Admission of Partner Typed Ques.

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CA Sahil Goyal CA Dheeraj Goyal

+9196465-22002 +9196468-22002

SD Commerce Career
(A Group of Professionals)
Class +2
Topic: Admission of a Partner
Lecture 1

1. A and B are partners in the ration of 5:4. Their balance sheet is as under:
Balance Sheet
As on 31/03/2020
Liabilities Rs. Assets Rs.
Capital: Cash 20,000
A- 1,00,000 Stock 40,000
B- 80,000 Debtors 50,000
Reserve Fund 27,000 Machinery 60,000
Creditors 63,000 Buildings 1,00,000
Total 2,70,000 Total 2,70,000
They admit C as a new partner on the following terms and the new PSR was 4:3:2.
i) C brings Rs. 60,000 as share of capital and goodwill Rs. 20,000.
ii) Stock was revalued at Rs. 36,000.
iii) Make a provision for doubtful debts on debtors @10%.
iv) Depreciate machinery @20%.
v) Building was valued for Rs. 1,30,000.
Prepare a Revaluation A/c, Partner’s Capital A/c, and Balance Sheet of the new firm.

2. A and B are partners in profit sharing ratio of 4:3. Their balance sheet as at 31/03/2020
was as under:
Liabilities Rs. Assets Rs.
Reserve 21,000 Cash 15,000
Creditors 53,000 Stock 25,000
Capitals: Debtors 40,000
A: 80,000 Machinery 50,000
B: 70,000 Buildings 80,000
Bills Receivable 14,000
Total 2,24,000 Total 2,24,000
On the above date:
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
→ They admit C into the firm and the new P.S.R was 3:2:2.
→ C brings his share of capital Rs. 50,000 and for the goodwill Rs. 16,000.
→ Stock was revalued at Rs. 20,000.
→ Make provision for doubtful debts on debtors @10%.
→ Machinery was valued at Rs.40,000.
→ Building was valued at Rs.1,10,000.
→ There was an outstanding rent of Rs.4,000 unrecorded in the books yet.

3. A and B are partners in the ratio of 3:2


Balance Sheet
Liabilities Rs. Assets Rs.
Capital A/c: Cash 30,000
A: 1,40,000 Debtors 50,000
B: 1,00,000 Stock 80,000
Reserve Fund 50,000 Machinery 1,00,000
Creditors 80,000 Building 1,50,000
Bills Payable 40,000
Total 4,10,000 Total 4,10,000
They admit C as a new partner and the new profit-sharing ratio was 2:1:1.
i) C brings his share of capital Rs.80,000 and Rs.20,000 for goodwill in cash.
ii) Stock revalued at Rs.70,000.
iii) Make a provision for doubtful debt @10% on debtors.
iv) Machinery depreciates by 20%.
v) Creditors include a payment of Rs.10,000 which is no longer payable.
vi) Building revalued at Rs.1,80,000.
Prepare a Revaluation A/c, Partner’s Capital A/c, and Balance Sheet of the new firm.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 2

1. A, B and C are partners in the ratio of 5:4:3.


Balance Sheet
Liabilities Rs. Assets Rs.
Capitals: Goodwill 24,000
A: 70,000 Cash 16,000
B: 60,000 Stock 40,000
C: 50,000 Debtors 50,000
Reserve Fund 36,000 Machinery 60,000
Creditors 54,000 Buildings 80,000
Total 2,40,000 Total 2,40,000
i) They admit D as a new partner and the new ratio was 4:3:3:2.
ii) D brings his share of capital Rs.40,000 and for goodwill of Rs.20,000.
iii) Stock was reduced to Rs.34,000.
iv) Debtors amounting to Rs.5,000 proved to be bad.
v) Machinery depreciates by 20%.
vi) Building was valued at Rs.1,20,000.
vii) There was outstanding rent payable of Rs.5,000.

Prepare Revaluation A/c, Partner’s Capital A/c and the Balance Sheet of the new firm.

2. A and B are partners in a firm sharing profit and loss in the ratio of 3:2.
Balance Sheet
Liabilities Rs. Assets Rs.
Capitals: Cash 20,000
A: 80,000 Goodwill 20,000
B: 60,000 Stock 40,000
Reserves 15,000 Machinery 50,000
Creditors 90,000 Debtors 40,000
less: P.D.D (5,000) 35,000
Building 80,000
Total 2,45,000 Total 2,45,000
→ They admit C as a new partner who brings his share of capital of Rs.50,000. He
also required to bring his share of goodwill in cash. However, the total goodwill of
the firm was valued at Rs.80,000. The new P.S.R among the partners was 2:1:1.
→ Stock was reduced by Rs.10,000.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
→ Make a provision for doubtful debts of up to 20% on debtors.
→ Depreciate machinery by 10%.
→ Increase Building by Rs.10,000.
→ There was outstanding rent payable of Rs.3,000.
→ Creditors include a payment of Rs.6,000 is no longer payable.
Prepare Revaluation A/c, Partner’s Capital A/c and Balance Sheet of the new firm.

3. A and B are partners in the ratio of 3:2.


Balance Sheet
Liabilities Rs. Assets Rs.
Capitals: Goodwill 15,000
A: 1,00,000 Cash 25,000
B: 70,000 Debtors 50,000
General Reserve 25,000 less: P.D.D (4,000) 46,000
Creditors 35,000 Machinery 60,000
Buildings 80,000
Patents 4,000
Total 2,30,000 Total 2,30,000
They admit C as a new partner and the new ratio of 2:1:1. C brings his share of capital
of Rs. 30,000. He is also required to bring his share of goodwill in cash. However, the
total Goodwill of the firm was valued at Rs.20,000.
→ Patents are valueless.
→ Make a P.D.D @10% on debtors.
→ Machinery depreciates by 20%.
→ Buildings are valued at Rs.92,000.
→ Outstanding rent payable of Rs.5,000.
Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet of the new firm.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 3

1. A and B are partners in the ratio of 5:3.

Balance Sheet
Liabilities Rs. Assets Rs.
Capital Debtors 50,000
A: 2,75,000 Cash 16,000
B: 1,65,000 Stock 70,000
General Reserve 32,000 Machinery 1,40,000
Creditors 40,000 Building 2,00,000
Bills Payable 20,000 Furniture 60,000
Outstanding Salary 12,000 Profit/ Loss A/c (dr. balance) 8,000
Total 5,44,000 Total 5,44,000
They admit C and new ratio is 4:3:2.
i) C will bring Rs. 1,20,000 as capital and Rs.48,000 for goodwill in cash.
ii) Make a provision for doubtful debts on debtors @6%.
iii) Building to be appreciated up to Rs.2,40,000.
iv) Charge depreciation on furniture @20% and on machinery @15%.
v) Stock revalued at Rs.60,000.
vi) Creditors include a payment of Rs.7,000 which is no longer payable.
vii) Bills payable reduced by Rs.3,000.

Prepare Revaluation A/c, Partner’s Capital A/c and Balance Sheet of the new firm.
2. A and B are partners in the ratio of 4:3.

Balance Sheet
Liabilities Rs. Assets Rs.
Capital Investments 40,000
A: 1,80,000 Stock 80,000
B: 1,50,000 Debtors 60,000
Reserve Fund 21,000 less: P.D.D (4,000) 56,000
P&L A/c (Cr. Balance) 14,000 Machinery 1,50,000
Creditors 67,000 Furniture 90,000
Bills Payable 18,000 Bank 20,000
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Goodwill 14,000
Total 4,50,000 Total 4,50,000
They admit C and new ratio is 2:1:1.
i) C will bring Rs.1,00,000 as capital but nothing for goodwill. However, total
goodwill of the firm is Rs.56,000.
ii) Investments are valued at Rs.34,000.
iii) Stock reduced to Rs.65,000.
iv) Make a P.D.D on debtors up to 10%.
v) Furniture reduced to Rs.70,000.
vi) Charge depreciation on machinery @8%.
vii) Bills Payable reduced to Rs.12,000.
viii) Creditors include a payment of Rs. 10,000 which is not likely to arise.
ix) Outstanding rent payable is Rs.3,000.

Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.


CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 4

1. A and B are partners in the ratio of 3:2.


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Goodwill 10,000
A: 2,50,000 Machinery 80,000
B: 1,80,000 Building 2,50,000
General Reserve 50,000 Stock 90,000
Creditors 60,000 Investment 60,000
Bills Payables 30,000 Debtors 50,000
45,000
Outstanding Rent 5,000 less: P.D.D (5,000)
Cash 15,000
P&L A/c (Dr. balance) 25,000
Total 5,75,000 Total 5,75,000
i) They admit C as a new partner and new ratio is 4:3:2.
ii) C will bring Rs. 1,50,000 as capital but nothing for goodwill, however total
goodwill is Rs.90,000.
iii) Plant & Machinery reduced to Rs.66,000.
iv) Stock reduced at Rs.1,05,000.
v) Make a P.D.D of up to 6%.
vi) Creditors include a payment of Rs.10,000 which does not likely to arise.
vii) Bills Payable revalued at Rs.24,000.
viii) Outstanding rent increased up to Rs.11,000.

Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.

2. P, Q and R are partners in the ratio of 6:5:4.


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Goodwill 12,000
P: 80,000 Investments 18,000
Q: 60,000 Stock 60,000
R: 50,000 Debtors 50,000
Reserve Fund 7,500 less: P.D.D (2,000) 48,000
P&L A/c (Cr. Balance) 4,500 Machinery 90,000
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Creditors 30,000 Advertisement Suspense A/c 15,000
Bills Payable 11,000
Total 2,43,000 Total 2,43,000
i) They admit S as a new partner and new ratio is 5:4:3:3.
ii) D brings his share of capital Rs.45,000 and Rs.24,000 as a share of goodwill in
cash.
iii) The old partners withdrew half of the amount of goodwill in cash.
iv) Investments reduced at Rs.15,000 and taken over by old partners.
v) There is no need for to maintain P.D.D
vi) Machinery reduced to Rs.78,000 and stock revalued at Rs.65,000.
vii) Bills Payable increased to Rs.12,000.
viii) A creditor of Rs.4,000 was omitted and not recorded. Record it.
ix) Outstanding salary of Rs.2,000 is to be provided for.

Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.


CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 5

1. A and B are partners in the ratio of 3:2.


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Cash 15,000
A: 90,000 Debtors 50,000
B: 70,000 Machinery 60,000
Reserve Fund 20,000 Stock 30,000
Creditors 80,000 Building 1,00,000
Bills Payable 25,000 Bills Receivable 20,000
Goodwill 10,000
Total 2,85,000 Total 2,85,000
i) They admit C as a new partner and the new P.S.R is 3:2:1.
ii) C brings his share of capital Rs.50,000 and his share of goodwill in cash Rs.15,000.
iii) Stock revalued at Rs.24,000.
iv) Make a P.D.D @10% on debtors.
v) Depreciate machinery @20%.
vi) Building appreciated by 30%.
vii) Bills payable increased upto Rs.28,000.
viii) Creditors include a payment of Rs.1,000 which is no longer payable.

Readjust Capital A/cs, of A and B on the basis of C’s capital by bringing or paying in
cash. Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.

2. X and Y are partners in the ratio 2:1.


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Cash 20,000
X: 1,30,000 Machinery 70,000
Y: 80,000 Building 1,30,000
General Reserve 30,000 Stock 60,000
Creditors 65,000 Debtors 40,000
Bills Payable 27,000 Goodwill 12,000
Total 3,32,000 Total 3,32,000
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
They admit C as a new partner and the new P.S.R is 2:1:1.
i) C brings Rs.1,00,000 as a share of capital and Rs.45,000 as a share of goodwill in
cash.
ii) Machinery depreciates by 10%.
iii) Make a P.D.D @20% on debtors.
iv) Stock reduced to Rs.50,000.
v) Building revalued at Rs.1,50,000.
vi) O/s rent payable at Rs.4,000.
vii)Creditors include a payment of Rs.3,000 which is no longer payable.

Readjust Capital A/cs of X and Y based on C’s capital by bringing or paying in cash.
Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 6

1. A and B are partners in the ratio of 5:4


Balance Sheet
Liabilities Rs. Assets Rs.
Reserves 36,000 Goodwill 18,000
Capital Cash 22,000
A: 70,000 Stock 40,000
B: 40,000 Debtors 50,000
Creditors 1,24,000 Machinery 60,000
Building 80,000
Total 2,70,000 Total 2,70,000
They admit C as a new partner and new ratio is 4:3:2.
i) C brings his share of capital Rs. 40,000 and brings his share of goodwill in cash.
However, the total goodwill of the firm was valued at Rs.90,000.
ii) The old partners A and B withdrew half of the amounts of goodwill in cash which
was brought in by C.
iii) Building revalued at Rs.1,00,000.
iv) Stock reduced by Rs7,000 and machinery increased by Rs.10,000.
v) Make a P.D.D of Rs.4,000.
vi) Creditors include the amount of Rs.8,000 which is no longer payable.
vii) Readjust capital A/c of A and B based on C’s capital.
viii) Excess or shortfall, if any, is then transferred to current accounts.
Prepare Revaluation A/c, Partner’s Capital A/c, and Balance Sheet.

2. A and B are partners in the ratio of 5:3.


Balance Sheet
Liabilities Rs. Assets Rs.
Reserves 24,000 Goodwill 40,000
P&L A/c 32,000 Debtors 40,000
Creditors 1,59,000 Stock 35,000
Capital Cash 25,000
A 80,000 Building 1,00,000
B 30,000 Patents 5,000
Machinery 60,000
Investment 20,000
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Total 3,25,000 Total 3,25,000
− They admit C as a new partner and the new ratio is 3:3:2.
− C brings his share of capital Rs.50,000 but nothing for goodwill. However, the total
goodwill of the firm was valued Rs.80,000.
− Half of the investments were taken over by A and B equally and the remaining
revalued at Rs.12,000.
− Patents were considered worthless, and the stock was reduced by Rs.5,000.
− Male a P.D.D @10%.
− Building was appreciated by 20%.
− Machinery was appreciated to Rs76,000.

Readjust the capital A/c of A and B based on C’s Capital. If any, excess amount is
transferred to Current A/c if any deficit, then brought it in cash.

3. A and B are partners in the ratio of 3:2


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Machinery 56,000
A 70,000 Furniture 30,000
B 60,000 Investment 40,000
Creditors 72,000 Stock 46,000
Bank Loan 18,000 Debtors 38,000
Reserves 20,000 less: P.D.D (4,000) 34,000
Cash 24,000
Goodwill 10,000
Total 2,40,000 Total 2,40,000
i. They admit C as a new partner and the new ratio is 3:3:2. C brings Rs.40,000 as his
capital.
ii. C also brings Rs.8,000 for goodwill out of his total share of Rs.14,000.
iii. Depreciate furniture by 10%.
iv. Half of the investment is taken by A and B at book value in their P.S.R and the
remaining revalued at Rs.26,000.
v. Stock was reduced to Rs.36,000.
vi. Make a P.D.D of upto 10% on debtors.
vii. There was an unrecorded asset of Rs.11,800.

Readjust the capital A/c of A and B based on C’s Capital by bringing or paying in
cash.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
Topic: Admission of a Partner
Lecture 7

1. A and B are partners in the ratio 3:2.


Balance Sheet
Liabilities Rs. Assets Rs.
Capital Cash 15,000
A 15,000 Stock 20,000
B 12,000 Debtors 10,000
General Reserve 10,000 Machinery 30,000
Creditors 58,000 Building 20,000
Total 95,000 Total 95,000
They admit C as a new partner and the new P.S.R is 3:3:2.
i) C brings his share of goodwill in cash Rs.5,000. C was required to bring his share of
capital in cash proportionately.
ii) Stock revalued Rs.16,000 and make a P.D.D 10% on debtors.
iii) Building was revalued for Rs22,000.
iv) Machinery was depreciated to Rs.24,000.
v) Outstanding salary of Rs.4,000.
vi) Creditors include a payment of Rs.10,000 which is no longer payable.
Prepare Revaluation A/c, Capital A/c and Balance Sheet of new firm.
2. A and B are partners in the ratio 2:1.
Balance Sheet
Liabilities Rs. Assets Rs.
Creditors 20,000 Debtors 40,000
Bills Payable 15,000 less: P.D.D (3,000) 37,000
Reserve Fund 12,000 Stock 18,000
Capital Cash 2,000
A 40,000 Buildings 25,000
B 30,000 Patents 2,000
Machinery 33,000
Total 1,17,000 Total 1,17,000
− They admit C and new ratio is 3:2:1.
− C brings Rs.10,000 in cash as a share of goodwill and required to bring his
proportionate capital.
− Stock revalued Rs.22,000 and building revalued Rs.30,000.
− Patents are worthless and machinery was reduced by Rs.4,000.
CA Sahil Goyal CA Dheeraj Goyal
+9196465-22002 +9196468-22002
− Make a P.D.D of upto 15% and bills payable reduced upto Rs.12,000.
Prepare Revaluation A/c, Capital A/c and Balance Sheet of new firm.
3. P and Q are partners sharing profits in the ratio of 3:1. R is admitted, and the partners
decide to share the future profits in the ratio 2:1:1. The Balance Sheet of P and Q as at
31st March, 2018 was as under:
Balance Sheet
Liabilities Rs. Assets Rs.
Creditors 30,000 Bank 15,000
Profit & Loss A/c 60,000 Debtors 60,000
Capital A/cs: Stock 1,50,000
P 3,50,000 Prepaid Expenses 20,000
Q 2,20,000 5,70,000 Plant & Machinery 1,40,000
Premises 2,75,000
Total 6,60,000 Total 6,60,000
It was decided that:
i) Part of the stock which has been included at a cost of Rs.8,000 had been badly
damaged in storage and could realise only Rs.2,000.
ii) A bill for Rs.7,000 for electric charges has been omitted to be recorded.
iii) Plant and Machinery was found overvalued by Rs.20,000. Premises be appreciated
to Rs.3,00,000.
iv) Prepaid expenses to be brought down to 40%.
v) R’s share of goodwill is valued at Rs.20,000 bur he is unable to bring it in cash.
vi) R brings in his capital proportionate to his share of profit in the firm.
Prepare Revaluation A/c, Capital A/c and the opening Balance Sheet of new firm.

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