Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board
Chapter 3 - Reconstitution of Partnership (Admission of Partner) [Latest edition]
State True or False with reason.
A newPartner can bring capital in cash or kind. True.
Explanation
As per the provision of partnership deed, when any person is admitted to the firm, he has to bring some amount as capital which can be in cash or in-kind of assets to get rights in the assets and definite share in the future profit of the firm.
When goodwill is paid privately to the partners, it is not recorded in the books. True
Reason.
When goodwill is paid privately to the partners, by a newly admitted person, then in such case no transaction takes place in the business and firm as such is not all benefited. Hence it is not recorded in the books of accounts.
The gain ratio is calculated at the time of admission of a partner.- False.
Reason:
At the time of admission of a person, in the business, sacrifices are made by the old partners in favour of a new partner. It means there is no question of any gain to the partners, so we can say that Gain ratio is not calculated at the time of admission of a partner.
Revaluation profit is distributed among all partners including new partners. - False
Reason:
Revaluation profit arises due to efforts and hardwork of the old partners in the past and hence profit earned on revaluation of assets and liabilities at the time of admission of a person as a partner in the business belongs to old partners. So, such profit is not distributed among all partners including a new partner. It distributed only among old partners.
Change in the relationship between the partners is called the Reconstitution of partnership.True.
Reason:
When any person joins the business as a partner, a change in the relationship takes place. The old agreement is terminated and a new agreement is prepared. There is a change in profit or loss sharing ratio and the relationship of the partners which is known as the Reconstitution of Partnership.
A new partner always bring his share of goodwill in cash.- Flase
Reason.
When a new person is admitted to the partnership firm, the old partners surrender a certain share in profit and give it to a new partner. In exchange for that new partner is required to bring goodwill in cash or in kind. If he is unable to bring cash for goodwill, then Goodwill is raised and adjusted to the new partner’s capital A/c.
When the goodwill is written off, a goodwill account is debited.
False.
Reason:
To write off goodwill means to decrease or wipe out the value of goodwill. When goodwill as an asset of the business is raised, Goodwill A/c is debited in the books of Account. Conversely, when Goodwill is written off from the business, the Goodwill A/c is credited in the books of business.
The new ratio minus old ratio is equal to the sacrifice ratio.
False.
Reason:
When a new partner is admitted, old partners have to sacrifice their profit share in favour of new partner and their old ratio gets reduced and whatever ratio left becomes a new ratio. Hence, as per equation: New Ratio = Old Ratio – Sacrifice Ratio. By interchanging the terms, Sacrifice Ratio = Old Ratio – New Ratio.
Usually, when a new partner is admitted to the firm there will be an increase in the capital of the firm.- True
Reason:
When a new partner is admitted to the firm, he brings his share of capital and goodwill, in cash or in-kind, to enjoy the right of sharing the future profit, and hence there will be an increase in the capital of the firm.
Cash/ Bank Account is credited when goodwill is withdrawn by the old partners.- True
Reason:
When a new partner brings his share of goodwill, old partners have the right to withdraw it in cash. Therefore, when old partners withdraw the amount of goodwill, cash goes out of the firm and not goodwill. Hence Cash/Bank A/c is credited.
Chapter 3: Reconstitution of Partnership (Admission of Partner)
Select appropriate alternatives from those given below and rewrite the sentence.
Write a word/phrase/term which can substitute the following statement.
State True or False with reason.
Find the Odd one.
Calculate the following.
Calculate the following.
Calculate the following.
Answer the following.
PRACTICAL PROBLEMS [PAGES 161 - 167]
Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]
Practical Problems | Q 1 | Page 161
Practical Problems | Q 2 | Page 161
Practical Problems | Q 3 | Page 162
Practical Problems | Q 4 | Page 163
Practical Problems | Q 5 | Page 163
Practical Problems | Q 6 | Page 164
Practical Problems | Q 7 | Page 164
Practical Problems | Q 8 | Page 165
Practical Problems | Q 9 | Page 166
Practical Problems | Q 10 | Page 167
Book-keeping and Accountancy 12th Standard
HSC Maharashtra State Board. Latest Syllabus.
Chapter 1: Introduction to Partnership and Partnership Final Accounts
Chapter 2: Accounts of ‘Not for Profit’ Concerns
Chapter 3: Reconstitution of Partnership (Admission of Partner)
Chapter 4: Reconstitution of Partnership (Retirement of Partner)
Chapter 5: Reconstitution of Partnership (Death of Partner)
Chapter 6: Dissolution of Partnership Firm
Chapter 8: Company Accounts - Issue of Shares
Chapter 9: Analysis of Financial Statements
Chapter 10: Computer In Accounting
ACCOUNTS BOARD PAPERS
HSC Accounts March 2020 Board Paper With Solution
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MARCH 2016 View | PDF Download
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PROFORMA OF TRADING ACCOUNT: View | PDF Download
PROFORMA OF PROFIT & LOSS ACCOUNT: View | PDF Download
PROFORMA OF BALANCE SHEET: View | PDF Download
FINAL ACCOUNT ADJUSTMENTS: View | PDF Download
SINGLE ENTRY: View : PDF Download
FINAL ACCOUNT: View | PDF Download
BILL OF EXCHANGE: View | PDF Download
FORMAT OF BILL: View | PDF Download
ADMISSION OF A PARTNER: View | PDF Download
RETIREMENT OF PARTNER: View | PDF Download
DEATH OF PARTNER: View | PDF Download
ACCOUNTING FOR SHARES : View | PDF Download
DISSOLUTION OF PARTNERSHIP FIRM : View | PDF Download
VALUATION OF GOODWILL WITH SOLUTION: View | PDF Download
FORMAT OF FINAL ACCOUNT : View | PDF Download
INTRODUCTION TO PARTNERSHIP: View | PDF Download
DISSOLUTION OF PARTNERSHIP FIRM
VALUATION OF GOODWILL WITH SOLUTION
ACCOUNTS BOARD PAPERS WITH SOLUTION
MARCH 2014, OCTOBER 2014, MARCH 2015, JULY 2015, MARCH 2016, JULY 2016.JULY 2017, MARCH 2017, MARCH 2018, JULY 2018 MARCH 2019 MARCH 2020
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