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Admission of a Partner Test - 54

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Admission of a Partner Test - 54
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  • Question 1
    1 / -0
    A & B are equal partners. they wanted to take C as a third partner and for this purpose goodwill was valued at Rs. 1,20,000. The journal entry for adjustment of value of goodwill through partners' capital accounts will be -
  • Question 2
    1 / -0
    A and B are partners with capitals of Rs. 3,000 each. They admit C as a partner with 1/4th share in the profits of the firm. C brings Rs. 4,800 as his share of Capital. The Profit & Loss A/c showed a credit balance of Rs. 2,400 as on date of admission of C. The amount of goodwill is _______. 
    Solution

  • Question 3
    1 / -0
    A and B are partners with capitals of Rs 14,000 and Rs 28,000 respectively and sharing profits equally. They admitted C as their third partner with 1/4 profits of the firm on the payment of Rs 16,800. The amount of hidden goodwill is ____________.
  • Question 4
    1 / -0
    A and B are partners sharing profits and losses in the ratio of $$3: 2$$. They admit C into the partnership for $$1/4$$th share. C brings in $$Rs.6,000$$ for capital and the requisite amount of premium in cash. The goodwill of the firm is valued at $$Rs.9,600$$. Partners withdrew their share of goodwill in cash. A and B withdrew  ________. 
    Solution
    At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.
    Goodwill brought in by new partner = Total goodwill of firm * C's share of profit
    Goodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400
    Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2
    Amount withdrawn by-
    A = Rs. 2400 * (3/5) = 1440
    B = Rs. 2400 * (2/5) = 960
  • Question 5
    1 / -0
    A and B are in partnership sharing profits and losses at 3: 1. They admit C into the firm. C is paying a premium for a one-third share of the profits. As for themselves, A and B agree to share future profits and losses equally. The goodwill of the firm is valued at Rs. 27,000. In this case _______. 
    Solution

  • Question 6
    1 / -0
    A and B are partners with capitals of Rs. 13,000 and Rs. 9,000 respectively. They admit C as a partner with the 1/5th share in the profits of the firm. C brings Rs. 8,000 as his capital. The amount of goodwill is _________. 
    Solution
    Capital of the firm according to the C's capital = Rs. 8000 x 5
                                                                                  = Rs. 40000
    Actual total capital = Rs. 13000 + 9000 + 8000
                                    = Rs. 30000
    Value of hidden goodwill = Rs. 40000 - 30000
                                               = Rs. 10000
    Therefore, C is the correct option.
  • Question 7
    1 / -0
    A, B and C are partners sharing profits in the ratio of 4 : 3: 2. D is admitted for the 2/9th share of profit and brings Rs.18,000 as his capital and the necessary amount for his share of goodwill. The goodwill of the firm is valued at Rs. 2,43,000. The new profit sharing ratio of A, B, C and D will be 3: 2: 2: 2. The sacrificing partners withdrew half of their share of goodwill. They withdrew _________. 
    Solution

  • Question 8
    1 / -0
    A and B are partners sharing profits in the ratio of $$3 : 2$$. C is admitted paying a premium with $$1/4$$th share of profit of which he acquires $$1/6$$th from A and $$1/12$$th from B. The goodwill of the firm is valued at $$Rs.20,160$$. One half of goodwill is withdrawn by the partners. A and B withdrew _________. 
    Solution
    At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.
    Goodwill brought in by new partner = Total goodwill of firm * C's share of profit
    Goodwill brought in by new partner = Rs. 20160 * (1/4) = Rs. 10080
    Half of goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2
    Amount withdrawn by-
    A = Rs. 10080 * (1/2) * (3/5) = 1680
    B = Rs. 10080 * (1/2) * (2/5) = 840
  • Question 9
    1 / -0
    A, B and C are partners sharing profits and losses in the ratio of 3: 2: 1. D is admitted. The new profit sharing ratio between A, B, C and D will be 3 : 3: 2: 2. Goodwill of the firm is valued at Rs. 1,80,000. D brings his share of goodwill in cash. In this case ________. 
    Solution

  • Question 10
    1 / -0
    A, B and C are partners in the firm sharing profits and losses in 3: 1: 1. They admit D as a partner and the new profit and loss ratio of A, B, C and D become 4 : 3: 2: 1. D brings in the necessary amount for goodwill. Goodwill of the firm is valued at Rs. 3,00,000. In this case ______. 
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