Solutions of DK Goel Class 12 Chapter 3 Admission of Partners [2025-26]
Table of Contents
Question Nos. 1 to 12
New Profit-Sharing Ratio
Question 1 (A):
A and B are partners sharing profits in the ratio of 5 : 3. C is admitted to the partnership for 1/4th share of future profits. Calculate the new profit sharing ratio.
Solution
A : B = 5 : 3
C – 1/4th
Let total share be 1
Remaining share of A & B = 1 – \(\frac{1}{4}\) = \(\frac{3}{4}\)
A’s new share = \(\frac{5}{8} \times \frac{3}{4} = \frac{15}{32}\)
B’s new share = \(\frac{3}{8} \times \frac{3}{4} = \frac{9}{32}\)
New Profit sharing ratio
= \(\frac{15}{32}\) : \(\frac{9}{32}\) : \(\frac{1}{4}\)
= 15 : 9 : 8
Question 1 (B):
A and B were partners sharing profits in the ratio of 21 : 9. C was admitted on 9/21 share in the profits. Calculate new profit sharing ratio of the partners.
Solution
A : B = 21 : 9
C – 9/21th
Let total share be 1
Remaining share of A & B = 1 – \(\frac{9}{21}\) = \(\frac{12}{21}\)
A’s new share = \(\frac{21}{30} \times \frac{12}{21} = \frac{252}{630}\)
B’s new share = \(\frac{9}{30} \times \frac{12}{21} = \frac{108}{630}\)
New Profit sharing ratio
= \(\frac{252}{630}\) : \(\frac{108}{630}\) : \(\frac{9}{21}\)
= 252 : 108 : 270
= 14 : 6 : 15
Question 2 (A)
P and Q are partners sharing profits and losses in the ratio of 4 : 3. They admit R as partner for a 1/7th share in profits which he acquires equally from P and Q. Calculate new profit sharing ratio of the partners.
Solution
P : Q = 4 : 3
R – 1/7th
R acquires from P = \(\frac{1}{7} \times \frac{1}{2} \) = \(\frac{1}{14}\)
R acquires from Q = \(\frac{1}{7} \times \frac{1}{2} \) = \(\frac{1}{14}\)
P’s new share = \(\frac{4}{7} – \frac{1}{14} = \frac{7}{14}\)
Q’s new share = \(\frac{3}{7} – \frac{1}{14} = \frac{5}{14}\)
New Profit sharing ratio
= \(\frac{7}{14}\) : \(\frac{5}{14}\) : \(\frac{1}{7}\)
= 7 : 5 : 2
Question 2 (B)
R and S share profits in the ratio of 3 : 2. They admitted T as partner for 1/4 share which will be borne by R and S equally. Find out the new profit sharing ratio.
Solution
R : S = 3 : 2
T – 1/4th
T acquires from R = \(\frac{1}{4} \times \frac{1}{2} \) = \(\frac{1}{8}\)
T acquires from S = \(\frac{1}{4} \times \frac{1}{2} \) = \(\frac{1}{8}\)
R’s new share = \(\frac{3}{5} – \frac{1}{8} = \frac{19}{40}\)
S’s new share = \(\frac{2}{5} – \frac{1}{8} = \frac{11}{40}\)
New Profit-sharing ratio
= \(\frac{19}{40}\) : \(\frac{11}{40}\) : \(\frac{1}{4}\)
= 19 : 11 : 10
Question 2 (C)
P, Q and R were partners in a firms sharing profits in the ratio of 3 : 2 : 1. They admitted S as a new partner for 1/8th share in the profits which he acquired 1/16th from P and 1/16th from Q. Calculate new profit sharing ratio of P, Q, R and S.
Solution
P : Q : R = 3 : 2 : 1
S – 1/8th
S acquires 1/16th from P and 1/16th from Q
S = \(\frac{1}{8}\)
P’s new share = \(\frac{3}{6} – \frac{1}{16} = \frac{24 – 3}{48} = \frac{21}{48}\)
Q’s new share = \(\frac{2}{6} – \frac{1}{16} = \frac{16 – 3}{48} = \frac{13}{48}\)
R’s new share = \(\frac{1}{6}\)
New Profit-sharing ratio
= \(\frac{21}{48}\) : \(\frac{13}{48}\) : \(\frac{1}{6}\) : \(\frac{1}{8}\)
= 21 : 13 : 8 : 6
Question 3 (A)
X and Y are partners sharing profits in the ratio of 2 : 1. Z is admitted with 5/11th share which he takes 3/11th from X and 2/11th from Y. Calculate the new profit sharing ratio of the partners.
Solution
X : Y = 2 : 1
Z – 5/11th
Z acquires 3/11th from X and 2/11th from Y
X’s new share = \(\frac{2}{3} – \frac{3}{11} = \frac{22 – 9}{33} = \frac{13}{33}\)
Y’s new share = \(\frac{1}{3} – \frac{2}{11} = \frac{11 – 6}{33} = \frac{5}{33}\)
New Profit-sharing ratio
= \(\frac{13}{33}\) : \(\frac{5}{33}\) : \(\frac{5}{11}\)
= 13 : 5 : 15
Question 3 (B)
A and B are partners sharing profits in the ratio of 5 : 3. They admit C on 1/4th share which he acquires 1/6th from A and 1/12th from B. Calculate the new profit sharing ratio of the partners.
Solution
A : B = 5 : 3
C – 1/4th
C acquires 1/6th from A and 1/12th from B
A’s new share = \(\frac{5}{8} – \frac{1}{6} = \frac{15 – 4}{24} = \frac{11}{24}\)
B’s new share = \(\frac{3}{8} – \frac{1}{12} = \frac{9 – 2}{24} = \frac{7}{24}\)
New Profit-sharing ratio
= \(\frac{11}{24}\) : \(\frac{7}{24}\) : \(\frac{1}{4}\)
= 11 : 7 : 6
Question 4
A, B and C were partners in a firm sharing profits in 1 : 2 : 3 ratio. They admitted D as a new partner for 1/6th share. D acquired his share 1/24 from A, 1/24 from B and 1/12 from C. Calculate new profit sharing ratio.
Solution
A : B : C = 1 : 2 : 3
D – 1/6th
D acquires 1/24th from A, 1/24th from B and 1/12th from C
A’s new share = \(\frac{1}{6} – \frac{1}{24} = \frac{4 – 1}{24} = \frac{3}{24}\)
B’s new share = \(\frac{2}{6} – \frac{1}{24} = \frac{8 – 1}{24} = \frac{7}{24}\)
C’s new share = \(\frac{3}{6} – \frac{1}{12} = \frac{6 – 1}{12} = \frac{5}{12}\)
New Profit-sharing ratio
= \(\frac{3}{24}\) : \(\frac{7}{24}\) : \(\frac{5}{12}\) : \(\frac{1}{6}\)
= 3 : 7 : 10 : 4
Question 5:
A and B are partners sharing profits in the ratio of 3 : 2. They admit C into partnership giving his 1/2 share in profits which he acquires from A and B in the ratio of 3 : 1. Calculate the new profit ratio.
Solution
A : B = 3 : 2
C’s share = \(\frac{1}{2}\)
C acquires \(\frac{1}{2}\) from A and from B in the ratio of 3 : 1
C acquries from A = \(\frac{1}{2}\) \(\times\)\(\frac{3}{4}\) = \(\frac{3}{8}\)
C acquries from B = \(\frac{1}{2}\) \(\times\)\(\frac{1}{4}\) = \(\frac{1}{8}\)
A’s new share = \(\frac{3}{5} – \frac{3}{8} = \frac{24 – 15}{40} = \frac{9}{40}\)
B’s new share = \(\frac{2}{5} – \frac{1}{8} = \frac{16 – 5}{40} = \frac{11}{40}\)
New Profit-sharing ratio
= \(\frac{9}{40}\) : \(\frac{11}{40}\) : \(\frac{1}{2}\)
= 9 : 11 : 20
Question 6:
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z as a new partner who gets 1/5th share. Calculate the new profit sharing ratio in each of the following cases:
(i) If Z acquires his share from X and Y in their profit sharing ratio;
(ii) If he acquires 3/20th from X and 1/20th from Y;
(iii) If he acquires 1/10th from X and 1/10th from Y;
(iv) If he acquires 1/20th from X and 3/20th from Y;
(v) If he acquires his share entirely from X;
(vi) If he acquires his share entirely from Y.
Solution
Case (i)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\)
Z acquires \(\frac{1}{5}\) from X and from Y in the ratio of 3 : 2
Z acquries from X = \(\frac{1}{5}\) \(\times\)\(\frac{3}{5}\) = \(\frac{3}{25}\)
Z acquries from Y = \(\frac{1}{5}\) \(\times\)\(\frac{2}{5}\) = \(\frac{2}{25}\)
X’s new share = \(\frac{3}{5} – \frac{3}{25} = \frac{15 – 3}{25} = \frac{12}{25}\)
Y’s new share = \(\frac{2}{5} – \frac{2}{25} = \frac{10 – 2}{25} = \frac{8}{25}\)
New Profit-sharing ratio
= \(\frac{12}{25}\) : \(\frac{8}{25}\) : \(\frac{1}{5}\)
= 12 : 8 : 5
Case (ii)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\)
Z acquires \(\frac{3}{20}\) from X and \(\frac{1}{20}\) from Y.
X’s new share = \(\frac{3}{5} – \frac{3}{20} = \frac{12 – 3}{20} = \frac{9}{20}\)
Y’s new share = \(\frac{2}{5} – \frac{1}{20} = \frac{8 – 1}{20} = \frac{7}{20}\)
New Profit-sharing ratio
= \(\frac{9}{20}\) : \(\frac{7}{20}\) : \(\frac{1}{5}\)
= 9 : 7: 4
Case (iii)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\)
Z acquires \(\frac{1}{10}\) from X and \(\frac{1}{10}\) from Y.
X’s new share = \(\frac{3}{5} – \frac{1}{10} = \frac{6 – 1}{10} = \frac{5}{10}\)
Y’s new share = \(\frac{2}{5} – \frac{1}{10} = \frac{4 – 1}{10} = \frac{3}{10}\)
New Profit-sharing ratio
= \(\frac{5}{10}\) : \(\frac{3}{10}\) : \(\frac{1}{5}\)
= 5 : 3: 2
Case (iv)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\)
Z acquires \(\frac{1}{20}\) from X and \(\frac{3}{20}\) from Y.
X’s new share = \(\frac{3}{5} – \frac{1}{20} = \frac{12 – 1}{20} = \frac{11}{20}\)
Y’s new share = \(\frac{2}{5} – \frac{3}{20} = \frac{8 – 3}{10} = \frac{5}{10}\)
New Profit-sharing ratio
= \(\frac{11}{20}\) : \(\frac{5}{20}\) : \(\frac{1}{5}\)
= 11 : 5: 4
Case (v)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\) which he acquired entirley from X.
X’s new share = \(\frac{3}{5} – \frac{1}{5} = \frac{3 – 1}{5} = \frac{2}{5}\)
Y’s new share = \(\frac{2}{5} – \frac{0}{1} = \frac{2 – 0}{10} = \frac{2}{5}\)
New Profit-sharing ratio
= \(\frac{2}{5}\) : \(\frac{2}{5}\) : \(\frac{1}{5}\)
= 2 : 2: 1
Case (vi)
X : Y = 3 : 2
Z’s share = \(\frac{1}{5}\) which he acquired entirely from Y.
X’s new share = \(\frac{3}{5} – \frac{0}{1} = \frac{3 – 0}{5} = \frac{3}{5}\)
Y’s new share = \(\frac{2}{5} – \frac{1}{5} = \frac{2 – 1}{5} = \frac{1}{5}\)
New Profit-sharing ratio
= \(\frac{3}{5}\) : \(\frac{1}{5}\) : \(\frac{1}{5}\)
= 3 : 1: 1
Question 7:
A and B are partners sharing profits in the ratio of 3 : 2. C is admitted for 1/5th share of profits out of which half share was gifted by A and the remaining share was taken by C equally from A and B. Calculate new profits sharing ratio.
Solution:
A : B = 3 : 2
Z’s share = \(\frac{1}{5}\) of which half share gifted by A and remaining equally from A and B
C acquires from A = \(\frac{1}{5}\) \(\times\) \(\frac{1}{2}\) + \(\left(\frac{1}{5} – \frac{1}{10} \right)\) \(\times\) \(\frac{1}{2}\) = \(\frac{1}{10}\) + \(\frac{1}{20}\) = \(\frac{3}{20}\)
C aquired from B = \(\frac{1}{10}\) \(\times\) \(\frac{1}{2}\) = \(\frac{1}{20}\)
A’s new share = \(\frac{3}{5} – \frac{3}{20} = \frac{12 – 3}{20} = \frac{9}{20}\)
B’s new share = \(\frac{2}{5} – \frac{1}{20} = \frac{8 – 3}{10} = \frac{7}{20}\)
New Profit-sharing ratio
= \(\frac{9}{20}\) : \(\frac{7}{20}\) : \(\frac{1}{5}\)
= 9 : 7: 4
Question 8 (A):
A and B are partners in a firm sharing profits in the ratio of 2 : 1. C joins the firm. A surrenders \(\frac{1}{4}\) th of his share and B \(\frac{1}{5}\)th of his share in favour of C. Find the new profit sharing ratio.
Solution
A : B = 2 : 1
A surrenders \(\frac{1}{4}\) th of his share and B \(\frac{1}{5}\)th of his share in favour of C.
C acquires from A = \(\frac{2}{3}\)\(\times\)\(\frac{1}{4}\) = \(\frac{2}{12}\)
C acquires from B = \(\frac{1}{3}\)\(\times\)\(\frac{1}{5}\) = \(\frac{1}{15}\)
A’s new share = \(\frac{2}{3} – \frac{2}{12} = \frac{8 – 2}{12} = \frac{6}{12}\)
B’s new share = \(\frac{1}{3} – \frac{1}{15} = \frac{5 – 1}{15} = \frac{4}{15}\)
C’s new share = \(\frac{2}{12}\) + \(\frac{1}{15}\) = \(\frac{10 + 4}{60}\) = \(\frac{14}{60}\)
New Profit-sharing ratio
= \(\frac{6}{12}\) : \(\frac{4}{15}\) : \(\frac{14}{60}\)
= 30 : 16: 14
= 15 : 8 : 7
Question 8 (B)
A and B share profits in the ratio of 3 : 2. They agreed to admit C on the condition that A will sacrifice 3/20th of his share of profit in favour of C and B will sacrifice 1/20th of his profits in favour of C. Calculate new profit sharing ratio.
Solution:
A : B = 3 : 2
A surrenders \(\frac{3}{20}\) th of his share and B \(\frac{1}{20}\)th of his share in favour of C.
C acquires from A = \(\frac{3}{5}\)\(\times\)\(\frac{3}{20}\) = \(\frac{9}{100}\)
C acquires from B = \(\frac{2}{5}\)\(\times\)\(\frac{1}{20}\) = \(\frac{2}{100}\)
A’s new share = \(\frac{3}{5} – \frac{9}{100} = \frac{60 – 9}{12} = \frac{51}{100}\)
B’s new share = \(\frac{2}{5} – \frac{2}{100} = \frac{40 – 2}{100} = \frac{38}{100}\)
C’s new share = \(\frac{9}{100}\) + \(\frac{2}{100}\) = \(\frac{9 + 2}{100}\) = \(\frac{11}{100}\)
New Profit-sharing ratio
= \(\frac{51}{100}\) : \(\frac{38}{100}\) : \(\frac{11}{100}\)
= 51 : 38: 11
Question 8 (C):
X and Y are partners in a firm sharing profits and losses in the ratio of 9 : 6. A new partner Z is admitted. X surrenders 3/15th share of his profit in favour of Z and Y 6/15th of his share in favour of Z. Calculate new profit sharing ratio.
Solution:
X : Y = 9 : 6
X surrenders \(\frac{3}{15}\) th of his share and Yy \(\frac{6}{15}\)th of his share in favour of Z.
Z acquires from X = \(\frac{9}{15}\)\(\times\)\(\frac{3}{15}\) = \(\frac{27}{225}\)
Z acquires from Y = \(\frac{6}{15}\)\(\times\)\(\frac{6}{15}\) = \(\frac{36}{225}\)
X’s new share = \(\frac{9}{15} – \frac{27}{225} = \frac{135 – 27}{225} = \frac{108}{225}\)
Y’s new share = \(\frac{6}{15} – \frac{36}{225} = \frac{90 – 36}{225} = \frac{54}{225}\)
Z’s new share = \(\frac{27}{225}\) + \(\frac{36}{225}\) = \(\frac{27 + 36}{225}\) = \(\frac{63}{225}\)
New Profit-sharing ratio
= \(\frac{108}{225}\) : \(\frac{54}{225}\) : \(\frac{63}{225}\)
= 108 : 54: 63
= 12 : 6 : 7
Question 9:
A, B and C are partners in a firm sharing profits in 4 : 3 : 3 ratio. They decided to admit their manager D into partnership. A surrendered 1/4 of his share in favour of D; B surrendered 1/5 of his share in favour of D and C surrendered 1/6 of his share in favour of D. Calculate new profit sharing ratio.
Solution:
A : B : C = 4 : 3 : 3
A surrenders \(\frac{1}{4}\) th of his share and B \(\frac{1}{5}\)th of his share and C \(\frac{1}{6}\)th in favour of Z.
D acquires from A = \(\frac{4}{10}\)\(\times\)\(\frac{1}{4}\) = \(\frac{4}{40}\)
D acquires from B = \(\frac{3}{10}\)\(\times\)\(\frac{1}{5}\) = \(\frac{3}{50}\)
D acquires from C = \(\frac{3}{10}\)\(\times\)\(\frac{1}{6}\) = \(\frac{3}{60}\)
A’s new share = \(\frac{4}{10} – \frac{4}{40} = \frac{16 – 4}{40} = \frac{12}{40}\)
B’s new share = \(\frac{3}{10} – \frac{3}{50} = \frac{15 – 3}{50} = \frac{12}{50}\)
C’s new share = \(\frac{3}{10} – \frac{3}{60} = \frac{18 – 3}{225} = \frac{15}{60}\)
D’s new share = \(\frac{4}{40}\) + \(\frac{3}{50}\) + \(\frac{3}{60}\) = \(\frac{60 + 36 + 30}{600}\) = \(\frac{126}{600}\)
New Profit-sharing ratio
= \(\frac{12}{40}\) : \(\frac{12}{50}\) : \(\frac{15}{60}\) : \(\frac{126}{600}\)
= 180 : 144: 150 : 126
= 30 : 24 : 25 : 21
Question 10:
A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit X and Y as new partners. A surrendered \(\frac{1}{3}\)rd of his share in favour of X and B surrendered \(\frac{1}{4}\)th of his share in favour of Y. Calculate the new profit sharing ratio of A, B, X and Y.
Solution:
A : B = 3 : 2
A surrenders \(\frac{1}{3}\) rd of his share in favour of X and B \(\frac{1}{4}\)th of his share in favour of Y.
X acquires from A = \(\frac{3}{5}\)\(\times\)\(\frac{1}{3}\) = \(\frac{3}{15}\)
Y acquires from B = \(\frac{2}{5}\)\(\times\)\(\frac{1}{4}\) = \(\frac{2}{20}\)
A’s new share = \(\frac{3}{5} – \frac{3}{15} = \frac{9 – 3}{15} = \frac{6}{15}\)
B’s new share = \(\frac{2}{5} – \frac{2}{20} = \frac{8 – 2}{20} = \frac{6}{20}\)
Y’s new share = \(\frac{27}{225}\) + \(\frac{36}{225}\) = \(\frac{27 + 36}{225}\) = \(\frac{63}{225}\)
New Profit-sharing ratio of A, B, X and Y
= \(\frac{6}{15}\) : \(\frac{6}{20}\) : \(\frac{3}{15}\) : \(\frac{2}{20}\)
= 24 : 18: 12 : 6
= 4 : 3 : 2 : 1
Question 11:
A and B share profits and losses in the ratio of 3 : 2. They admit C as a new partner for 1/3rd share in the profits of the firm which he acquired from A and B in the ratio of 2 : 3. After some time, they admitted D as a new partner for 1/5th share in the profits which he acquired equally from A and C.
Calculate:
(i) New profit sharing ratio of A, B and C;
(ii) New profit sharing ratio of A, B, C and D.
Solution
A : B = 3 : 2
(i)
C- 1/3rd share which he acquried from A and B in 2 : 3.
C acquires from A = \(\frac{1}{3} \times \frac{2}{5} = \frac{2}{15}\)
C acquires from B = \(\frac{1}{3} \times \frac{3}{5} = \frac{3}{15}\\[6pt]\)
A’s new share = \(\frac{3}{5} – \frac{2}{15} = \frac{9 – 2}{15} = \frac{7}{15}\)
B’s new share = \(\frac{2}{5} – \frac{3}{15} = \frac{6 – 3}{15} = \frac{3}{15}\)
C’s new share = \(\frac{2}{15}\) + \(\frac{3}{15}\) = \(\frac{5}{15}\)
New Profit-sharing ratio of A, B and C
= \(\frac{7}{15}\) : \(\frac{3}{15}\) : \(\frac{5}{15}\\[6pt]\)
= 7 : 3: 5
(ii)
A : B : C = 7 : 3 : 5
D- 1/5th share which he acquired from A and C in 1 : 1.
D acquires from A = \(\frac{1}{5} \times \frac{1}{2} = \frac{1}{10}\)
\(\\[3pt]\)D acquires from C = \(\frac{1}{5} \times \frac{1}{2} = \frac{1}{10}\)
\(\\[3pt]\) A’s new share = \(\frac{7}{15} – \frac{1}{10} = \frac{14 – 3}{30} = \frac{11}{30}\)
\(\\[3pt]\) B’s new share = \(\frac{3}{15} – \frac{0}{1} = \frac{3 – 0}{15} = \frac{3}{15}\)
\(\\[3pt]\) C’s new share = \(\frac{5}{15}\) – \(\frac{1}{10}\) = \(\frac{10 – 3}{30} = \frac{7}{30}\)
New Profit-sharing ratio of A, B, C and D
= \(\frac{11}{30} : \frac{3}{15} :\frac{7}{30} : \frac{1}{5}\)
\(\\[3pt]\)
= 11 : 6 : 7 : 6
Question 12:
P and Q share profits in 3 : 2. On 1st April, 2022, they admit R and S with 1/4 and 1/5 share respectively. The profit of the firm for the year ended 31st March 2023 amounted to ₹ 2,00,000. Prepare necessary journal entries for the distribution of profit.
Sacrificing Ratios and New Ratios
Questions Nos. 13 to 20
Question 13:
(A) Saurabh and Gaurav are equal partners. They admit Chunmun as a partner in their firm and the new ratio of all the three has been decided upon as 4 : 3 : 2. Find the sacrificing ratio.
(B). A, B and C share profit and losses in the ratio of 3 : 2 : 1. Upon admission of D, they agreed to share as follows:
(i) 4 : 4 : 2 : 2
(ii) 2 : 4 : 2 : 3
Calculate sacrificing ratios.
Question 14:
(A). A, B and C are partners sharing profits in the ratio of 2 : 2 : 1 respectively. They admit D for 1/6th share in the firm. Calculate the sacrificing ratio.
(B). A and B are partners sharing profit in the ratio of 5 : 3. C is admitted to the partnership for 1/4th share of future profits. Calculate the new profit sharing ratio and the sacrificing ratio.
Question 15:
A and B are partners sharing profits in the ratio of 7 : 3. C was admitted. A surrendered 1/7th of his share and B 1/3rd of his share in favour of C. Calculate the sacrificing ratio and the new profit sharing ratios of the partners.
Question 16:
(A). A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. C is admitted into partnership. A sacrifices 1/3 of his share and B 1/10 from his share in favour of C. Determine the sacrificing ratio and the new profit sharing ratio.
(B). A and B are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit C and D as new partners. A sacrifices 1/2 of his share in favour of C and B sacrifices 1/4 from his share in favour of D. Calculate their new profit sharing ratio.
Question 17:
Find out the sacrificing ratio and new ratio in the following cases:
(I) A and B are partners sharing profits and losses in the ratio of 4 : 3. C is admitted for 1/5th share. A and B decided to share equally in future. Calculate the new ratio and sacrificing ratio.
(II) A, B, C and D are in partnership sharing profit and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share, A, B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 and 1/10. Calculate the new profit sharing ratio after E’s admission.
Question 18:
A and B are partners in a firm sharing profits in the ratio of 3 : 1. They admit C and decide that the profit-sharing ratio between B and C shall be same as existing between A and B. Calculate new profit-sharing ratio and the sacrificing ratio.
Question 19:
A, B and C are partners sharing in the ratio of 4 : 3 : 2. They admit D for 1/9th share. It is agreed that A would retain his original share. Calculate the new ratios and sacrificing ratios.
Question 20:
P, Q and R are partners sharing profits and losses in the ratio of 5 : 3 : 2. S is admitted as a new partner for 1/5th share. P sacrifices 1/10th from his share in favour of S and remaining sacrifice was made by Q and R in the ratio of 2 : 1. Calculate sacrificing ratio and new profit sharing ratio.
When New partner brings goodwill/premium in cash
Questions No. 21 to 34
Question 21:
L, M and N are partners sharing profits in the ratio of 3 : 2 : 1. They admit O into partnership. O brings in cash ₹ 4,50,000 as capital and ₹ 1,50,000 as goodwill for 1/5th share of profits. Pass journal entries and find out new profit sharing ratios when: (a) Goodwill is retained in the firm; (b) goodwill is withdrawn by old partners.
Question 22:
P and Q are partners sharing profits and losses in the ratio of 2 : 1. They admit R into partnership for 4/9th share in profits which he acquires equally from P and Q. R brings in cash ₹ 2,50,000 as capital and ₹ 1,80,000 as goodwill.
Pass journal entries and find out new profit sharing ratios.
Question 23:
X and Y are partners sharing profits in the ratio of 4 : 3. Z joins partnership for 2/7th share in the profits (of which he acquires 3/4th from X and 1/4th from Y). Z brings in ₹ 3,00,000 for his capital and ₹ 1,20,000 for goodwill. Half of the amount of goodwill is withdrawn by the old partners.
Question 24:
K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partner for 1/3rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio. Z brought ₹ 80,000 for his capital and ₹ 30,000 for his 1/3rd share as premium. Calculate the new profit sharing ratio of K, Y and Z and pass necessary journal entries for the above transactions in the books of the firm.
Question 25:
Anju and Manju are partners, sharing profits and losses in the proportion of 7 : 5. They agreed to admit Meenu, their manager, into partnership, who is to get one sixth share in the business. Meenu brings in ₹ 2,00,000 for her capital and ₹ 96,000 for 1/6th share of goodwill which she acquires 1/24th from Anju and 1/8th from Manu. The profit for the first year of the new partnership amount to ₹ 4,80,000.
Make the necessary Journal entries in connection with Meenu’s admission and divide the profit between the partners.
Question 26:
X and Y share profits and losses in the ratio of 3 : 2. They admit Z as a partner who pays ₹ 72,000 as premium for goodwill for 1/4th share in the future profits of the firm.
Pass Journal entries appropriating the premium money and show the new profit sharing ratio in each of the following cases:
(i) if he acquires his share of profits in the original ratio of existing partners.
(ii) if he acquires his share of profits in equal proportions from the existing partners.
(iii) if he acquires his share in the ratio of 2 : 3 from the existing partners.
(iv) if he acquires his share of profits as 7/32th from X and 1/32th from Y.
Question 27:
A, B and C are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted D as a new partner, who brings ₹ 5,00,000 as capital and ₹ 2,10,000 as his share of goodwill in cash. A surrendered 1/5th of his share, B surrendered 1/6th of his share and C surrendered 1/8th of his share in favour of D.
Find out sacrifice ratio and Pass necessary journal entries for the above.
Question 28:
Partners A, B and C share the profit of a business in the ratio of 3 : 2 : 1 respectively. For one-sixth share they admit D who brings in ₹ 2,00,000 including ₹ 60,000 for his share of goodwill. Show the journal entries if A, B, C and D decide to share the profits respectively in the ratio of (a) 15 : 10 : 5 : 6; (b) 5 : 3 : 2 : 2, and (c) 2 : 2 : 1 : 1. Assume that the entire cash brought in by D remains in the business. Give Journal entries.
Question 29:
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership, Z paying a premium of ₹ 1,00,000 for 1/4th share of the profits while X and Y as between themselves sharing profits and losses equally. Give Journal entries.
Question 30:
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. They admit D for 1/4th share in the profits and he brought in ₹ 1,50,000 as his share of goodwill which was credited to the Capital Accounts of B and C respectively with ₹ 1,25,000 and ₹ 25,000.
Calculate the new profit sharing ratio.
Question 31:
A and B are partners sharing profits and losses as 2 : 1. On 1st April, 2021 they admit C as a partner for 1/4th share who pays ₹ 4,50,000 as goodwill privately. On 1st April, 2022, they take D as a partner for 3/5th share who brings ₹ 4,00,000 as goodwill, out of which half is withdrawn by the existing partners. On 1st April, 2023, E is admitted as a partner for 1/6th share who brings ₹ 5,00,000 as goodwill which is retained in the business.
Journalise the above transactions in the books of the firm.
Question 32:
P and Q are partners sharing profits and losses as 2 : 3. R and S are admitted and profit sharing ratio becomes 3 : 4 : 3 : 2. Goodwill is valued at ₹ 3,00,000, R brings required goodwill and ₹ 2,00,000 cash for Capital. S brings in ₹ 1,00,000 cash and Motor Vehicle for ₹ 80,000 as his capital in addition to the required amount of goodwill in cash.
Show the necessary journal entries.
Question 33:
Ram and Rahim are partners in a firm sharing profits in the ratio of 3 : 2. On April 1, 2023 they admit Raj as a new partner for 3/13th share in the profits. The new ratio will be 5 : 5 : 3. Raj contributed the following assets towards his capital and for his share of goodwill : Land ₹ 2,50,000; Plant and Machinery ₹ 1,50,000; Stok ₹ 80,000 and Debtors ₹ 70,000. On the date of admission of Raj, the goodwill of the firm was valued at ₹ 5,20,000. Record necessary journal entries in the books of the firm.
Question 34:
(A). A and B are partners, sharing profit and losses in the ratio of 3 : 2. Goodwill appears in their Balance Sheet at ₹ 24,000, When C is admitted into partnership for 1/5th share in profit. He pays ₹ 50,000 for capital and ₹ 8,000 as goodwill. The ratio of the partners A, B and C in the new firm would be 2 : 2 : 1.
Pass journal entries in the books of the new firm to record above adjustments.
(B). P and S are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at ₹ 20,000, R is admitted with 1/5th share which he acquires equally from P and S. R brings ₹ 20,000 as his capital and ₹ 10,000 as his share of goodwill. Profits at the end of the year were of the amount of ₹ 1,00,000. You are required to give journal entries to carry out the above arrangement.
(C). A and B carrying on business as partners used to share profits and losses thus; A 4/7ths and B 3/7ths, and goodwill appeared in the books of the firm at ₹ 2,80,000 when C was admitted as a partner having 1/7th share in profits and losses. C was asked to pay a premium of ₹ 75,000 for goodwill, and the profit-sharing ratio as between A and B remained unchanged. Show entries in the journal of the firm.
When New Partner does not bring Goodwill/premium in Cash
Questions Nos. 35 to 44
Question 35:
A and B are partners sharing profits and losses in 3 : 2. They admit C into partnership for 1/5th share in the profits. C pays in cash ₹ 40,000 for his capital. Goodwill of the firm is valued at ₹ 25,000 but C is unable to bring his share of goodwill in cash. Pass the necessary journal entries.
Question 36:
A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They admit C into partnership with 1/4th share which he acquires from A and B in the ratio of 2 : 1. On D’s admission the goodwill of the firm is valued at ₹ 6,00,000. However, D is unable to bring his share of goodwill in cash.
Pass necessary journal entry and also calculate the new profit sharing ratio.
Question 37:
Aru and Beena are partners in a firm sharing profits in the ratio of 2 : 1. They admit Charu and Diya as two new partners. The new profit sharing ratio is agreed at 4 : 3 : 2 :1. Charu introduced ₹ 5,00,000 and Diya ₹ 3,00,000 as their capitals.
Charu brings in ₹ 60,000 in cash for her share of goodwill but Diya is unable to bring her share of goodwill in cash.
Question 38:
A and B are partners sharing profits in the ratio of 3 : 2. On 1st April, 2022 they admit C as a new partner for 1/4th share. C acquires 1/5th of his share from A.
Goodwill on C’s admission is to be valued on the basis of capitalisation of average profits of the last five years. Profits were:
Year ended
| 31st March, 2018 | Profit ₹ 50,000 |
| 31st March, 2019 | Profit ₹ 1,20,000 (including gain of ₹ 40,000 from sale of fixed assets) |
| 31st March, 2020 | Loss ₹ 60,000 (after charging Loss by Fire ₹ 50,000) |
| 31st March, 2021 | Loss ₹ 1,00,000 (after charging voluntary retirement compensation paid ₹ 1,50,000) |
| 31st March, 2022 | profit ₹ 1,90,000 |
On 1st April, 2022, the firm had assets of ₹ 7,00,000 and external liabilities of ₹ 2,20,000.
The normal rate of return on capital is 12%.
C brings in ₹ 1,25,000 for his capital but is unable to bring his share of goodwill in cash.
(i) You are required to calculate C’s share of goodwill,
(ii) Pass necessary journal entries, and
(iii) Calculate new profit sharing ratios.
Question 39:
P, Q and R share profits in the ratio of 5 : 3 : 2. S was admitted into partnership. S brings in ₹ 30,000 as his capital. S is entitled for 1/5th share in profits which he acquires equally from P, Q and R. Goodwill of the firm is to be valued at three year’s purchase of last four years’ average profits. The profits of the last four year’s are ₹ 32,000, ₹ 38,000, ₹ 35,000 and ₹ 31,000 respectively. S can not bring goodwill in cash. Goodwill already appears in the books at ₹ 50,000. Give Journal entries.
Question 40:
X and Y are partners sharing profits in the ratio of 3 : 2. Goodwill appears in their balance sheet at ₹ 60,000. Z is admitted as a partner for 1/4th share in the profits. The total goodwill of the firm is valued at ₹ 2,00,000.
Pass journal entries if:
(1) Z brings in cash his share of goodwill.
(2) Z can not bring in cash his share of goodwill.
Question 41:
A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the firm for 3/7th profits (which he takes 2/7th from A and 1/7th from B) and brings ₹ 6,00,000 as premium out of his share of ₹ 7,20,000. Goodwill account does not appear in the books of A and B.
Question 42:
A and B are partners sharing profits in the ratio of 3 : 1. C is admitted as a partner with 2/9th share; A and B will in future get 4/9th and 3/9th share of profits. C pays ₹ 2,00,000 for goodwill. Pass the necessary journal entries.
Question 43:
X and Y are partners sharing profits in the ratio of 3 : 1. Z is admitted as a partner for which he pays ₹ 30,000 for goodwill in cash. X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above.
Question 44:
A, B and C were partners in a firm sharing profits in the ratio of 2 : 2 : 1. They admitted D for 1/6th share in the profits. The new profit sharing ratio will be 13 : 8 : 4 : 5 respectively. D brought ₹ 5,00,000 for his capital and ₹ 60,000 for his share of goodwill. Pass necessary entries.
Solutions of DK Goel Class 12 Chapter 3 [2025-26] Admission of Partners
Revaluation of Assets and Liabilities
Questions Nos. 45 to 49
Question 45:
Pass journal entries to record the following transactions on the admission of a new partner:
(i) Land and Building is undervalued by ₹ 2,00,000.
(ii) Stock is overvalued by 20% (Book Value of Stock ₹ 60,000)
(iii) Provision to be made for compensation of ₹ 20,000 to an ex-employee.
(iv) Sundry Debtors appeared in the books at ₹ 1,50,000. They are estimated to produce not more than ₹ 1,30,000.
(v) Creditors include an amount of ₹ 10,000 received as commission.
(vi) A bill of exchange of ₹ 40,000 which was previously discounted with the banker, was dishonoured on 31st March, 2024 but no entry has been passed for it.
(vii) Value of Machinery is to be decreased to ₹ 1,20,000 (Book Value ₹ 2,00,000)
(viii) Value of Machinery is to be decreased by ₹ 1,20,000 (Book Value ₹ 2,00,000)
(ix) Expenses on revaluation amount to ₹ 8,000 have been paid by partner X.
Question 46:
Ayushi and Shrishti are partners sharing profits in 3 : 2. Their Balance Sheet showed Stock at ₹ 3,10,000; Machinery at ₹ 4,95,000; Debtors at ₹ 6,00,000; Creditors at ₹ 3,47,000. They admit Tina as a partner and new profit sharing ratio is agreed at 4 : 3 : 2. Following terms were agreed:
(i) Machinery is overvalued by 10%.
(ii) Unrecorded debtors of ₹ 20,000 be brought into books and provision for doubtful debts be created at 10%.
(iii) Creditors of ₹ 27,000 are not likely to be paid.
Shrishti’s share in loss on revaluation amounted to ₹ 36,000. You are required to calculate the revalued value of stock.
Solution
Revaluation A/c
| Particulars | ₹ | Particulars | ₹ | ||
|---|---|---|---|---|---|
| To Machinery A/c (4,95,000 × 10/110) | 45,000 | By Debtors | 20,000 | ||
| To Provision for doubtful debts (6,20,000 × 10/100) | 62,000 | By Creditors | 27,000 | ||
| To Stock (B/f) | 30,000 | By Loss on Revaluation tfd. to: Ayushi’s capital 54,000 Shrishti’s capital 36,000 | 90,000 | ||
| 1,37,000 | 1,37,000 | ||||
Calculation of loss on Revaluation:
Loss on Revaluation = 36,000 \(\times \frac{5}{2}\) = 90,000
Revalued Value of Stock = Value of Stock – Decrease in value of Stock = 3,10,000 – 30,000 = ₹ 2,80,000
Question 47:
A and B were in partnership sharing profits and losses in the ratio of 3 : 1. On 1st April, 2024 they admit C as a partner on the following terms:
(a) That C brings ₹ 1,00,000 as his capital and ₹ 50,000 for goodwill, half of which to be withdrawn by A and B.
(b) That the value of land and buildings to be appreciated by 15 percent and that of stocks and machinery & fixtures to be reduced by 7 and 5 percent respectively.
(c) That provision for doubtful debts be made at 5 percent.
(d) That ₹ 15,000 be provided for an unforeseen liability.
(e) That C to be given 1/5th share and the profit sharing ratio between A and B to remain the same.
(f) That ₹ 11,000 is to be received as commission, hence to be accounted for.
The Balance Sheet of the old partnership as at 31st March, 2024 stood as:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 3,50,000 | Cash in Hand | 40,000 |
| Capital Accounts: A B | 4,00,000 2,00,000 | Books Debts | 2,00,000 |
| Stock | 1,80,000 | ||
| Machinery & Fixtures | 2,00,000 | ||
| Land and Building | 3,30,000 | ||
| 9,50,000 | 9,50,000 |
Give necessary Journal entries, ledger accounts and the balance sheet of the newly constituted firm.
Solutions
\(\quad\quad\quad\quad\)Journal Entries
Cash A/c Dr. 1,50000
\(\quad\quad\) To C’s Capital A/c\(\quad\quad\) 1,00,000
\(\quad\quad\) To Premium for Goodwill A/c 50,000
———————————————————
Premium for goowill A/c Dr. 50,000
\(\quad\quad\) To A’s Capital A/c\(\quad\quad\) 37,500
\(\quad\quad\) To A’s Capital A/c 12,500
——————————————————–
A’s Capital A/c Dr. 18,750
B’s Capital A/c Dr. 6,250
\(\quad\quad\) To Cash\(\quad\quad\) 50,000
———————————————————-
Question 48:
Khushi and Sukhi are partners in a firm sharing profits in the ratio of 5 : 4. On April 1, 2024, they admit Muskan as a new partner and the new ratio is agreed at 3 : 2 : 1. On that date there was a balance of ₹ 63,000 in the profit and loss account and a balance of ₹ 45,000 in general reserve. Record the necessary journal entries.
Question 49:
A and B were partners in a firm sharing profits in the ratio of 7 : 3. On 1-3-2024, they admitted C as a new partner for 1/6th share in the profits of the firm. They fixed the new profit sharing ratio as 3 : 2 : 1. The P & L A/c on the date of admission showed a balance of ₹ 20,000 (Cr.) The firm also had a reserve of ₹ 1,50,000. C is to bring ₹ 40,000 as premium for his share of goodwill.
Question 50:
X and Y are partners in a firm. On 1st April, 2023, they admitted Z as a partner and new profit sharing ratio is agreed at 3 : 2 : 1. Their Balance Sheet disclosed ‘Workmen Compensation Reserve’ amounting to ₹ 1,00,000 on this date. Show the accounting treatment, if
(i) Claim for Workmen Compensation is estimated at ₹ 1,20,000.
(ii) Claim for Workmen Compensation is estimated at ₹ 90,000.
Question 51:
A, B and C are partners sharing profits in 2 : 2 : 1. On 1st April, 2023, they admitted Z for 1/4th share. On the date of admission, the following items appeared in their Balance Sheet:
| ₹ | |
| General Reserve | 1,50,000 |
| Workmen Compensation Reserve | 40,000 |
| Profit & Loss A/c | 60,000 |
| Advertisement Suspense A/c (Dr.) | 25,000 |
Pass necessary journal entries.
Question 52:
P and Q were partners sharing profits in the ratio of 2 : 1. On 1st April, 2023, they admitted R as a new partner and the new profit sharing ratio of P, Q and R is agreed at 3 : 1 : 1. R brought in ₹ 2,00,000 as his capital and ₹ 60,000 as his share of premium for goodwill.
On the date of R’s admission, the Balance Sheet of P and Q showed a credit balance of ₹ 45,000 in Profit and Loss A/c and Workmen Compensation Reserve of ₹ 80,000. It was agreed that there was a claim of Workmen Compensation for ₹ 50,000.
Pass necessary Journal entries on R’s admission.
Question 53:
A and B sharing profits and losses in the ratio of 3 : 2 decide to admit C for 1/3rd share. On this date, their Balance Sheet disclosed the following items:
| Investment Fluctuation Reserve | 40,000 |
| Investments (at cost) | 3,00,000 |
Show the accounting treatment in the following cases:
Question 54:
Charu and Deepika were partners sharing profits in the ratio of 3 : 2. They admitted Esha, as a new partner and the new ratio is agreed at 4 : 3 : 2. On the date of Esha’s admission, the Balance Sheet of Charu and Deepika disclosed General Reserve ₹ 1,20,000; Dr. balance in Profit & Loss Account ₹ 40,000; Investments ₹ 2,00,000 and Investment Fluctuation Reserve ₹ 60,000.
The following was agreed upon Eshas’ admission :
(i) Esha will bring ₹ 3,00,000 as her Capital and her share of goodwill premium in cash.
(ii) Goodwill of the firm be valued ₹ 1,80,000.
(iii) The market value of investments was ₹ 2,30,000.
Pass the necessary journal entries.
Question 55:
A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 20,000 | Cash & Bank | 30,000 |
| Bills Payable | 5,000 | Debtors | 60,000 |
| General Reserve | 40,000 | Stock | 1,50,000 |
| Workmen Compensation Reserve | 35,000 | Investments (Market Value ₹ 32,000) | 40,000 |
| Investment Fluctuation Reserve | 10,000 | Plant & Machinery | 2,60,000 |
| Capital Accounts: A B C | 2,00,000 1,50,000 1,00,000 | Profit & Loss Account | 20,000 |
| 5,60,000 | 5,60,000 |
They admit D into partnership for 1/4th share on 1st April, 2024. Give necessary journal entries to adjust the accumulated profits and losses.
Question 56:
(A)
Vimal and Nirmal are partners sharing profits in the ratio of 3 : 2. Following was the position of their business as at 31st March, 2024:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 20,000 | Cash | 14,000 |
| Capital Accounts: Vimal Nirmal | 60,000 32,000 | Debtors | 18,000 |
| Profit & Loss A/c | 20,000 | Plant & Machinery | 50,000 |
| Stock | 40,000 | ||
| Goodwill | 10,000 | ||
| 1,32,000 | 1,32,000 |
On 1st April, 2024, Kailash agrees to join the business on the following terms and conditions:
(I) He will introduce ₹ 40,000 as his capital and pay ₹ 20,000 to the existing partners for his share of goodwill.
(ii) The new profit sharing ratio will be 2 : 1 : 1 respectively for Vimal, Nirmal and Kailash.
(iii) A revaluation of assets will be made by reducing plant and machinery to ₹ 35,000 and stock by 10%. Provision of ₹ 1,000 is to be created for bad and doubtful debts.
Pass journal entries for the above arrangements and give the balance sheet of the newly constituted firm. Also specify the sacrificing ratio.
(B). A and B are partners sharing profits in the ratio of 3 : 1. They admitted C as a partner by giving him 1/4th share of profits which he acquired from A and B in the ratio of 2 : 1. C brings in ₹ 1,00,000 as Capital and ₹ 36,000 as goodwill in cash. At the time of admission of C, general reserve appeared in their balance sheet at ₹ 50,000.
Following revaluations are also made:
I. Value of Plant is to be reduced by ₹ 10,000.
II. Bad Debts Provision is to be reduced from ₹ 4,000 to ₹ 3,000.
III. ₹ 2,000 Out of total Creditors of ₹ 20,000 are not to be paid.
IV. There is an outstanding bill for repairs for ₹ 1,200.
Pass necessary journal entries and prepare a Revaluation Account. Also Calculate the new profit sharing ratios.
Question 57:
X and Y share profits in the ratio of 5 : 3. Their balance sheet as at 31st March, 2024 was as follows:
Balance Sheet as at 31st March
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 15,000 | Cash at Bank | 5,000 |
| Provident Fund | 10,000 | Sundry Debtors 20,000 Less: Provision 600 | 19,400 |
| Workmen’s Compensation Reserve | 5,800 | Stock | 25,000 |
| Capitals: X Y | 70,000 31,000 | Fixed Assets | 80,000 |
| Profit & Loss A/c | 2,400 | ||
| 1,31,800 | 1,31,800 |
They admit Z into partnership on 1st April, 2024 with 1/8th share in profits. Z brings ₹ 20,000 as his capital and ₹ 12,000 for goodwill in cash. Z acquires his share entirely from X. Following revaluations are also made:
1. Provident fund is to be increased by ₹ 5,000.
2.Debtors are all good. Therefore, no provision is required on debtors.
3. Stock includes ₹ 3,000 for obsolete items.
4. Creditors are to be paid ₹ 1,000 more.
5. Fixed Assets are to be revalued at ₹ 70,000.
Prepare Journal entries, necessary accounts and new balance sheet Also calculate the new profit sharing raio.
Solution
Journal Entries
Question 58:
X and Y were partners with capitals of ₹ 4,00,000 and ₹ 3,50,000. They shared profits in the ratio of 3 : 2. On 1st April, 2024, they admitted Z for 1/5th share. On this date their creditors were ₹ 3,20,000 and general reserve ₹ 1,80,000.
Their assets apart from cash consisted of Debtors ₹ 4,32,000; Stock ₹ 3,00,000, Patents ₹ 74,000 and Building ₹ 2,04,000.
Z is to bring in ₹ 3,00,000 as his Capital and to bring in his share of Goodwill in Cash subject to the following terms:
(a) Goodwill of the firm to be valued at ₹ 5,00,000.
(b) Stock be valued at ₹ 2,94,000.
(c) Patents are valueless.
(d) There was a claim against the firm for damages amounting to ₹ 20,000. The claim has now been accepted.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the new firm.
Question 59:
X and Y are partners. They admit Z as a partner and new profit sharing ratio is agreed at 3 : 2 : 1. Z brings in Capital of ₹ 1,50,000 and ₹ 40,000 as premium for goodwill in Cash.
Their Balance Sheet was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors | Cash at Bank | 44,000 | |
| Capital Accounts: X Y | 4,00,000 2,50,000 | Debtors 2,00,00 Less: Provision 14,000 | 1,86,000 |
| Current Accounts: X Y | 30,000 10,000 | Stock | 2,50,000 |
| Workmen Compensation Reserve | 70,000 | Machinery | 1,20,000 |
| Building | 2,00,000 | ||
| 8,00,000 | 8,00,000 |
The assets and liabilities are revalued as under:
(i) Provision for Doubtful Debts is found in excess by ₹ 4,000.
(ii) Building was found under valued by 20% and Machinery overvalued by 20%.
(iii) Part of stock which had been included at a cost of ₹ 10,000 had been badly damaged in storage and could only expect to realise ₹ 2,000.
(iv) Creditors were written off ₹ 6,000.
Pass necessary journal entries.
Question 60:
X, Y and Z are equal partners with capitals of ₹ 1,50,000, ₹ 1,75,000 and ₹ 2,00,000 respectively. They agree to admit W into equal partnership upon payment in cash of ₹ 1,50,000 for one-fourth share of the goodwill and ₹ 1,80,000 as his capital, both sums to remain in the business. The liabilities of the old firm amount to ₹ 3,00,000 and the assets apart from cash, consist of Motors ₹ 1,20,000; Furniture ₹ 40,000; Stock ₹ 2,65,000; Debtors ₹ 3,78,000.
The Motors and Furniture were revalued at ₹ 95,000 and ₹ 38,000 respectively. Draft Journal entries necessary to give effect to the above arrangement and show the initial Balance Sheet of the new firm.
Question 61:
A and B are in partnership sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as at 31st Jan;, 2023 was as follows:
Balance Sheet as at 31st March
| Liabilities | ₹ | Assets | ₹ |
| Capital Accounts: A 4,50,000 B 2,00,000 | 6,50,000 | Cash at Bank | 34,000 |
| Sundry Creditors | 30,000 | Sundry Debtors | 1,66,000 |
| Stock | 2,60,000 | ||
| Fixed Assets | 2,20,000 | ||
| 6,80,000 | 6,80,000 |
As from 1st February, 2023 they agree to admit C as a partner. Share of A, B and C in the new firm will be 3 : 2 : 1 respectively. C to contribute ₹ 1,20,000 as his capital and ₹ 30,000 as his share of goodwill.
The value of the fixed assets of the firm will be increased by 10% before the admission of C.
Pass entries and prepare the opening balance sheet of the firm.
Question 62:
A and B are partners sharing profits in 3 : 1. Their Balance Sheet as at 31st March, 2024 stood as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 2,60,000 | Land and Buildings | 19,80,000 |
| Workmen Compensation Reserve | 40,000 | Stock | 8,00,000 |
| Capital Accounts: A B | 20,00,000 10,00,000 | Sundry Debtors 4,00,000 Less: Provision 12,000 | 3,88,000 |
| Cash at Bank | 1,32,000 | ||
| 33,00,000 | 33,00,000 |
On 1st April, 2024 they admit C as a new partner on the following terms:
(I) The new profit-sharingng ratio of A, B and C will be 3 : 2 : 1.
(ii) Land and Buildings are undervalued by 10%.
(ii) All debtors are good.
(iii) C to bring in ₹ 5,00,000 as Capital and his share of goodwill amounting to ₹ 60,000 in cash.
(iv) You are required to prepare Partner’s Capital Accounts.
Solutions of DK Goel Class 12 Chapter 3 [2025-26] Admission of Partners
