{"id":19643,"date":"2023-04-05T14:31:13","date_gmt":"2023-04-05T09:01:13","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=19643"},"modified":"2023-04-05T17:42:54","modified_gmt":"2023-04-05T12:12:54","slug":"ncert-solutions-for-class-12-accountancy-chapter-3","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-accountancy-chapter-3\/","title":{"rendered":"NCERT Solutions for Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 12 Accountancy<\/a> Chapter 3\u00a0Reconstitution of Partnership Firm: Admission of a Partner Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Reconstitution of Partnership Firm: Admission of a Partner NCERT Solutions for Class 12 Accountancy Chapter 3<\/h2>\n

Reconstitution of Partnership Firm: Admission of a Partner Questions and Answers <\/span>Class 12 Accountancy Chapter 3<\/h3>\n

Test Your Understanding-I [Page No. 122]<\/span><\/p>\n

Question 1.
\nA and B are partners sharing profits in the ratio of 3 :1. They admit C for \\(\\frac{1}{4}\\) share in the future profits. The new profit sharing ratio will be :
\n\"NCERT
\nAnswer:
\n(a)
\n\"NCERT<\/p>\n

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Question 2.
\nX and Y share profits in the ratio of 3:2. Z was admitted as a partner who sets \\(\\frac{1}{5}\\) share. New profit sharing ratio, if Z acquires \\(\\frac{3}{20}\\) from X and \\(\\frac{1}{20}\\) from Y would be:
\n(a) 9:7:4
\n(b) 8:8:4
\n(c) 6:10:4
\n(d) 10:6:4
\nAnswer:
\n(a) 9 : 7 : 4
\n\"NCERT<\/p>\n

Question 3.
\nA and B share profits and losses in the ratio of 3 :1, C is admitted into partnership for \\(\\frac{1}{4}\\) share. The sacrificing ratio of A and B is:
\n(a) Equal
\n(b) 3:1
\n(c) 2 : 1
\n(d) 3:2
\nAnswer:
\n\"NCERT
\n\"NCERT<\/p>\n

\"NCERT<\/p>\n

Test Your Understanding-II [Page No. 142]<\/span><\/p>\n

Choose the correct alternative :
\nQuestion 1.
\nAt the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to :
\n(a) all partner’s capital account
\n(b) new partner’s capital account
\n(c) old partner’s capital account
\n(d) none of the above.
\nAnswer:
\n(c) old partner’s capital account.<\/p>\n

Question 2.
\nAsha and Nisha are partner’s sharing profit in the ratio of 2 :1. Asha’s son Ashish was admitted for \\(\\frac{1}{4}\\) share of which \\(\\frac{1}{8}\\) was gifted by Asha to her son. The remaining was contributed by Nisha. Goodwill of the firm in valued at Rs. 40,000. How much of the goodwill will be credited to the old partner’s capital account.
\n(a) Rs. 2,500 each
\n(b) Rs. 5,000 each
\n(c) Rs. 20,000 each
\n(d) None of the above.
\nAnswer:
\n(b) Rs. 5,000 each.<\/p>\n

Question 3.
\nA, B and C are partners in a firm. If D is admitted as a new partner:
\n(a) old firm is dissolved
\n(b) old firm and old partnership is dissolved
\n(c) old partnership is reconstituted
\n(d) None of the above.
\nAnswer:
\n(c) old partnership is reconstituted.<\/p>\n

Question 4.
\nOn the admission of new partner increase in the value of assets is debited to:
\n(a) Profit and Loss Adjustment account
\n(b) Assets account
\n(c) Old partner’s capital account
\n(d) None of the above.
\nAnswer:
\n(b) Assets account.<\/p>\n

\"NCERT<\/p>\n

Question 5.
\nAt the time of admission of a partner, undistributed profits appearing in ti e balance sheet of the old firm is transferred to the capital account of:
\n(a) old partners in old profit sharing ratio
\n(b) old partners in new profit sharing ratio
\n(c) all the partners in the new profit sharing ratio.
\nAnswer:
\n(a) old partners in old profit sharing ratio.<\/p>\n

Do it Yourself [Page No. 144]<\/span><\/p>\n

Question 1.
\nA firm’s profits for the last three years are Rs. 5,00,000; Rs. 4,0, 000 and Rs. 6,00,000. Calculate value of firm’s goodwill on the basis of four years’, purchase of the average profits for the last three years. (Answer:Rs. 20,00,000)
\nAnswer:
\n\"NCERT
\nQuestion 2.
\nA firm’s profits for the last five years were Rs. 20,000; Rs. 30,000; Rs. 40,000; Rs. 50,000 and Rs. 60,000. Calculate the value of firm’s goodwill on the basis of three years’ purchase of weighted average profits after using weight of 1,2,3,4 and 5 respectively.
\nAnswer:
\n\"NCERT
\nQuestion 3.
\nA firm’s profits during 2003,2004,2005 and 2006 were Rs. 16,000; Rs. 20,000; Rs. 24,000 and Rs. 32,000 respectively. The firm has capital investment of Rs. 1,00,000. A fair rate of return on investment is 18% p.a. Compute goodwill based on three years’ purchase of the average super profits for the last four years.
\nAnswer:
\n\"NCERT<\/p>\n

Super Profit:
\nAverage Profit – Normal Profit
\n= Rs, 23,000 – Rs. 18,000
\n= Rs. 5,000
\nGoodwill at 3 years purchased = Super Profit x 3
\n= Rs. 5,000 x 3
\n= Rs. 15,000<\/p>\n

\"NCERT<\/p>\n

Question 4.
\nBased on the data given in the above question, calculate goodwill by capitalisation of super profits method. Will the amount of goodwill be different if it is computed by capitalisation of average profits? Confirm your answer by numerical verification.
\nAnswer:
\n\"NCERT<\/p>\n

Question 5.
\nGiri and Shanta are partners in firm sharing profits equally. They admit Kachroo into partnership who, in addition to capital, brings Rs. 20,000 as goodwill for \\(\\frac{1}{5} t h\\) share of profits in the firm. What shall be journal entries if:
\n(a) no goodwill appears in the books of the firm;
\n(b) goodwill appears in the books of the firm at Rs. 40,000.
\nAnswer:
\nOld Ratio of Giri and Shanta = 1 : 1
\nNew Ratio of Giri, Shanta and Kachroo = 2:2:1
\nSacrificing Ratio = 1 : 1
\n\"NCERT
\n\"NCERT<\/p>\n

Question 6.
\nA and B are partners in a firm sharing profits in the ratio of 3 : 2. They admit C into partnership for \\(\\frac{1}{5}\\) th share of profits in the firm. The goodwill of the firm is valued at Rs. 1,00,000. He is unable to bring in his share of goodwill. What will be the journal entries if:
\n(a) Goodwill is raised at full value and then written off;
\n(b) Goodwill is not raised.
\nAnswer:
\nOld Ratio of A and B = 3 : 2
\nNew Ratio of A, B and C = 9:6:5
\nSacrificing Ratio = 3:2
\n(a) Goodwill is raised at full value and then written off
\nJournal
\n\"NCERT<\/p>\n

Do it Yourself [Page No. 151]<\/span><\/p>\n

Question 1.
\nAslam, Jackab, Hari are equal partners with capitals of Rs. 1,500; Rs. 1,750 and Rs. 2,000 respectively. They agree to admit Satnam into equal partnership upon payment in cash of Rs. 1,500 for one-fourth share of the goodwill and Rs. 1,800 as his capital, both sums to remain in the business. The liabilities of the old firm amount Rs. 3,000 and the assets, apart from cash, consist of Motors Rs. 1,200; Furniture Rs. 400; Stock Rs. 2,650; Debtors of Rs. 3,780. The Motors and Furniture were revalued at Rs. 950 and Rs. 380 respectively, and the depreciation written-off. Ascertain cash in hand and prepare the balance sheet of the firm after Satnam’s admission.
\nAnswer:
\nBooks of Aslam, Jackab and Hari
\nBalance Sheet as at… (before admission)
\n\"NCERT
\n\"NCERT
\n\"NCERT
\n\"NCERT<\/p>\n

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Question 2.
\nBenu and Sunil are partners sharing profits in the ratio of 3 : 2 on April 1, 2003. Ina was admitted for \\(\\frac{1}{4}\\) share who paid Rs. 2,00,000 as capital and Rs. 1,00,000\/- for premium in cash. At the time of admission, general reserve amounting to Rs. 1,20,000\/- and profit and loss account amounting to Rs. 60,000 appeared on the asset side of the balance sheet. Required: Record necessary journal entries to record the above transactions.
\nAnswer:
\n\"NCERT<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nAshoo and Rahul are partners sharing profits in the ratio of 5 : 3. Gaurav was admitted for \\(\\frac{1}{5}\\) share and was asked to contribute proportionate capital and Rs. 4,000 for premium (goodwill). The Capitals of Ashoo and Rahul, after all adjustments relating to revaluation, goodwill etc., worked out to be Rs. 45,000 and Rs. 35,000 respectively.Required: Calculate new profit sharing ratio, capital to be brought in by Gaurav and record necessary journal entries for the same.
\nAnswer:
\n\"NCERT
\n(ii) Capital to be brought in by Gaurav
\nCapital of the Firm = Combined Adjusted Capital of Ashoo and Rahul x Reciprocal Proportion of Share of Ashoo and Rahul.
\n\"NCERT
\n\"NCERT<\/p>\n

Short Answer Type Questions<\/span><\/p>\n

Question 1.
\nIdentify various matters that need adjustments at the time of admission of a new partner.
\nAnswer:
\nAt the time of admission of new partner, the followings are the various matters that need adjustments :<\/p>\n