# Accounting for Partnership Firms (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Accountancy): Questions 117 - 122 of 135

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## Question number: 117

» Accounting for Partnership Firms » Goodwill

One Liner Question▾

### Write in Brief

Give two characteristics of goodwill.

## Question number: 118

» Accounting for Partnership Firms » Past Adjustments

### Write in Short

A and B are partners’ sharing profits in-proportion of 3. : . 2 With Capitals of Rs. 40,000 and Rs. 30,000 respectively’: Interest On Capital is. agreed at 5 % p; a. . B is to be ” allowed an annual salary of Rs. 3,000 which. has not: been Withdrawn. During 2007 the profits for the year prior to calculation ~f Interest on Capital. But after chargin B’s salary amounted to Rs. 12,000. A provision of 5 % of this amount is to be. made in respect of commission to the manager. Prepare an account showing the allocation of profits.

## Question number: 119

» Accounting for Partnership Firms » Reconstitution and Dissolution » Change in the Profit Sharing Ratio

One Liner Question▾

### Write in Brief

Define gaining ratio.

## Question number: 120

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

Essay Question▾

### Describe in Detail

K and Y were partners in a firm sharing profits in 3: 2 ratio. They admitted Z as a new partner for l/3rd share in the profits of the firm. Z acquired his share from K and Y in 2: 3 ratio. Z brought Rs. 80,000 for his capital and Rs. 30,000 for his 1/3”1 share as premium. Calculate the new profit sharing ratio of K, Y and Z and pass necessary journal entries for the above transactions in the books of the firm.

### Explanation

Old Ratio = 3: 2

Z’s share = 1/3

Z acquires from K = 1/3 x 2/5 = 2/15

Z acquires from Y = 1/3 x 3/5 = 3/15

K’s new share = Old share-share to Z = 3/5 - 2/15 = 7/15

Y’s new share = Old share - share to Z = 2/5 - 3/15 = 3/15

New profit sharing ratio = 7: 3: 5

journal entries in the books of account

entries made when new partner takes admission and brought his capital

… (68 more words) …

## Question number: 121

» Accounting for Partnership Firms » Partnership

One Liner Question▾

### Write in Brief

What is the objective of taking a Joint Life Policy by a partnership firm?

## Question number: 122

» Accounting for Partnership Firms » Past Adjustments