ACCOUNTANCY (CLASS XII)

ASSIGNMENT – 4
RECONSTITUTION OF A PARTNERSHIP FIRM – ADMISSION OF A
PARTNER
Q1. State two rights that a newly admitted partner acquires in the firm.

Q2. A and B are partners sharing profits in the ratio of 7:3. C is admitted for 1/5th share, which he takes
equally from both A and B. State the new profit sharing ratio.

Q3. E and F are two partners sharing profits in the ratio of 3:2. They admit G into partnership. E gives
1/3rd of his share while F gives 1/10th from his share. Calculate the new profit sharing ratio and sacrificing
ratio.

Q4. A and B were partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for
1/5th share in profits. C brought 50,000 as capital and 10,000 as his share of goodwill. At the time of
admission goodwill was appearing in the books at 3,000. A and B withdrew half of their share of
goodwill from the firm. Partners decided to share the future profits in the ratio of 5:3:2. Pass the
necessary Journal entries.

Q5. A and B were partners sharing profits in the ratio 2:1. Their Balance Sheet as at March 31, 2018 was
as follows:

Liabilities Assets
Creditors 1,00,000 Cash at Bank 54,200
Bills payable 30,000 Debtors 40,000
Less: Provision 1,200 38,800
Outstanding Expenses --------
12,000 Stock 40,000
General Reserve Furniture 20,000
Capitals: 24,000 Machinery 36,000
A 1,20,000 Land & Building 1,47,000
B 80,000 Profit & Loss A/C 30,000
-------------- 2,00,000

3,66,000 3,66,000
On that date, they agreed to admit C as a partner on the following terms:

1. C will get 1/5th share in profits and he will bring 60,000 as his capital and 18,000 as his share
of goodwill.
2. Provision of doubtful debts should be brought up to 5% on debtors.
3. Machinery is depreciated by 5,000 and furniture by 10%.
4. Stock is valued at 48,000.
5. Land and Buildings to be appreciated by 20%.
6. Investment of 4,000 which did not appear in the books should be duly recorded.

7.After the above adjustments, the capital of the old partners is to be adjusted on thebasis of new
partner’s capital in their new profit sharing ratio.

Prepare Revaluation Account, Partners’ Capital Account and Balance Sheet of new firm