Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board chapter 5 - Admission of a partner [Latest edition]

Revaluation A/c is a _________.

On revaluation, the increase in the value of assets leads to _________.

The profit or loss on revaluation of assets and liabilities is transferred to the capital account of ___________.

If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called ____________.

At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of __________.

Which of the following statements is not true in relation to the admission of a partner?

Match List I with List II and select the correct answer using the codes given below:

Select the odd one out

James and Kamal are sharing profits and losses in the ratio of 5 : 3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2 : 1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3 : 1 : 1. Find the sacrificing ratio between Balaji and Kamalesh.

What is meant by the revaluation of assets and liabilities?

How are accumulated profits and losses distributed among the partners at the time of admission of a new partner?

What is sacrificing ratio?

Give the journal entry for writing off existing goodwill at the time of admission of a new partner.

State whether the following will be debited or credited in the revaluation account.

1. Depreciation on assets
2. Unrecorded liability
3. Provision for outstanding expenses
4. Appreciation of assets

What are the adjustments required at the time of admission of a partner?

What are the journal entries to be passed on revaluation of assets and liabilities?

Write a short note on the accounting treatment of goodwill.

Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of ₹ 42,000. Pass the journal entry to distribute the general reserve.

Anjali and Nithya are partners of a firm sharing profits and losses in the ratio of 5 : 3. They admit Pramila on 1.1.2018. On that date, their balance sheet showed an accumulated loss of ₹ 40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

Oviya and Kavya are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Agalya into the partnership. Their balance sheet as on 31^st March, 2019 is as follows:

Balance Sheet as on 31^st March 2019

Pass journal entry to transfer the accumulated profits and reserve on admission.

Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5 : 3 : 2. As from 1^st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4 : 3 : 2 : 1. The following adjustments are to be made.

1. Increase the value of premises by ₹ 60,000.
2. Depreciate stock by ₹ 5,000, furniture by ₹ 2,000 and machinery by ₹ 2,500.
3. Provide for an outstanding liability of ₹ 500.

Pass journal entries and prepare a revaluation account.

Seenu and Siva are partners sharing profits and losses in the ratio of 5 : 3. In view of Kowsalya admission, they decided

1. To increase the value of building by ₹ 40,000.
2. To bring into record investments at ₹ 10,000, which have not so far been brought into account.
3. To decrease the value of machinery by ₹ 14,000 and furniture by ₹ 12,000.
4. To write off sundry creditors by ₹ 16,000.

Pass journal entries and prepare a revaluation account.

Sai and Shankar are partners, sharing profits and losses in the ratio of 5 : 3. The firm’s balance sheet as on 31^st December, 2017, was as follows:

On 31^st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with ₹ 12,000 as capital subject to the following adjustments.

1. Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000.
2. Provision for doubtful debts is to be increased to ₹ 5,500
3. An unrecorded investment of ₹ 6,000 is to be brought into account
4. An unrecorded liability ₹ 2,500 has to be recorded now.

Pass journal entries and prepare the Revaluation Account and capital account of partners after admission.

Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7 : 5. Their balance sheet as on 31^st March, 2019, is as follows:

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of ₹ 30,000 for 1/3 share in the future profit subject to the following adjustments.

1. Stock to be depreciated by ₹ 5,000
2. Provision for doubtful debts to be created for ₹ 3,000
3. Land to be appreciated by ₹ 20,000

Prepare revaluation account and capital account of partners after admission.

Praveena and Dhanya are partners sharing profits in the ratio of 7 : 3. They admit Malini into the firm. The new ratio among Praveena, Dhanya and Malini are 5 : 2 : 3. Calculate the sacrificing ratio.

Ananth and Suman are partners sharing profits and losses in the ratio of 3 : 2. They admit Saran for 1/5 share, which he acquires entirely from Ananth. Find out the new profit sharing ratio and sacrificing ratio.

Raja and Ravi are partners, sharing profits in the ratio of 3 : 2. They admit Ram for 1/4 share of the profit. He takes 1/20 share from Raja and 4/20 from Ravi. Calculate the new profit sharing ratio and sacrificing ratio.

Vimala and Kamala are partners, sharing profits and losses in the ratio of 4 : 3. Vinitha enters into the partnership and she acquires 1/14 from Vimala and 1/14 from Kamala. Find out the new profit sharing ratio and sacrificing ratio.

Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.

Prema and Chandra share profits in the ratio of 5 : 3. Hema is admitted as a partner. Prema surrendered 1/8 of her share and Chandra surrendered 1/8 of her share in favour of Hema. Calculate the new profit sharing ratio and sacrificing ratio.

Karthik and Kannan are equal partners. They admit Kailash with 1/4 share of the profit. Kailash acquired his share from old partners in the ratio of 7 : 3. Calculate the new profit sharing ratio and sacrificing ratio.

Selvam and Senthil are partners sharing profit in the ratio of 2 : 3. Siva is admitted into the firm with 1/5 share of profit. Siva acquires equally from Selvam and Senthil. Calculate the new profit sharing ratio and sacrificing ratio.

Mala and Anitha are partners, sharing profits and losses in the ratio of 3 : 2. Mercy is admitted into the partnership with 1/5 share in the profits. Calculate new profit sharing ratio and sacrificing ratio.

Ambika, Dharani and Padma are partners in a firm sharing profits in the ratio of 5 : 3 : 2. They admit Ramya for 25% profit. Calculate the new profit sharing ratio and sacrificing ratio.

Aparna and Priya are partners who share profits and losses in the ratio of 3 : 2. Brindha joins the firm for 1/5 share of profits and brings in cash for her share of goodwill of ₹ 10,000. Pass necessary journal entry for adjusting goodwill on the assumption that the fluctuating capital method is followed and the partners withdraw the entire amount of their share of goodwill.

Deepak, Senthil and Santhosh are partners sharing profits and losses equally. They admit Jerald into a partnership for 1/3 share in future profits. The goodwill of the firm is valued at ₹ 45,000 and Jerald brought cash for his share of goodwill. The existing partners withdraw half of the amount of their share of goodwill. Pass necessary journal entries for adjusting goodwill on the assumption that the fluctuating capital method is followed.

Malathi and Shobana are partners sharing profits and losses in the ratio of 5 : 4. They admit Jayasri into a partnership for 1/3 share of profit. Jayasri pays cash ₹ 6,000 towards her share of goodwill. The new ratio is 3 : 2 : 1. Pass necessary journal entry for adjusting goodwill on the assumption that the fixed capital method is followed.

Anu and Arul were partners in a firm sharing profits and losses in the ratio of 4 : 1. They have decided to admit Mano into the firm for 2/5 share of profits. The goodwill of the firm on the date of admission was valued at ₹ 25,000. Mano is not able to bring in cash for his share of goodwill. Pass necessary journal entry for goodwill on the assumption that the fluctuating capital method is followed.

Varun and Barath are partners sharing profits and losses 5 : 4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1 : 1 : 1. Dhamu’s share of goodwill is valued at ₹ 15,000 of which he pays ₹ 10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.

Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm at ₹ 30,000. By assuming fluctuating capital method, pass the necessary journal entry if the partners decide to

1. write off the entire amount of existing goodwill
2. write off ₹ 20,000 of the existing goodwill.

Rajan and Selva are partners sharing profits and losses in the ratio of 3 : 1. Their balance sheet as on 31^st March 2017 is as under:

On 1.4.2017, they admit Ganesan as a new partner on the following arrangements:

1. Ganesan brings ₹ 10,000 as capital for 1/5 share of profit.
2. Stock and furniture is to be reduced by 10%, a reserve of 5% on debtors for doubtful debts is to be created.
3. Appreciate buildings by 20%.

Prepare revaluation account, partners’ capital account and the balance sheet of the firm after admission.

Sundar and Suresh are partners sharing profits in the ratio of 3 : 2. Their balance sheet as on 1^st January, 2017 was as follows:

They decided to admit Sugumar into partnership for 1/4 share in the profits on the following terms:

1. Sugumar has to bring in ₹ 30,000 as capital. His share of goodwill is valued at ₹ 5,000. He could not bring cash towards goodwill.
2. That the stock be valued at ₹ 20,000.
3. That the furniture be depreciated by ₹ 2,000.
4. That the value of building be depreciated by 20%.

Prepare necessary ledger accounts and the balance sheet after admission.

The following is the balance sheet of James and Justina as on 1.1.2017. They share the profits and losses equally

On the above date, Balan is admitted as a partner with a 1/5 share in future profits. Following are the terms for his admission:

1. Balan brings ₹ 25,000 as capital.
2. His share of goodwill is ₹ 10,000 and he brings cash for it.
3. The assets are to be valued as under:
   Building ₹ 80,000; Debtors ₹ 18,000; Stock ₹ 33,000

Prepare necessary ledger accounts and the balance sheet after admission.

Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:

Rajesh is admitted for 1/5 share on the following terms:

1. Goodwill of the firm is valued at ₹ 80,000 and Rajesh brought cash ₹ 6,000 for his share of goodwill.
2. Rajesh is to bring ₹ 1,50,000 as his capital.
3. Motor car is valued at ₹ 2,00,000; stock at ₹ 3,80,000 and debtors at ₹ 3,50,000.
4. Anticipated claim on workmen compensation fund is ₹ 10,000
5. Unrecorded investment of ₹ 5,000 has to be brought into account.

Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission.