State any two purposes for admitting a new partner in a firm.
(i) To have more financial resources for expansion and growth. (ii) To have more managerial skills for efficient management.
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Why does a new partner bring premium for goodwill on his admission?
A new partner brings Goodwill into the firm to acquire the right to share future profits of the firm.
State two main rights that a newly admitted partner acquires in the firm.
(i) Right to share future profits of the firm. (ii) Right to share in the assets of the firm.
What is meant by Change in Profit Sharing Ratio? State any two circumstances when there is a need to change the profit sharing ratio.
Change in profit sharing ratio means transfer of share of profit by one partner to another partner or to an incoming partner. The need for change in profit sharing ratio arises under the following circumstances: (i) When a partner is…
How is a partner admitted to a firm?
Section 31 of the Indian Partnership Act, 1932 provides that a person may be admitted as a partner if the Partnership Deed so provides or with the consent of all the partners.
What is meant by Admission of a new partner
When a new person becomes a partner in the firm, it is Admission of a Partner. On admission of a partner, old partnership comes to an end and new partnership comes into existence.
Rajib and Sanjiv are in partnership sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as on 31st March, 2023 is as under:
Solution:-
Amod and Subodh are partners sharing profits in the ratio of 3 : 2. They admit Pramod as a new partner from 1st April, 2023. They have decided to share future profits in the ratio of 4 : 3 : 3. The Balance Sheet as at 31st March, 2023 is given below:
Solution:-
Neha and Tara are partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31st March, 2012, stood as follows:
Solution:-
Ashish and Akash are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as under:
Solution:- Journal Particulars Dr. Cr. Cash A/c Dr. 30,450 To Namrata’s Capital A/c To Premium for Goodwill A/c (Being Namrata bring her amount of capital and share of goodwill) 23,450 7,000 Particulars Dr. Cr. Premium for Goodwill A/c Dr. 7,000…