Question

50,000 for
Chapter 5 . Admission of a Partner 5.103
Assets
Liabilities
Capital A/cs:
capital of
А
50,000
80,000
40,000
70,000
30,000
B
General Reserve
Creditors
1,30,000
10,000
70,000
Land and Building
Plant and Machinery
Stock
Debtors
Less: Provision for Doubtful Debts
Investments
Cash
35,000
1,000
er 2019)
20 was:
34,000
26,000
10,000
2,10,000
2,10,000
5,000
5,000
0,000
2000
000
200
(b) Land and Building were valued at * 65,000 and Plant and Machinery at * 60,000.
(c) Provision for Doubtful Debts was found in excess by 2 400.
(d) A liability of 1,200 included in Sundry Creditors was not payable.
(e) The capitals of the partners be adjusted on the basis of C's contribution of capital to the firm.
(f) Excess or shortfall, if any, be transferred to Current Accounts.
00
81. A and B were partners in a firm sharing profits in 3:1 ratio. They admitted C as a partner for 1/4th share
in future profits. C was to bring * 60,000 for his capital. The Balance Sheet of A and B as at 1st April, 2020,
The other terms agreed upon were:
(a) Goodwill of the firm was valued at 24,000.
the date on which was admitted, was:​

Answer 1

Answer:

The following are the different situations when sacrificing ratio is used.

1. When the existing partners of a partnership firm agree to change the share of profit among themselves.

2. When a new partner is admitted in the partnership firm and the amount of the goodwill brought by him/her is transferred among the old partners in sacrificing ratio of the old partners