Gita, Radha, and Garv were partners sharing profits in the ratio of 1/2, 2/5, and 1/10. Find the new ratio of the remaining partners if Garv retires.
Solution:- Alternative
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Kavi and Ravi were partners in a firm sharing profits in the ratio of 5 : 3. On 31st March, 2023, they admitted Chhavi as a partner for 1/5th share in the profit. On Chhavi’s admission, the Balance Sheet of the firm was as follows:
Solution:- Working Notes:-
On the date of Shiv’s admission, an extract of the Balance Sheet of Ram and Mohan sharing profits and losses in the ratio of 3 ; 2 was as under:
Solution:-
Amol and Ameet are partners sharing profits and losses in the ratio of 2 : 1. They admit Atul for 1/4th share. For the purpose of admission of Atul, goodwill of the firm is to be valued on the basis of 2 year purchase of Average Super Profit of last four years. The normal rate of return in their business is 12% on capital employed.
Solution – I Ans – c) Working Notes:- Solution – II Ans – c) Explanation:- Atul’s share of goodwill = ₹ 35,100 60% brought in cash = 35,100 × 60% = ₹ 21060 premium for goodwill account is debited by…
Which of the following statement is wrong in the context of admission of a partner?
Ans – b) Explanation:- Increase in the valuation of asset will increase the capital not decrease
X and Y are partners sharing profits and losses in the ratio of 3 : 2. X’s Capital is ₹ 3,00,000 and Y’s capital is ₹ 1,50,000. They admitted Z and agreed to give 1/5th share of profit to him. How much Z should bring towards his capital?
Ans – d) Working Notes:- Total adjusted capital of old partners = ₹ 3,00,000 + ₹ 1,50,000 = ₹ 4,50,000 The combined share of the old partners = 1 – 1/5 = 4/5 Total capital of the new firm =…
Amit and Vidya are partners in a firm. They admit Sanjana as a partner with 1/4th share in the profits of the firm. Sanjana brings ₹ 2,00,000 as her share of capital. The value of the total assets of the firm is ₹ 5,40,000 and outside liabilities are valued at ₹ 1,00,000 on that date. Sanjana’s share of goodwill is
Ans – d) Working Notes:- Net worth of the firm (with goodwill) = New partner’s capital × reciprocal of his share ₹ 2,00,000 × 4 = ₹ 8,00,000 Net worth of the firm (without goodwill) = Total assets – Outside…
Parvan and Rahim are partners sharing profits and losses in the ratio of 3 : 2. karan is admitted as a partner with 1/4th share in profits. karan was unable to bring his share of goodwill premium in cash.
Ans – d) Solution:- Sacrificing ratio of Parnav and Rahim = 20,000 : 10,000 = 2 : 1 Karan 1/4th share is given by parnav and Rahim is 2 : 1 Parnav sacrifices = 1/4 × 2/3 = 2/12 Rahim…
Assertion (A): Anahat and Parminder are partners sharing profits in the ratio of 2 : 1. They admit Rubayat as partner w.e.f. 1st January, 2021. On that date, Goodwill existed in the books at ₹ 1,00,000. Goodwill of ₹ 50,000 was written off by debiting capital accounts of Anahat and Parminder in the ratio of 2 : 1. While balance goodwill was carried forward in the Balance Sheet.
Ans – d) Explanation:- Existing goodwill is purchased goodwill in the past. at it belongs to only old partners. thus at the time of admission of a new partner. it is completely written off from the books by debiting old…
Assertion (A): Gurman and Ravi are equal partners. They admitted Param as a partner and their new profit-sharing ratio was 2 : 2 : 1. They revalued the assets and reassessed their liabilities. They did so because a new partner should not be at an advantage or disadvantage.
Ans – b) Explanation:- The change in assets and liabilities belongs to the before admission of Param, thus final change is distributed to the old partners in old ratio so that new partner is not advantage or disadvantage.