Practice I. Admission of a Partner - 1.4.1 | ICSE Class 12 Accounts – Chapter 1: Partnership | ICSE Class 12 Accounts
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1.4.1 - I. Admission of a Partner

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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the primary reason for admitting a new partner?

💡 Hint: Think about what businesses need for growth.

Question 2

Easy

What term describes the portion of an existing partner’s share that is given up for the new partner?

💡 Hint: It's a ratio that shows what old partners sacrifice.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the first step when admitting a new partner?

  • Determine goodwill
  • Establish a new profit sharing ratio
  • Revalue assets

💡 Hint: Consider the order in which financial agreements are made.

Question 2

True or False: Goodwill should never be accounted for when admitting a new partner.

  • True
  • False

💡 Hint: Think about the importance of business reputation.

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Challenge Problems

Push your limits with challenges.

Question 1

A partnership firm consisting of three partners (X, Y, Z) has a profit-sharing ratio of 5:3:2. A new partner W is to be admitted, who is willing to pay a goodwill of 20,000. If the new ratio after admission is 4:3:2:1, calculate the sacrificing ratio for each partner, and how much goodwill each will receive.

💡 Hint: Focus on calculating each partner's change in share ratio.

Question 2

Consider a partnership where Partner A wants to retire, and a new Partner B will take their place. How would the goodwill be handled in this situation if Partner A has a significant reputation? Discuss the accounting treatment.

💡 Hint: Look at how Partner A's contributions relate to the overall business value.

Challenge and get performance evaluation