All Exams >
Commerce >
Accountancy CUET Preparation >
All Questions
All questions of Reconstitution of a Partnership Firm : Admission of a Partner for Commerce Exam
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:- a)Sacrificing ratio 1 : 1
- b)Sacrificing ratio 2 : 1
- c)A’s Sacrifice 6/15 and B’s Gain 3/15
- d)Sacrificing ratio 3 : 5
Correct answer is 'C'. Can you explain this answer?
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:
a)
Sacrificing ratio 1 : 1
b)
Sacrificing ratio 2 : 1
c)
A’s Sacrifice 6/15 and B’s Gain 3/15
d)
Sacrificing ratio 3 : 5
|
Akshara Chopra answered |
Calculation of sacrificing ratio of partners:
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?- a)To Increase the Number of partners
- b)To Increase the Capital of the firm.
- c)To Increase the Profit sharing Ratio
- d)To increase the goodwill of the firm
Correct answer is 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations
Q Why a new partner is admitted in the firm?
a)
To Increase the Number of partners
b)
To Increase the Capital of the firm.
c)
To Increase the Profit sharing Ratio
d)
To increase the goodwill of the firm
|
Pooja Nair answered |
The main purpose of admission of a new partner is to increase the capital of the firm. When old partners feel that the capital they have employed in the business is not enough for the future growth of the business. They may admit a new partner to maintain or to build up the financial strength of the business.
Goodwill Given in the old Balance Sheet will be:- a)Written off by the Sacrificing partners
- b)Distributed by Gainer partners
- c)Credited to old Partners Capital accounts
- d)Written off by the old partners
Correct answer is option 'D'. Can you explain this answer?
Goodwill Given in the old Balance Sheet will be:
a)
Written off by the Sacrificing partners
b)
Distributed by Gainer partners
c)
Credited to old Partners Capital accounts
d)
Written off by the old partners
|
Neha Sharma answered |
Goodwill existing in the old balance sheet of a partnership firm before admitting a new partner will be written off by the old partners in their old profit sharing ratio. A new partner cannot be debited for the same.
Good will of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of total profit Good will be raised in the books.- a)Rs. 30000
- b)Rs. 7500
- c)Rs. 120000
- d)Rs. 7000
Correct answer is option 'A'. Can you explain this answer?
Good will of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of total profit Good will be raised in the books.
a)
Rs. 30000
b)
Rs. 7500
c)
Rs. 120000
d)
Rs. 7000
|
Anirudh Gupta answered |
A 1/4th share in the firm for Rs. 10000?
It depends on the terms of the partnership agreement. If the agreement allows for the sale of partnership shares and specifies a method for valuing the firm's goodwill, then the incoming partner would need to follow that process to determine the value of their share. If the agreement does not address the sale of shares or the valuation of goodwill, then the partners would need to negotiate a fair price based on the current value of the firm's assets and liabilities.
It depends on the terms of the partnership agreement. If the agreement allows for the sale of partnership shares and specifies a method for valuing the firm's goodwill, then the incoming partner would need to follow that process to determine the value of their share. If the agreement does not address the sale of shares or the valuation of goodwill, then the partners would need to negotiate a fair price based on the current value of the firm's assets and liabilities.
Premium brought by the new partner will be shared by the existing partners in:- a)New Ratio
- b)Gain Ratio
- c)Sacrificing Ratio
- d)Old Ratio
Correct answer is option 'C'. Can you explain this answer?
Premium brought by the new partner will be shared by the existing partners in:
a)
New Ratio
b)
Gain Ratio
c)
Sacrificing Ratio
d)
Old Ratio
|
Kiran Mehta answered |
When a new partner is admitted into the partnership firm, he brings some amount of premium for goodwill which will be shared/distributed by the sacrificing partners in their sacrificing ratio
A and B are partners in a firm sharing profits and losses in the ratio 1:2.They admitted C into the partnership and decided to give him 1/3rd share of the future profits. Find the new ratio of the partners.- a)It is 3:2:1
- b)It is 2:4:3
- c)It is 3:4:2
- d)It is 4:2:3
Correct answer is option 'B'. Can you explain this answer?
A and B are partners in a firm sharing profits and losses in the ratio 1:2.They admitted C into the partnership and decided to give him 1/3rd share of the future profits. Find the new ratio of the partners.
a)
It is 3:2:1
b)
It is 2:4:3
c)
It is 3:4:2
d)
It is 4:2:3
|
Maheshwar Chawla answered |
Given:
- A and B are partners with profit-sharing ratio 1:2.
- C is admitted into the partnership and given 1/3rd share of future profits.
To find: New ratio of the partners.
Solution:
Let the total profit be x.
Then, profit shares of A and B will be (1/3)x and (2/3)x respectively.
Let the share of C be y.
Then, y = (1/3)x/3 = (1/9)x
Thus, the new profit-sharing ratio will be:
A : B : C
= (1/3)x : (2/3)x : y
= (1/3)x : (2/3)x : (1/9)x
= 3x : 6x : x
= 3 : 6 : 1
= 2 : 4 : 1 (by dividing each term by the lowest term)
Therefore, the new ratio of partners is 2:4:1, which is option (b).
- A and B are partners with profit-sharing ratio 1:2.
- C is admitted into the partnership and given 1/3rd share of future profits.
To find: New ratio of the partners.
Solution:
Let the total profit be x.
Then, profit shares of A and B will be (1/3)x and (2/3)x respectively.
Let the share of C be y.
Then, y = (1/3)x/3 = (1/9)x
Thus, the new profit-sharing ratio will be:
A : B : C
= (1/3)x : (2/3)x : y
= (1/3)x : (2/3)x : (1/9)x
= 3x : 6x : x
= 3 : 6 : 1
= 2 : 4 : 1 (by dividing each term by the lowest term)
Therefore, the new ratio of partners is 2:4:1, which is option (b).
The Balance Sheet shows land and building Rs. 90,300. But after the change in agreement land and building be brought up to Rs.1, 19,700. By what amount land and building account should be recorded in revaluation account- a)Rs.119700
- b)Rs.29400
- c)Rs.90300
- d)Rs.90200
Correct answer is option 'B'. Can you explain this answer?
The Balance Sheet shows land and building Rs. 90,300. But after the change in agreement land and building be brought up to Rs.1, 19,700. By what amount land and building account should be recorded in revaluation account
a)
Rs.119700
b)
Rs.29400
c)
Rs.90300
d)
Rs.90200
|
Poonam Reddy answered |
The correct answer is B.
Land and building is an asset. Revaluation account considers only the changes in assets and liabilities. So since land and building was ₹90300 earlier and now it is to be brought up to ₹119700. This means the value of land and building is increased. So revaluation will consider only the increased amount and not the whole value of building . So increased amount is 119700-90300=₹29400
Sometimes the value of goodwill is not given at the time of admission of a new partner. In such a situation it has to be inferred from the arrangement of the capital and profit sharing ratio. This concept is called- a)Premium for Goodwill
- b)Average Goodwill
- c)Hidden Goodwill
- d)Purchased Goodwill
Correct answer is option 'C'. Can you explain this answer?
Sometimes the value of goodwill is not given at the time of admission of a new partner. In such a situation it has to be inferred from the arrangement of the capital and profit sharing ratio. This concept is called
a)
Premium for Goodwill
b)
Average Goodwill
c)
Hidden Goodwill
d)
Purchased Goodwill
|
Tanya Mishra answered |
Yup its hidden g/w as u have to calculate it frm given capital n the profit sharing ratio
Out of the following, which is the main right of a partner?- a)Right to Stop other partners for drawings
- b)Right to Share the Assets of the firm.
- c)Right to share the old profits of the firm
- d)Right to Say no for Goodwill
Correct answer is option 'B'. Can you explain this answer?
Out of the following, which is the main right of a partner?
a)
Right to Stop other partners for drawings
b)
Right to Share the Assets of the firm.
c)
Right to share the old profits of the firm
d)
Right to Say no for Goodwill
|
|
Pj Commerce Academy answered |
When a new partner is admitted into a partnership business. He gets following rights:
1.Right to share future profits of the firm
2.Right to share in the assets of the firm
New partner is not entitled to the profits and other incomes earned by a partnership business before his admission
1.Right to share future profits of the firm
2.Right to share in the assets of the firm
New partner is not entitled to the profits and other incomes earned by a partnership business before his admission
Sacrificing ratio is differ from new profit sharing ratio- a)It is related to old partners
- b)It is related to all partners
- c)It is related to new partners
- d)It is related to all partners (including new)
Correct answer is option 'A'. Can you explain this answer?
Sacrificing ratio is differ from new profit sharing ratio
a)
It is related to old partners
b)
It is related to all partners
c)
It is related to new partners
d)
It is related to all partners (including new)
|
Naveen Choudhary answered |
Sacrificing ratio is concerned with the old partners who are sacrificing their share in favor of a new partner. New ratio means, new ratio of all the partners (including new and old partners).
General Reserve at the time of admission of a partner is transferred to ____________ . - a)Revaluation Account
- b)Capital Accounts of all partners, including new partner
- c)None of the these
- d)Old Partner's Capital Account
Correct answer is option 'D'. Can you explain this answer?
General Reserve at the time of admission of a partner is transferred to ____________ .
a)
Revaluation Account
b)
Capital Accounts of all partners, including new partner
c)
None of the these
d)
Old Partner's Capital Account
|
Srsps answered |
Sometimes a firm may have accumulated reserves not yet transferred to the partner's capitals accounts. These are in the form of general reserve, reserve fund etc. The new partner is not entitled to share in these reserves. Hence, at the time of admission, these reserves are transferred to the old partner's capital accounts in their profit sharing ratio.
A and B are partner sharing profits and losses in the ration 5 : 3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B, C is 7:5:4. The sacrificing ratio among A and B is :- a)3:1
- b)4:7
- c)5:4
- d)2:1
Correct answer is option 'A'. Can you explain this answer?
A and B are partner sharing profits and losses in the ration 5 : 3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B, C is 7:5:4. The sacrificing ratio among A and B is :
a)
3:1
b)
4:7
c)
5:4
d)
2:1
|
Sai Kulkarni answered |
Can you explain the answer of this question below:A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio will be 3 : 1 : 1. Sacrificing ratio will be:
- A:
2 : 1
- B:
1 : 7
- C:
3 : 5
- D:
1 : 2
The answer is D.
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio will be 3 : 1 : 1. Sacrificing ratio will be:
2 : 1
1 : 7
3 : 5
1 : 2
|
Surbhi Mishra answered |
Calculation of sacrificing ratio of partners:
Old Ratio = 2:1
New Ratio = 3:1:1
Sacrificing Ratio = A : 2/3 – 3/5 = 1/15
B : 1/3 – 1/5 = 2/15
Old Ratio = 2:1
New Ratio = 3:1:1
Sacrificing Ratio = A : 2/3 – 3/5 = 1/15
B : 1/3 – 1/5 = 2/15
REPORT ERROR
According to Section 30 of Partnership Act 1932:- a)New partner will bring capital and goodwill in cash
- b)New partner will inspect the books of accounts
- c)New partner is allowed to share old profits
- d)New partner is admitted by the consent of all partners
Correct answer is option 'D'. Can you explain this answer?
According to Section 30 of Partnership Act 1932:
a)
New partner will bring capital and goodwill in cash
b)
New partner will inspect the books of accounts
c)
New partner is allowed to share old profits
d)
New partner is admitted by the consent of all partners
|
|
Nandini Iyer answered |
According to Section 30 of Partnership Act 1932,
Minors admitted to the benefits of partnership. A person who is a minor according to the law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.
A and B are partners sharing profits and losses in the ratio of 3:2 (A’s Capital is Rs. 30,000 and B’s Capital is Rs. 15,000). They admitted C agreed to give 1/5th share of profits to him.How much C should bring in towards his capital?- a)Rs. 9,000.
- b)Rs. 12,000.
- c)Rs. 14,500.
- d)Rs. 11,250.
Correct answer is option 'D'. Can you explain this answer?
A and B are partners sharing profits and losses in the ratio of 3:2 (A’s Capital is Rs. 30,000 and B’s Capital is Rs. 15,000). They admitted C agreed to give 1/5th share of profits to him.How much C should bring in towards his capital?
a)
Rs. 9,000.
b)
Rs. 12,000.
c)
Rs. 14,500.
d)
Rs. 11,250.
|
|
Nandini Iyer answered |
Present capital for 4/5 share is Rs. 45000 (Both existing partners).
So, for remaining 1/5th share, its 45000 x 1/4 = 11,250
A, B and C are partners sharing profits and losses in the ratio 6:3:3, they agreed to take D into partnership for 1/8th share of profits. Find the new profit sharing ratio.- a)12:27:36:42.
- b)14:7:7:4.
- c)1:2:3:4.
- d)7:5:3:1.
Correct answer is option 'B'. Can you explain this answer?
A, B and C are partners sharing profits and losses in the ratio 6:3:3, they agreed to take D into partnership for 1/8th share of profits. Find the new profit sharing ratio.
a)
12:27:36:42.
b)
14:7:7:4.
c)
1:2:3:4.
d)
7:5:3:1.
|
|
Srsps answered |
Let the total profit be = 1
D's share = 1/8th of profits = 1/8
Remaining share to be distributed to A,B, and C in the old ratio = 7/8
A's share = 7/8 × 6/12 = 42/96
B's share = 7/8 × 3/12 = 21/96
C's share = 7/8 × 3/12 = 21/96
D's share = 1/8 × 12/12 = 12/96
A:B:C:D = 42:21:21:12
New Profit Sharing Ratio = 14:7:7:4
A and B are partners C is admitted with 1/5th share C brings Rs. 1,20,000 as his share towards capital. The total net worth of the firm is : - a)Rs. 1,00,000
- b)Rs. 4,00,000
- c)Rs. 1,20,000
- d)Rs. 6,00,000
Correct answer is option 'D'. Can you explain this answer?
A and B are partners C is admitted with 1/5th share C brings Rs. 1,20,000 as his share towards capital. The total net worth of the firm is :
a)
Rs. 1,00,000
b)
Rs. 4,00,000
c)
Rs. 1,20,000
d)
Rs. 6,00,000
|
Maheshwar Sharma answered |
Given, A and B are partners and C is admitted with 1/5th share. C brings Rs. 1,20,000 as his share towards capital.
Let's assume the total capital of the firm be x.
A and B have a share of 4/5th in the firm. So, their total capital will be 4/5 x.
C has a share of 1/5th in the firm. So, his capital will be 1/5 x.
Given, C brings Rs. 1,20,000 as his share towards capital.
Therefore, 1/5 x = Rs. 1,20,000.
Solving this equation, we get x = Rs. 6,00,000.
Hence, the total net worth of the firm is Rs. 6,00,000.
Therefore, the correct answer is option 'D' - Rs. 6,00,000.
Let's assume the total capital of the firm be x.
A and B have a share of 4/5th in the firm. So, their total capital will be 4/5 x.
C has a share of 1/5th in the firm. So, his capital will be 1/5 x.
Given, C brings Rs. 1,20,000 as his share towards capital.
Therefore, 1/5 x = Rs. 1,20,000.
Solving this equation, we get x = Rs. 6,00,000.
Hence, the total net worth of the firm is Rs. 6,00,000.
Therefore, the correct answer is option 'D' - Rs. 6,00,000.
Amit and Anil are partners sharing profits in the ratio of 5:3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul:- a)2,60,000 : 2,06,000 : 50,000
- b)2,20,000 : 1,82,000 : 66,000
- c)2,92,500 : 2,25,500 : 50,000
- d)2,82,500 : 2,19,500 : 66,000
Correct answer is option 'A'. Can you explain this answer?
Amit and Anil are partners sharing profits in the ratio of 5:3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul:
a)
2,60,000 : 2,06,000 : 50,000
b)
2,20,000 : 1,82,000 : 66,000
c)
2,92,500 : 2,25,500 : 50,000
d)
2,82,500 : 2,19,500 : 66,000
|
|
Prasenjit Kapoor answered |
Given:
- Amit and Anil are partners sharing profits in the ratio of 5:3 with capital of Rs. 2,50,000 and Rs. 2,00,000.
- Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit.
To find: The balance of capital account after admission of Atul.
Solution:
1. Calculation of new profit sharing ratio:
- Amit and Anil's total capital = Rs. 2,50,000 + Rs. 2,00,000 = Rs. 4,50,000
- Atul's capital = Rs. 50,000
- Total capital after admission = Rs. 5,00,000
- Atul has been given 1/5th profit, which means he will get 1/6th share in the total profit (since there are now 3 partners).
- So, Atul's profit sharing ratio = 1/6 or 5:25
- Amit and Anil's profit sharing ratio = 5:3 or 25:15
- New profit sharing ratio = 25:15:5 or 5:3:1
2. Calculation of new capital:
- Amit's share in the total capital = 25/44 * Rs. 5,00,000 = Rs. 2,84,090.91
- Anil's share in the total capital = 15/44 * Rs. 5,00,000 = Rs. 1,65,909.09
- Atul's share in the total capital = Rs. 50,000
- Total capital after admission = Rs. 5,00,000
- So, the balance of capital account after admission of Atul is:
Amit: Rs. 2,84,090.91
Anil: Rs. 1,65,909.09
Atul: Rs. 50,000
Therefore, the correct answer is option 'A' - 2,60,000 : 2,06,000 : 50,000.
- Amit and Anil are partners sharing profits in the ratio of 5:3 with capital of Rs. 2,50,000 and Rs. 2,00,000.
- Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit.
To find: The balance of capital account after admission of Atul.
Solution:
1. Calculation of new profit sharing ratio:
- Amit and Anil's total capital = Rs. 2,50,000 + Rs. 2,00,000 = Rs. 4,50,000
- Atul's capital = Rs. 50,000
- Total capital after admission = Rs. 5,00,000
- Atul has been given 1/5th profit, which means he will get 1/6th share in the total profit (since there are now 3 partners).
- So, Atul's profit sharing ratio = 1/6 or 5:25
- Amit and Anil's profit sharing ratio = 5:3 or 25:15
- New profit sharing ratio = 25:15:5 or 5:3:1
2. Calculation of new capital:
- Amit's share in the total capital = 25/44 * Rs. 5,00,000 = Rs. 2,84,090.91
- Anil's share in the total capital = 15/44 * Rs. 5,00,000 = Rs. 1,65,909.09
- Atul's share in the total capital = Rs. 50,000
- Total capital after admission = Rs. 5,00,000
- So, the balance of capital account after admission of Atul is:
Amit: Rs. 2,84,090.91
Anil: Rs. 1,65,909.09
Atul: Rs. 50,000
Therefore, the correct answer is option 'A' - 2,60,000 : 2,06,000 : 50,000.
A and B are partners, sharing profits in the ratio of 5:3. They admit C with 1/5 share in profits, which he acquires equally from both 1/10 from A and 1/10 from B. New profit sharing ratio will be:- a)21:11:8
- b)20:10:4
- c)15:10:4
- d)None
Correct answer is option 'A'. Can you explain this answer?
A and B are partners, sharing profits in the ratio of 5:3. They admit C with 1/5 share in profits, which he acquires equally from both 1/10 from A and 1/10 from B. New profit sharing ratio will be:
a)
21:11:8
b)
20:10:4
c)
15:10:4
d)
None
|
|
Srsps answered |
C is acquiring 1/10th equally from both A and B,
A's new share= 5/8 - 1/10= 21/40
B's new share= 3/8 - 1/10= 11/40
C's share= 8/40
New profit-sharing ratio= 21:11:8
Therefore, D is the correct answer.
B's new share= 3/8 - 1/10= 11/40
C's share= 8/40
New profit-sharing ratio= 21:11:8
Therefore, D is the correct answer.
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:- a)Sacrificing ratio 1 : 1
- b)Sacrificing ratio 2 : 1
- c)A’s Sacrifice 6/15 and B’s Gain 3/15
- d)Sacrificing ratio 3 : 5
Correct answer is option 'C'. Can you explain this answer?
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:
a)
Sacrificing ratio 1 : 1
b)
Sacrificing ratio 2 : 1
c)
A’s Sacrifice 6/15 and B’s Gain 3/15
d)
Sacrificing ratio 3 : 5
|
Bhargavi Chopra answered |
Calculation of sacrificing ratio of partners:
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?- a)5 : 7 : 8
- b)20 : 49 : 64
- c)38 : 28 : 21
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?
a)
5 : 7 : 8
b)
20 : 49 : 64
c)
38 : 28 : 21
d)
None of these
|
|
Amrutha Goyal answered |
Let their investments be Rs. x for 14 months, Rs. y for 8 months and Rs. z for 7 months respectively.
Then, 14x : 8y : 7z = 5 : 7 : 8.
Now,
Why new profit ratio is determine even for old partners?- a)No change in agreement
- b)Change in the agreement among all partners
- c)Ratio keeps on changing in every six month
- d)Due to change in external environment
Correct answer is option 'B'. Can you explain this answer?
Why new profit ratio is determine even for old partners?
a)
No change in agreement
b)
Change in the agreement among all partners
c)
Ratio keeps on changing in every six month
d)
Due to change in external environment
|
Nilesh Chawla answered |
New profit sharing ratio will be calculated for all the partners because of change in profit sharing ratio agreement among the partners.
- a)Rs. 25,000.
- b)Rs. 19,000.
- c)Rs. 20,000.
- d)Rs. 18,000.
Correct answer is 'B'. Can you explain this answer?
|
|
Nikita Singh answered |
A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.- a)8,000:2,000
- b)5,000:5,000
- c)Old partners will not get any share in the goodwill brought in by C
- d)6,000:4,000
Correct answer is option 'A'. Can you explain this answer?
A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.
a)
8,000:2,000
b)
5,000:5,000
c)
Old partners will not get any share in the goodwill brought in by C
d)
6,000:4,000
|
Aman Chaudhary answered |
And B?
Let's calculate the new capital brought in by A and B after the addition of C as a partner:
A's new capital = A's old capital + A's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000
B's new capital = B's old capital + B's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000
Now, let's calculate the new profit sharing ratio among A, B, and C:
Total capital = A's new capital + B's new capital + C's capital
= Rs. 10,000 + Rs. 10,000 + Rs. 25,000
= Rs. 45,000
A's new profit share = (A's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit
B's new profit share = (B's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit
C's profit share = (C's capital / Total capital) * Total profit
= (Rs. 25,000 / Rs. 45,000) * Total profit
= 5/9 * Total profit
Given that the new profit sharing ratio is 1:1:1, we can equate the profit shares of A and B:
2/9 * Total profit = 1/3 * Total profit
Cross-multiplying, we get:
2/9 * Total profit = 1/3 * Total profit
2/9 = 1/3
2 * 3 = 9 * 1
6 = 9
The equation is not true, which means the profit shares of A and B are not equal. Therefore, the given information is inconsistent.
Let's calculate the new capital brought in by A and B after the addition of C as a partner:
A's new capital = A's old capital + A's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000
B's new capital = B's old capital + B's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000
Now, let's calculate the new profit sharing ratio among A, B, and C:
Total capital = A's new capital + B's new capital + C's capital
= Rs. 10,000 + Rs. 10,000 + Rs. 25,000
= Rs. 45,000
A's new profit share = (A's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit
B's new profit share = (B's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit
C's profit share = (C's capital / Total capital) * Total profit
= (Rs. 25,000 / Rs. 45,000) * Total profit
= 5/9 * Total profit
Given that the new profit sharing ratio is 1:1:1, we can equate the profit shares of A and B:
2/9 * Total profit = 1/3 * Total profit
Cross-multiplying, we get:
2/9 * Total profit = 1/3 * Total profit
2/9 = 1/3
2 * 3 = 9 * 1
6 = 9
The equation is not true, which means the profit shares of A and B are not equal. Therefore, the given information is inconsistent.
A and B are partners sharing the profit in the ratio of 3:2. They take C as the new partner, who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. C is able to bring Rs. 30,000 only. How this will be treated in the books of the firm.- a)A and B will share goodwill brought by C as Rs. 4,000: Rs.1,000
- b)Goodwill not brought, will be adjusted to the extent of Rs.5,000 in sacrificing ratio.
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
A and B are partners sharing the profit in the ratio of 3:2. They take C as the new partner, who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. C is able to bring Rs. 30,000 only. How this will be treated in the books of the firm.
a)
A and B will share goodwill brought by C as Rs. 4,000: Rs.1,000
b)
Goodwill not brought, will be adjusted to the extent of Rs.5,000 in sacrificing ratio.
c)
Both
d)
None
|
Lekshmi Mehta answered |
Treatment of C's contribution in the books of the firm:
1. Calculation of new capital of partners:
- A's capital = (3/5)*(25000+10000) = Rs. 18,000
- B's capital = (2/5)*(25000+10000) = Rs. 12,000
- C's capital = Rs. 30,000
2. Calculation of new profit sharing ratio:
- A:B:C = 1:1:1
3. Calculation of new share of profit:
- Total profit = Old profit + Goodwill
- Goodwill = C's goodwill contribution - Actual goodwill = Rs. 10,000 - Rs. 5,000 = Rs. 5,000
- New profit = Rs. 5,000
- A's share = Rs. 5,000*(1/3) = Rs. 1,667
- B's share = Rs. 5,000*(1/3) = Rs. 1,667
- C's share = Rs. 5,000*(1/3) = Rs. 1,667
4. Adjustment of goodwill:
- As per the new profit sharing ratio, A and B will have to sacrifice their share of profit in the ratio of 3:2.
- Sacrifice of A = Rs. 1,667*(3/5) = Rs. 1,000
- Sacrifice of B = Rs. 1,667*(2/5) = Rs. 667
- Total sacrifice = Rs. 1,667
- As the actual goodwill is only Rs. 5,000, the remaining Rs. 3,333 (Rs. 5,000 - Rs. 1,667) cannot be adjusted.
- Therefore, the unadjusted goodwill will be written off to the old partners' capital accounts in the sacrificing ratio.
- A's share of unadjusted goodwill = Rs. 3,333*(3/5) = Rs. 2,000
- B's share of unadjusted goodwill = Rs. 3,333*(2/5) = Rs. 1,333
- A's new capital = Rs. 18,000 + Rs. 2,000 - Rs. 1,000 = Rs. 19,000
- B's new capital = Rs. 12,000 + Rs. 1,333 - Rs. 667 = Rs. 12,666
1. Calculation of new capital of partners:
- A's capital = (3/5)*(25000+10000) = Rs. 18,000
- B's capital = (2/5)*(25000+10000) = Rs. 12,000
- C's capital = Rs. 30,000
2. Calculation of new profit sharing ratio:
- A:B:C = 1:1:1
3. Calculation of new share of profit:
- Total profit = Old profit + Goodwill
- Goodwill = C's goodwill contribution - Actual goodwill = Rs. 10,000 - Rs. 5,000 = Rs. 5,000
- New profit = Rs. 5,000
- A's share = Rs. 5,000*(1/3) = Rs. 1,667
- B's share = Rs. 5,000*(1/3) = Rs. 1,667
- C's share = Rs. 5,000*(1/3) = Rs. 1,667
4. Adjustment of goodwill:
- As per the new profit sharing ratio, A and B will have to sacrifice their share of profit in the ratio of 3:2.
- Sacrifice of A = Rs. 1,667*(3/5) = Rs. 1,000
- Sacrifice of B = Rs. 1,667*(2/5) = Rs. 667
- Total sacrifice = Rs. 1,667
- As the actual goodwill is only Rs. 5,000, the remaining Rs. 3,333 (Rs. 5,000 - Rs. 1,667) cannot be adjusted.
- Therefore, the unadjusted goodwill will be written off to the old partners' capital accounts in the sacrificing ratio.
- A's share of unadjusted goodwill = Rs. 3,333*(3/5) = Rs. 2,000
- B's share of unadjusted goodwill = Rs. 3,333*(2/5) = Rs. 1,333
- A's new capital = Rs. 18,000 + Rs. 2,000 - Rs. 1,000 = Rs. 19,000
- B's new capital = Rs. 12,000 + Rs. 1,333 - Rs. 667 = Rs. 12,666
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): When the profit sharing ratio changes, all the reserves are transferred to the Profit and Loss Appropriation Account.Reason (R): The reserves are transferred in the old profit sharing ratio.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): When the profit sharing ratio changes, all the reserves are transferred to the Profit and Loss Appropriation Account.
Reason (R): The reserves are transferred in the old profit sharing ratio.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false .
d)
Assertion (A) is false, but Reason (R) is true.
|
Arun Yadav answered |
When the profit sharing ratio changes all the reserves are transferred to the Profit and Loss Appropriation Account in the old profit sharing ratio, so that the accumulated profits can be distributed among the partners for the restructuring of the firm.
A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5th share from A and 1/10th from B, new profit sharing ratio will be:- a)5:6:3.
- b)2:4:6.
- c)18:24:38.
- d)17:11:12
Correct answer is option 'D'. Can you explain this answer?
A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5th share from A and 1/10th from B, new profit sharing ratio will be:
a)
5:6:3.
b)
2:4:6.
c)
18:24:38.
d)
17:11:12
|
|
Sounak Jain answered |
Given:
A and B share profits in the ratio of 5:3
C is given 3/10th share of profit
C acquires 1/5th share from A and 1/10th share from B
To find: New profit sharing ratio
Step-by-step solution:
1. Let the total profit be x
2. A's share in the profit = 5/8 * x
3. B's share in the profit = 3/8 * x
4. C's share in the profit = 3/10 * x
5. C acquires 1/5th share from A, which is (1/5 * 5/8) = 1/8 of the total profit. Hence, A's new share in the profit = 5/8 - 1/8 = 4/8 = 1/2
6. C acquires 1/10th share from B, which is (1/10 * 3/8) = 3/80 of the total profit. Hence, B's new share in the profit = 3/8 - 3/80 = 27/80
7. Add up the new shares of A, B, and C to get the total profit: 1/2 + 27/80 + 3/10 = 17/40
8. New profit sharing ratio: A:B:C = (1/2)/(27/80)/(3/10) = 17:11:12
Hence, the correct answer is option D) 17:11:12.
A and B share profits in the ratio of 5:3
C is given 3/10th share of profit
C acquires 1/5th share from A and 1/10th share from B
To find: New profit sharing ratio
Step-by-step solution:
1. Let the total profit be x
2. A's share in the profit = 5/8 * x
3. B's share in the profit = 3/8 * x
4. C's share in the profit = 3/10 * x
5. C acquires 1/5th share from A, which is (1/5 * 5/8) = 1/8 of the total profit. Hence, A's new share in the profit = 5/8 - 1/8 = 4/8 = 1/2
6. C acquires 1/10th share from B, which is (1/10 * 3/8) = 3/80 of the total profit. Hence, B's new share in the profit = 3/8 - 3/80 = 27/80
7. Add up the new shares of A, B, and C to get the total profit: 1/2 + 27/80 + 3/10 = 17/40
8. New profit sharing ratio: A:B:C = (1/2)/(27/80)/(3/10) = 17:11:12
Hence, the correct answer is option D) 17:11:12.
X and Y are sharing profits and losses in the ratio of 3 :2. Z is admitted with 1/5th share in profits of the firm which he gets from X. Now the new profit sharing ratio among X, Y and Z will be _________.
- a)12:8:5
- b)8:12:5
- c)2:2:1
- d)2:2:2
Correct answer is option 'C'. Can you explain this answer?
X and Y are sharing profits and losses in the ratio of 3 :2. Z is admitted with 1/5th share in profits of the firm which he gets from X. Now the new profit sharing ratio among X, Y and Z will be _________.
a)
12:8:5
b)
8:12:5
c)
2:2:1
d)
2:2:2
|
|
Madhavan Malik answered |
Given: X and Y share profits and losses in the ratio of 3:2.
Z is admitted with 1/5th share in profits of the firm which he gets from X.
To Find: New profit sharing ratio.
Solution:
Let the total profit be 'P'.
Profit share of X and Y = 3P/5 and 2P/5 respectively.
Profit share of Z = 1/5 of X's share = (1/5) × (3P/5) = 3P/25.
Total profit share of X, Y, and Z = 3P/5 + 2P/5 + 3P/25 = 27P/25.
New profit sharing ratio:
X's share = (3P/5 + 3P/25) = 18P/25
Y's share = 2P/5
Z's share = 3P/25
The new profit-sharing ratio of X, Y, and Z is 18:10:3.
Therefore, the correct answer is option (c) 2:2:1.
Z is admitted with 1/5th share in profits of the firm which he gets from X.
To Find: New profit sharing ratio.
Solution:
Let the total profit be 'P'.
Profit share of X and Y = 3P/5 and 2P/5 respectively.
Profit share of Z = 1/5 of X's share = (1/5) × (3P/5) = 3P/25.
Total profit share of X, Y, and Z = 3P/5 + 2P/5 + 3P/25 = 27P/25.
New profit sharing ratio:
X's share = (3P/5 + 3P/25) = 18P/25
Y's share = 2P/5
Z's share = 3P/25
The new profit-sharing ratio of X, Y, and Z is 18:10:3.
Therefore, the correct answer is option (c) 2:2:1.
The amount of goodwill brought in by the new partner is shared by the ____ partners in their ____ ratio- a)All old partners in old ratio
- b)Sacrificing partners, sacrificing
- c)Gaining partner, gaining
- d)All partners (including new) in new ratio
Correct answer is option 'B'. Can you explain this answer?
The amount of goodwill brought in by the new partner is shared by the ____ partners in their ____ ratio
a)
All old partners in old ratio
b)
Sacrificing partners, sacrificing
c)
Gaining partner, gaining
d)
All partners (including new) in new ratio
|
Tejas Desai answered |
The amount of premium for goodwill brought in by the new partner will be shared by the only sacrificing partners in their sacrificing ratio.
P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.- a)47,000:33.500:20,000.
- b)50,000:35,000:20,000.
- c)40,000:30,000:20,000.
- d)41,000:30,500:29,000.
Correct answer is option 'A'. Can you explain this answer?
P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs. 6,000 and opening capital of P is Rs. 40,000 and of Q is Rs. 30,000, find the closing balance of each capital.
a)
47,000:33.500:20,000.
b)
50,000:35,000:20,000.
c)
40,000:30,000:20,000.
d)
41,000:30,500:29,000.
|
|
Srsps answered |
Given:
- P and Q are partners sharing profits in the ratio of 2:1.
- R is admitted to the partnership with effect from 1st April.
- R brings Rs. 20,000 as his capital for 1/4th share.
- R pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q.
- Profit on revaluation is Rs. 6,000.
- Opening capital of P is Rs. 40,000 and of Q is Rs. 30,000.
To find:
Closing balance of each capital.
Step 1: Calculate the share of R in the profits and capital:
- R's share in the profits = 1/4 * total profits
- R's share in the capital = Rs. 20,000
Step 2: Calculate the total profits:
- Let the total profits be x.
- P's share in the profits = 2/3 * x
- Q's share in the profits = 1/3 * x
- R's share in the profits = 1/4 * x
Given that half of the goodwill payment is to be withdrawn by P and Q, we can calculate the goodwill payment as follows:
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q = 1/2 * Rs. 9,000 = Rs. 4,500
Step 3: Calculate the new capital of P and Q after the withdrawal:
- P's new capital = Opening capital + Share of profits - Amount withdrawn
- Q's new capital = Opening capital + Share of profits - Amount withdrawn
Step 4: Calculate the total capital:
- Total capital = P's capital + Q's capital + R's capital
Step 5: Calculate the closing balance of each capital:
- Closing balance of P = P's new capital / Total capital * x
- Closing balance of Q = Q's new capital / Total capital * x
- Closing balance of R = R's capital / Total capital * x
Now let's calculate the values:
Given:
- Opening capital of P = Rs. 40,000
- Opening capital of Q = Rs. 30,000
- Profit on revaluation = Rs. 6,000
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q = Rs. 4,500
- R's capital = Rs. 20,000
Step 1: Calculate the share of R in the profits and capital:
- R's share in the profits = 1/4 * total profits = 1/4 * x
- R's share in the capital = Rs. 20,000
Step 2: Calculate the total profits:
- P's share in the profits = 2/3 * x
- Q's share in the profits = 1/3 * x
- R's share in the profits = 1/4 * x
Given that half of the goodwill payment is to be withdrawn by P and Q, we can calculate the goodwill payment as follows:
- Goodwill payment = Rs. 9,000
- Amount withdrawn by P and Q =
Sacrifice ratio is used only for- a)Distribution of Reserve
- b)Revaluation profit
- c)Revaluation of loss
- d)Premium for goodwill
Correct answer is option 'D'. Can you explain this answer?
Sacrifice ratio is used only for
a)
Distribution of Reserve
b)
Revaluation profit
c)
Revaluation of loss
d)
Premium for goodwill
|
Ishan Choudhury answered |
At the time of admission of a new partner, the main use of sacrificing ratio is to adjust the premium for goodwill brought by a new partner.
X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th share of profits, for which he paid Rs. 1,20,000 against capital and Rs. 60,000 against goodwill.Find the capital balances for each partner taking Z’s capital as base capital.- a)3,00,000; 1,20,000 and 1,20,000.
- b)3,00,000; 1,20,000 and 1,80,000.
- c)3,00,000; 1,80,000 and 1,20,000.
- d)3,00,000; 1,80,000 and 1,80,000.
Correct answer is option 'C'. Can you explain this answer?
X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th share of profits, for which he paid Rs. 1,20,000 against capital and Rs. 60,000 against goodwill.Find the capital balances for each partner taking Z’s capital as base capital.
a)
3,00,000; 1,20,000 and 1,20,000.
b)
3,00,000; 1,20,000 and 1,80,000.
c)
3,00,000; 1,80,000 and 1,20,000.
d)
3,00,000; 1,80,000 and 1,80,000.
|
|
Poonam Reddy answered |
Correct Answer :- c
Explanation : New Profit sharing ratio = 1 - 1/5 = 4/5
A= 5/8 * 4/5 = 20/40 ; B= 3/8 * 4/5 = 12/40 ; C= 1/5 * 8/8 = 8/40
i.e. 5 ; 3 ; 2.
Capitals = 120000 * 5 = 600000
A - 600000 * 5/10 = 300000
B - 600000 * 3/10 = 180000
C - 600000 * 2/10 = 120000
A, B, C, D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice?- a)1/6
- b)1/12
- c)1/24
- d)None
Correct answer is option 'B'. Can you explain this answer?
A, B, C, D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice?
a)
1/6
b)
1/12
c)
1/24
d)
None
|
|
Maheshwar Datta answered |
Solution:
Initial profit sharing ratio = 1:1:1:1
New profit sharing ratio = 2:2:1:1
To find out how much C will sacrifice, we need to compare the old share of C with the new share of C.
Let the total profit of the firm be x.
Initial share of C = (1/4) x
New share of C = (1/6) x
C sacrifice = Initial share of C - New share of C
= (1/4)x - (1/6)x
= (3x - 2x)/12
= x/12
Therefore, C will sacrifice 1/12th of the total profit.
Hence, option B is the correct answer.
Initial profit sharing ratio = 1:1:1:1
New profit sharing ratio = 2:2:1:1
To find out how much C will sacrifice, we need to compare the old share of C with the new share of C.
Let the total profit of the firm be x.
Initial share of C = (1/4) x
New share of C = (1/6) x
C sacrifice = Initial share of C - New share of C
= (1/4)x - (1/6)x
= (3x - 2x)/12
= x/12
Therefore, C will sacrifice 1/12th of the total profit.
Hence, option B is the correct answer.
A and B are partners sharing profits and losses in the ratio of 3:2. A’s Capital is Rs. 60,000 and B’s Capital is Rs. 30,000. They admit C for 1/5th share of profits. How much C should bring in towards his capital?- a)Rs. 18,000
- b)Rs. 24,000
- c)Rs. 29,000
- d)Rs. 22,500
Correct answer is option 'D'. Can you explain this answer?
A and B are partners sharing profits and losses in the ratio of 3:2. A’s Capital is Rs. 60,000 and B’s Capital is Rs. 30,000. They admit C for 1/5th share of profits. How much C should bring in towards his capital?
a)
Rs. 18,000
b)
Rs. 24,000
c)
Rs. 29,000
d)
Rs. 22,500
|
|
Raghav Ghoshal answered |
Invests $15,000 and B invests $10,000. The total investment is $25,000.
To calculate the share of profits for A and B, we need to first determine the total profits for the year. Let's say the total profits are $30,000.
A's share of the profits:
3/5 x $30,000 = $18,000
B's share of the profits:
2/5 x $30,000 = $12,000
To calculate the return on investment (ROI) for each partner, we need to divide their share of profits by their initial investment and express it as a percentage.
A's ROI:
($18,000 / $15,000) x 100% = 120%
B's ROI:
($12,000 / $10,000) x 100% = 120%
Both partners have the same ROI of 120%.
To calculate the share of profits for A and B, we need to first determine the total profits for the year. Let's say the total profits are $30,000.
A's share of the profits:
3/5 x $30,000 = $18,000
B's share of the profits:
2/5 x $30,000 = $12,000
To calculate the return on investment (ROI) for each partner, we need to divide their share of profits by their initial investment and express it as a percentage.
A's ROI:
($18,000 / $15,000) x 100% = 120%
B's ROI:
($12,000 / $10,000) x 100% = 120%
Both partners have the same ROI of 120%.
Analyse the case given below and answer the questions that follow:Mishra, Tiwari and Singh are partners in a firm sharing profits and losses in the ratio of 1 : 2 : 3. Their capitals on 31st March, 2017 were ₹ 4,00,000, ` 3,00,000 and ₹ 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as 3 : 2 : 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account ₹ 30,000 and general reserve of ₹ 60,000. The value of the firm was decided at ₹ 2,10,000. It was also decided that the value of an asset which was previously not recorded in the books will be recorded with ₹ 21,000.What will be the balance of Mishra’s capital on the reconstitution of the partnership after taking into account the above adjustments?- a)₹3,48,500
- b)₹3,38,500
- c)₹4,08,500
- d)₹4,88,500
Correct answer is option 'B'. Can you explain this answer?
Analyse the case given below and answer the questions that follow:
Mishra, Tiwari and Singh are partners in a firm sharing profits and losses in the ratio of 1 : 2 : 3. Their capitals on 31st March, 2017 were ₹ 4,00,000, ` 3,00,000 and ₹ 2,00,000 respectively. From 1st April, 2017 they agreed to change their profit and loss sharing ratio as 3 : 2 : 1 respectively. On the day of reconstitution of the firm, their balance sheet showed a debit balance of Profit and Loss Account ₹ 30,000 and general reserve of ₹ 60,000. The value of the firm was decided at ₹ 2,10,000. It was also decided that the value of an asset which was previously not recorded in the books will be recorded with ₹ 21,000.
What will be the balance of Mishra’s capital on the reconstitution of the partnership after taking into account the above adjustments?
a)
₹3,48,500
b)
₹3,38,500
c)
₹4,08,500
d)
₹4,88,500
|
|
Kiran Mehta answered |
Sacrifice/ gain of Mishra = Old share – New share
= 1/6 - 3/6= -2/6(gain)
Goodwill to be compensated by him to the sacrificing partner:
₹ 2,10,000 × 2/6 = ₹ 70,000
Capital of Mishra after all adjustments = Old Capital + General Reserve + Gain on Revaluation – Dr. balance of Profit and Loss – Goodwill compensated by him
= ₹ (4,00,000 + 10,000 + 3,500 – 5,000 – 70,000)
= ₹ 3,38,500
X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays Rs. 4,000 as Goodwill the new profit sharing ratio being 2 : 1 : 1 among X, Y and Z respectively. The amount of goodwill will be credited to :- a)X and Y as Rs. 3,000 and Rs. 1,000 respectively.
- b)X only
- c)Y only.
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays Rs. 4,000 as Goodwill the new profit sharing ratio being 2 : 1 : 1 among X, Y and Z respectively. The amount of goodwill will be credited to :
a)
X and Y as Rs. 3,000 and Rs. 1,000 respectively.
b)
X only
c)
Y only.
d)
None of the above.
|
Shahin Ansari. answered |
S/R of X and Y.....X=3/4-2/4=1/4.....Y=1/4-1/4=0/4....so X is credit because X is sacrificing partner...
New profit sharing ratio means- a)All partner(excluding old) share future profit and losses
- b)Two partner(including new) share future profit and losses
- c)All partner(including new) share future profit and losses
- d)Partners will share future profits equally
Correct answer is option 'C'. Can you explain this answer?
New profit sharing ratio means
a)
All partner(excluding old) share future profit and losses
b)
Two partner(including new) share future profit and losses
c)
All partner(including new) share future profit and losses
d)
Partners will share future profits equally
|
Gowri Nambiar answered |
New profit sharing ratio refers to that ratio in which all the partners (old partners + new partner) will share future profits. It is not compulsory to share future profits equally. If there is no partnership deed or partnership deed is silent on the distribution of future profits, only in that case they will share future profits equally.
X and Y share profits and losses in the ratio of 4:3. They admit Z in the firm with 3/7 share which he gets 2/7 from X and 1/7 form Y. The new profit sharing ratio will be:- a)7:3:3
- b)2:2:3
- c)5:2:3
- d)2:3:3
Correct answer is option 'B'. Can you explain this answer?
X and Y share profits and losses in the ratio of 4:3. They admit Z in the firm with 3/7 share which he gets 2/7 from X and 1/7 form Y. The new profit sharing ratio will be:
a)
7:3:3
b)
2:2:3
c)
5:2:3
d)
2:3:3
|
|
Poonam Reddy answered |
Old ratio (X and Y) = 4 : 3
Z admit for 3/7 share of profit
X sacrifice in favour of Z = 2/7
Y sacrifice in favour of Z = 1/7
New ratio = Old ratio - sacrificing ratiio
X's new ratio = (4/7) - (2/7) = 2/7
Y's new ratio = (3/7) - (1/7) = 2/7
C's share = 3/7
Therefore, new profit sharing ratio of X, Y and Z is 2 : 2 : 3
Rahul and Bajaj are partners sharing profit and loss in the ratio of 1:2. Birla is admitted in partnership for - a)1 : 3
- b)2 : 1
- c)3 : 1
- d)1 : 2
Correct answer is option 'D'. Can you explain this answer?
Rahul and Bajaj are partners sharing profit and loss in the ratio of 1:2. Birla is admitted in partnership for
a)
1 : 3
b)
2 : 1
c)
3 : 1
d)
1 : 2
|
Prashanth Datta answered |
Given, Rahul and Bajaj are partners sharing profit and loss in the ratio of 1:2.
Let the capital of Rahul and Bajaj be R and B respectively.
Their profit sharing ratio is 1:2, which can be written as:
Rahul's share : Bajaj's share = 1/3 : 2/3
Let the capital contributed by Birla be x.
When Birla is admitted, the new profit sharing ratio becomes:
Rahul's share : Bajaj's share : Birla's share = 1/3 : 2/3 : x
It is given that the answer is option 'D', which means the new profit sharing ratio is 1:2:2.
Equating the ratios, we get:
1/3 : 2/3 : x = 1 : 2 : 2
On solving the above equation, we get:
x = Birla's capital = 2B
Therefore, Birla's capital is twice that of Bajaj's capital, which means the new profit sharing ratio is 1:2:2, as given in option 'D'.
Let the capital of Rahul and Bajaj be R and B respectively.
Their profit sharing ratio is 1:2, which can be written as:
Rahul's share : Bajaj's share = 1/3 : 2/3
Let the capital contributed by Birla be x.
When Birla is admitted, the new profit sharing ratio becomes:
Rahul's share : Bajaj's share : Birla's share = 1/3 : 2/3 : x
It is given that the answer is option 'D', which means the new profit sharing ratio is 1:2:2.
Equating the ratios, we get:
1/3 : 2/3 : x = 1 : 2 : 2
On solving the above equation, we get:
x = Birla's capital = 2B
Therefore, Birla's capital is twice that of Bajaj's capital, which means the new profit sharing ratio is 1:2:2, as given in option 'D'.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): At the time of change in profit sharing ratio, it is important to determine the sacrificing ratio and gaining ratio of partners.Reason (R): The gaining partners compensate the sacrificing partners by paying them an appropriate amount of goodwill.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): At the time of change in profit sharing ratio, it is important to determine the sacrificing ratio and gaining ratio of partners.
Reason (R): The gaining partners compensate the sacrificing partners by paying them an appropriate amount of goodwill.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false .
d)
Assertion (A) is false, but Reason (R) is true.
|
|
Amita Das answered |
At the time of change in profit sharing ratio, it is important to determine the sacrificing ratio and gaining ratio of partners, as the gaining partners need to compensate the sacrificing partners.
A and B carry on business and share profits and losses in the ratio of 3:2. Their respective capital are Rs. 1,20,000 and Rs. 54,000. C is admitted for 1/3rd share in profit and brings Rs. 75,000 as his share of capital. Capitals of A and B to be adjusted according to C’s share. Calculate the amount refunded to A. - a)Rs. 30,000
- b)Rs. 32,000
- c)Rs. 15,000
- d)Rs. 28,000
Correct answer is option 'A'. Can you explain this answer?
A and B carry on business and share profits and losses in the ratio of 3:2. Their respective capital are Rs. 1,20,000 and Rs. 54,000. C is admitted for 1/3rd share in profit and brings Rs. 75,000 as his share of capital. Capitals of A and B to be adjusted according to C’s share. Calculate the amount refunded to A.
a)
Rs. 30,000
b)
Rs. 32,000
c)
Rs. 15,000
d)
Rs. 28,000
|
|
Arnab Nambiar answered |
Since C is admitted for 1/3rd share in profit, the new profit-sharing ratio will be 3:2:1 (A:B:C).
Let the new capital of A and B be x and y respectively. Then,
A's new capital = x
B's new capital = y
Total new capital = x + y + 75000 (C's capital)
According to the question, the new profit-sharing ratio is 3:2:1, which means:
3x/6 + 2y/6 + 1(75000/6) = 0 (since there is no profit in the beginning)
Simplifying the above equation, we get:
x + y + 12500 = 0
We also know that A's old capital is Rs. 1,20,000 and B's old capital is Rs. 54,000. So, we can write:
A's old capital/A's new capital = B's old capital/B's new capital
120000/x = 54000/y
Solving the above equations simultaneously, we get:
x = Rs. 1,50,000
y = Rs. 67,500
Therefore, A's new capital is Rs. 1,50,000 and B's new capital is Rs. 67,500.
Let the new capital of A and B be x and y respectively. Then,
A's new capital = x
B's new capital = y
Total new capital = x + y + 75000 (C's capital)
According to the question, the new profit-sharing ratio is 3:2:1, which means:
3x/6 + 2y/6 + 1(75000/6) = 0 (since there is no profit in the beginning)
Simplifying the above equation, we get:
x + y + 12500 = 0
We also know that A's old capital is Rs. 1,20,000 and B's old capital is Rs. 54,000. So, we can write:
A's old capital/A's new capital = B's old capital/B's new capital
120000/x = 54000/y
Solving the above equations simultaneously, we get:
x = Rs. 1,50,000
y = Rs. 67,500
Therefore, A's new capital is Rs. 1,50,000 and B's new capital is Rs. 67,500.
A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C. - a)21,500:21,5000:0
- b)6,500:6,500:0
- c)14,333:14,333:14,333
- d)4,333:4,333:4,333
Correct answer is option 'B'. Can you explain this answer?
A and B shares profit and losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. 30,000 (book value NIL). Stock at Rs. 20,000 (book value Rs. 12,000); Machinery at Rs. 60,000 (book value Rs. 55,000). C is to bring in Rs. 20,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill account will not remain in the books. Find the profit/loss on revaluation to be shared among A, B and C.
a)
21,500:21,5000:0
b)
6,500:6,500:0
c)
14,333:14,333:14,333
d)
4,333:4,333:4,333
|
Stuti Sharma answered |
There is profit of 13000 in revaluation account due to increase in asset value that distributed by old partner in old profit sharing ratio, here between A and B in 1:1.
self generated goodwill not recorded in balance sheet and revaluation account.
so goodwill written off between A and B in 1:1. although C bring 1/3 of 30000,as his share of goodwill.
self generated goodwill not recorded in balance sheet and revaluation account.
so goodwill written off between A and B in 1:1. although C bring 1/3 of 30000,as his share of goodwill.
Is admission of a new partner is a reconstitution of partnership firm:- a)No
- b)It is called merger
- c)Yes
- d)It is dissolution of firm
Correct answer is option 'C'. Can you explain this answer?
Is admission of a new partner is a reconstitution of partnership firm:
a)
No
b)
It is called merger
c)
Yes
d)
It is dissolution of firm
|
|
Priya Patel answered |
The partnership is an agreement between two or more persons for sharing the profits of a business carried on by all or any one of them acting for all. Any change in the existing agreement is known as reconstitution of the partnership firm. Thus, the existing agreement ends and a new agreement is formed with the changed relationship among the members of the partnership firm and its composition.
Reconstitution of a partnership firm takes place whenever there is a change in the profit sharing ratio among the partners, admission of a new partner, retirement of a partner and death or insolvency of a partner.
Ways in which incoming partner may acquire his share except :- a)From one or more partners (not from all partners)
- b)From the old partners in their old profit sharing ratio
- c)From the old partners in some agreed ratio
- d)From the old partners in their new profit sharing ratio
Correct answer is 'D'. Can you explain this answer?
Ways in which incoming partner may acquire his share except :
a)
From one or more partners (not from all partners)
b)
From the old partners in their old profit sharing ratio
c)
From the old partners in some agreed ratio
d)
From the old partners in their new profit sharing ratio
|
Vikas Kapoor answered |
A new partner can acquired his share from one partner or two partners or from all partners in an agreed ratio. He may acquire his share in old ratio of the partners or in an agreed ratio for sacrifice but not in the new ratio of all the partners because new ratio will be fixed after adjusting his share.
Read the following hypothetical text and answer the given questions:Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹2,000 per half year to Ranju. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundram as a new partner and offered him 20% as a share of profits along with a monthly remuneration of ₹2,500. Sundram was asked to introduce ₹1,30,000 for capital and ₹70,000 as premium for goodwill. Besides this Sundram was required to provide ₹1,00,000 as loan for two years. Sundram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.Upon the admission of Sundram, the sacrifice for providing his share of profits would be done:- a)by Amit only
- b)by Mahesh only
- c)by Amit and Mahesh equally
- d)by Amit and Mahesh in the ratio of 3:2.
Correct answer is option 'D'. Can you explain this answer?
Read the following hypothetical text and answer the given questions:
Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹2,000 per half year to Ranju. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.
For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundram as a new partner and offered him 20% as a share of profits along with a monthly remuneration of ₹2,500. Sundram was asked to introduce ₹1,30,000 for capital and ₹70,000 as premium for goodwill. Besides this Sundram was required to provide ₹1,00,000 as loan for two years. Sundram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.
Upon the admission of Sundram, the sacrifice for providing his share of profits would be done:
a)
by Amit only
b)
by Mahesh only
c)
by Amit and Mahesh equally
d)
by Amit and Mahesh in the ratio of 3:2.
|
|
Amita Das answered |
The sacrifice ratio will be the same as the profit sharing ratio.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Norsang and Nyomit share profit and loss in the ratio of 1:2. They decide to change the profit sharing ratio to 2:3. The goodwill of the firm stood at ₹60,000. Norsang gave ₹2,000 to Nyomit as the share of goodwill.Reason (R): If the partners decide to change their profit sharing ratio, the gaining partner must compensate the sacrificing partner by way of payment to him as goodwill in the gaining ratio.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Norsang and Nyomit share profit and loss in the ratio of 1:2. They decide to change the profit sharing ratio to 2:3. The goodwill of the firm stood at ₹60,000. Norsang gave ₹2,000 to Nyomit as the share of goodwill.
Reason (R): If the partners decide to change their profit sharing ratio, the gaining partner must compensate the sacrificing partner by way of payment to him as goodwill in the gaining ratio.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false .
d)
Assertion (A) is false, but Reason (R) is true.
|
Anusham Anusham answered |
Correct answer is option B
X and Y are partners sharing profits in the ratio of 3:2. Z is admitted for 1/5 share. All partners have decided to share future profits equally. The profit of new partnership firm was Rs.30,000. This profit will be shared by all the partners in _______- a)Old Ratio
- b)Gaining Ratio
- c)New Ratio
- d)Sacrificing Ratio
Correct answer is option 'C'. Can you explain this answer?
X and Y are partners sharing profits in the ratio of 3:2. Z is admitted for 1/5 share. All partners have decided to share future profits equally. The profit of new partnership firm was Rs.30,000. This profit will be shared by all the partners in _______
a)
Old Ratio
b)
Gaining Ratio
c)
New Ratio
d)
Sacrificing Ratio
|
Sarthak Verma answered |
Distribution of profit is to be done in new profit sharing ratio:
X = 30,000 × 1/3 = 10,000
Y = 30,000 × 1/3 = 10,000
Z = 30,000 × 1/3 = 10,000
X = 30,000 × 1/3 = 10,000
Y = 30,000 × 1/3 = 10,000
Z = 30,000 × 1/3 = 10,000
The opening balance of Partner’s Capital Account is credited with:- a)Interest on Capital
- b)Interest on Drawings
- c)Drawings
- d)Share in Loss
Correct answer is option 'A'. Can you explain this answer?
The opening balance of Partner’s Capital Account is credited with:
a)
Interest on Capital
b)
Interest on Drawings
c)
Drawings
d)
Share in Loss
|
|
Akshat Choudhary answered |
Please provide me with more context or information so that I can assist you better.
Chapter doubts & questions for Reconstitution of a Partnership Firm : Admission of a Partner - Accountancy CUET Preparation 2025 is part of Commerce exam preparation. The chapters have been prepared according to the Commerce exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Commerce 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
Chapter doubts & questions of Reconstitution of a Partnership Firm : Admission of a Partner - Accountancy CUET Preparation in English & Hindi are available as part of Commerce exam.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Accountancy CUET Preparation
46 videos|7 docs|83 tests
|
