Admission of a Partner Test

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Admission of a Partner Test - 5

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Weekly Quiz Competition

Question 1
1 / -0

Why new partner needs to bring goodwill?

A
To compensate the old partners for their gain share

B
For Revaluation Account

C
To compensate the sacrificing partners

D
Both To compensate to the sacrificing partners and To compensate the old partners for their gain share

Solution

A new partner (at the time of his admission) will bring some extra amount with capital which is known as premium for goodwill. This amount will be given to the sacrificing partners for their sacrifice in favor of him.
Question 2
1 / -0

Hari and Mohan are partners in the ratio 3:2. On 1st April, 2015 they admitted John as a new partner with 1/6 share in profit of the firm. Find out the sacrifice or gain of Mohan.

A
Mohan’s Sacrifice 2/30

B
Mohan’s Sacrifice 1/5

C
Mohan’s Gain 2/5

D
Mohan’s Gain 1/5

Solution

Calculation of Mohan’s Sacrifice/gain:
Old Ratio = 3:2
New Ratio = 3:2:1
Sacrificing Ratio = 3:2
Sacrifice of Hari = 3/5 – 3/6 = 3/30
Mohan = 2/5 – 2/6 = 2/30
Question 3
1 / -0

Which of the following is not an example of Reconstitution of partnership firm?

A
Admission of a new partner

B
Purchase of Assets for the business

C
Retirement/Death of a partner

D
Change in Existing profit sharing ratio

Solution

Reconstitution on a partnership means change in the number of partners through Admission, Retirement or Death of the partners or change in the ratio of partners. Puchase of Assets will not change the constitution of the partnership.
Question 4
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Which of the following situation is not acceptable for the continuity of the partnership firm?

A
Retirement and Admission on the same day

B
Admission of two partners on the same day

C
All partners leave the firm together

D
Death and Admission

Solution

If All partners leave a it means the partnership is dissolved. Partnership cannot be continued if all the partners leave the firm. For continuation of a firm atleast 2 partners is required.
Question 5
1 / -0

With the ___ into the firm number of partner increase

A
Retirement of new partner

B
Death of new partner

C
Dissolution of a new partner

D
Admission of a new partner

Solution

Number of partners in a firm will increase when a new partner is admitted i.e. old partners + new partner.
Question 6
1 / -0

A & B are partners sharing profits in the ratio 1:1. C wants to join their firm as it enjoys a good reputation in the industry. A and B were initially reluctant to his admission but agreed to admit him for 1/5th share in profits. For this, they ask him to pay an unreasonable amount of goodwill in cash irrespective of his share in the profits. Otherwise he will not be admitted as a partner. What values are being overlooked by the firm at the time of C’s admission?

A
Greediness

B
Respect for Professional ethics

C
Dishonesty

D
Social responsibility

Solution

When a new partner is admitted into a partnership firm, he has to bring some amount (other than capital) as premium for goodwill. But old partners may exempt this amount and they may allow him to join without paying premium for goodwill. In this case C will bring his amount of goodwill but old partners have should have shown some respect towards profession.
Question 7
1 / -0

Ram, Ramesh and Rajesh are partners in a business sharing profits and losses in the ratio 3:2:1. Rajesh retires and both the existing partners agree to share profits in the ratio 2:1 .Later Rajesh requests the other partners that his physically challenged son should be inducted as a partner in his place. After discussing it amongst themselves both the partners, Ram and Ramesh agree to take his son as a partner. Identify the values which should have been incorporated while formulating partnership

A
Respect for law

B
Righteous behavior

C
Respect for humanity

D
Both Respect for humanity and Righteous behavior

Solution

This is the moral duty of Ram and Ramesh to admit Rajesh’s son into the partnership firm. It shows faith and trust amongst the partners for each other. By admitting Rajesh’s son they have shown righteous behavior and respect for the humanity
Question 8
1 / -0

A and B are partners sharing profits in the ratio of 3:2. They admitted C as a new partner for 1/5 share in the future profits of the firm. Calculate new profit sharing ratio of A, B and C

A
12:10:4

B
10:7:4

C
14:10:6

D
12:8:5

Solution

Calculation of new ratio of partners:
Old Ratio = 3:2
C is admitted for 1/5th share
Remaining share : 1 – 1/5 = 4/5
A’s new share = 3/5 × 4/5 = 12/25
B’s new share = 2/5 × 4/5 = 8/25
C’s Share 1/5 OR 5/25
New Ratio 12 : 8: 5
Question 9
1 / -0

Anand and Nitin are partners sharing profits in the ratio of 3:2. They admitted Jayshree as a new partner for 3/10 share which she acquired 2/10 from Anand and 1/10 from Nitin. Calculate the new profit sharing ratio of Anand, Nitin and Jay

A
1:2:2

B
2:1:1

C
4:3:3

D
3:2:2

Solution

Jayshree’s share = 3/10
Anand’s share = 3/5 – 2/10 = 4/10
Nitin’s share = 2/5 – 1/10 = 3/10
New profit sharing ratio = 4:3:3
Question 10
1 / -0

Ram and Shyam are partners in a firm sharing profits in the ratio of 3:2. They admit Ghanshyam as a partner. Ram Surrendered 1/4th of his share and Shyam 1/3rd of his share in favor of Ghanshyam. Find out the new ratio.

A
3:2:1

B
27:16:17

C
25:20:15

D
27:17:15

Solution

Calculation of new ratio:
Ram’s old Share 3/5 and Shyam’s old share 2/5
Share surrendered by Ram = 1/4th of 3/5 = 3/20
Ram’s new share = 3/5 -3/20 = 9/20
Share Surrender by Shyam = 1/3 of 2/5 = 2/15
Shyam’s new share = 2/5 – 2/15 = 4/15
New Ratio : 27:16:17

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Re-Attempt Weekly Quiz Competition

Admission of a Partner Test - 5

Result

Admission of a Partner Test - 5

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Rank

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SHARING IS CARING

Question 1

To compensate the old partners for their gain share

For Revaluation Account

To compensate the sacrificing partners

Both To compensate to the sacrificing partners and To compensate the old partners for their gain share

Solution

Question 2

Mohan’s Sacrifice 2/30

Mohan’s Sacrifice 1/5

Mohan’s Gain 2/5

Mohan’s Gain 1/5

Solution

Question 3

Admission of a new partner

Purchase of Assets for the business

Retirement/Death of a partner

Change in Existing profit sharing ratio

Solution

Question 4

Retirement and Admission on the same day

Admission of two partners on the same day

All partners leave the firm together

Death and Admission

Solution

Question 5

Retirement of new partner

Death of new partner

Dissolution of a new partner

Admission of a new partner

Solution

Question 6

Greediness

Respect for Professional ethics

Dishonesty

Social responsibility

Solution

Question 7

Respect for law

Righteous behavior

Respect for humanity

Both Respect for humanity and Righteous behavior

Solution

Question 8

12:10:4

10:7:4

14:10:6

12:8:5

Solution

Question 9

1:2:2

2:1:1

4:3:3

3:2:2

Solution

Question 10

3:2:1

27:16:17

25:20:15

27:17:15

Solution

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