Commerce Exam  >  Commerce Notes  >  Crash Course of Accountancy - Class 12  >  Sample Questions - Admission of a Partner

Sample Questions - Admission of a Partner | Crash Course of Accountancy - Class 12 - Commerce PDF Download

                                                                   Admission Test

Time – 50 mins

M.M.- 30

Q1. A and B were partners in a firm. They admitted C as a new partner for 20% share in the profits. After all adjustments regarding general reserve, goodwill, gain or loss on revaluation, the balances in capital accounts of A and B were 3,85,000 and 4,15,000 respectively. C brought proportionate capital so as to give him 20% share in the profits. Calculate the amount of capital to be brought by C. (1 mark)

Q2. Jai & veero are partners sharing profits 3:2. They admitted om has a new partner for 1/5 share in profits one fourth of which he takes in from Jai and remaining from Veero. Ho brings stock of rs.60,000, debtors of rs.80000, land of rs.1,00,000, P&M rs.40,000 as his share of goodwill and capital. On date of Om’s admission goodwill was valued  rs.6,00,000. Pass entries. (3 mark)

Q3. (i) A and B were partners in a firm who share profits in the ratio of 5:3. C is admitted for 1/10th share of half of which was gifted by A and remaining was taken by c equally from A & B, find the new ratio.
(ii) Rekha, Sunita and Teena are partners in a firm sharing profits in the ratio of 3:2:1. Samiksha joins the firm. Rekha surrenders 1/4th of her share; Sunita surrenders 1/3rd of her share and Teena 1/5th of her share in favour of Samiksha. Find the new Profit sharing ratio. (4 mark)

Q4. A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary journal entries (4 mark)

Q5. The Balance Sheet of A & B who share profits in the ratio of 3:2 as at 31/03/13 was as follows:
Sample Questions - Admission of a Partner | Crash Course of Accountancy - Class 12 - Commerce
The following adjustments were agreed upon:
(a) C brings in 16,000 as goodwill and proportionate capital.
(b) Bad debts amounted to 3,000.
(c) Market value of investment is 4,500.
(d) Liability on account of workmen’s compensation reserve amounted to 2,000.

Prepare Revaluation A/c and Partner’s Capital A/cs. (6 mark)

Q6. P and Q were partners in a firm sharing profits in 3; 2 ratio. R was admitted as a new partner for 1/4th share in the profits on April 1, 2015. The Balance Sheet of the firm on March 31, 2015 was as follows:
Sample Questions - Admission of a Partner | Crash Course of Accountancy - Class 12 - Commerce
Sample Questions - Admission of a Partner | Crash Course of Accountancy - Class 12 - Commerce
The terms of agreement on R’s admission were as follows: a) R brought in cash 60,000 for his capital and 30,000 for his share of goodwill. b) Building was valued at 1,00,000 and Machinery at 36,000. c) The capital accounts of P and Q were to be adjusted in the new profit-sharing ratio. Necessary cash was to be brought in or paid off to them as the case may be. Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of P, Q and R. (8 mark)

The document Sample Questions - Admission of a Partner | Crash Course of Accountancy - Class 12 - Commerce is a part of the Commerce Course Crash Course of Accountancy - Class 12.
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FAQs on Sample Questions - Admission of a Partner - Crash Course of Accountancy - Class 12 - Commerce

1. What is the process for admitting a partner in a commerce business?
Ans. The process for admitting a partner in a commerce business typically involves several steps. Firstly, the partners need to discuss and agree on the terms of the partnership, including the capital contribution, profit-sharing, and decision-making authority. Then, a partnership agreement should be drafted and signed by all parties involved. Finally, the necessary legal and financial documents should be filed with the relevant authorities to officially register the new partner.
2. Can an existing partner be removed during the admission of a new partner?
Ans. Yes, it is possible for an existing partner to be removed during the admission of a new partner. This can happen if the existing partner voluntarily chooses to withdraw from the partnership or if the partners decide to terminate the existing partnership and establish a new one with the new partner. However, the specific circumstances and provisions outlined in the partnership agreement will determine the process and consequences of removing an existing partner.
3. How does the admission of a partner affect the ownership and control of a commerce business?
Ans. The admission of a partner can impact the ownership and control of a commerce business. Depending on the terms agreed upon, the new partner may acquire a certain percentage of ownership in the business, which can dilute the existing partners' ownership shares. Additionally, the new partner may also have a say in decision-making processes and influence the overall control of the business. It is crucial to clearly define these aspects in the partnership agreement to avoid any disputes or misunderstandings.
4. What are the potential advantages of admitting a new partner in a commerce business?
Ans. Admitting a new partner in a commerce business can bring several potential advantages. Firstly, it can provide additional capital for the business, allowing for expansion and investment opportunities. Secondly, the new partner may possess complementary skills, knowledge, or networks that can contribute to the growth and success of the business. Lastly, having multiple partners can distribute the workload and responsibilities, enabling better work-life balance and increased efficiency.
5. Are there any risks associated with admitting a new partner in a commerce business?
Ans. Yes, there are risks associated with admitting a new partner in a commerce business. One potential risk is the possibility of conflicts or disagreements between partners regarding decision-making, profit-sharing, or business strategies. Moreover, the new partner may not meet the expectations or perform as anticipated, leading to inefficiencies or even financial losses. It is essential to thoroughly evaluate the potential risks and conduct due diligence before admitting a new partner to mitigate these risks.
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