From the following which is not needed at the time of admission of a new partner ?
Revaluvation of assets and liabilities
Distribution of undistributed profits and accumulated reserves to the old partner.
Calculation of gaining ratio
Treatment of goodwill
Nim and Mini were partners of a firm sharing profits and loss in the ratio 5:3. On 1st April 2012, the firm's books showed general reserve at Rs. 80000/- and profit and loss a/c showing a debit balance of Rs. 50000/-. On the above date they admitted Nimish into partnership in the ratio 5:3:2. What amount of reserve and profit will the partners receive ?
65000:39000:26000
81250:48750:0
65000:65000:0
43333:43333:43334
Revaluation a/c is credited with
Decrease in the value of assets
Creation of new liability
Increase in the value of assets
Increase in the value of liability
In the following Journal entries which one is not correct for the capital treatment of a new partner Mr. X ?
Cash a/c Dr. xx
To Mr. X a/c xx
Furniture a/c Dr. xx
Mr. X a/c Dr. xx
To Cash a/c xx
Stock a/c Dr. xx
Right acquired by new partner at the time of admission ?
Right to get a share of Accumulated reserves and Undistributed profit.
Right to share the assets and future profits of the partnership firm.
Right to get the share of goodwill of the partnership firm.
Right to get equal share of assets and liabilities and profit and loss of the existing partnership firm.
At the time of admission decrease in value of liability is debited to
Revaluvation a/c
Liability a/c
Old partners capital a/c
P and L adjustment a/c
Beena and Deepa are two partners sharing profit in the ratio of 4:3. They admit Ceena for 1/3rd share of profit. Goodwill a/c stood in their book @ Rs. 60000 and it was on the date of the admission valued at Rs. 30000. What is the Journal entry for goodwill adjustment ?
Goodwill a/c Dr 60000
To Beena's capital a/c 20000
To Deepa's capital a/c 20000
To Ceena's capital a/c 20000
Goodwill a/c Dr 30000
To Beena's capital a/c 17143
To Deepa's capital a/c 12857
Beena's capital a/c Dr 17143
Deepa's capital a/c Dr 12857
To Goodwill a/c 30000
Beena's capital a/c Dr 34286
Deepa's capital a/c Dr 25714
To Goodwill a/c 60000
In which section of the Indian partnership Act says, a new partner can be admitted only with the consent of all the existing partners.
32(1), 1930
30(1), 1932
31(1), 1932
31(1), 1931
At the time of admission Accumulated Reserves and Undistributed profits and loss are transfered to the capital accounts of
Old partners in their sacrificing ratio
Old partners in their new ratio
All partners in their new ratio
Old partners in their old profit sharing ratio
Which of the following is not correct in the adjustment of goodwill according to the point of view of accounting ?
Memorandum Revaluvation Method
Reserve Revaluvation Method
Premium Method
Revaluvation Method
