Admission of a Partner
Commerce ⇒ Accountancy
Admission of a Partner starts at 12 and continues till grade 12.
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A and B are partners sharing profits in the ratio 3:2. They admit C for 1/5th share. C brings ₹40,000 as capital and ₹10,000 as goodwill. How much will A and B receive as goodwill if they sacrifice in the ratio 2:1?
A and B are partners sharing profits in the ratio 3:2. They admit C for 1/5th share. What will be the new profit sharing ratio if C gets his share equally from A and B?
A and B are partners sharing profits in the ratio 5:3. They admit C for 1/4th share. Calculate the new profit sharing ratio if C gets his share from A and B in the ratio 2:1.
A and B are partners sharing profits in the ratio 7:3. They admit C for 1/4th share. Calculate the new profit sharing ratio if C gets his share from A and B in the ratio 3:1.
A and B are partners with capitals of ₹1,00,000 and ₹80,000 respectively. They admit C for 1/4th share, who brings ₹60,000 as capital. Calculate the value of hidden goodwill.
A, B, and C are partners sharing profits in the ratio 2:2:1. D is admitted for 1/6th share. Calculate the new profit sharing ratio if D gets his share from A and B only in the ratio 3:1.
A, B, and C are partners sharing profits in the ratio 4:3:2. D is admitted for 1/5th share, which he acquires equally from A and B. What is the sacrificing ratio?
A, B, and C are partners sharing profits in the ratio 5:3:2. D is admitted for 1/6th share, which he gets entirely from A. What is the new profit sharing ratio?
Explain the accounting treatment of undistributed profits or reserves at the time of admission of a partner.
Explain the term 'hidden goodwill' in the context of admission of a partner.
Explain the term 'sacrificing ratio' in the context of admission of a partner.
Explain why the old profit sharing ratio is not always the same as the sacrificing ratio at the time of admission of a partner.
If the new partner is unable to bring his share of goodwill in cash, how is the adjustment made?
State the journal entry for the amount of goodwill not brought in cash by the new partner at the time of admission.
State the journal entry for the amount of goodwill withdrawn by old partners in cash at the time of admission of a partner.
State the two methods of calculating goodwill at the time of admission of a partner.
What is meant by the 'admission of a partner' in a partnership firm?
What is the effect on the capital accounts of old partners if the new partner brings premium for goodwill in cash?
What is the effect on the firm’s total capital if the new partner brings in more capital than his proportionate share?
What is the journal entry for revaluation profit at the time of admission of a partner?
