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प्रश्न
State True or False with reason.
Usually, when a new partner is admitted to the firm there will be an increase in the capital of the firm.
विकल्प
True
False
उत्तर
This statement is True
Reason:
When a new partner is admitted to the firm, he brings his share of capital and goodwill, in cash or in-kind, to enjoy the right of sharing the future profit, and hence there will be an increase in the capital of the firm.
APPEARS IN
संबंधित प्रश्न
Abhijeet and Sujeet are partners sharing profits and losses in the ratio of `3/5` and `2/5`respectively. From the following trial balance and adjustments, prepare Trading, Profit and Loss Account for the year ended 31st March, 2010 and the Balance Sheet as on that date.
| Trial balance as on 31st march 2010 | |||
| Debit Balance | Amount (Rs) | Credit Balance | Amount (Rs) |
| Drawing accounts: | Capital accounts: | ||
| Abhijeet | 6,000 | Abhijeet | 1,32,000 |
| Sujeet | 4,000 | Sujeet | 88,000 |
| Land and building | 1,70,000 | Sales | 1,69,000 |
| Plant (Addition on 1.1.2010, Rs 20,000) | 90,000 | Sundry creditors | 81,900 |
| Opening stock | 44,000 | Bank overdraft | 80,000 |
| Wages | 13,500 | Reserve for doubtful debts | 2,000 |
| Cash at bank | 6,500 | Outstanding expenses | 4,600 |
| Sundry debtors | 69,200 | Sundry income | 4,000 |
| Purchases | 1,22,500 | Pre-received rent | 5,000 |
| Carriage | 2,100 | 10% Bank loan (Taken on 1st Oct., 2009) | 32,000 |
| Rent, rates and insurance | 4,500 | ||
| Furniture | 50,000 | ||
| Salaries | 7,600 | ||
| Bad debts | 3,200 | ||
| Office expenses | 5,400 | ||
| 5,98,500 | 5,98,500 | ||
- Closing stock was valued at cost Rs 34,000 and at market price Rs 40,000.
- Depreciate plant @ 10% p. a.
- Insurance was prepaid Rs 600.
- Office expenses include personal expenses of Sujeet Rs 800.
- Maintain R.D.D. at 5% on sundry debtors.
Answer in one sentence only.
What is meant by admission of partner?
Answer in one sentence only.
What does the excess of debits over credits in profit and loss adjustment account indicate?
Answer in one sentence only.
In what proportion is general reserve distributed amongst the old partners?
Write the word/term or phrase which can substitute the following statement.
Profit and Loss Account appearing on the asset side of a balance sheet.
Write the word/term or phrase which can substitute the following statement.
Change in the relationship between the partners.
Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3:2. They decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be ____________
Write a word/phrase/term which can substitute the following statement.
The proportion in which old partners make a sacrifice.
Write a word/phrase/term which can substitute the following statement.
Capital employed × NRR/100 =
Write a word/phrase/term which can substitute the following statement.
Old ratio - New ratio =
State True or False with reason.
A new partner can bring capital in cash or kind.
State True or False with reason.
The gain ratio is calculated at the time of admission of a partner.
State True or False with reason.
Revaluation profit is distributed among all partners including new partner.
State True or False with reason.
The new ratio minus old ratio is equal to the sacrifice ratio.
What is the sacrifice ratio?
What do you mean by raising the goodwill at the time of admission of a new partner?
What is the treatment of accumulated profits at the time of admission of a partner?
Excess of proportionate capital over actual capital represents _________.
The profit or loss on revaluation of assets and liabilities is transferred to the capital account of ___________.
Which of the following statements is not true in relation to the admission of a partner?
Write a word/term/phrase as a substitute for the following statement:
Old Ratio less New Ratio.
Apte and Bhate are sharing profits and losses in the ratio 3 : 2, if Kate is admitted at `1/4` share then calculate new profit sharing ratio.
Answer in one sentence.
What is sacrifice ratio?
Answer in one sentence.
What is the sacrifice ratio?
Do you agree or disagree with the following statements:
Gain ratio means profit share given up by the retiring partner.
Moksh and Aarav share profits and losses in the ratio 3 : 2 in partnership firm. Their Balance Sheet as on 31st March, 2023 was as under:
| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Creditors | 75,000 | Bank | 45,000 | ||
| Bills payable | 60,000 | Bills receivable | 22,800 | ||
| Bank loans | 96,000 | Debtors | 1,24,800 | 1,20,000 | |
| General reserve | 15,000 | Less : R.D.D | 4,800 | ||
| Capitals: | Stock | 72,000 | |||
| Moksh | 90,000 | 1,62,000 | Furniture | 28,200 | |
| Aarav | 72,000 | Machinery | 30,000 | ||
| Building | 90,000 | ||||
| 4,08,000 | 4,08,000 | ||||
On 1-04-2023, they admitted Tithi on the following terms:
(1) For 112 shares in profits in future, Tithi should bring ₹ 60,000 for capital and ₹ 30,000 for goodwill in cash.
(2) Half of amount of goodwill is withdrawn by old partners.
(3) The Stock is to be depreciated by 10% and Machinery by 5%.
(4) R.D.D. is to be maintained at ₹ 6,000.
(5) Furniture should be appreciated to ₹ 32,100 and Building be appreciated by 20%.
Pass the necessary journal entries in the books of the firm.
Jainam and Moksh are equal partners in the business. Their Balance Sheet as on 31st March, 2023 stood as under:
| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Sundry Creditor | 1,35,000 | Cash in Bank | 93,000 | ||
| Capitals: | Debtors | 46,500 | 45,000 | ||
| Jain am | 67,500 | 1,12,500 | Less: R.D.D | 1,500 | |
| Moksh | 45,000 | Building | 82,500 | ||
| General Reserve | 27,000 | Machinery | 36,000 | ||
| Bills Receivable | 18,000 | ||||
| 2,74,500 | 2,74,500 | ||||
They decided to admit Prem on 1st April, 2023 on the following terms:
(1) The Machinery and Building be depreciated by 10%. Reserve for Doubtful debts to be increased by ₹ 7,500.
(2) Bills receivable are taken over by Jainam at the discount of 10%.
(3) Prem should bring ₹ 90,000 as capital for his I/4th share in future profits.
(4) The capital accounts of all the partners be adjusted in proportioning in the new profit sharing ratio by opening current accounts of the partners.
Prepare Profit and Loss Adjustment A/c, Partners' Capital A/c and Balance Sheet of new firm.
Sacrifice ratio = ______ - ______
Answer in one sentence.
What is sacrifice ratio?
Answer in one sentence.
What is sacrifice ratio?
What is the sacrifice ratio?
Answer in one sentence.
What is sacrifice ratio?
Answer in one sentence.
What is the sacrifice ratio?
Answer in one sentence.
What is sacrifice ratio?
Answer in one sentence.
What is sacrifice ratio?
