ADMISSION OF PARTNERS
Q.1] The Balance Sheet of Prathamesh and Shiv who share profit and losses in the ratio
of 3:2 as at 31st March,2020 was as under:
Balance Sheet as on 31st March,2020
Liabilities Amt Assets Amt
Creditors 49,000 Cash at Bank 4,000
Capital: Building 20,000
Prathamesh 28,000 Machinery 28,000
Shiv 28,000 Furniture 1,200
Stock 16,400
Debtors 36,000
1,05,000 1,05,000
They take Ajay into partnership on 1st April,2020. The terms being:
(1) Ajay shall pay Rs.4,000 as his share of Goodwill, the amount to be retained in
business.
(2) He shall bring in Rs.12,000 as capital for 1/4th share in the future profits.
(3) The firm’s assets were to be revalued as under:
Building Rs.24,000, Machinery and Furniture to be reduced by 10% , a provision of
5% on debtors is to be made for doubtful debts; Stock is to be taken at a value Of
Rs.20,000
PREPARE: P/L Adjustments A/c, Partners Capital A/c and Balance Sheet. [Sept.2021]
Q.2] The Balance Sheet of Ram and Shyam who share profit and losses in the ratio of
3:1 as at 31st March,2020 was as under:
Balance Sheet as on 31st March,2020
Liabilities Amt Assets Amt
Creditors 80,000 Cash 80,000
Bills Payable 42,000 Land and Building 32,000
Capital: Plant and Machinery 60,000
Ram 1,20,000 Furniture 22,000
Shyam 40,000 1,60,000 Stock 40,000
General Reserve 16,000 Debtors 64,000
2,98,000 2,98,000
They admit Bharat into partnership on 1st April,2020. The terms being:
(1) He shall have to bring in Rs.40,000 as his Capital for1/5th share in future profit and
Rs.20,000 as his share of Goodwill.
(2) A provision of 5% on debtors is to be made for doubtful debts.
(3) Stock should be appreciated by 5% and Land and Building be appreciated by 20%.
(4) Furniture to be appreciated by 20%
(5) Capital Accounts of all the partners be adjusted in their new profit sharing ratio
through Cash Account.
PREPARE: P/L Adjustments A/c, Partners Capital A/c and Balance Sheet.
[March .2022]
Q.3] Sameer and Nisha were partners sharing profits and losses in the ratio of 3/4 and
1/4 showed the following Balance Sheet on 31st March,2018.
Balance Sheet on 31st March,2018
Liabilities Amt Assets Amt
Creditors 45,000 Stock 45,000
General Reserve 24,000 Fixtures 30,000
Capital: Debtors 75,000
Sameer 75,000 Less: R.D.D 7,500 67,500
Nisha 81,000 1,56,000 Bills Receivable 45,000
Cash in Hand 37,500
2,25,000 2,25,000
th st
They admit Poonam for 1/5 share on 1 April 2018, on the following terms.
(1) Poonam introduced Rs.60,000 as her capital.
(2) Poonam would pay cash for Goodwill which would be based on 4 year’s purchase of
past profits of last 5 years.
(3) Assets were revalued as under:
Fixtures Rs.22,500, Bills Receivable Rs.60,000,Stock at Rs.30,000, Debtors to be
increased upto Rs.15,000.
(4) Bill Payable of Rs.7,500 have been omitted from books
Profits for the last five years were as under:
I Rs.30,000
II Rs.22,500
III Rs.37,500
IV Rs.15,000
V Rs.22,500
PREPARE: P/L Adjustments A/c, Partners Capital A/c and Balance Sheet.
[July .2025]
