CBT JULY, 2024

KENDRIYA VIDYALAYA SANGATHAN, BHOPAL REGION

SUBJECT – ACCOUNTANCY
CLASS –XII
Unit- Accounting for Partnership Firms (Admission of a Partner)

1 Manas and Mili are partners in a firm sharing profits in the ratio of 3:2. Anita is
admitted as a new partner for 1/4th share in future profits. Capitals of Manas and
Mili were ₹3,00,000 and ₹1,50,000 respectively. Anita brought ₹2,00,000 as her
capital. The value of goodwill of the firm on Anita's admission.
(A) 2,50,000
(B) 8,00,000
(C) 4,50,000
(D) 1,50,000
ANS 1 (D) 1,50,000

Explanation:
Total capital of new firm = New partner’s capital * 1/ New partner’s share
= 2,00,0008 * 4 / 1 = 8,00,000
Total adjusted capital of all partners = 3,00,000+1,50,000+2,00,000= 6,50,000
Goodwill = Total capital of new Firm – Total adjusted capital of all partners
8,00,000-6,50,000 = 1,50,000
2 Mini and Mansi are partners sharing profits in the ratio of 4 3. They admitted
Nisha as a new partner for 3/7th share in profits which she acquired 2/7th from
Mini and 1/7th from Mansi. The new profit sharing ratio of Mini, Mansi and
Nisha will be:
(A) 4:3:3
(B) 5:3:2
(C) 2:3:5
(D) 2:2:3
ANS 2 (D) 2:2:3

Explanation:
New ratio:
Mini= 4/7-2/7=2/7
Mansi = 3/7 – 1/7 = 2/7
Nisha = 3/7
New ratio = 2:2:3
3 A and B are partners sharing profit or loss in the ratio of 3 2. C is admitted into
partnership as a new partner. A sacrifices 1/3rd of his share in favour of C and B
sacrifices 1/4th of his share in favour of C. What will be C’s share in the firm?
(A) 1/5
(B) 2/10
(C) 3/10
(D) None of the above

ANS 3 (C) 3/10

 Explanation
A’s sacrifice= 3/5*1/3= 1/5
B’s sacrifice = 2/5*1/4= 1/10
C’s share = 1/5+1/10= 3/10
4 A and B are partners in a firm sharing profits in the ratio of 2:1. C is admitted as a
partner. A and B surrendered 1/2 of their respective shares in favour of C. C is to
bring his share of premium for goodwill in cash. The goodwill of the firm is
estimated at ₹60,000. Credit will be given to:
(A) A ₹15,000; B ₹15,000
(B) A ₹40,000; B ₹20,000
(C) A ₹30,000; B ₹30,000
(D) A ₹20,000; B ₹10,000
ANS 4 (D) A ₹20,000; B ₹10,000

Explanation:
Sacrifice of A = 2/3*1/2 = 1/3; Sacrifice of B= 1/3*1/2 = 1/6. Therefore
sacrificing ratio of A and B = 1/3:1/6 = 2:1.
C’s share in firm = 1/3 + 1/6 = 3/6 = 1/2.
C’s share in firm’s Goodwill = 60,000*1/2 = 30,000
Therefore A will get = 30,000*2/3= 20,000 and B will get = 30,000*1/3=
10,000.
5 P and S are partners sharing profits in the ratio of 3:2. R is admitted with 1/5th
share and he brings in ₹84,000 as his share of goodwill which is credited to the
Capital Accounts of P and S respectively with ₹63,000 and ₹21,000. New profit
sharing ratio will be :
(A) 3 : 1 : 5
(B) 9: 7 : 4
(C) 3 : 2 : 5
(D) 7 :9 : 4
ANS 5 (B) 9 : 7 : 4

Explanation:
Sacrificing ratio of P and Q= 63000:21000 = 9:3= 3:1
P’s Sacrifice = 1/5*3/4 = 3/20
Q’s sacrifice = 1/5*1/4 = 1/20
New ratio:
P= 3/5-3/20= 9/20
Q= 2/5-1/20= 7/20
R=1/5 * 4/4= 4/20
9:7:4 – Answer
6 Assertion (A): In a partnership firm, at the time of admission, the new partner
brings in an agreed amount of capital either in cash or in kind.
Reason (R): In a partnership firm, at the time of admission, the new partner
acquires the right to share the assets and the profits of the partnership firm.
Choose the correct option from the following:
(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct
explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the
correct explanation of Assertion (A).
 (C) Assertion (A) is incorrect, but Reason (R) is correct.
(D) Assertion (A) is correct, but Reason (R) is incorrect.
ANS 6 (A) . Both Assertion (A) and Reason (R) are correct, and Reason (R) is
correct explanation of Assertion (A).
Explanation : When a new partner is admitted in firm he has to bring capital either
in cash or kind due to getting right to share profits and assets of the firm .
7 Abhay and Amit are partners sharing profits and losses in the ratio of 2:3. They
admitted Ankit as a new partner for 1/5th share in future profits, for which he paid
₹1,20,000 as capital and ₹60,000 as goodwill. Find the capitals for each partner
taking Ankit’s capital as base capital.
(A) 3,00,000, 1,20,000 and 1,20,000
(B) 3,00,000, 1,20,000 and 1,80,000
(C) 1,92,000, 2,88,000 and 1,20,000
(D) 3,00,000, 1,80,000 and 1,80,000
ANS 7 (C) 1,92,000, 2,88,000 and 1,20,000

Explanation
Total capital of new firm = 1,20,000 * 5/1 = 6,00,000
New ratio of Abhay, Amit and Ankit = 8:12:5
New capitals of partners= Abhay- 1,92,000; Amit- 2,88,000; Ankit- 1,20,000.
8 P and Q were partners in a firm sharing profits in the ratio of 4:3. On Ist April,
2021 they admitted R as a new partner for 1/4th share in the profits of the firm.
On the date of R's admission, the Balance Sheet of P and Q showed a General
Reserve of Rs.2,80,000 and Advertisement Suspense Account of Rs.1,40,000.
The following was agreed upon, on R's admission:
(i) R's share of goodwill is agreed at Rs.70,000 of which he is to bring half in
cash.
(ii) New profit sharing ratio is agreed at 2: 1: 1.
What will be the correct treatment in respect of goodwill:
(A) Cr. P's Capital A/c by Rs.40,000 and Q's Capital A/c by Rs.30,000
(B) Cr. P's Capital A/c by Rs.20,000 and Q's Capital A/c by Rs.15,000.
(C) Cr. P's Capital A/c by Rs.10,000 and Q's Capital A/c by Rs.25,000
(D) Cr. P's Capital A/c by Rs.20,000 and Q's Capital A/c by Rs.50,000.
ANS 8 (D) Cr. P's Capital A/c by Rs.20,000 and Q's Capital A/c by Rs.50,000
Explanation
Cash a/c Dr 35000
R’s Current a/c Dr 35000
To P’s Capital a/c Rs20000
To Q’s Capital a/c Rs50000
(Being R’s share in goodwill distributed among P& Q in sacrificing ratio)
9 A and B are partners of a partnership firm sharing profits in the ratio of 3:2
respectively. C was admitted for 1/5th share of profit. Machinery would be
appreciated by 10% (book value ₹80,000) and building would be depreciated by
20% (book value ₹2,00,000). Unrecorded debtors of ₹1,250 would be brought
into books now and a creditor amounting to ₹2,750 died and need not pay
anything on this account. What will be profit/loss on revaluation?
(A) Loss ₹28.000
(B) Loss ₹40,000
(C) Profits ₹28,000
(D) Profits ₹40,000
ANS 9 (A) Loss ₹28.000

Explanation:
Total gain on revaluation= 8,000(machinery)+1,250(Unrecorded debtors)
+2,750(creditors)= 12,000
Total Loss on revaluation = 40,000(Building) = 40,000
Net Loss on Revaluation = 40,000- 12,000= 28,000
10 A and B are partners sharing profits in the ratio of 2:3. Their Balance Sheet shows
Machinery at ₹2,00,000; Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted
and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at
₹1,40,000 and a provision is made for doubtful debts @5%. A’s share in loss on
revaluation amounted to ₹20,000. Revalued value of Stock will be:
(A) ₹62,000
(B) ₹1,00,000
(C) ₹60,000
(D) ₹98,000
ANS 10 (D) ₹98,000

Explanation:
Total Loss = 40,000(Building) = 40,000
Net Loss on Revaluation = 20,000*5/2=50,000
Total of Dr. side of Revaluation A/c= 60,000 (Machinery) + 8,000 (Debtors)
Total of Cr. Side of Revaluation A/c = 50,000 (Net Loss) + ? (stock)
Therefore, ? (Stock) = 18,000
Therefore, Revalued value of stock = 80,000+18,000 = 98,000.