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Ans – a) Solution:- The Premium for Goodwill brought in by a new partner is credited to sacrificing partners in their sacrificing ratio. in the absence of any further information, the old ratio is always equal to the sacrificing ratio…

Ans – b) Explanation:- If Worken Compensation Claim is more than the available Workmen Compensation Reserve. The excess will be debited to Revaluation Account.

Ans – c) Explanation:- The General Reserve is part of the past profits earned by the old partners. Thus it belongs to old partners in the old profit-sharing ratio.    

Ans – b) solution:- Bina gets 1/4 from Niyati Bina gets 1/7 from Aisha Thus Bina’s share in profit 1/4 + 1/7 = 11/28

Ans – a) Explanation:- In the absence of any further information. the sacrificing ratio of the old partners is always equal to the old ratio.

Ans – a) Explanation:- Existing Goodwill was purchased by old partners in the past. the it should be written of from the books in their old profit sharing ratio.

Ans – c) Explanation:- Goodwill brought in by the incoming partner’s is distributed to old partners in their sacrificing ratio of compensate them.

Ans – b) Solution:- Calculation of the new profit-sharing ratio Old Ratio = 3 : 2 Z admitted for 1/5th share Remaining Share = 1 – 1/5 = 4/5 X’s Share in new firm = 4/5 × 3//5 = 12/25…

Ans – C) Solution:- Combined adjusted capital of the old partners = ₹ 1,00,000 + ₹ 50,000 = ₹ 1,50,000 Combined Profit share of the old partners = 1 – 1/5 = 4/5 Total Capital of the firm  = 1,50,000…

Ans – a) Explanation:- Existing Goodwill was purchased before the admission of the new partner. Thus it must be written off in the old profit-sharing ratio at the time of admission of the new partner.