NCERT Class 12 Accountancy Chapter 3 Reconstitution of a Partnership Firm – Admission of a Partner Extra Questions and Answers
Class 12 Accountancy Chapter 3 Extra Questions and Answers – Reconstitution of a Partnership Firm – Admission of a Partner. Here in this Page Class XII Students can Learn Extra Questions & Answer 1st Chapter Accountancy Part I fully Inside.
We Provided Here Reconstitution of a Partnership Firm – Admission of a Partner Accountancy Chapter 3 MCQ Questions, Very Short Type Questions and Short Type Questions.
Class 12 Accountancy Chapter 3 Extra Question with Answer – Reconstitution of a Partnership Firm – Admission of a Partner
Accountancy Chapter 3 Reconstitution of a Partnership Firm – Admission of a Partner Class 12 Inside 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
Board |
NCERT |
Class |
12 |
Book Title |
Accountancy Part I |
Chapter |
3 |
Chapter Name |
Reconstitution of a Partnership Firm – Admission of a Partner |
Topic |
Extra Questions |
NCERT VSA Questions with solution (1 Mark)
(Q1) During admission of a new partner, who decides his share of profit?
Ans: When a new partner is admitted in partnership firm his share of profit is decided mutually among the old partners.
(Q2) Mention two rights of a newly admitted partner.
Ans: Two rights enjoyed by a newly admitted partner are as follows:
(i) Right to share profits of the firm
(ii) Right to participate in the management of the firm.
(Q3) Mention any reason for admitting a new partner in the firm.
Ans: Two reason for admitting a new partner in the firm are as follows:
(i) A new partner is admitted when the firm requires additional capital.
(ii) A new partner can be admitted if he is willing to bring his share of premium for goodwill.
(Q4) Why does a new partner contribute towards goodwill on his admission?
Ans: As during the admission of a new partner the old partners sacrifices their share of profit, so as a compensation paid to them the new partner contributes towards the goodwill of the firm.
(Q5) Mention one purpose for calculating sacrificing ratio during admission of a new partner.
Ans: sacrificing ratio is calculated at the time of admission of a new partner in order to divide the premium for goodwill brought by him/her among the old partners.
(Q6) In which ratio the partners share the gain or loss on revaluation of asset and liabilities?
Ans: The loss or gain on revaluation of assets and liabilities are shared among the partners in their old profit sharing ratio.
(Q7) Define Accumulated profits and accumulated loss.
Ans: Accumulated profits refers to those profits which have been collected years over years and has not been credited to the partner’s capital account.
Accumulated loss are those amount of losses which have not been debited to the partner’s capital account over the years.
(Q8) Show the journal entry for distributing general reserve and profit and loss account balance appearing on the liabilities side of balance sheet.
Ans: General reserve A/c Dr
Profit and loss A/c Dr
To old partner’s capital A/c
(Being the general reserve and profit and loss A/c credited to old partner’s capital A/c in ratio).
(Q9) Name the ratio in which the old partner’s share the amount of cash brought in by the new partner as premium for goodwill.
Ans: The ratio in which the old partners share the amount of cash brought in the new partner as premium for goodwill is “sacrificing ratio”.
(Q10) How is the new partner admitted in a partnership firm?
Ans: A new partner can only be admitted in a partnership firm with the consent of all existing partners according to the section 31 of Indian partnership Act, 1932.
(Q11) Define Revaluation Account.
Ans: Revaluation account is a nominal account which is prepared to record the changes in the value of asset and liabilities over a period of time at the time of admission of a new partner in a partnership firm.
In case you are missed :- Previous Chapter Extra Questions
(Q12) Mention the concept of “Hidden goodwill”.
Ans: When the value of goodwill of the firm is not given but has to be inferred on the basis of net worth of the firm, it is called hidden goodwill.
(Q13) When does premium for goodwill paid by the new partner is not recorded in the books of account of the firm?
Ans: When the new partner pays the amount for premium of goodwill in cash privately outside the business to the old partners. Then this transaction will not be recorded in the books of account of the firm.
(Q14) What treatment is made of accumulated profits and losses on the admission of a new partner?
Ans: Accumulated profits and losses are distributed among the old partners in their old profit sharing ratio and new partner will not share such profits or losses.
(Q15) At the time of admission of a partner, who decides the share of profit of the new partner?
Ans: The old partners decided the share of profit of the new partner as they sacrifice their share of profit in favour of new partner.
Short Answer Question (SAQ)
(Q1) Give the journal entry when the premium for goodwill brought by new partner is withdrawn by the old partners (3 Marks)
Ans: Following are the required journal entries to be passed for the above adjustment of goodwill:
(a) Cash/bank A/c Dr
To premium for goodwill A/c (Being the amount of goodwill/premium brought in cash by new partner).
(b) Premium for goodwill A/c Dr
To old partner’s capital A/c (Being the amount of goodwill/premium transferred to old partner’s capital account in sacrificing ratio)
(c) Old partner’s capital A/c Dr
To cash/Bank A/c (Being, the amount of goodwill/premium withdrawn by the old partners).
(Q2) Show the adjustment of goodwill when the firm already has goodwill in its books and the new partner brings his share of goodwill in cash (3 Marks).
Ans: When the partner brings his/her share of goodwill in cash, and if the goodwill account already appears in the books of the firm, then at first the existing goodwill account will have to be written off. For this purpose the old partner’s capital accounts are debited in their old profit sharing ratio and goodwill account is credited.
Therefore, the adjustment of goodwill for the above case can be depicted through the following journal entries:
(a) Old partner’s capital A/c Dr
To goodwill A/c (Being the old goodwill written off in old profit showing ratio).
(b) Bank/cash A/c Dr
To premium for goodwill A/c (Being, the premium for goodwill brought in cash by new partner)
(c) Premium for goodwill A/c Dr
To old partner’s capital A/c (Being, the premium for goodwill credited to old partner’s capital A/c in sacrificing ratio).
In case you are missed :- Next Chapter Extra Questions
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In which account revaluation account’s profit- loss is transferred??