Date : 09.08.
2025
CHAPTER 4 – ADMISSION OF PARTNERS
1. Define admission of partners.
2. According to section 31 of the Indian Partnership Act, 1932, when can a
person be admitted as a new partner?
3. After admission what two rights does the partner gets?
4. Mention any reason for admitting a new partner in the firm.
5. What is a new profit-sharing ratio, Sacrificing ratio? Give formula and also
mention one purpose to for calculation the same?
6. General reserve at the time of admission of a partner is transferred to …………
7. When the incoming partner brings in his share of the premium for goodwill in
cash, it is adjusted by crediting to …………….
8. Rohan is admitted to a company for a 1/4th share in the profits for which he
brings in ₹10,000 towards premium for goodwill. It will be taken up by the
old partners in which ratio?
9. Revaluation Account or Profit and Loss Adjustment Account is a _______
account.
10. X and Y are partners sharing profits in the ratio of 2:1. They admit Z into the
partnership for 1/4 the share in profits for which he brings in ₹40,000 as his
share of capital. Hence, the adjusted capital of the X and Y will be …………
11. When a new partner fails to brings cash for goodwill, the amount is credited
to ……..
12. A and B share profit and loss in the ration 2/3 and 1/3. Admit C as a partner
giving him 1/4 share. The new profit-sharing ratio will be………..
13. In which ratio the partners share the gain or loss on revaluation of asset and
liabilities? Journalize Revaluation entries, including revaluation Profit and
Loss entry. And also specify the ratio.
14. Show the journal entry for distributing general reserve and profit and loss
account balance appearing on the liabilities side of balance sheet.
15. Mention the concept of “Hidden goodwill”. And write the steps to calculate
the same
16. Show the adjustment of goodwill when the firm already has goodwill in its
books and the new partner brings his share of goodwill in cash and the
partner withdraw half of the goodwill,
when there is (a) fixed capital and (b) fluctuating capital.
17. Nitin, Tarun and Amar are partners sharing profits equally and decide to
share profits in the ratio of 2 : 2 : 1 w.e.f 1st April, 2024.
The extract of their Balance Sheet as at 31st March, 2023 is as follows:
Liabilities ₹ Assets ₹
Investment Fluctuation Reserve 60,000 Investments (At Cost) 4,00,000
Pass the Journal entries in each of the following situations:
i) When its Market Value is not given;
ii) When its Market Value is ₹ 4,00,000;
iii) When its Market Value is ₹ 4,24,000;
iv) When its Market Value is ₹ 3,70,000;
v) When its Market Value is ₹ 3,10,000;
18. The Balance Sheet showed Deferred Advertisement Expenditure ₹ 30,000
and Contingency Reserve ₹ 9,000. What will be the journal entries passed for
the above.
19. What are the steps to be followed to
a) calculating the capital of New or admitted partner on the basis of capital of
the old partners
b) Adjustment of old partners capital account on the basis of new or admitted
partner’s capital
20 Pawan, Raman and Sohan sharing profits and losses in the ratio of 4 : 3 : 2,
admitted Rohan as a partner for 1/5th share in the firm w.e.f. 1st April, 2025. An
extract of their Balance Sheet as at 31st March, 2025 is:
Liabilities ₹ Assets ₹
Workmen 1,35,00
Compensation Reserve 0
Pass the Journal entries for Workmen Compensation Reserve on the admission of
Rohan in following alternative cases:
Case 1. If there is no other information.
Case 2. If workmen compensation claim is ₹ 45,000.
Case 3. If workmen compensation claim is ₹ 1,50,000.
