Admission of Partner_PYQ’s 2024-25

2024 Amay and Sujoy are partners sharing profits and losses in the ratio of 3:1. Their Balance Sheet as at 31
March 2023, is given below.

Balance Sheet of Amay and Sujoy As at 31 March, 2023

Liabilities Amount Assets Amount

Bills Payable 70,000 Land and Building 1,65,000
Capital Accounts: Stock 60,000
Amay 1,30,000 Sundry Debtors 60,000
Sujoy 1,25,000 2,55,000 Less PBD (10,000) 50,000
Cash in hand 40,000
3,25,000 3,25,000
On 1 April, 2023, they admit Malay as a new partner for 1/4 share in the profits on the following terms:

(a) Malay to bring his share of capital of ₹ 1,20,000 and to pay ₹10,000 in cash for his share of goodwill.

(b) Stock worth ₹45,000 to be taken over by Amay at ₹25,000.

(c) Bills Payable of 20,000 to be honoured by Sujoy, for which he is not to be reimbursed.

(d) The capitals of Amay and Sujoy are to be adjusted based on Malay's Capital and his share in the
profits, any surplus to be readjusted through the current account and deficiency through cash.

You are required to prepare the Partners' Capital Accounts.

Mitu and Ritu are partners sharing profits and losses in the ratio of 2:3. An extract of their Balance
Sheet as at 31 March, 2023, is given below.

Balance Sheet of Mitu and Ritu (an extract) As at 31 March, 2023

Liabilities Assets
Workmen Compensation Reserve 30,000 Investments 80,000
General Reserve 40,000 (Market Value 76,000)
Investment Fluctuation Reserve 10,000 Sundry Debtors 1,00,000
Profit & Loss A/c 55,000

On 1 April, 2023, they admit Nitu as a new partner for 1/5 share in the profits on the following terms
regarding the treatment of the reserves and the accumulated losses:

(a) Accumulated losses, if any, to be written off.

(b) A workmen compensation claim of 10,000 to be adjusted against the Workmen Compensation
Reserve. The balance of the reserve is not to be distributed.

(c) Any loss in the value of investments to be adjusted against the Investment Fluctuation Reserve. The
balance of the Investment Fluctuation Reserve is to be distributed.
 (d) Provision for doubtful debts to be created to the extent of 10% of the debtors from the General
Reserve. The remaining amount in the General Reserve is to be distributed.

You are required to pass the necessary journal entries to record the above adjustments at the time of
Nitu's admission.

ISC Benu and Leena are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Deepa
2023
and Erica as two new partners.
The new profit sharing ratio is decided to be 3 : 2 : 2 : 3
Both the new partners introduced ₹1,00,000 each as capital.
Deepa pays ₹40,000 in cash for her share of goodwill, but Erica is unable to contribute any amount for
her share of goodwill.
At the time of Deepa’s and Erica’s admission, the firm had an Advertisement Suspense Account of
₹56,000 which is written off.
You are required to pass necessary Journal Entries to record the above adjustments at the time of
admission of Deepa and Erica.

ISC Greg and Rohit are partners in a firm sharing profits and losses in the ratio of 2 : 3. Their Balance Sheet
2023
as at 31st March 2022, is given below
Balance Sheet As at 31st March 2022
Liabilities Amount Assets Amount
Sundry Creditors 15,000 Goodwill 10,000
Outstanding salary 5,000 Office Equipment 37,500
General Reserve 8,000 Sundry Debtors 6,400
Capital A/c Less : PBD 400 6,000
Greg 25,000 Cash 10,000
Rohit 10,000
63,000 63,000
On 1st April 2022, they admit Kunal as a new partner on the following terms :
(a) The new profit sharing of Greg, Rohit and Kunal to be 5: 3 : 2
(b) Kunal to bring his share of Capital of ₹ 25,000 and his share of goodwill of ₹ 5,000 in cash .
(c) Office equipment to be valued at ₹ 42,000.
You are required to prepare Partner’s Capital A/c
Amit and Barun are partners sharing profits in the ratio of 4:1. Their Balance Sheet as at 31st March,
2022, was as under:
 Balance Sheet of Amit and Barun As at 31st March, 2022
Liabilities Amount Assets Amount
Sundry Creditors 51,000 Furniture 4,000
Capital Accounts : Building 45,000
Amit 20,000 Goodwill 1,000
Barun 15,000 35,000 Debtors 9,400
Less PBD 400 9,000
Cash 27,000
86,000 86,000
On 1st April, 2022, Charan is admitted as a new partner on the following terms:
(i) The new profit-sharing ratio of the partners to be 2:1:1.
(ii) Charan to bring in ₹ 16,000 as his capital but would be unable to bring his share of
goodwill in cash
(iii) The value of the goodwill of the firm to be calculated on the basis of Charan’s share in the
profits and the capital contributed by him.
(iv) Furniture, which had been undervalued by ₹ 600 to be brought up to its revised value.
(v) Out of the total insurance premium paid, ₹ 3,400 to be treated as prepaid insurance. The
amount was earlier debited to Profit & Loss Account.
You are required to prepare: (i) Revaluation Account. (ii) Partners’ Capital Accounts.

Karan and Vijay are partners in a firm sharing profits and losses in the ratio of 4:3. They admit Shrey
for 𝟏/3rd share in the profits. On the date of Shrey’s admission:
(a) The capitals of Karan and Vijay are: ₹ 40,000 and ₹ 30,000 respectively.
(b) Profit and Loss Account has a debit balance of ₹ 7,000.
(c) General Reserve shows a balance of ₹ 21,000 which is not to be disturbed.
(d) Goodwill of the firm is valued at ₹ 42,000.
(e) The cash at bank is ₹ 15,000.
(f) Shrey brings in proportionate capital and his share of goodwill in cash. You are required to prepare:
(i) Partners’ Capital Accounts. (ii) Cash at Bank Account of the reconstituted firm on the date of Shrey’s
admission.
2022 Hemal and Rohan are two partners sharing profits and Losses in the Ratio of 4: 3. An Extract of their
Balance Sheet as at 31st March, showed :
Balance Sheet Hemal and Rohan (an Extract)
As at 31st March 2021
 Liabilities Amount Assets Amount
Workmen Compensation Reserve 28,000 Profit & Loss A/c 28,000
Capital A/c :
Hemal 40,000
Rohan 22,000

They admit Tanay on 1st April 2021, as a third partner for 1/3 share in the profits. On the date of
Tanay’s admission, the goodwill of the firm is valued at ₹21,000 and the gain on revaluation of Assets
and Liabilities is ₹7,000.
Tany’s Capital contribution, which is decided as one half of the combined capitals of Hemal and Rohan
will be :
(a) ₹45,000 (b) ₹38,000 (c) 52,000 (d) 59,000
2022 Nitin and Mukul were partners in a business. An extract of the Balance Sheet of their firm showed :
Balance Sheet of Nitin and Mukul (An Extract)
As at 31st March,2021
Liabilities Amount Assets Amount
Creditos 40,000 Land & Building 60,000
Investments 25,000
Sundry Debtors 41,000
Less : PBD (3,000) 38,000
On Ali’s admission as a new partner on 1st April 2021, the assets and liabilities of the firm were to be
revalued as follows :
(i) The investments to be valued at ₹27,000.
(ii) Bad debts of ₹2,000 to be written off.
(iii) The provision for doubtful debts to be brought up to 10% of the debtors.
(iv) The value of Land and Building to be reduced to ₹50,000
(v) Creditors to be discharged at a discount of 10%.
What will be the net effect of the Revaluation of Assets and Liabilities?
(a) Los of ₹8,900 (b) Loss of ₹11,900 (c) Loss of ₹6,900 (d) Loss of ₹7,100
2022 Dev and Dhruv are partners sharing profits in the ratio of 5 : 4. An Extract of the Balance Sheet of their
firm showed
Balance Sheet of Dev and Dhruv ( an Extract)
Liabilities Amount Assets Amount
Creditors 60,000 Advertisement Suspense A/c 9,000
 Capital :
Dev 80,000
Dhruv 79,000
On Rahul’s admission as a new partner, the new profit sharing is agreed to be 3 : 2 : 1. Rahul brings in
₹60,000 as his capital but he is unable to bring his share of goodwill in cash.
(i) What will be the entry to record Rahul’s share in the firm’s goodwill ?
(ii) What will be the value of non purchased goodwill of the firm, based on Rahul’s share in the
profits and the capital contributed by him ? [ ₹1,50,000]

2022 Harsh and Kamal, sharing profits and losses in the ratio of 3 : 2. Admit Ravi as a third partner for 1/5
share in the profits. Their profit sharing ratio to be 12: 8 : 5. The Capitals of Harsh and Kamal were to
be adjusted on the basis of Ravi’s capital contribution of ₹30,000 which he brings in cash. The surplus
and deficit capital of the old partners were to adjust through Current Account.
After all adjustments (including Ravi’s share of Goodwill which he was unable to bring in Cash) the
capitals of Harsh and Kamal were :
Harsh ₹52,000 ; Kamal ₹58,000
(i) What will be the total capital of the firm after Ravi’s admission ?
(a) ₹1,20,000 (b) ₹1,40,000 (c) ₹1,50,000 (d) ₹1,60,000
(ii) The firm had ₹15,000 in its bank account. It pays off its bank loan of ₹12,000 at the time of
Rahul’s admission.
(iii) What will be the bank balance in the Balance Sheet of the reconstituted firm ? [₹33,000]
2022 Veena and Soma are partners in a firm. They admit Sara on 1st April, 2020, for 1/4th share in the profits
SP
of the firm. Sara acquired her share as 1/12 from Veena and the remaining from Soma. The sacrificing
ratio of the old partners will be:
(a) 11:12 (c) 1:2
(b) 1:1 (d) 1:11
Runa and Ria were partners in a firm sharing profits and losses in the ratio of 3:1. On 1st April, 2020,
Uday is admitted as a new partner in the firm for 3/8th share in the profits on various terms, one of
them being his contribution of ₹ 42,000 as capital. The new profit-sharing ratio amongst all the
partners to be 3:2:3. The capitals of Runa and Ria, after taking into account all the terms of admission
were ₹ 61,625 and ₹ 25,375. It is decided that the Capital Accounts of Runa and Ria be adjusted in the
ratio of their respective share in the profits after admission, any surplus to be adjusted through the
Current Account while any deficiency through the Cash Account. The surplus capital adjusted through
current account will be:
(a) Ria’s debit capital balance of ₹ 2,625 (b) Runa’s credit capital balance of ₹ 2,625
(c) Ria’s debit capital balance of ₹ 19,625 (d) Runa’s credit capital balance of ₹ 19,625

Dhruv and Ansh are partners in a firm sharing profits and losses: Dhruv 75% and Ansh 25%. Their
Balance Sheet as at 31st March, 2021 is given below:
Liabilities Amount Assets Amount
Sundry Creditors 49,000 Cash 62,000
Workmen Compensation Reserve 5,000 Sundry Debtors 18,500
Capital : Less : PBD (1,500) 17,000
Dhruv 30,000 Land & Building 25,000
Ansh 20,000
1,04,000 1,04,000
On 1st April 2021, Kavi is admitted as a new partner on the following terms:
(i) Land and building is found to be valued at 25% above cost. It is decided to bring it to its
cost.
(ii) Bad debts amounting to ₹ 1,800 are to be written off. The remaining debtors are good.
(iii) Creditors include an amount of ₹ 5,000 received as commission from Amar. The necessary
adjustment is required to be made.
(iv) The liability on Workmen Compensation Reserve is determined at ₹ 3,000.
Kavi is to pay ₹ 15,000 to the existing partners as premium for Goodwill for 20% of the future profits of
the firm. He is also to bring in ₹ 25,000 as capital.
(a) At the time of Kavi’s admission, the Workmen Compensation Reserve of:
(i) ₹ 5,000 will be credited to the capital accounts of all the partners
(ii) ₹ 3,000 will be credited to the capital accounts of all the partners.
(iii) ₹ 2,000 will be credited to the capital accounts of the old partners.
(iv) ₹ 2,000 will be debited to the capital accounts of the old partners.
(b) The value of Land & Building in the Balance Sheet of the reconstituted firm will be:
(i) ₹ 20,000 (ii) ₹ 31,250
(iii) ₹ 5,000 (iv) ₹ 6,250
(c) To adjust the creditors in adjustment
(i) Commission A/c will be credited with ₹ 5,000. (ii) Creditors A/c will be credited with ₹ 5,000.
(iii) Amar’s A/c will be debited with ₹ 5,000. (iv) Creditors A/c will be debited with ₹ 5,000.
(d) The provision for doubtful debts in the reconstituted firm will be:
(i) ₹1,500 (ii) ₹1,800 (iii) Nil (iv) None of the above
 (e) The date of the Balance Sheet of the reconstituted firm will be:
(i) Balance Sheet for the year ending 31st March, 2022. (ii) Balance Sheet as at 31st March, 2021.
(iii) Balance Sheet for the year ending 1st April, 2021. (iv) Balance Sheet as at 1st April, 2021.
2020 Smita and Punita are partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance
Sheet as at 31st March, 2019, is as follows:
Liabilities Amount Assets Amount
General Reserve 14,000 Cash in hand 30,000
Creditors 6,000 Debtors 22,000 20,000
Bank Loan 10,000 Less : Provision 2,000
Capital : Furniture 10,000
Smita 30,000 Stock 40,000
Punita 40,000
1,00,000 1,00,000

On 1st April, 2019, Mita is admitted as a new partner on the following terms:
(a) The new profit-sharing ratio of Smita, Punita and Mita to be 5:3:2.
(b) Provision for doubtful debts to be raised to 10% of the debtors.
(c) Punita to take over the firm’s investments (not recorded in the books) at ₹ 3,000.
(d) Goodwill of the firm to be valued at ₹ 50,000. Mita to bring in cash for her share of goodwill.
(e) 50% of the goodwill to be withdrawn by the old partners.
(f) Mita to pay off the Bank Loan on behalf of the firm. The amount due to her by the firm, to be
considered as part of her capital contribution. (
g) Mita to bring in the balance of her capital in cash, so as to make her capital equal to 1/5th of the total
capital of the firm.
You are required to: (i) Pass journal entries at the time of Mita’s admission.
(ii) Prepare the Balance Sheet of the reconstituted firm.

2019 A and P are partners in a firm with Capital of ₹35,000 each. They shared profits and losses in the ratio
of 3 : 1. On 1st April 2020, they admit C into the partnership with 1/5th share in the profits. C brings in
₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the
basis of her capital contribution and her share of profits in the firm.
There was no change in the value of other Assets and Liabilities.

You are required to, on the date of C’s admission:

1. Calculate the goodwill of the firm
 2. Pass the necessary Journal Entries to record the above transactions.
At the time of C’s admission:
a. The firm had a Workmen Compensation reserve of ₹60,000 against which there was a claim of
₹20,000.
b. Creditors of ₹8,000 were paid by A privately for which she is not to be reimbursed.

Aditi and Parul are partners in a firm with capitals of ₹35,000 each. They shared profits and Losses in
the ratio of 3 : 1.
On 1st April 2017, they admit Chhanda into their partnership with 1/5th share in the profits.
Chandra brings in ₹40,000 as her capital and her share of goodwill in cash.
Her share of goodwill is calculated on the basis of her capital contribution and her profits in the firm.
At the time of Chandra’s admission:
(a) The firm had a Workmen Compensation Reserve of ₹60,000 against which there was a claim of
₹20,000.
(b) Creditors of ₹8,000 were paid by Aditi privately for which she is not to be reimbursed.
(c) There was no change in the value of other assets and Liabilities.
(d) You are required to :
(1) Calculate the goodwill of the firm
Pass the necessary Journal Entries to record the above transactions.
2018 Annie and Bonnie are partners in a firm, sharing profits and losses equally. Their Balance Sheet as at
31st March, 2017, was as follows:
Balance Sheet of Annie and Bonnie As at 31st March 2017
Liabilities Amount Assets Amount
Sundry Creditors 40,000 Cash at Bank 20,000
General Reserve 21,000 Sundry Debtors 22,000
Capital A/c : Less : PBD (1,000) 21,000
Annie 45,000 Stock 10,000
Bonnie 85,000 Plant & Machinery 60,000
Goodwill 10,000
1,21,000 1,21,000
Carl was to be taken as a partner for 1/4th share in the profits of the firm, with effect from 1st April,
2017, on the following terms:
a) Bad debts amounting to ₹ 1,500 to be written off.
b) Stock to be taken over by Annie at ₹ 12,000.
 c) Plant and Machinery to be valued at ₹ 50,000.
(d) Goodwill of the firm to be valued at ₹ 20,000.
(e) Carl to bring in ₹ 50,000 as his capital. He was unable to bring in cash, his share of goodwill.
(f) General Reserve not to be distributed. For this, it was decided that Carl would compensate the old
partners through his current account.
You are required to: (i) Pass journal entries on the date of Carl’s admission. (ii) Prepare the Balance
Sheet of the reconstituted firm.

2017 Juliet and Rubani are Partners in a firm, sharing profits and losses in the ratio of 3 : 1. On 31st March
2016, their Balance Sheet was as under :
Balance Seet of Juliet and Rubani
As at 31st March 2016
Liabilities Amount Assets Amount
Sundry Creditors 70,000 Plant & Machinery 1,76,000
General Reserve 30,000 Inventory 26,000
Provident Fund 40,000 Sundry Debtors 57,000
Capital : Less : PBD (3,000) 54,000
Juliet 1,10,000 Cash at Bank 68,000
Rubani 90,000 Profit & Loss A/c 16,000
3,40,000 3,40,00
Mike was taken as a partner for 1/4th share, with effect from 1st April 2016, subject to the following
adjustments :
(a) Plant & Machinery was found to be overvalued by ₹16,000. It was to be shown in the books at
the correct value.
(b) Provision for Doubtful debts was to be reduced by ₹2,000.
(c) Creditors included an amount of ₹2,000 received as commission from Malini. The necessary
adjustment was required to be made.
(d) Goodwill of the firm was valued at ₹60,000. Mike was to bring in cash, his share of goodwill
along with his capital of ₹1,00,000.
(e) Capital accounts of Juliet and Rabani were to be reduced in the new profit-sharing arrangement
on the basis of Mike’s capital, any surplus to be adjusted through the current account and any
deficiency through cash.
You are required to prepare :
(i) Revaluation Account.
 (ii) Partners Capital Account.
(iii) Balance sheet of the reconstituted firm.

2015 Gautam and Rahul are partners in a firm sharing profits in the ratio of 2:3. . Their Balance Sheet on 31st
March 2014 was as follows:
Liabilities Assets Amount Assets
Creditors 5,000 Goodwill 10,000
Bills Payable 15,000 Furniture 25,000
General Reserve 10,000 Stock 15,000
Capital : Debtors 12,000
Gautam 30,000 Less : Provision 2,000 10,000
Rahul 40,000 70,000 Cash 40,000
1,00,000 1,00,000
Karim was admitted as a new partner on 31st March 2014 on the following terms :
(a) The New profit-sharing ratio amongst the partners will be 5 : 3 : 2.
(b) Karim would bring in cash his share of capital of ₹40,000 and his share of goodwill valued at
₹10,000.
(c) Provision for bad debts was to be raised to 20% of debtors.
(d) Gautam would take over the furniture at ₹22,000.
You are required to :
(i) Pass Journal entries at the time of Karim’s admission.
(ii) Prepare the Balance sheet of the reconstituted firm.