Partnership Admission Quiz

When a partner is admitted to a firm, which of the following is not explicitly listed as a necessary adjustment in the provided sources?

• Change in profit sharing ratio

• Treatment of goodwill

• Revaluation of assets and liabilities

• Employee salary adjustments

P and Q are partners sharing profits in the ratio of 3:2. They admit Z for a 1/5th share. What is the new profit sharing ratio of P, Q, and Z?

• 12:8:5

• 3:2:1

• 4:3:2

• 1:1:1

Following the scenario where P and Q share profits 3:2 and admit Z for a 1/5th share, what is the sacrificing ratio of P and Q?

• 1:1

• 3:2

• 5:2

• 2:3

P and Q are partners sharing in the ratio of 3:2. Z is admitted. Z gets 3/20th share from P and 1/20th share from Q. What is the new profit sharing ratio of P, Q, and Z?

• 9:7:4

• 3:2:4

• 12:8:5

• 7:9:4

When an incoming partner pays premium for goodwill in cash, which of the following is the correct journal entry to record the premium being brought in?

• Premium a/c Dr. To Cash a/c

• Cash a/c Dr. To Premium a/c

• Old partners' capital a/c Dr. To Premium a/c

• Premium a/c Dr. To Old partners' capital a/c

After the premium for goodwill is brought in cash by the incoming partner, how is this premium typically credited to the old partners' capital accounts?

• It is credited equally to all old partners.

• It is credited to old partners in their old profit sharing ratio.

• It is credited to old partners in their sacrificing ratio.

• It is credited only to the partner who sacrifices the most.

A & B are partners sharing profits as 7:5. C is admitted as a new partner, and the new profit sharing ratio becomes 5:3:2. The book value of goodwill is ₹8,000 whereas the agreed value is ₹20,000. If C brings the required premium for goodwill in cash, what is the amount of premium C brings?

• ₹20,000

• ₹8,000

• ₹12,000

• ₹2,400

If an incoming partner is temporarily incapable of paying the premium for goodwill, which journal entry is required to be passed?

• Cash a/c Dr. To Premium a/c

• Incoming partners loan a/c Dr. To Old partners' capital a/c

• Premium a/c Dr. To Old partners' capital a/c

• Old partners' capital a/c Dr. To Cash a/c

When an incoming partner is permanently incapable of paying premium for goodwill, and the firm chooses the method of 'Raising and writing off Goodwill,' which ratio is used for writing off goodwill among all partners?

• Old profit sharing ratio

• Sacrificing ratio

• New profit sharing ratio

• Gaining ratio

P and Q are in partnership sharing profits 4:1. They admit R into the firm, R paying a premium for one-third share of the profits; as between themselves, P and Q agree to share future profits and losses equally. In the journal entries for appropriation of premium money, Q's Capital a/c is debited. This specific entry indicates that Q is:

• A sacrificing partner.

• A gaining partner.

• The incoming partner.

• Not affected by the premium.