.

1 A& B are partners sharing profits and losses in the ratio of 3:2. C is admitted for ¼ and for which 1
₹30,000 and ₹10,000 are credited as a premium for goodwill to A and B respectively. The new profit
- sharing ratio of A:B:C will be:
a) 3:2:1 b) 12:8:5 c) 9:6:5 d) 33:27:20
2 A, B and C who were sharing profits and losses in the ratio of 4:3:2 decided to share the future 1
profits and losses in the ratio to 2:3:4 with effect from 1st April 2023.
An extract of their Balance Sheet as at 31st March 2023 is:

At the time of reconstitution, a certain amount of Claim on workmen compensation was determined
for which B’s share of loss amounted to ₹ 5,000. The Claim for workmen compensation would be:
a). ₹15,000 b) ₹70,000 c) ₹50,000 a) d) ₹80,000
4 Interest on Partner’s loan is credited to: 1
a) Partner’s Fixed capital account. b) Partner’s Current account.
c) Partner’s Loan Account. d) Partner’s Drawings Account
5 G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues towards the firm 1
including Capital balance, Accumulated profits and losses share, Revaluation Gain amounted to ₹
5,80,000. G was being paid ₹ 7,00,000 in full settlement. For giving that additional amount of ₹
1,20,000, S was debited for ₹ 40,000. Determine goodwill of the firm
a). ₹ 1,20,000 b). ₹80,000 c). ₹2,40,000 d). ₹ 3,60,000
6 Annu, Banu and Chanu are partners, Chanu has been given a guarantee of minimum profit of ₹8,000 1
by the firm. Firm suffered a loss of ₹5,000 during the year. Capital account of Banu will be
________ by₹_________.

a). Credited, ₹6,500 b) Debited, ₹6,500 c) Credited, ₹1,500. d) Debited, ₹1,500.

7 X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share of 1
goodwill and he is required to bring proportionate capital for 1/3rdshare in profits. The capital
contribution of Z will be:
a). ₹24,000. b) ₹19,000 c) ₹12,667. a) d) ₹14,000
8 A and B are partners. B draws a fixed amount at the end of every quarter. Interest on drawings is 1
charged @15% p.a. At the end of the year interest on B’s drawings amounted to ₹9,000. Drawings of
B were:
a). ₹24,000 per quarter. b) ₹40,000 per quarter c) ₹30,000 per quarter d) ₹80,000 per quarter
9 Anshul, Babita and Chander were partners in a firm running a successful business of car accessories. 3
They had agreed to share profits and losses in the ratio of 1/2 : 1/3 : 1/6 respectively. After running
business successfully and without any disputes for 10 years, Babita decided to retire due to old age
and the Anshul and Chander decided to share future profits and losses in the ratio of 3 : 2. The
accountant passed the following journal entry for Babita share of goodwill and missed some
information. Fill in the missing figures in the following Journal entry and calculate the gaining ratio.

11 Doremon, Shinchan and Nobita are partners sharing profits and losses in the ratio of 3:2:1. With 3
effect from 1st April, 2022 they agree to share profits equally. For this purpose, goodwill is to be
valued at two year’s purchase of the average profit of last four years which were as follows: Year
 ending on 31st March,2019 ₹ 50,000 (Profit) Year ending on 31st March,2020 ₹ 1,20,000 (Profit)
Year ending on 31st March,2021 ₹ 1,80,000 (Profit) Year ending on 31st March,2022 ₹ 70,000
(Loss) On 1st April, 2021 a Motor Bike costing ₹ 50,000 was purchased and debited to travelling
expenses account, on which depreciation is to be charged @ 20% p.a. by Straight Line Method. The
firm also paid an annual insurance premium of ₹ 20,000 which had already been charged to Profit
and Loss Account for all the years.
Journalise the transaction along with the working notes
13 Calculate goodwill of a firm on the basis of three years purchases of the Weighted Average Profits of 4
the last four years. The profits of the last four years were:
Years 2020 2021 2022 2023
Profit 28000 27000 46900 53810

a) On 1st April, 2020 a major plant repair was undertaken for ₹10,000 which was charged to revenue.
The said sum is to be capitalized for goodwill calculation subject to adjustment of depreciation of
10% on reducing balance method.
b) For the purpose of calculating Goodwill the company decided that the years ending 31.03.2020
and 31.03.2021 be weighted as 1 each (being COVID affected) and for year ending 31.03.2022 and
31.03.2023 weights be taken as 2 and 3 respectively.
15 Rajinder and Vijay were partners in a firm sharing profits in the ratio 3:2. On 31st March 2023 their 6
balance sheet was as follows:

With an aim to expand business it is decided to admit Ranvijay as a partner on 1st April 2023 on the
following terms:
a) Provision for doubtful debts is to be increased to 6% of debtors.
b) An outstanding bill for repairs ₹ 50,000 to be accounted in the books
c) An unaccounted interest accrued of ₹ 7500 be provided for .
d) Investment were sold at book value.
e) Half of stock was taken by Rajinder at ₹42,000 and remaining stock was also to be revalued at the
same rate.
f) New profit-sharing ratio of partners will be 5:3:2.
g) Ranvijay will bring ₹ 1,00,000 as capital and his share of goodwill which was valued at twice the
average profit of the last three years ended 31st March 2023, 2022 and 2021 were ₹ 1,50,000, ₹
1,30,000 and ₹ 1,70,000 respectively. Pass necessary journal entries.
16 Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The 6
firm closes its books on 31st March every year. On 30th June, 2020Maheepdied. The partnership
deed provided that on the death of a partner his executors will be entitled to the following:
a) Balance in his capital account which amounted to ₹1,15,000and interest on capital till date of
death which amounted to ₹5,000.
b) His share in the profits of the firm till the date of his death amounted to ₹20,000.
c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at ₹
1,50,000.
d) Loan to Maheep amounted ₹ 20,000. It was agreed that the amount will be paid to his executor in
three equal yearly instalments with interest @10% p.a. The first instalment was to be paid on
30.06.2021. Calculate the amount to be transferred to Maheep’s executors Account and prepare the
executor’s account till it is finally settled.

OR
L, M and N were partners in a firm sharing profit & losses in the ratio of 2:2:3 . On 31st March 2023,
their Balance Sheet was as follows:

On 31st March 2023 , M retired from the firm and remaining partners decided to carry on business. It
was decided to revalue assets and liabilities as under :
a) Land and Building be appreciated by₹ 2,40,000 and Machinery be depreciated 10%.
b) 50% of investments were taken by the retiring partner at book value.
c) Provision for doubtful debts was to be made at5% on debtors.
d) Stock will be valued at market price which is ₹1,00,000 less than the book value.
e) Goodwill of the firm be valued at ₹5,60,000. L and N decided to share future profits and losses in
the ratio of 2:3.
f) The total capital of the new firm will be ₹32,00,000 which will be in proportion of profit - sharing
ratio of L and N.
g) Gain on revaluation account amounted to ₹1,05,000. Prepare Partner’s Capital accounts and
Balance sheet of firm after M’s retirement.