Accountancy- Grade XII
Worksheet – Admission of a Partner
Q1. Kabir and Farid are partners 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, a new partner. Calculate new profit- sharing ratio and sacrificing ratio.
Q2. A and B are partners sharing profits in the ratio of 3:1. On 1st April 2018, they admitted
C into partnership for 1/5th share who pays 50,000 as premium privately. On 1st April
2019, they admit D into partnership for 1/6th share who brings 40,000 as premium, 75%
of which is withdrawn by the existing partners. On 1st April 2020, E is admitted as a
partner for 1/7th share who brings 60,000 as premium which is retained in the business.
Pass journal entries for the above.
Q3: A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1 2019, they
admit C as a new partner for 1/6th share. The new ratio will be 13:7:4. C contributed the
following assets towards his capital and for his share of goodwill:
Stock ₹ 60,000; Debtors ₹ 80,000; Land ₹ 2,00,000; Plant & Machinery ₹ 1,20,000. On
the date of admission of C, the goodwill of the firm was valued at ₹ 7,50,000.
Record necessary journal entries in the books of the firm on C’s admission.
Q4: E and F were partners in a firm sharing profits in the ratio of 3:1. They admitted G as a
new partner on 1.4.2020 for 1/3rd share. It was decided that E, F and G will share future
profits equally. G brought ₹ 50,000 in cash and machinery worth ₹ 70,000 as his share of
premium for goodwill. Showing your calculations clearly, pass necessary journal
entries in the books of the firm.
Q5. A, B and C are partners sharing profits and losses in the ratio of 2:2:1. They admitted D
for 1/4th share with effect from 1st April, 2017. An extract of their Balance Sheet as at 31 st
March, 2017 is as follows:
Liabilities Assets
Workmen Compensation Reserve 80,000
Show the accounting treatment under the following alternative cases:
Case 1: If there is no other information.
Case 2: If a claim for workmen compensation is estimated at 50,000.
Case 3: If a claim for workmen compensation is estimated at 80,000.
Case 4: If a claim for workmen compensation is estimated at 1,00,000.
Q6: A and B are partners in a firm. They admit C as a partner with 1/4th share in the profits of
the firm. C brings ₹ 2,00,000 as his share of capital. The value of the total assets of the
firm are ₹ 5,40,000 and outside liabilities are valued at ₹ 1,00,000 on that date. Give the
necessary entry to record goodwill.
Q7: Hari and Kavi are partners sharing profits and losses in the ratio of 3:2. They admit Ravi
as a partner who contributes ₹ 30,000 as his capital for 1/5th share in the profits of the
firm. It is decided that after Ravi’s admission, the capitals of Hari and Kavi will be
adjusted on the basis of Ravi’s share of capital in the business, any surplus or deficiency
to be adjusted through current accounts. Before any adjustments were made, the capitals
of Hari and Kavi were: ₹ 59,000 and ₹ 35,000 respectively.
At the time of Ravi’s admission:
(a) The firm’s goodwill was valued at ₹ 40,000.
(b) General Reserve was ₹ 25,000.
(c) Loss on revaluation of assets and liabilities was ₹ 4,000.
You are required to pass the necessary journal entries on Ravi’s admission.
Q8: A and B are partners and the profits are divided as follows: ½ to A; 1/3 to B and 1/6
carried to a reserve account. They admit C as a partner on 1st April, 2019 at which date
the Balance Sheet of the firm was as under:
BALANCE SHEET
31st MARCH, 2017
Liabilities ₹ Assets ₹
Creditors 1,60,000 Cash at Bank 20,000
Outstanding Expenses 12,000 Debtors 2,20,000
Reserve 90,000 Stock 1,80,000
Capital A/Cs: Plant & Machinery 1,50,000
A 3,18,000
B 2,00,000 5,18,000
Buildings 2,00,000
Advertisement Expenditure 10,000
7,80,000 7,80,000
Following terms were agreed upon:
(i) Stock is undervalued by 10%.
(ii) Depreciation of ₹ 30,000 had been omitted on Plant & Machinery for the year ended
31st March, 2017.
(iii) Creditors include a contingent liability of ₹ 50,000 which has been decided by the
court at ₹ 43,000.
(iv) In respect of debtors, the following debts proved bad or doubtful:
₹ 15,000 due from Ram – bad to the full extent
₹ 20,000 due from Shyam – insolvent, estate expected to pay only 40%.
(v) Goodwill of the firm is valued at ₹ 60,000. However, C is unable to bring his share
of goodwill in cash.
(vi) C is given 1/5th share of profits which he acquires equally from A and B. C is to
bring in capital proportionate to his share of profits in the firm.
You are required to prepare Revaluation A/C, Capital Accounts and new Balance sheet of
the firm.
