DK Goel Solutions Class 12 Chapter 4 Admission of a Partner

1. DK Goel Solutions Class 12 Chapter 4 Admission of a Partner DK Goel Solutions Class 12 Chapter 4 Admission of a Partner , which is laid out by master Accountancy instructors from the most recent form of DK Goel Class 12 Accountancy books. We, at Dk Goel Solutions help students to fathom every one of the hypotheses, specifically. There are various ideas in Accountancy, however the ideas of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required. DK Goel Solutions Class 12 – Chapter 4 Short Answer Questions Question 1. Mention the various matters that need adjustments at the time of admission of a partner. Solution 1 Here are the problems that need be changed at the time of a partner’s admission: (i) Net Gains, Reserves and Losses Adjustment. (ii) Goodwill Change Question 2. Explain the accounting treatment of goodwill when the new partner brings his share of goodwill in cash. Solution 2 (i) New partner brings his share of goodwill in cash: Bank A/c Dr.

2. Premium for goodwill A/c (Partners bring his share of goodwill in cash) (ii) Amount of goodwill brought in new partner; (in sacrificing ratio) Premium for goodwill A/c Dr. Sacrificing Partner’s Capital A/c (Goodwill is sacrificed by partners) Question 3. Explain the accounting treatment of goodwill when goodwill account already appears in the books of the firm and new partner bring his share of goodwill in cash. Solution 3 (i) Goodwill account already appearing in the book: Old Partner’s Capital A/c Dr. Goodwill A/c (Amount of goodwill appearing in book distributed in old partners) (ii) Goodwill in cash: Bank A/c Dr. To Premium for goodwill A/c (New partner bring his share of goodwill in cash) (iii) Amount of goodwill brought in new partner (in sacrificing ratio) Premium for goodwill A/c Dr. To Sacrificing Partner’s Capital A/c

3. (New partner bring his share of goodwill in cash) Question 4. Explain the accounting treatment of goodwill when new partner cannot bring his share of goodwill in cash. Solution 4 New Partner’s Current A/c Dr. (Share of goodwill) Sacrificing Partner’s Capital A/c (sacrificing ratio) Question 5. What is hidden goodwill? How is it adjusted on the admission of a partner? Solution 5 Goodwill’s worth is hidden in the query. In such situations, the sum of goodwill is measured on the basis of the firm’s gross resources and the partners’ profit-sharing ratio. Question 6. Why is Revaluation Account prepared? Draw an imaginary Revaluation Account. Solution 6 When a new partner is added, assets are revalued and liabilities are reassessed such that the benefit or damage arising from any revaluation up the date of entry of a new partner will be ascertained and balanced in their old profit-sharing ratio in the Capital Account of the old partners and the new partner does not gain or lose due adjustments in the value of assets or sum of assets

4. Question 7. If new partner brings in proportionate Capital, how can it be calculated? Give a suitable example. Solution 7 The new partner’s Capital is often not provided in the issue. He will be expected to put in Capital proportionately. In both s, the Capital of the new partner would be determined on the basis of the old partner’s Capital left after all the changes and revaluations. Question 8. Disha and Gayatri were partners with Capital contribution of Rs. 30,00,000 and Rs. 20,00,000. They admitted Puja in partnership but did not enter in partnership deed. At the end of the accounting year, Puja insisted that the profit should be shared equally and convinced both Disha and Gyatri. Expalin how Puja would have convinced Disha and Gaytri. Solution 8 Puja may have made the statement that Disha and Gayatri were persuaded by the absence of the Partnership Deed Partnership Act 1932, which prevailed. Question 9. Mohan and Naresh was partners sharing profit in the ratio of 2:1. On 1st April, 2018 they admitted Om in partnership of 1/5th share in profits. On that date, the Balance Sheet showed General Reserve of Rs. 1,50,000. Om was of the opinion that if should be credited all partner’s Capital accounts in their profit sharing ratio. Mohan and Naresh convinced Om that the General Reserve should be credited only their Capital accounts. Explain what argument must have been put forward Mohan and Naresh that convinced Om. Solution 9 Mohan and Naresh may have argued that, while Om was not a collaborator, the General Reserve came into being. In their old profit-sharing mix, it should then be shared only by Mohan and Naresh. Question 10. Arun and Bimal were partners sharing profit in the ration of 2:1. They admitted Dushyant in partnership for 1/4th share. On that date, Balance Sheet of the firm showed Rs. 25,000 as Workmen Compensation Reserve

5. against which there was a liability of Rs. 1,00,000. Arun and Bimal were of the opinion that the excess liability of Rs. 75,000 should be borne all the partners, including incoming partner in their new profit sharing ratio whereas Dushyant was of the opinion that it should be borne old partners in their old profit sharing ratio. Dushyant was able convince both Arun and Bimal. Explain how Dushaynt would have convinced Arun and Bimal. Solution 10 Dushaynt may have argued that the time where he was not a partner was part of the responsibility. Therefore, in their old benefit sharing ratio, old partners should be born. Download Free study materials for your Examinations at DK goel Solutions