CBSE Board Exam 2020: Check Important Questions & Answers for Class 12 Accountancy - Chapter 3 (Reconstitution of a Partnership Firm – Admission of a Partner)
If you are appearing for CBSE Class 12th Board exams 2020, check this list of important questions and answers from Chapter 3 of Accountancy.
CBSE Class 12th Accountancy exam is scheduled for 5th March 2020. In this article we have complied a list of important questions from Chapter 3: Reconstitution of a Partnership Firm – Admission of a Partner. Questions given below are important questions and are expected to be asked in Class 12 Accountancy board exam 2019-20
Ques 1 Atul and Neera were partners in a firm sharing profits in the ratio of 3 : 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ` 2,00,000. Mitali brings her share of goodwill premium of ` 20,000 in cash, which is entirely credited to Atul’s Capital Account. Calculate the new profit sharing ratio.
Solution: Mitali’s share in profit= 1/10
Atul’s new share= 3/5-1/10=5/10
Neera’s new share= 2/5
New ratio= 5:4:1
Ques 2 How does ‘Nature of business’ affect the value of goodwill of a firm ?
Solution: A firm that produces high value added products or products with stable demand is able to earn more profits therefore, firm’s goodwill will be more.
Ques 3 In the absence of a partnership deed, in which ratio do the old partners sacrifice their share of profit in case of admission of a new partner ?
Solution: In the absence of Partnership deed, the old partners will sacrifice in their old ratio i.e. equally.
Ques 4 Give any two circumstances in which sacrificing ratio may be applied.
Solution: 1)Admission of a partner
2) Retirement of a partner
3) Death of a partner
4) Change in profit sharing ratio
Ques 5 S, B and J were partners in a firm. T was admitted as a partner in the partnership firm for 1/5th share of profits. Calculate the sacrificing ratio of S, B and J.
Solution: Sacrificing ratio of S,B and J is 1:1:1.
Ques 6 Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3 : 2. On 31st March, 2018 their Balance Sheet was as follows :
On 1st April, 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms :
(a) Goodwill of the firm was valued at ` 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at ` 3,00,000. Alok took over investments at this value.
(d) Nidhi brought ` 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm on Nidhi’s admission.
Solution: Revaluation A/c
Ques 7 Ramesh, Mahesh and Suresh were partners in a firm sharing profits in the ratio of 3 : 3 : 2. Their respective fixed capitals were : Ramesh Rs. 5,00,000; Mahesh Rs. 4,00,000 and Suresh Rs. 3,00,000. They admitted Govind as a new partner for 1/5th share in the profits. Govind brought Rs. 4,00,000 as his capital and the necessary amount for goodwill premium. Their new profit sharing ratio will be 2 : 1 : 1 : 1.
Calculate the value of goodwill of the firm, showing your workings clearly. Pass necessary journal entries for the above transactions on
Working Note: Calculation of ratio of debentures outstanding
Year Outstanding Debenture Ratio
2014-15 400000 2
2015-16 400000 2
2016-17 400000 2
2017-18 400000 1
Ques 8 Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows :
Bakul retired on the above date and it was agreed that :
(i) Plant and Machinery was undervalued by 10%.
(ii) Provision for doubtful debts was to be increased to 15% on debtors.
(iii) Furniture was to be decreased to ` 87,000.
(iv) Goodwill of the firm was valued at ` 3,00,000 and Bakul’s share was to be adjusted through the capital accounts of Akul and Chandan.
(v) Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.
Prepare Revaluation account, Partners’ Capital accounts and the Balance Sheet of the reconstituted firm.
Ques 9 V and S are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted G as a new partner for 1/5th share of profits. G brought Rs. 20,000 as capital and Rs. 4,000 as his share of goodwill premium. Give necessary journal entries.
(i) when the amount of goodwill premium was retained in the business, and
(ii) when the amount of goodwill premium was fully withdrawn
Ques 10 Aman, Bimal and Deepak are partners sharing profits in the ratio of 2 : 3 : 5. The goodwill of the firm has been valued at < 37,500. Aman retired. Bimal and Deepak decided to share profits equally in future. Calculate gain/sacrifice of Bimal and Deepak on Aman’s retirement and also pass necessary journal entry for the treatment of goodwill.
Old Ratio= 2:3:5
New Ratio=1:1 ( on Aman’s Retirement)
Aman’s share=2/10 x 37,500= 7,500