Practise Test-3 Dt: 06/09/2025
Q1: A, B and C are partners. Their capital accounts stood at ₹ 30000, ₹ 15000 and ₹ 15000
respectivelyon 1st April, 2023. As per the provisions of the deed.
• C was to be allowed a remuneration of ₹ 3000 per annum.
• Interest @ 5% p.a. was to be provided on capital.
• Profits were to be divided in the ratio of 2:2:1.
Ignoring the above terms net profit of ₹ 18000 for the year ended 31 st March, 2024 was
divided among the three partners equally. Pass and adjustment entry to rectify the error.
Q2: X, Y and Z are partners sharing profits in the ratio of 3:2:1.Now the partners decide to
share profits in the ratio of 2:2:1.They have also decided that the change shall be carried
out with retrospective effect from 2020.The P&L during the last few years have been
2018 – ₹ 16000,
2019- ₹ 12000,
2020 – ₹ 14000 ,
2021-₹ 19000,
2022-₹ 15000 (Loss).
Pass and adjustment entry.
Q3: A and B are partners sharing profits in the ratio of 2:1.They admit ‘C’ for ¼ share in
profits. ‘C’ brings ₹ 30000 for his capital and ₹ 8000 for his share of Goodwill. Before
admission Goodwill appeared in the books at ₹ 18000. Give journal entries.
Q4: A and C are partners sharing profits and losses in the ratio of 7:3. ‘A’ surrenders ¼ of his
share and ‘C’ surrenders 1/3rd of his share in favour of ‘Z’ ,a new partner. Calculate the new
profit-sharing ratio.
Q5: Asha, Deepa and lata are the partners in a firm sharing profits in the ratio of 3:2:1.Deepa
retires after making all adjustments relating to revaluation and accumulated profit etc., the
capital accounts of Asha and Lata showed a credit balance of ₹ 1,60,000 and ₹ 80,000
respectively. It was decided to adjust the capitals of Asha and Lata in their new profit-sharing
ratio.
You are required to calculate the new capitals of the partners and record necessary new
journal entries for bringing in or withdrawal of the necessary amounts involved.
Q6: A,B,C are partners in a firm sharing profits in the ratio of 4:3:1.A retires and his share is
taken by B and C equally. Find the new profit-sharing ratio and gain ratio. The goodwill of
the firm is valued at ₹ 16000. Pass necessary journal entries for recording goodwill.
Q8: A,B and C are partners sharing profits and losses in the ratio of 3:2:1. ‘B’ retires. What
will be the new profit-sharing ratio.
Q9: A, B and C were partners in a firm. On 1st April 2019 their fixed capitals stood at
₹50,000, ₹25,000 and ₹25,000 respectively.
As per the provisions of the partnership deed:
• B was entitled for a salary of 5,000 p.a.
• All the partners were entitled to interest on capital at 5% p.a.
• Profits were to be shared in the ratio of capitals and C gets a guaranteed amount of
profit ₹ 10,000 every year.
• Any deficiency arises, it will be borne by A.
The net profit for the year ending 31.03.2020 of ₹ 45,000 was divided equally without
providing for the above terms.
Pass an adjustment journal entry to rectify the above error
Q10: The books of the business showed that the capital employed was 10 Lakh and the
profits for the last five years were 80,000, 1,00,000, 1,10,000, ₹ 1,40,000 and
1,70,000. You are required to find out the value of goodwill based on 3 years purchase of
Super Profits of the business given that the normal rate of return is 10%.
