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**Page No 5.85:**

**Question 1:**

**X,Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.**

**ANSWER:**

A is admitted for 1/5 share of profit

Let the combined share of profit for all partners after Aâ€™s admission be = 1

Combined share of X, Y and Z after Aâ€™s admission =1 âˆ’ Aâ€™s share

New Ratio = Old Ratio Ã— Combined share of X, Y and Z

**Page No 5.85:**

**Question 2: Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.**

**ANSWER:**

**Page No 5.85:**

**Question 3: A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B. Calculate new profit-sharing ratio. **

**ANSWER:**

**Page No 5.85:**

**Question 4: A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D. **

**ANSWER:**

**Page No 5.85:**

**Question 5: Bharati and Astha were partners sharing profits in the ratio of 3 : 2. They admitted Dinkar as a new partner for 1/5th share in the future profits of the firm which he got equally from Bharati and Astha. Calculate the new profit-sharing ratio of Bharati, Astha and Dinkar.**

**ANSWER:**

**Page No 5.85:**

**Question 6: X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio.****ANSWER:**

**Page No 5.86:**

**Question 7: ****R and S are partners sharing profits in the ratio of 5 : 3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner. Find out new profit-sharing ratio.**

**ANSWER:**

**Page No 5.86:**

**Question 8: Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7 : 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing ratio.**

**ANSWER:**

**Page No 5.86:**

**Question 9: Find New Profit-sharing Ratio:****(i) R and T are partners in a firm sharing profits in the ratio of 3 : 2. S joins the firm. R surrenders 1/4th of his share and T 1/5th of his share in favour of S.****(ii) A and B are partners. They admit C for 1/4th share. In future, the ratio between A and B would be 2 : 1. ****(iii) A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C for 1/5th share in the profit. C acquires 1/5th of his share from A and 4/5th share from B. ****(iv) X, Y and Z are partners in the ratio of 3 : 2 : 1. W joins the firm as a new partner for 1/6th share in profits. Z would retain his original share.****(v) A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th share respectively.****(vi) A and B are partners sharing profits/losses in the ratio of 3 : 2 . C is admitted for 1/4th share. A and B decide to share equally in future.****ANSWER:**

**Page No 5.86:**

**Question 10: X and Y were partners sharing profits in the ratio of 3 : 2. They admitted P and Q as new partners. X surrendered 1/3rd of his share in favour of P and Y surrendered 1/4th of his share in favour of Q. Calculate new profit-sharing ratio of X, Y, P and Q. **

**ANSWER:**

**Page No 5.86:**

**Question 11:Rakesh and Suresh are sharing profits in the ratio of 4 : 3. Zaheer joins and the new ratio among Rakesh, Suresh and Zaheer is 7 : 4 : 3. Find out the sacrificing ratio.**

**ANSWER:**

**Page No 5.86:**

**Question 12: A and B are partners sharing profits in the ratio of 3 : 2. C is admitted as a partner. The new profit-sharing ratio among A, B and C is 4 : 3 : 2. Find out the sacrificing ratio.**

**ANSWER:**

**Page No 5.86:**

**Question 13: A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. D is admitted for 1/3rd share in future profits. What is the sacrificing ratio?****ANSWER:**

**Page No 5.86:**

**Question 14: A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after E's admission .****ANSWER:**

**Page No 5.86:**

**Question 15:X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership. X gives 1/3rd of his share while Y gives 1/10th from his share to Z. Calculate new profit-sharing ratio and sacrificing ratio.**

**ANSWER:**

Old Ratio of X and Y is 3 : 2.

**Page No 5.86:**

**Question 16: A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio. **

**ANSWER:**

**Page No 5.86:**

**Question 17: ****A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards D enters for 20 paise in the rupee. Compute profit-sharing ratio of A, B, C and D after D's admission.**

**ANSWER:**

**Page No 5.87:**

**Question 18: P and Q are partners sharing profits in the ratio of 3 : 2. They admit R into partnership who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New Profit-sharing Ratio and Sacrificing Ratio.**

**ANSWER:**

**Page No 5.87:**

**Question 19: A and B are partners sharing profits and losses in the ratio of 2 : 1. They take C as a partner for 1/5th share. Goodwill Account appears in the books at â‚¹ 15,000. For the purpose of C's admission, goodwill of the firm is valued at â‚¹ 15,000. C is to pay proportionate amount as premium for goodwill which he pays to A and B privately.****Pass necessary entries.**

**ANSWER:****Note- **Goodwill brought in by C is not recorded in the books of the firm as the amount for goodwill is privately paid to A and B.**Working Note: Goodwill Written-off**

**Page No 5.87:**

**Question 20: A and B are partners sharing profits and losses in the ratio of 2 : 5. They admit C on the condition that he will bring â‚¹ 14,000 as his share of goodwill to be distributed between A and B. C's share in the future profits or losses will be 1/4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by C will be received by A and B? **

**ANSWER:**

**Page No 5.87:**

**Question 21: A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/5th of his share and B surrenders 2/5th of his share and B surrenders 2/5th of his share in favour of C. For the purpose of C's admission, goodwill of the firm is valued at â‚¹ 75,000 and C brings in his share of goodwill in cash which is retained in the firm's books. Journalise the above transactions.**

**ANSWER:**

**Page No 5.87:**

**Question 22: Give Journal entries to record the following arrangements in the books of the firm:(a) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of â‚¹ 2,000 for 1/4th share of the profits, shares shares of B and C remain as before.**

**(b) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of â‚¹ 2,100 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C.ANSWER:**

**Working Note:**

Distribution of premium for Goodwill-**(b)****Working Note:**

**Page No 5.87:**

**Question 23: B and C are in partnership sharing profits and losses as 3 : 1. They admit D into the firm, D pays premium of â‚¹ 15,000 for 1/3rd share of the profits. As between themselves, B and C agree to share future profits and losses equally. Draft Journal entries showing appropriations of the premium money.**

**ANSWER:****WN1**

Calculation of Sacrificing Ratio:

Let combined share of all partners after Dâ€™s admission be = 1**WN2**

C is gaining in new the firm. Hence, Câ€™s gain in goodwill will be debited to his capital and given to B (sacrificing partner).

**Page No 5.87:**

**Question 24: M and J are partners in a firm sharing profits in the ratio of 3 : 2. They admit R as a new partner. The new profit-sharing ratio between M, J and R will be 5 : 3 : 2. R brought in â‚¹ 25,000 for his share of premium for goodwill. Pass necessary Journal entries for the treatment of goodwill.****ANSWER:**

**Working Notes:**

**WN1**

Calculating of Sacrificing Ratio**WN2**

Distribution of Râ€™s share of Goodwill-

**Page No 5.87:**

**Question 25: A and B are in partnership sharing profits and losses in the ratio of 5 : 3. C is admitted as a partner who pays â‚¹ 40,000 as capital and the necessary amount of goodwill which is valued at â‚¹ 60,000 for the firm. His share of profits will be 1/5th which he takes 1/10th from A and 1/10th from B.**

**Give Journal entries and also calculate future profit-sharing ratio of the partners.**

**ANSWER:**

**Working Notes-**

**WN1****WN2**

Calculation of new profit sharing Ratio**WN3**

Distribution of Câ€™s share of Goodwill (in Sacrificing Ratio)

**Page No 5.88:**

**Question 26: A and B are partners sharing profits and losses in the ratio of 7 : 5. They admit C, their Manager, into partnership who is to get 1/6th share in the business. C brings in â‚¹ 10,000 for his capital and â‚¹ 3,600 for the 1/6th share of goodwill which he acquires 1/24th from A and 1/8th from B. Profits for the first year of the new partnership was â‚¹ 24,000. Pass necessary Journal entries for C's admission and apportion the profit between the partners.**

**ANSWER:**

**Working Note:**

**WN1****WN2**

Distribution of Câ€™s share of Goodwill (in sacrificing ratio)**WN3**

Calculation of New Profit Sharing Ratio**WN4**

Distribution of Profit earned after Câ€™s admission (in new ratio)

**Page No 5.88:**

**Question 27: X and Y are partners sharing profits in the ratio of 3 : 1. Z is admitted as a partner for which he pays â‚¹ 30,000 for goodwill in cash. X, Y and Z decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement.**

**ANSWER:**

**Working Notes:**

**WN1**

Calculation of Sacrificing Ratio

**WN2**

**Page No 5.88:**

**Question 28: Anshul and Parul are partners sharing profits in the ratio of 3 : 2. They admit Payal as partner for 1/4th share in profits on 1st April, 2019. Payal brings â‚¹ 5,00,000 as capital and her share of goodwill by cheque. It was agreed to value goodwill at three years' purchase of average profit of last four years.****ANSWER:**

**Working Notes:**

Average Profits = â‚¹4,50,000 Goodwill = Average Profits Ã— No. of years of Purchase = â‚¹ (4,50,000 Ã—3) = â‚¹ 13,50,000

**Page No 5.88:**

**Question 29: A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings â‚¹ 30,000 as capital and â‚¹ 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at â‚¹ 3,000. New profit-sharing ratio of the partners will be 5 : 3 : 2. Pass necessary Journal entries.**

**ANSWER:**

**Page No 5.88:**

**Question 30: Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at â‚¹ 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1.****Raja brought â‚¹ 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at â‚¹ 2,50,000.**

**Record necessary Journal entries in the books of the firm for the above transactions.**

**ANSWER:**

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