 23
 12th – Book Keeping & Accountancy Admission of a Partner
32. The Balance Sheet of Kiara and Kaira who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 40,000
Kiara 70,000 Furniture 12,000
Kaira 30,000 1,00,000 Investments 23,000
Debtors 32,000
Creditors 15,000 Less: RDD -1,000 31,000
General Reserve 8,000 Stock 24,000
Investment Fluctuation
2,000 Patents 2,000
Reserve
Bank Loan 30,000 Cash & Bank 20,000
Profit and Loss Account 5,000 Goodwill 8,000

1,60,000 1,60,000

On 1st April 2019, Akira joins the firm for 1/5th share of future profits on the following terms and condition:
i. She should bring in `30,000 as his Capital
ii. Goodwill of the firm was valued at `20,000. Akira being unable to bring her share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `20,000 and
Stock increased by `2,000
iv. RDD to be maintained @ 5%
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base by transferring the Balances to their respective Current Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 24
 12th – Book Keeping & Accountancy Admission of a Partner
33. The Balance Sheet of Nipun and Nakul who shared Profits & Losses in 4:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 1,00,000
Nipun 1,05,000 Cash & Bank 83,000
Nakul 75,000 1,80,000 Goodwill 66,000
Debtors 30,000
Creditors for Expenses 12,000 Less: RDD -3,000 27,000
General Reserve 30,000
Creditors for Goods 48,000
Profit and Loss Account 6,000

2,76,000 2,76,000

On 1st April 2019, Akul is admitted in the Partnership firm on the following terms and condition:
i. Akul to bring for 20% share in future profits `45,000
ii. Goodwill of the Firm Valued at `75,000
iii. RDD is no longer required
iv. Rent receivable `4,500 to be adjusted in Books.
v. Capital Account of Partners to be adjusted in New Profit Sharing Ratio by opening Current
Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 25
 12th – Book Keeping & Accountancy Admission of a Partner
34. The Balance Sheet of Mittal & Oberoi who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 2,00,000
Mittal 2,00,000 Cash & Bank 80,000
Oberoi 1,00,000 3,00,000 Goodwill 60,000
Creditors for Expenses 20,000 Debtors 1,20,000
General Reserve 40,000 Less: RDD -5,000 1,15,000
Creditors for Goods 77,000
Profit and Loss Account 18,000

4,55,000 4,55,000

On 1st April 2019, Kapoor is admitted in the Partnership firm on the following terms and condition:
i. Kapoor to bring for 20% share in future profits `80,000
ii. Goodwill of the Firm Valued at `90,000
iii. RDD is no longer required
iv. Rent receivable `5,400 to be adjusted in Books.
v. Capital Account of Partners to be adjusted in New Profit Sharing Ratio by opening Current
Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 26
 12th – Book Keeping & Accountancy Admission of a Partner
35. The Balance Sheet of Thor & Hela who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 40,000
Thor 70,000 Furniture 12,000
Hela 30,000 1,00,000 Investments 23,000
Debtors 32,000
Creditors 15,000 Less: RDD -1,000 31,000
General Reserve 8,000 Stock 24,000
Investment Fluctuation
2,000 Patents 2,000
Reserve
Bank Loan 30,000 Cash & Bank 20,000
Profit and Loss Account 5,000 Goodwill 8,000

1,60,000 1,60,000

On 1st April 2019, Loki joins the firm for 1/5th share of future profits on the following terms and condition:
i. He should bring in `30,000 as his Capital
ii. Goodwill of the firm was valued at `60,000. Loki brings in his Share in Cash
iii. Investments valued at `21,500
iv. RDD no longer to be maintained
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base by transferring the Balances to their respective Current Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 27
 12th – Book Keeping & Accountancy Admission of a Partner
36. The Balance Sheet of Thor & Hulk who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 60,000
Thor 1,20,000 Furniture 23,000
Hulk 90,000 2,10,000 Investments 46,000
Debtors 45,000
Creditors 25,000 Less: RDD -3,000 42,000
General Reserve 18,000 Stock 64,000
Investment Fluctuation
3,000 Patents 3,000
Reserve
Bank Loan 50,000 Cash & Bank 65,000
Profit and Loss Account 7,000 Goodwill 10,000

3,13,000 3,13,000

On 1st April 2019, Thanos joins the firm for 1/4th share of future profits on the following terms and
condition:
i. He should bring in `70,000 as his Capital
ii. Goodwill of the firm was valued at `60,000. Thanos brings in his Share in Cash
iii. Investments valued at `43,500
iv. RDD no longer to be maintained
v. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base by transferring the Balances to their respective Current Accounts.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 28
 12th – Book Keeping & Accountancy Admission of a Partner
37. The Balance Sheet of Antony & Birdy who shared Profits & Losses in 3:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 54,000
Antony 1,00,000 Bills Receivable 8,000
Birdy 80,000 1,80,000 Investments 29,000
Debtors 39,000
Creditors 35,000 Less: RDD -3,000 36,000
General Reserve 25,000 Stock 42,000
Investment Fluctuation
3,000 Patents 4,000
Reserve
Bank Loan 50,000 Cash & Bank 86,000
Profit and Loss Account 10,000
Goodwill 24,000

2,93,000 2,93,000

On 1st April 2019, Costello is admitted in the Partnership firm on the following terms and condition:
i. Costello to bring for 20% share in future profits `60,000
ii. Goodwill of the firm was valued at `40,000. Costello being unable to bring his share of Goodwill,
the Partners decide to raise Goodwill in the books.
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `25,000 and
Stock overvalued by 5%
iv. RDD to be maintained @ 10%
v. Creditors of `800 have been omitted from the books.
vi. Rent Receivable of `2,000 to be accounted for.
vii. Ess, a customer, whose dues were written off 2 years ago, now paid `1,000.
viii. The Partners decided not to show Goodwill in the Books.
ix. The Partners Capital is to be adjusted in New Profit Sharing Ratio taking New Partner’s Capital as
Base through Cash Account.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 29
 12th – Book Keeping & Accountancy Admission of a Partner
38. The Balance Sheet of Anu & Sonu who shared Profits & Losses in 3:2 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 34,000
Anu 50,000 Bills Receivable 3,000
Sonu 40,000 90,000 Investments 21,000
Debtors 24,000
Creditors 20,000 Less: RDD -1,000 23,000
General Reserve 12,000 Stock 21,000
Investment Fluctuation
1,000 Patents 2,000
Reserve
Bank Loan 40,000 Cash & Bank 43,000
Profit and Loss Account 4,000
Goodwill 12,000

1,63,000 1,63,000

On 1st April 2019, Bunty is admitted in the Partnership firm on the following terms and condition:
i. Bunty to bring for 25% share in future profits `30,000
ii. Goodwill of the firm was valued at `20,000. Bunty being unable to bring his share of Goodwill, the
Partners decide to raise Goodwill in the books.
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `20,000 and
Stock overvalued by 5%
iv. RDD to be maintained @ 10%
v. Creditors of `400 have been omitted from the books.
vi. Rent Receivable of `1,500 to be accounted for.
vii. Monu, a customer, whose dues were written off 3 years ago, now paid `2,000.
viii. The Partners Capital is to be adjusted in New Profit-Sharing Ratio taking New Partner’s Capital as
Base through Cash Account.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 30
 12th – Book Keeping & Accountancy Admission of a Partner
39. The Balance Sheet of Leo & George who shared Profits & Losses in 4:1 was as follows:
Balance Sheet
(As on 31st March, 2019)
Liabilities Amount Assets Amount
Capitals: Building 60,000
Leo 80,000 Bills Receivable 2,000
George 50,000 1,30,000 Investments 30,000
Debtors 32,000
Creditors 30,000 Less: RDD -2,000 30,000
General Reserve 20,000 Stock 27,500
Investment Fluctuation
2,000 Patents 2,500
Reserve
Bank Loan 60,000 Cash & Bank 70,000
Profit and Loss Account 4,000
Goodwill 16,000

2,42,000 2,42,000

On 1st April 2019, John is admitted in the Partnership firm on the following terms and condition:
i. John to bring for 20% share in future profits `40,000
ii. Goodwill of the firm was valued at `20,000. John brings in his share
iii. Building is undervalued by 20% and Patents are now useless. Investments reduced to `25,000 and
Stock overvalued by 10%
iv. RDD to be maintained @ 10%
v. Creditors of `400 have been omitted from the books.
vi. Rent Receivable of `1,200 to be accounted for.
vii. Santa, a customer, whose dues were written off 3 years ago, now paid `1,600.
viii. The Partners Capital is to be adjusted in New Profit-Sharing Ratio taking New Partner’s Capital as
Base through Cash Account.
Prepare necessary ledger accounts and show the Balance sheet as would appear in firm’s books after the
Admission of new partner.

Kapil Talreja (Cost Accountant) Contact No.: 9145 321 312 Page 31