Accountancy Test

Q.1. P and Q are partners sharing profits in the ratio of 3 : 2 . They admit R, a new
partner who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New
Profit-sharing Ratio and sacrificing ratio. 2 Marks

Q.2. A and B are partners in a firm. They admit C as a partner with l/5th share in the
profits of the firm. C brings ₹ 4,00,000 as his share of capital. Calculate the value of C’s
share of Goodwill on the basis of his capital, given that the combined capital of A and B
after all adjustments is ₹ 10,00,000. 3 Marks

Q.3. A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1
respectively. Two new partners D and E are admitted. The profits are now to be shared
in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay ₹ 90,000 for his share of Goodwill
but E has insufficient cash to pay for Goodwill. Both the new partners introduced
₹ 1,20,000 each as their capital. You are required to pass necessary journal entries.
4 Marks

Q.4.

On 31st March, 2010 the balance sheet of W and R who shared profits in 3:2 ratio was as
follows :

Balance Sheet as at 31st March, 2021

Liabilities Amt (Rs) Assets Amt (Rs)

Creditors 20,000 Cash ‘5,000

Profit and Loss A/c 15,000 Sundry Debtors 20,000

Capital A/cs (-) Provision for Doubtful Debts (700) 19,300

W 40,000 Stock 25,000

R 30,000 70,000 Plant and Machinery 35,000

Patents 20,700

1,05,000 1,05,000
On this date, B was admitted as a partner on the following conditions
 1. B will get 4/15th share of profits.
2. B had to bring Rs 30,000 as his capital to which amount other partners’ capital
shall have to be adjusted.
3. He would pay cash for his share of goodwill which would be based on 2.5 years’
purchase of average profits of past 4 years.
4. The assets would be revalued as under Sundry debtors at book value less 5%
provision for bad debts, stock at 20,000, plant and machinery at Rs 40,000.
5. The profits of the firm for the year’s ending on 31st March, 2007, 2008 and 2009
were Rs 20,000, Rs 14,000 and Rs 17,000 respectively.

Prepare revaluation account, partners’ capital account and balance sheet of the
new firm. 8 Marks

Q.5.

Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On 1st
April, 2020 they admitted Nusrat as a partner in the firm. The Balance Sheet of Mohan
and Mahesh on that date was as under:

It was agreed that:

(i) The value of Building and Stock be appreciated to ₹ 3,80,000 and ₹ 1.60,000
respectively.
(ii) The liabilities of workmen’s compensation fund was determined at ₹ 2,30,000.
(iii) Nusrat brought in her share of goodwill ₹ 1,00,000 in cash.
(iv) Nusrat was to bring further cash as would make her capital equal to 20% of the
combined capital of Mohan and Mahesh after above revaluation and adjustments are
carried out.
(v) The future profit sharing ratio will be Mohan 2/5th. Mahesh 2 /5th. Nusrat 1/5th.

Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new
firm. Also show clearly the calculation of Capital brought by Nusrat. 8 Marks