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Question
State the rights acquired by a newly admitted partner
Solution
The new partner on admission acquires the two rights:
1) Right to share the future profits of the partnership firm.
2) Right to share the assets of the partnership firm.
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RELATED QUESTIONS
Kamal and Vimal were partners in firm sharing profits in the ratio of 3:2. Ghosh was admitted as a new partner for `1/5` th share in the profits. On Ghosh's admission, the balance sheet of the firm showed a credit balance of Rs 10,000 in its Profit and Loss Account which was debited by the accountant of the firm in the accounts of Kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and if 'not' give the correct treatment.
Abdul, Kadir and Kasim were partners in a firm supplying food items. They were sharing profits in the ratio of 5:3:2. Their capitals on 1st April, 2010 were Rs 1,00,000, Rs 1,50,000 and Rs 3,00,000 respectively. After the floods in Uttaranchal, all partners decide to personally help the flood victims. For this Abdul withdrew Rs 20,000 from the firm on 1st September 2012, Kadir instead of withdrawing cash from the firm took some food items amounting to Rs 24,000 from the firm and distributed to the flood victims. On the other hand, Kasim withdrew Rs 1,00,000 from his capital on 1st January 2013 and provided a Mobile Medical Van for medical facilities in the flood affected area. The partnership deep provides for charging interest on drawings @ 6% p.a. After the Final Accounts were prepared it was discovered that interest in drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also, state any two values that the partners wanted to communicate to the society.
Anwar, Biswas and Divya are partners in a firm. On 1st April 2011 their capital accounts stood at Rs 8,00,000, Rs 6,00,000 and Rs 4,00,000 respectively. They shared profits and losses in the proportion of 3: 2: 1. Partners are entitled to interest on capital @ 6% per annum and salary to Biswas and Divya @ 4,000 per month and Rs 6,000 per quarter respectively as per the provisions of the partnership deed. Biswas's share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs 82,000 p.a. Any deficiency arising on that account shall be met by Divya. The profits of the firm for the year ended 31st March 2012 amounted to Rs 3,120,000. Prepare Profit & Loss Account for the year ended on 31st March 2012.
What is meant by calls in advance?
Anil and Vishal are partners sharing profits in the ratio of 3:2. They admitted Sumit as a new partner for 1/5 share in the future profits of the firm. Calculate the new profit sharing ratio of Anil, Vishal and Sumit.
Anshu and Nitu are partners sharing profits in the ratio of 3:2. They admitted Jyoti as a new partner for 3/10 shares which she acquired 2/10 from Anshu and 1/10 from Nitu. Calculate the new profit sharing ratio of Anshu, Nitu and Jyoti.
Complete the following sentence.
______ is the ratio in which the remaining partners will share future profits after the retirement or death of any partner.
Identify the journal entry for the transfer of the workman compensation fund to the Partner's Capital Account at the time of change of profit-sharing ratio.
Z is admitted in a firm for 1/4th share in the profits for which he brings ₹ 10,000 towards premium for goodwill. It will be taken by the old partners in ______.
The old profit sharing ratio among Rajendra, Satish and Tejpal were 2 : 2 : 1. The new profit sharing ratio after Satish' s retirement is 3 : 2. The gaining ratio is ______.
Ram and Shyam were equal partners in a partnership. They admitted Mohan for `1/4`th share.
He acquired his share equally from Ram and Shyam. Consider the statements below:
- Ram and Shyam both will sacrifice equally to Mohan.
- Ram's sacrificing ratio is more than that of Shyam.)
- The new profit sharing ratio of Ram, Shyam and Mohan will be 11 : 6 : 5.
Choose the correction option:
Anita and Babita were partners sharing profits and losses in the ratio of 3 : 1. Savita was admitted for `1/5`th share in the profits. Savita was unable to bring her share of goodwill premium in cash. The journal entry recorded for goodwill premium is given below:
| Date | Particulars | L.F. | Amount Dr. (₹) |
Amount Cr. (₹) |
| Savita's Current A/c Dr. | 24,000 | - | ||
| To Anita's Capital A/c | - | 8,000 | ||
| To Babita's Capital A/c | - | 16,000 | ||
| (Being adjustment of goodwill premium on Savita's Admission) |
The new profit sharing ratio of Anita, Babita and Savita, will be:
Arun and Barun share profits in the ratio of 2 : 1. Charan is admitted with a `1/5` share in profits. Charan acquires `2/3` of his share from Arun and `1/3` of his share from Barun. The new ratio will be:
