Admission of Partner

Q.1.
The Balance Sheet of Rajkumar and Rajendra Kumar as on 31st March 2012 is set out below, they
share profits and losses in the ratio of 2:1
Liabilities Amt Assets Amt

Capital A/c’s – Rajkumar 2,00,000 Buildings 1,00,000
Rajendra Kumar 1,50,000 Furniture 30,000
General Reserve 1,20,000 Stock 60,000
Creditors 80,000 Debtors 3,00,000
Cash 30,000
Profit & Loss 30,000
5,50,000 5,50,000
They agreed to admit Dhiraj Kumar on 1st April, 2012 as a partner into the firm on the following terms
on.
1. Dhirajkumar to bring Rs.60,000 as capital and Rs.45,000 as a goodwill, which is to be retained in

the business. He will be entitled to ¼ share of profit of the firm.
2. 50% of General Reserve is to remain as Reserve for doubtful debts.
3. Furniture is to be depreciated by 5%.
4. Stock is to be valued at Rs.65,000.
5. Creditors of Rs.5,000 are not likely to claim & hence should be written off.
6. Rent of Rs.2,000 due but not received has not been recorded in the books.
Pass the necessary journal entries in the books of new firm and prepare Balance Sheet of the new
firm.
Q.2.Suresh and Ramesh are partners in a business sharing Balance Sheet as on 31st March, 2013 is as
follows:

Capital A/c’s Buildings 30,000
Suresh 50,000 Machinery 10,000
Ramesh 24,000 74,000 Furniture 9,500
Creditors 57,000 Debtors 40,000
Bills Payable 20,000 (-)R.D.D. 1000 39,000
Reserve fund 9,000 Stock 30,000
Bills receivable 7,600
Cash at Bank 33,900
1,60,000 1,60,000
st
They agreed to admit Kailash on 1 April, 2013 as a partner into the firm on the following terms on.
1. Kailash will bring Rs.30,000 as capital for ¼ share in future profit and Rs.12,000 as a goodwill
which will be withdrawn by old partners.
2. Stock and Machinery to be depreciated by 10%
3. R.D.D. is to be maintained at 5% on debtors.
4. Building to be appreciated by 20% & furniture is revalued at Rs.10,000.
Prepare Profit & Loss Adjustment Account, Partner’s capital accounts and balance sheet of the new
firm.
Q.3.Snehal & Meenal are equal partners in a business. Their Balance sheet is as follows:

Capital A/c’s Premises 20,500
Snehal 80,000 Investments 10,500
meenal 45,000 1,25,000 equipments 5,000
Creditors 26,000 Bills receivable 18,000
Bank Loan 40,000 Debtors 1,10,000
(taken on 1.1.2012) (-)R.D.D. 11000 99,000
Profit & Loss 6,600
Bank 31,400
1,91,000 1,91,000
They agreed to admit kamal on 1st April, 2012 on the following terms.
1. He should bring 50,000 towards his capital for ¼ share in future profit.
2. Goodwill A/c be raised in the books of the firm Rs.40,000.
3. R.D.D. to be maintained at 5% on debtors.
4. Premises to be valued at Rs.30,000 and Equipments to be written off fully.
5. Interest at the rate of 15% p.a. is due on bank loan.
6. Creditors allowed a discount of Rs.1100 and they were paid off immediately.
Pass necessary journal entries to record the above scheme of admission.
Q.4. Keshav & Madhav were partners sharing the profits & losses in the ratio of 2:3. Their Balance Sheet
is as follows:

Capital A/c’s Live stock 20,000
Keshav 2,50,000 Building 1,38,000
Madhav 2,60,000 Investments 45,000
Creditors 8,500 Loose tools 38,000
Debtors 90,000
(-) R.D.D. 18,000 72,000
Profit & Loss A/c 15,000
Closing stock 1,04,500
Cash in hand 86,000
5,18,500 5,18,500
On 1st April, 2011 they admitted Uddhav on the following terms:
1. The new profit sharing ratio is equal.

2. Uddhav brings Rs.2,00,000 as his capital and Rs.80,000 as share of goodwill in cash.
3. Prepaid insurance of Rs.7,500 was not recorded in the books.
4. Loose tools were fouind undervalued by 5% and building was found overvalued by 15 % in the
books.
5. All debtors are considered as good and out of creditors Rs.500 is no longer payable.
6. The market value of investment is 50% more than its book value.
Prepare profit and loss adjustments in A/c, capital accounts of partners and Balance Sheet of the new
firm.
Q.5. Raj & Dev are partners sharing profits and losses 3:2 respectively. Their position on 31st March,
2011

Capital A/c’s Building 1,00,000
Raj 2,50,000 Furniture 10,000
Dev 2,60,000 Stock 31,000
Creditors 8,500 Debtors 50,000
Bills payable (-) R.D.D. 1000 49,000
General reserve Bank balance 15,000
5,18,500 5,18,500
On 1st April, 2011 they admitted Manoj on following terms:
1. Manoj should bring in cash Rs.1,00,000 as a capital for 1/5th share in future profit and Rs.25,000
as goodwill.
2. Building should be revalued for Rs.1,25,000.
3. Depreciate furniture at 12 ½ % p.a. and stock at 10% p.a.
4. R.D.D. should be maintained as it is.

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Q.1.

Liabilities Amt Assets Amt

1. Dhirajkumar to bring Rs.60,000 as capital and Rs.45,000 as a goodwill, which is to be retained in

Liabilities Amt Assets Amt

Liabilities Amt Assets Amt

Liabilities Amt Assets Amt

1. The new profit sharing ratio is equal.

Liabilities Amt Assets Amt

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