Saturday, August 18, 2018

Assignment - Admission of a Partner




Q1.  Hari ,Ravi and kavi were partner in a firm sharing profits in the ratio of 3:2:1. They admitted guru as a new partner for 1/7th share in profits. The new profit-sharing ratio will be 2:2:2:1 respectively. Guru brought Rs.3,00,000 for his capital and Rs.45,000 for his 1/7th share of goodwill. Showing your working clearly, pass the necessary journal entries in the books for the above mentioned transactions. 

Q2.  X and Y were partner in a firm sharing profits in 5:3 ratio. They admitted Z as a new partner for 1/3rd share in the profits. Z was to contribute Rs.20,000 as his capital. The balance sheet of X and Y as at 1-4-2007 the date of Z admission was as follows:




Other terms agreed upon were:
(i)                Goodwill of the firm was valued at Rs.12,000
(ii)              land & building were to be valued at Rs.35000 and plant & machinery at Rs.25000
(iii)            The provision for doubtful debt was found to be in excess by Rs.400
(iv)            A liability for Rs.1000 included in creditors was not likely to arise.
(v)              The capital of the partners be adjusted on the basis of Z contribution of capital in the firm.
(vi)            Excess or shortfall if any to be transferred to current accounts.

Prepare Revaluation account, Partners capital account and the Balance sheet of the firm.

Q.3  D and E were partner in a firm sharing profits in 3:1 ratio.On 1-4-2017 they admitted F as a new partner for ¼ share in the firm which is acquired from D. their balance sheet as at that date was as follows:



F will bring Rs.40000 as his capital and the other terms agreed upon were :
        i.            Goodwill of the firm was valued at Rs.24000
         ii.            Land and building were valued at Rs.70000
         iii.            Provision for bad debts was found to be in excess by Rs.800
         iv.            A liability for Rs.2000 included in creditors was not likely to arise.
         v.            The capital of the partner he adjusted on the basis of F contribution of capital to the firm.
          vi.            Excess or shortfall, if any, to be transferred to current accounts.

Prepare revaluation account, partners capital account and balance sheet of the new Firm.

Q.4  Give the necessary journal entries, the evaluation account, capital accounts and also the balance sheet of the firm as newly constituted.

  They agreed to take sohan into partnership and give him 1/8th share of profits as the following terms :                                           
1.  Sohan bring in Rs.16000 as his capital
2.     That furniture be written down by Rs.920 and stock be depreciate by 10%. 
3.      That a provision of Rs.1320 be made for outstanding repair bills.
4.    That the value of land and building be written upto Rs.65100.
5.     That sohan share of goodwill be fixed at Rs.8820. sohan brings this amount in cash.
6.       That the capitals of ram, shyam and mohan be adjusted on the basis of sohan 's capital by opening the necessary current accounts.

Q.5  A and B are partners sharing profits and losses in the ratio of 4:1, they admit C into partnership for 1/6th share for which he pays Rs.20000 for goodwill, A, B and c decide to share future profits in the ratio of 3:2:1 respectively. Give the necessary journal entries.
Q.6  vimal and kamal are partners sharing profits in the ratio of 4:1. They admit amal as new partner who brings Rs.150000 as his share of goodwill (premium). Amal is entitled to 1/3rd share in profits. As between themselves, vimal amd kamal agree to share future profits and losses equally.
You are required to:
a.     Calculate the new profit sharing ratio.
b.     Record journal entries showing the appropriation of premium.
Q.7  E and F were partners in a firm sharing profits in the ratio of 3:1. They admitted G as a new partner on 1-3-2017 for 1/3rd share. It was decided that E,F and G will share future profits equally . G brought Rs.50000 in cash and machinery worth Rs.70000 for his share of profit as premium for goodwill. Showing your calculation clearly, pass necessary journal entries in the books of the firm.


Q-8. A , B & C are Partners in a Firm sharing Profits & Losses in the Ratio of 3 : 2 : 1. D is admitted as a New Partner for ¼ share in the Profits of the Firm , which he gets 1/8 from A , and 1/16 each from B & C . The Total Capital of the New Firm after D;s admission will be Rs 2,40,000. D is required to bring in cash equal to ¼ of the total Capital of the New Firm . The Capitals of the Old Partners also have to be adjusted in Proportion of their Profit Sharing Ratio . The Capitals of A , B & C after all adjustments in Respect of Goodwill and Revaluation of Assets & Liabilities have been made are A Rs 80,000 , B Rs 30,000 , & C Rs 28,000. Calculate the Capitals of all the Partners and record the Necessary Journal Entries for Doing adjustments in respect of Capitals according to the agreement between the Partners.
Q-9.A & B are in Partnership sharing Profits and Losses in the Ratio of 3 : 2. The capitals of A & B remaining after adjustments are Rs 92,000 and Rs 70,000 respectively. They admit C as a Partner on his contribution of Rs 40,000 as capital for 1/5th share of Profits to be acquired equally from A & B. The Capital Accounts of Old Partners are to be adjusted on the Basis of the proportion of C’s Capital to his share in the business. Pass Entries assuming that Capital Accounts  of A & B are to be adjusted by Opening Current Accounts.
Q-10.A & B are Partners in a Firm. Their Balance Sheet as at 31.03.2012 was as Follows:
C was taken into partnership as From 1.04.2012 on following terms for 1/6th share:
1.C will bring Rs 40,000 as his Capital.
2.Goodwill is valued at Rs 12000 and admitting Partner is unable to bring his share of Goodwill in cash.
3.Claim on account of Workmen compensation is Rs 3000.
4.Creditors are to be Paid Rs 2000 more.
5. 2 % Provision for Discount on Debtors is Required.
6. The share of A in New Firm will be 1 ½ times of B.

                                                   Balance sheet as at 31.03.2012


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