Admission of Partner Solved Problems covered in this post, represent part 1 of all the questions that we are providing along with detailed explanations and answers on the topic Admission of Partner. Admission of Partner Solved Problems part 2 would cover question 11 to question 20 and can be accessed by clicking the link at the end of the Problem 10.
Admission of Partner Solved Problems : Example 1
Adjusted capital of old partners
Akash and Aman are partners sharing profits and losses in the ratio of 3/4 and 1/4 respectively. Anubhav is admitted into partnership for 1/3 share in profits.The capitals of Akash and Aman before adjustments are Rs. 160000 and Rs. 120000 respectively.Profit on revaluation of assets and liabilities – Rs. 16000 ,General Reserve – Rs. 12000 .Calculate the adjusted capital of Aman .
Explanation:-
Calculation of adjusted capitals of old partners
Aman s capital before adjustment = 160000
Add: Share in general reserve 12000 X 1/4 = 3000
Add: Profit on revaluation 16000 X 1/4 = 4000
Total = 167000
Admission of Partner Solved Problems : Example 2
Capital brought by new partner as per capital of old Partner
Abhya and Amol are partners sharing profits and losses in the ratio of 3/5 and 2/5 respectively. Arpit is admitted into partnership for 1/3 share in profits.The capitals of Abhya and Amol before adjustments are 100000 and 100000 respectively.Profit on revaluation of assets and liabilities-Rs. 10000 ,General Reserve-Rs. 10000 what will be the amount of capital to be brought in by Arpit ?
Explanation:-
Calculation of adjusted capitals of old partners
Abhya s capital before adjustment = 100000
Add share in general reserve 10000 X 3/5 = 6000
Add profit on revaluation 10000 X 3/5 = 6000
Total = 112000
Amol s capital before adjustment = 100000
Add share in general reserve 10000 X 2/5 = 4000
Add profit on revaluation 10000 X 2/5 = 4000
Total = 108000
Calculation of total capital of new firm:
Total share of the firm = 1 , Arpit s share = 1/3
Remaining share for Abhya and Amol = 1 – 1/3 = 2/3
Total capital = Combined adjusted old capital of old partners X Reciprocal of proportion of share of old partners
= 112000 + 108000 X 3/2
= 220000 X 3/2 = 330000
Capital of Arpit = Total capital X Share of Arpit in profits
= 330000 X 1/3
= 110000
Admission of Partner Solved Problems : Example 3
Capital of old partners on the basis of new partners capital
Aksh and Naksh are partners sharing profits and losses in the ratio of 3/5 and 2/5 respectively. Daksh admitted into partnership and it was decided that New profit sharing ratio among Aksh , Naksh and Daksh will be 3: 4: 2. Daksh brought 1200000 as his capital and old partners capital will be valued on the basis of Daksh s capital.What will be the capital all partners?
Explanation:-
Total capital of the firm = Capital brought by Daksh X Reciprocal of proportion of share of Daksh
= 1200000 X 9/2
= 5400000
Aksh s new capital = 5400000 X 3/9 = 1800000
Naksh s new capital = 5400000 X 4/9 = 2400000
Admission of Partner Solved Problems : Example 4
Capital of partners when total capital of the new firm given
Amar and Akbar are partners Antony is admitted into partnership and it was decided that new profit sharing ratio between Amar , Akbar and Antony will be 3/6 , 1/6 and 2/6 respectively.The total capital of the firm is fixed at Rs. 1200000 what will be the capital among Amar , Akbar and Antony ?
Explanation:-
Capital of partners = Total capital of the firm X New profit sharing ratio of partner
Amar s capital = 1200000 X 3/6 = 600000
Akbar s capital = 1200000 X 1/6 = 200000
Antony s capital = 1200000 X 2/6 = 400000
Admission of Partner Solved Problems : Example 5
Entry for distribution of goodwill among sacrificing partner
Ajay and Ram are partners sharing profits and losses in the ratio of 5/12 and 7/12 respectively Shyam admitted into partnership for 1/3th share in the profits of the firm. He brought Rs 12000 for goodwill. What will be the journal entry for distribution of goodwill among old partners.
Explanation:-
Old ratio between existing partners is 3 : 2
So, Ajay s share of goodwill = 12000 X 5/12 = 5000
Ram s share of goodwill = 12000 X 7/12 = 7000
Premium for goodwill A/c Dr 12000
To Ajay s capital A/c 5000
To Ram s capital A/c 7000
Admission of Partner Solved Problems : Example 6
Existing partner’s sacrificing ratio when partner admitted
Aadi and Aarav are partners sharing profits and losses in the ratio of 1/4 and 3/4 respectively. Arnav is admitted into partnership for 2/5 share in the profits of the firm which he will acquire 1/5 from Aadi and 2/3 from Aarav. Calculate the share sacrificed by Aarav .
Explanation:-
Arnav admitted into partnership for = 2/5 share in profits
Arnav will acquire share from Aarav = 2/3 of 2/5 = 4/15
Admission of Partner Solved Problems : Example 7
Goodwill value based on goodwill brought in by new partner
Ahem and Ankit are partners sharing profits and losses in the ratio of 1/2 and 1/2 respectively. Anshul is admitted into partnership for 4/3th share in the profits of the firm. He brought Rs. 12000 for goodwill and Rs. 20000 as capital. What will be the value of total goodwill?
Explanation:-
C s share of profit = 4/3
Goodwill brought in by C = 12000
So, value of total goodwill = 12000 x 3/4
= 9000
Admission of Partner Solved Problems : Example 8
Journal Entry for the treatment of goodwill
Ansh and Vansh are partners sharing profits in the ratio of 1/4 and 3/4 respectively.They admitted Nived as a new partner for 2/3 share in the profits of the firm. Following is the Revaluation account prepared after the admission of Nived . What will be the entries in the books of the firm regarding revaluation of assets and liabilities. .
Explanation:-
Admission of Partner Solved Problems : Example 9
Journal Entry for the treatment of goodwill appeared in B.S
Amar and Akbar are partners sharing profits in the ratio of 1/2 and 1/2 respectively.They admitted Antony as a new partner for 1/3 share in the profits of the firm.following is the Balance sheet of the old firm.What will be the journal entry to record the treatment of goodwill after admission of Antony ?
Explanation:-
Admission of Partner Solved Problems : Example 10
Journal Entry to record decrease in the value of asset
A and B are partners with profit sharing ratio 2/5 and 3/5 respectively.They admitted C as a new partner for 1/3 share in the profits of the firm.following is the Balance sheet of the new firm after admission of C .What will be the journal entry to record the Decrease in the value of Plant and Machinery .
Explanation:-
