Admission of Partner

Q.1) Akash and Suraj are partners in a firm sharing profits and losses in the ratio 3 : 2. Their balance sheet
as on 31st March, 2013 was as follows :
Balance Sheet as on 31-03-2013
Liabilities Amount (Rs.) Assets Amount (Rs.) Amount (Rs.)

Capital Accounts : Furniture 2,100

Akash 50,000 Stock 28,700
Suraj 50,000 Land & Building 35,000
General Reserve 10,000 Plant & Machiery 49,000
Sundry Creditors 60,000 Sundry debtors 63,000
Bills payable 17,000 Cash 9,200

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1,87,000 1,87,000

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They agreed to admit Sanjay in their partnership on 1st April, 2013, on the following terms.

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1) Sanjay should bring Rs. 1,500, as his share of goodwill in the firm, and Rs. 2,000 as his capital.
2) Reserve for doubtful debts is to be provided @ 5% on debtors.

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3) Land and Building be depreciated at 10% p.a.
4) Plant and Machinery to be depreciated @ 5% and stock to be depreciated @ 10% p.a.
5) The new profit sharing ratio will be 2 : 1 : 1.

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Prepare : 1) Revaluation Account.

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2) Partner’s Capital Accounts

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3) New Balance Sheet of the firm.
(March, 2015)

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Q.2) Ram and Krishna were partners sharing profits and losses in the proportion of 2/3 and 1/3 respectively.
Their balance sheet is as follows :

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Balance Sheet as on 31-03-2013

H A
Liabilities Amount (Rs.) Assets Amount (Rs.) Amount (Rs.)

D C L
Capital Accounts : Building 1,00,000

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Ram 96,000 Furniture 30,000
Krishna 64,000 1,60,000 Sundry debtors 63,000

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General Reserve 18,000 Less : RDD 3,000 60,000

G
Profit and Loss A/c 6,000 Stock 84,000
Sundry Creditors 80,000 Cash 16,000
Ram’s Loan 26,000
2,90,000 2,90,000

On 1st April, 2013 Hari is admitted in the partnership on the following terms :
1) Hari should bring in cash Rs. 48,000 as capital for 1/5th share in future profit.
2) Goodwill was raised in the books of the firm for Rs. 18,000.
3) Building is revalued at Rs. 1,12,000 and the value of stock to be reduced by Rs. 6,000.
4) Reserve for doubtful debts be maintained at Rs. 1,800.
5) Ram’s loan is to be repaid.
Prepare : Revaluation account, Capital accounts of partners and Balance sheet of the new firm.

(Oct., 2015)
Q.3) Rani and Geeta are partners sharing profits and losses 3 : 2 respectively .Their position on 31-03-
2013 was follows :
Balance Sheet as on 31-03-2013
Liabilities Amount (Rs.) Assets Amount (Rs.) Amount (Rs.)
Capital Accounts : Building 1,00,000
Rani 1,00,000 Furniture 10,000
Geeta 75,000 Stock 31,000
Creditors 10,000 Debtors 50,000
Bills payable 5,000 Less : R.D.D. 1,000 49,000
General Reserve 15,000 Bank Balance 15,000

2,05,000 2,05,000

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On 1st April, 2013 they admitted Suvarna on the following terms :

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1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5th share in future profit and Rs. 25,000 as
goodwill.

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2) Building should be revalued at Rs. 1,25,000.

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3) Depreciate furniture @ 12 1/2% p.a. and stock @ 10% p.a.
4) R.D.D. should be maintained as it is.

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5) The capital Accounts of partners should be adjusted in their new profit sharing ratio through bank
account.

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Prepare : Profit & Loss adjustment account capital accounts and balance sheet of the new firm

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(March, 2016)

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Q.4) Following is the Balance Sheet of Harish and Girish :

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Balance Sheet as on 31-03-2013

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Liabilities Amount (Rs.) Assets Amount (Rs.) Amount (Rs.)

Creditors

H LA 38,000 Cash in Hand 37,000

D
Bills payable 46,000 Stock 21,000

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Profit and Loss Account 16,000 Debtors 46,000

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Harish
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Capital Accounts :
1,00,000
Less : R.D.D.
Equipment
6,000 40,000
12,000

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Girish 1,40,000 Furniture 25,000
Plants 85,000
Building 1,20,000
2,05,000 2,05,000

They admitted Shirish on 1st April, 2013 on the following conditions :

1) For his 1/3 share in future profit Shirish bringd Rs. 2,00,000 as his capital.
2) It is decided to raise goodwill by Rs. 90,000 and write it off fully after Shirish’s admission.
3) Equipments and plant to be depreciated by 20% and 10% respectively and building to be appreciated
by 15%.
4) Bills payable were retired for Rs. 35,000.
5) All debtors are considered good.
6) Furniture of the value Rs. 12,000 was taken over by Harish at 40% of thebook value .
Prepare : 1) Revaluation account.
2) Partner’s capital account
3) Balance Sheet of new firm.
(July, 2016)
Q.5) Ram and Madan were partners in a firm sharing profits and losses equally.Following was their balance
sheet as on 31-03-2012 :
Balance Sheet as on 31-03-2012
Liabilities Amount (Rs.) Assets Amount (Rs.) Amount (Rs.)
Capital : Plant and machinery 90,000
Ram 1,00,000 Furniture 15,000
Madan 1,00,000 Sundry debtors 92,600
General reserve 40,000 Less : R.D.D. 1,600 91,000
Sundry creditors 55,300 Stock 68,000
Cash in hand 4,200
Cash at bank 27,100
2,95,300 2,95,300

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On 1st April, 2012 Soham was admitted as a partner in the firm on the following terms :
1) Soham is to bring in Rs. 1,00,000 as his capital.

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He is to be given 1/3rd share in future profits.

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2) Goodwill of the firm to be raised at Rs. 30,000. It was decided that ‘goodwill’ should not appear in the
books of the new firm.

Prepare :

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3) Furniture to be depreciated by 10%. Stock was valued at Rs. 70,500.

1) Profit and Loss Adjustment Account

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2) Partner’s Capital Account.

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3) Balance Sheet of the new firm.

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(March, 2017)

Q.6) Ram, Laxman and Bharat were partners sharing profit and losses in the ratio of 2 : 2 : 1. Following is

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the Balance Sheet as on 31st March, 2016: [10]
Balance Sheet as on 31st March, 2016

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Liabilities Amount Assets Amount

H A
Capital A/Cs: Machinery 2,00,000

L
Ram 2,40,000 Stock 80,000

D
Laxman 80,000 Debtors 2,20,000

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Bharat 80,000 (-) R.D.D. 12,000 2,08,000
General reserve 24,000 Investments 96,000

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Creditors 1,92,000 Profit and Loss A/c. 72,000

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Bills payable 56,000 Bank balance 16,000
6,72,000 6,72,000

On the above date the partners decided to dissolve the firm:

(1) Assets were realised as under
Machinery Rs. 1,80,000, Stock Rs. 72,000, Investments Rs.84,000, Debtors Rs. 1,80,000.
(2) Dissolution expenses were 12,000.
(3) Goodwill of the firm realised 96,000.
Prepare :
(1) Realisation Account
(2) Partners’ Capital Accounts
(3) Bank Account (March 2019)
Q.7) Jayesh and Kamal are partners in a sharing profits and losses in the ratio 3 :1. The following is
their balance sheet as on 31st March, 2016: [10]
Balance Sheet as on 31s March, 2016
Liabilities Amount Assets Amount
Rs. Rs.
Capital accounts Building 60,000
Jayesh 60,000 Stock 40,000
Kamal 50,000 Sundry debtors 31,000
Current accounts Cash 4,000
Jayesh 3,000 Profit and loss account 5,000
Kamal 2,000

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Sundry creditors 21,000
General Reserve 4,000

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1,40,000 1,40,000

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They admitted Vimal as a partner on 1st April, 2016 in the firm on the following terms :
1) She should bring Rs. 40,000 as her capital for 1/4th share in future profits and Rs. 20,000 as her
share of goodwill.

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2) Building is found overvalued by 20% and stock is found undervalued by 20% in the books. These
assets are to be adjusted at their proper values.

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3) Rs. 1,000 are to be maintained as reserve for doubtful debts.

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Prepare :

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a) Revaluation A/c b) Old partners A/c c) Balance of the firm after Vimal’s admission.

(March, 2020)

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Q.8) Akshay and Akshat were in partnership sharing profits and losses in the proportion of 3/4 and 1/4

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respectively. [10]

H A
Balance Sheet as on 31s March, 2018

L
Liabilities Amount Assets Amount

D
Rs. Rs.

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Creditors 60,000 Land and Building 27,500
General Reserve 6,000 Furniture 3,000

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Capital accounts Stock 30,000

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Akshay 60,000 Debtors 30,000
Akshat 50,000 Bills Receivables 19,500
Cash at bank 15,000
1,35,000 1,35,000
They decided to admit Amin on 1st April, 2018 on following terms:
1) He should be given 1/5th share in profit and for that he brought in Rs. 30,000 as capital through
RTGS.
2) Goodwill should be raised at Rs. 30,000.
3) Aprpreciate Land and Bulding by 20%.
4) Furniture and Stock are to be depreciated by 10%
4) The capitals of all partnersshould be adjusted in their new profit sharing ratio through Bank A/c.
Pass necessary Journal Entries in the books of the partnership firm and a Balance Sheet of new firm.
(March, 2021)
Q.9) Anil and Akash were in partnership sharing profits and losses in the ratio of 3 :1.Balance sheet of
the firm is as follows : [10]
Balance Sheet as on 31s March, 2022
Liabilities Amount Assets Amount
Rs. Rs.
Bank Overdraft 90,000 Land and Building 56,250
Reserve Fund 9,000 Furniture 4,500
Capital Accounts Stock 45,000
Anil 67,500 Sundry Debtors 45,000
Akash 36,000 1,03,500 Investments 29,250
Cash at bank 22,500

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2,02,500 2,02,500
They decided to admit Ashilon 1st April, 2018 on following terms:

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1) He should be given 1/5th share in profit and for that he brought in Rs. 45,000 as capital through

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RTGS.
2) Goodwill should be raised at Rs.45,,000.

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3) Aprpreciate Land and Bulding by 20%.
4) Furniture and Stock are to be depreciated by 10%
5) The capitals of all partners should be adjusted in their new profit sharing ratio through Bank A/c.

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Pass necessary Journal Entries in the books of the partnership firm and a Balance Sheet of new firm.

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(March, 2022)

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