List of top Accountancy Questions on Admission of a Partner

Alok, Sameer and Tushar were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share future profits and losses in the ratio of 3 : 2 : 4. Their Balance Sheet as at 31st March, 2024 showed the following: (i) Advertisement Suspense Account \u20b9 90,000.
(ii) Credit Balance of \u20b9 2,70,000 in Profit and Loss Account.
Goodwill of the firm was valued at \u20b9 4,50,000 and revaluation of assets and liabilities resulted in a loss of \u20b9 1,80,000. Partners did not want to distribute the amount of Advertisement Suspense Account and the Profit and Loss Account. They also decided that revalued values of assets and liabilities were not to be recorded in the books. Pass a single adjustment entry to give effect to the above. Also show your workings clearly.

Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of 5 : 2. Their Balance Sheet as at 31st March, 2024 was as follows:

Balance Sheet of Atharv and Anmol as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Fixed Assets	14,00,000
Atharv	8,00,000	Stock	4,90,000
Anmol	4,00,000	Debtors	5,60,000
General Reserve	3,50,000	Cash	10,000
Creditors	9,10,000
Total	24,60,000	Total	24,60,000

Surya was admitted for \(\frac{2}{7}\) share in profits. Terms:
New ratio: Atharv, Anmol, Surya = 4 : 1 : 2
Fixed Assets decreased 10%
Stock sold ₹ 4,20,000
Surya brings ₹ 3,00,000 capital, ₹ 2,00,000 goodwill
Capital adjusted to Surya's capital Prepare Revaluation A/c and Capital A/cs.

Kishore and Ranjan were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1stApril, 2024, their Balance Sheet was as follows :
Balance Sheet of Kishore and Ranjan as at 1stApril, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	1,80,000	Cash in hand	30,000
General Reserve	20,000	Debtors	1,20,000
Capitals:	Kishore – 6,00,000	Stock	1,50,000
Capitals:	Ranjan – 4,00,000	Furniture	1,00,000
		Land and Building	8,00,000
Total	12,00,000	Total	12,00,000

On the above date, Singh was admitted as a new partner on the following terms :
(i) Singh will bring \(₹1,50,000\) as his capital and \(₹50,000\) as his share of goodwill premium.
(ii) The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.
(iii) Furniture will be revalued at \(₹90,000\).
(iv) A provision for doubtful debts will be created on sundry debtors at 5%.
(v) Investments worth \(₹10,000\) not mentioned in the Balance Sheet will be taken into account.
(vi) A creditor of \(₹1,000\) is not likely to claim his money and is to be written off.
Pass necessary journal entries for the above transactions in the books of the firm on Singh's admission.

Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2024 was as follows :

Balance Sheet (Before Dev's Admission)

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital: Aryan	3,20,000	Machinery	3,90,000
Capital: Adya	2,40,000	Furniture	80,000
Workmen’s Compensation Reserve	20,000	Debtors	90,000
Bank Loan	60,000	Less: Provision for Doubtful Debts	(1,000)
Creditors	48,000	Net Debtors	89,000
		Stock	77,000
		Cash	32,000
		Profit and Loss A/c	20,000
Total	₹6,88,000	Total	₹6,88,000

Note:

Dev was admitted on 1st April 2024 for 1/5^th share in profits.
Adjustments on admission included:
- Revaluation of Machinery
- Provision for Doubtful Debts created
- Goodwill brought in cash
- A liability of ₹3,500 was not likely to arise and to be written back

John and Harry were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1stApril, 2023, they admitted Dinesh as a new partner for \(\frac{1}{4}\) share in the profits of the firm with a guarantee that his share in the profits shall be at least \(₹1,00,000\). The net profit of the firm for the year ended 31stMarch, 2024 was \(₹2,80,000\). John’s share in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be :

Rani, Maharani and Laxmi were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. On 1stApril, 2024 they admitted Reena as a new partner for \( \frac{1}{5} \) share in the profits of the firm. Reena acquired her share from Rani and Maharani in the ratio of 3 : 2. The new profit sharing ratio between Rani, Maharani, Laxmi and Reena will be :

Vinay and Pankaj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The following is the extract of their Balance Sheet as at 31st March, 2024 : Balance Sheet of Vinay and Pankaj as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Investment Fluctuation Fund	6,00,000	Investments	15,00,000
Workmen Compensation Fund	8,00,000

On 1st April, 2024, Parth was admitted as a new partner for \(\frac{1}{5}\) share in the profits of the firm on the following terms:

Market value of investments was \u20b9 13,00,000.
Claim on account of Workmen Compensation was estimated at \u20b9 9,00,000.
Pass necessary journal entries for treatment of Investment Fluctuation Fund and Workmen Compensation Fund on the date of Parth\u2019s admission.

Nita, Vidur and Mita were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 1. On 1st April 2024, they decided to admit Samir as a new partner. The new profit sharing ratio between Nita, Vidur, Mita and Samir will now be 1 : 1 : 1 : 1. The balance sheet of Nita, Vidur and Mita before Samir’s admission showed machinery at ₹ 6,00,000. On the date of admission, it was found that the machinery is overvalued by 20%. The value of machinery shown in the new Balance Sheet after Samir’s admission will be :

Moksh and Pran were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their capitals were ₹ 5,00,000 and ₹ 3,00,000 respectively. They admitted Tushar as a new partner on 1st April, 2024 for 1/4th share in future profits. Tushar brought ₹ 4,00,000 as his share of capital. The goodwill of the firm on Tushar’s admission will be :

Rakesh and Somesh were partners in a firm sharing profits and losses in the ratio of 2 : 3. Moksh was admitted as a new partner for \( \frac{3}{5} \) share in the profits of the firm. Moksh brought \(₹~3,00,000\) as his share of capital and \(₹~6,00,000\) as his share of goodwill premium. The value of the firm’s goodwill was:

Aman, Govind and Guru shared profits 3 : 2 : 1. Sudarshan admitted for \( \frac{1}{4} \) share. New ratio = 9 : 5 : 4 : 6. Total capital of new firm = ₹ 3,60,000. Sudarshan brings \( \frac{1}{4} \) of total as capital. Capitals of Aman, Govind and Guru adjusted accordingly. New capitals of Aman, Govind and Guru were ₹ 60,000, ₹ 80,000 and ₹ 45,000 respectively. Calculate the new capitals and pass necessary journal entries.

Ajay and Parth sharing 2:1. Vinod admitted. New ratio = 2:1:1. What is Ajay’s sacrifice?

Vishal and Pulkit were partners in a firm sharing profits and losses in the ratio of 7:3. Following is the extract of their Balance Sheet as on 31st March, 2024. Liabilities: Investment Fluctuation Fund ₹ 5,00,000
Workmen Compensation Fund ₹ 25,00,000 Assets: Investments ₹ 50,00,000 On 1st April, 2024, Tarun was admitted for 1/10 share. (i) Market value of investments ₹ 44,00,000.
(ii) Claim for workmen compensation ₹ 25,00,000. Pass necessary journal entries.

Sudhir and Balbir were partners in a firm sharing profits and losses in the ratio of 5 : 4. The following is the extract of their Balance Sheet as at 31st March, 2024:
Balance Sheet of Sudhir and Balbir as at 31\textsuperscript{st March, 2024}

Liabilities	Amount (₹)	Assets	Amount (₹)
Investment Fluctuation Fund	15,00,000	Investments	75,00,000
Workmen Compensation Fund	50,00,000

On 1st April, 2024, Sushant was admitted as a new partner for \(\frac{1}{9}\)th share in the profits of the firm on the following terms:
(i) Market value of investments was ₹ 60,00,000.
(ii) Claim on account of Workmen Compensation was estimated at ₹ 41,00,000.
Pass necessary journal entries for treatment of Investment Fluctuation Fund and Workmen Compensation Fund on the date of Sushant’s admission.

Rajat and Samar were partners in a firm sharing profits and losses in the ratio of 5 : 3. Tarun was admitted as a new partner for \( \frac{2}{5} \) share in the profits of the firm. Tarun brought \(₹~5,00,000\) as his share of capital and \(₹~3,00,000\) as his share of goodwill premium. The value of goodwill of the firm was:

On 1st April, 2023, Bhanu and Dhruv were partners in a firm sharing profits and losses in the ratio of 3 : 2. On that date their capitals were ₹ 1,80,000 and ₹ 1,20,000 respectively. They admitted Rajat as a new partner with 1/4th share in the profits. Rajat brought ₹ 2,00,000 as his capital. The new profit sharing ratio was 2 : 1 : 1. Calculate the value of goodwill of the firm and record the necessary journal entry for adjustment of goodwill.

When a partner brings capital at the time of admission, it is credited to: