Admission of a Partner Problems and Solutions covered in this post, represent part 2 of all the questions that we are providing along with detailed explanations and answers on the topic Admission of Partner. Admission of a Partner Problems and Solutions Part 1 covered question 1 to question 10 and can be accessed by clicking the link here : –
Journal entry to record decrease in the value of liability
Admission of a Partner Problems and Solutions : Example 11
Any and Many are partners with profit sharing ratio 2/7 and 5/7 respectively.They admitted Some 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 Some .What will be the journal entry to record the Decrease in the value of Trade Payables .
Explanation:-
Journal entry to record Increase in the value of asset
Admission of a Partner Problems and Solutions : Example 12
Any and Many are partners with profit sharing ratio 3/7 and 4/7 respectively.They admitted Some as a new partner for 1/5 share in the profits of the firm. Following is the Balance sheet of the new firm after admission of Some .What will be the journal entry to record the increase in the value of Computers .
Explanation:-
Journal Entry-capital and goodwill brought in by new partner
Admission of a Partner Problems and Solutions : Example 13
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 3/2th share in the profits of the firm. He brought Rs. 8000 for goodwill and Rs. 20000 as capital.what will be the journal entry for recording capital and goodwill brought in by Anshul ?
Explanation:-
Bank / Cash A/c Dr 28000
To Anshul s capital A/c 20000
To Premium for goowill A/c 8000
New partner acquires the entire share from existing partner
Admission of a Partner Problems and Solutions : Example 14
Aksh and Naksh are partners sharing profits and losses in the ratio of 7/9 and 2/9 respectively. Daksh is admitted into partnership for 1/2 share in the profits of the firm which he acquired entirely from Naksh .Calculate the share sacrificed by Naksh .
Explanation:-
Daksh admitted into partnership for 1/2 share in profits
Daksh will acquire entirely from Naksh = 1/2
New partner’s share when old partners’ surrender their share
Admission of a Partner Problems and Solutions : Example 15
Anuj and Akash are partners sharing profits and losses in the ratio of 1/5 and 4/5 respectively. Aman is admitted into partnership. Anuj Surrenders 2/3 of his share and Akash Surrenders 1/5 of his share in favour of Aman .What will be Aman s share of profit?
Explanation:-
Share surrendered by Anuj 2/3 of 1/5 = 2/15
Share surrendered by Akash 1/5 of 4/5= 4/25
now Aman s share in profit of the firm =2/15 + 4/25
= (10+12)/75
= 22/75
New profit share of old partner when two partners are added
Admission of a Partner Problems and Solutions : Example 16
Akash and Gagan are partners sharing profits and losses in the ratio of 3/8 and 5/8 respectively. Vayu is admitted into partnership for 2/5 For expanding the business and to meet the requirement of additional capital Indra is admitted as a new partner for 3/2 share in profits which he acquired from Akash and Gagan in 4 : 1 .What will be the new share of profit of Gagan after admission of Indra ?
Explanation:-
Let total profit of the firm = 1
Remaining profit after admission of Vayu = 1 – 2/5
= (5-2)/5
= 3/5
Akash will get 3/8 of 3/5 = 9/40
Gagan will get 5/8 of 3/5 = 15/40
Indra will acquire from Gagan = 3/2 X 1/5 = 3/10
Gagan s new share =15/40 – 3/10 = (15-12)/40
= 3/40
New PSR when new partner acquires entire share from 1 partner
Admission of a Partner Problems and Solutions : Example 17
Anu and Manu are partners sharing profits and losses in the ratio of 4/7 and 3/7 respectively. Ranu is admitted into partnership for 1/2 share in the profits of the firm which he acquired entirely from Anu .What will be the new profit sharing ratio between Anu & Manu ?
Explanation:-
Ranu is admitted into partnership for 1/2 share in profits
Ranu will acquire share from Anu = 1/2
Anu s new share =4/7 – 1/2 = (8 – 7)/14
= 1/14
New profit sharing ratio between Anu & Manu = 1/14 : 3/7
= (1 : 6)/14
= 1:6
New Profit Sharing Ratio when partner acquires shares in fraction
Admission of a Partner Problems and Solutions : Example 18
Aadi and Aarav are partners sharing profits and losses in the ratio of 1/3 and 2/3 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 .What will be the new profit sharing ratio between partners.
Explanation:-
Arnav admitted into partnership for = 2/5 share in profits
Arnav will acquire from Aadi = 1/5 of 2/5 = 2/25
Arnav will acquire from Aarav = 2/3 of 2/5 = 4/15
Remaining share of Aadi = 1/3 – 2/25 = (25 – 6)/75 = 19/75
Remaining share of Aarav = 2/3 – 4/15 = (10 – 4)/15 = 6/15
New profit sharing ratio between Aadi , Aarav and Arnav
= 19/75 : 6/15 : 2/5
= (19 : 30 : 30)/75
= 19 : 30 : 30
New PSR when partner admitted for profit%
Admission of a Partner Problems and Solutions : Example 19
Aa and Bb are partners sharing profits and losses in the ratio of 3/7 and 4/7 respectively. Cc admitted into partnership for 10 % share in profits.What will be the new profit sharing ratio between partners?
Explanation:-
Let total profit of the firm = 1
Cc s share = 10% = 10/100 = 1/10
Remaining profit after admission of Cc = 1 – 1/10
= (10-1)/10
= 9/10
Aa will get 3 of 9/10 = 27/70
Bb will get 4 of 9/10 = 36/70
New profit sharing ratio between Aa , Bb and Cc
= 27/70 : 36/70 : 1/10
= 27 : 36 : 7
New PSR-Admission of 2partners, one after another
Admission of a Partner Problems and Solutions : Example 20
Akash and Gagan are partners sharing profits and losses in the ratio of 3/8 and 5/8 respectively. Vayu is admitted into partnership for 2/5 For expanding the business and to meet the requirement of additional capital Indra is admitted as a new partner for 3/2 share in profits which he acquired from Akash and Gagan in 4 : 1 .What will be the new share of profit of Akash after admission of Vayu ?
Explanation:-
Let total profit of the firm = 1
Remaining profit after admission of Vayu = 1 – 2/5
= (5-2)/5
= 3/5
Akash will get 3/8 of 3/5 = 9/40
Gagan will get 5/8 of 3/5 = 15/40
New share of old partner after admission of a new partner
Example 21
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 remaining share of Aadi.
Explanation:-
Arnav admitted into partnership for = 2/5 share in profits
Arnav will acquired from Aadi = 1/5 of 2/5 = 2/25
Arnav will acquired from Aarav =2/3 of 2/5 = 4/15
Remaining share of Aadi = 1/4 – 2/25 = (25 – 8)/100 = 17/100
New share of old partner after admission of a new partner
Admission of a Partner Problems and Solutions : Example 22
Aadi and Aarav are partners sharing profits and losses in the ratio of 1/2 and 1/2 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 remaining share of Aarav.
Explanation:-
Arnav admitted into partnership for = 2/5 share in profits
Arnav will acquire from Aadi = 1/5 of 2/5 = 2/25
Arnav will acquire from Aarav = 2/3 of 2/5 = 4/15
Remaining share of Aarav = 1/2 – 4/15 = (15 – 8)/30 = 7/30
New share of old partner after surrender of shares
Admission of a Partner Problems and Solutions : Example 23
A and B are partners sharing profits and losses in the ratio of 5/8 and 3/8 respectively. C is admitted into partnership. A surrenders 1/3 of his share and B surrenders 2/5 of his share in favour of C .How much share is surrendered by B .
Explanation:-
Share surrendered by B 2/5 of 3/8 = 6/40
Profit on Revaluation of Assets and Liabilities
Admission of a Partner : Example 24
A and D are partners sharing profits and losses in the ratio of 3/10 and 7/10 respectively K admitted into partnership for 1/4 share in profits on the terms that Plant & Machinery increased by Rs 5000 , Provison for doubtful debt to be create Rs 1250 , Claim to be create against Liability for damages Rs. 750 , Value of Debtors Increased by 250 . What will be the revaluation profit?
Explanation:-
Sacrificing ratio of existing partner when partner admitted
Admission of a Partner Problems and Solutions : Example 25
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 Aadi .
Explanation:-
Arnav admitted into partnership for = 2/5 share in profits
Arnav will acquire share from Aadi = 1/5 of 2/5 = 2/25