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Vidaara.orgClass 12 · Mathematics
CodeVID-M12-WS
Admission of a Partner — Practice Worksheet
Chapter: Admission of a Partner
Topic: Admission of a Partner
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
On admission, the new partner acquires a share of profits and a share of:
  • A.Liabilities only
  • B.The firm's assets
  • C.Nothing
  • D.Drawings
2.
Sacrificing ratio =
  • A.New − Old
  • B.Old − New
  • C.Old + New
  • D.New × Old
3.
A and B share 3:2; C admitted for 1/5, old partners surrender in old ratio. New ratio =
  • A.12:8:5
  • B.3:2:1
  • C.2:2:1
  • D.1:1:1
4.
The goodwill premium is credited to old partners in the:
  • A.New ratio
  • B.Sacrificing ratio
  • C.Capital ratio
  • D.Equal ratio
5.
Self-generated goodwill is not raised in the books because of:
  • A.AS-26
  • B.AS-3
  • C.GST
  • D.The Partnership Act
6.
If the new partner brings goodwill in cash, the Premium A/c is credited to the:
  • A.New partner
  • B.Sacrificing partners
  • C.Bank
  • D.Creditors
7.
If goodwill is NOT brought in cash, the entry debits the:
  • A.Old partners' capitals
  • B.New partner's capital
  • C.Goodwill A/c
  • D.Revaluation A/c
8.
C brings Rs 30,000 for 1/4 share. Implied total capital =
  • A.Rs 1,20,000
  • B.Rs 30,000
  • C.Rs 7,500
  • D.Rs 90,000
9.
Revaluation profit on admission is shared by the:
  • A.New partner only
  • B.Old partners in the old ratio
  • C.All in the new ratio
  • D.Creditors
10.
An increase in an asset is ____ in the Revaluation Account.
  • A.Debited
  • B.Credited
  • C.Ignored
  • D.A liability
11.
Accumulated reserves on admission are credited to:
  • A.The new partner
  • B.Old partners in the old ratio
  • C.All equally
  • D.Cash
12.
Hidden goodwill = implied total capital −
  • A.Actual total capital
  • B.New partner's capital
  • C.Reserves
  • D.Cash
13.
Capital adjustment usually brings capitals into the:
  • A.Old ratio
  • B.New profit-sharing ratio
  • C.Sacrificing ratio
  • D.Gaining ratio
14.
If a partner's actual capital exceeds his required capital, the surplus is:
  • A.Brought in
  • B.Withdrawn or kept in his current account
  • C.Ignored
  • D.Given to the bank
15.
On admission, an unrecorded liability discovered is treated in Revaluation as a:
  • A.Gain (credit)
  • B.Loss (debit)
  • C.Capital
  • D.Reserve
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A and B share 5:3. C is admitted for 1/4, taking 3/16 from A and 1/16 from B. C's share check and A's new share are:
  • A.C = 4/16 = 1/4; A = 10/16 − 3/16 = 7/16
  • B.A = 5/8
  • C.C = 1/8
  • D.A = 1/2
17.
C is admitted for 1/5 and brings Rs 60,000 capital but no goodwill. Combined capital after admission (incl. C) is Rs 2,40,000. C's share of hidden goodwill is:
  • A.Rs 12,000
  • B.Rs 60,000
  • C.Rs 3,00,000
  • D.Nil
18.
C brings Rs 90,000 premium for goodwill; A and B sacrifice 2/15 and 1/15 respectively. A and B receive:
  • A.A Rs 60,000; B Rs 30,000
  • B.A Rs 45,000; B Rs 45,000
  • C.A Rs 30,000; B Rs 60,000
  • D.Equally Rs 45,000 each
19.
Why does the NEW partner not share in the revaluation profit or accumulated reserves?
  • A.They arose before his admission and belong to the old partners
  • B.He is junior
  • C.It is illegal
  • D.He brought capital
20.
C is to bring capital for 1/4 share equal to his proportionate share of the firm's capital. Combined adjusted capital of A and B is Rs 1,80,000. C's capital should be:
  • A.Rs 60,000
  • B.Rs 45,000
  • C.Rs 1,80,000
  • D.Rs 2,40,000
21.
When the premium for goodwill is brought in cash and then withdrawn by the old partners, the extra entry is:
  • A.Old Partners' Capital A/cs Dr; To Cash/Bank A/c
  • B.Cash A/c Dr; To Old Partners
  • C.Goodwill A/c Dr
  • D.No entry
22.
On admission, stock (book Rs 50,000) is revalued to Rs 44,000 and an unrecorded investment of Rs 8,000 is brought in. The net revaluation effect is:
  • A.Profit of Rs 2,000
  • B.Loss of Rs 6,000
  • C.Profit of Rs 8,000
  • D.Loss of Rs 2,000
23.
A and B share 3:2. C gets 1/4, acquired equally from A and B. The sacrificing ratio of A and B is:
  • A.1:1
  • B.3:2
  • C.2:3
  • D.5:3
24.
Workmen Compensation Reserve Rs 40,000 with a claim of Rs 10,000 on admission: the treatment is:
  • A.Provide 10,000 as a liability; distribute the remaining 30,000 to old partners in old ratio
  • B.Distribute all 40,000
  • C.Ignore it
  • D.Give it to the new partner
25.
The fundamental reason a new partner pays a goodwill premium is to:
  • A.Compensate old partners for the share of future super-profits he will now enjoy
  • B.Buy the building
  • C.Pay the creditors
  • D.Increase his own capital only

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) The firm's assets
  2. (B) Old − New
  3. (A) 12:8:5
  4. (B) Sacrificing ratio
  5. (A) AS-26
  6. (B) Sacrificing partners
  7. (B) New partner's capital
  8. (A) Rs 1,20,000
  9. (B) Old partners in the old ratio
  10. (B) Credited
  11. (B) Old partners in the old ratio
  12. (A) Actual total capital
  13. (B) New profit-sharing ratio
  14. (B) Withdrawn or kept in his current account
  15. (B) Loss (debit)
Section B — Challenge / Olympiad (2 marks each)
  1. (A) C = 4/16 = 1/4; A = 10/16 − 3/16 = 7/16
  2. (A) Rs 12,000
  3. (A) A Rs 60,000; B Rs 30,000
  4. (A) They arose before his admission and belong to the old partners
  5. (A) Rs 60,000
  6. (A) Old Partners' Capital A/cs Dr; To Cash/Bank A/c
  7. (A) Profit of Rs 2,000
  8. (A) 1:1
  9. (A) Provide 10,000 as a liability; distribute the remaining 30,000 to old partners in old ratio
  10. (A) Compensate old partners for the share of future super-profits he will now enjoy
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