Doubts

Kiya and Leela are partners sharing profits in the ratio of 3: 2. Kiran was admitted as a new partner with l/5th share in the profits and brought in Rs. 24,000 as her share of goodwill premium that was credited to the Capital Accounts of Kiya and Leela respectively with Rs. 18,000 and Rs. 6,000. Calculate the new profit-sharing ratio of Kiya, Leela and Kiran. (C.B.S.E. 2019)

SOLUTION Sacrificing ratio of Kiya and Leela = 18,000: 6,000 or 3: 1Kiran's share = 1 / 5Kiya's sacrifice = 1 / 5 x 3 / 4 = 3 /…

Continue ReadingKiya and Leela are partners sharing profits in the ratio of 3: 2. Kiran was admitted as a new partner with l/5th share in the profits and brought in Rs. 24,000 as her share of goodwill premium that was credited to the Capital Accounts of Kiya and Leela respectively with Rs. 18,000 and Rs. 6,000. Calculate the new profit-sharing ratio of Kiya, Leela and Kiran. (C.B.S.E. 2019)

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for l/6lh share in the profits. Chaman acquired 2/5th of his share from Amit. How much share did Chaman acquire from Beena? (Delhi and AI 2018)

SOLUTION Chaman's Share of Profit = 1 / 6Share of Profit acquired by Chaman from Amit = 1 / 6 x 2 / 5 = 2 / 30Therefore, share of…

Continue ReadingAmit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for l/6lh share in the profits. Chaman acquired 2/5th of his share from Amit. How much share did Chaman acquire from Beena? (Delhi and AI 2018)

For which of the following situations, the 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 lime of admission, goodwill already appears in the balance sheet. (d) When new partner brings his share of goodwill in cash. (C.B.S.E. Sample Paper2020)

SOLUTION (c) When, at the time of admission, goodwill already appears in the balance sheet.Note: Existing goodwill must be written off in old profit-sharing ratio of old partners.

Continue ReadingFor which of the following situations, the 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 lime of admission, goodwill already appears in the balance sheet. (d) When new partner brings his share of goodwill in cash. (C.B.S.E. Sample Paper2020)

State any two reasons for the preparation of ‘Revaluation Account’ in case of admission of a Partner? (CBSE Sample Paper 2018)

SOLUTION Two reasons for preparation of 'Revaluation Account' at time of admission of a partner are:(i) To record the effect of revaluation of assets and liabilities.(ii) To ensure that the…

Continue ReadingState any two reasons for the preparation of ‘Revaluation Account’ in case of admission of a Partner? (CBSE Sample Paper 2018)

S, B and j were partners in a firm. T was admitted as a partner in the partnership firm for l/5th share of profits. Calculate the sacrificing ratio of S, B and j. (C.B.S.E. 2019)

SOLUTION Sacrificing Ratio of S, B and j is 1: 1: 1.Note: Unless agreed otherwise sacrificing ratio of old partners will be the same as their old profit-sharing ratio.

Continue ReadingS, B and j were partners in a firm. T was admitted as a partner in the partnership firm for l/5th share of profits. Calculate the sacrificing ratio of S, B and j. (C.B.S.E. 2019)