The best practice sheet

1. Sehgals’ Academy
An Education Temple
Ramesh Nagar, Moti Nagar, Karampura
Practice Sheet 1
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Q1: X,Y and Z are partners sharing profits and losses in the ratio 4:3:2.They admit A for 1/6th
of share in profits. What is the sacrificing ratio?
Q2: M and N are partners sharing profits in the ratio of 7:5. they admit Q as their manager,
into partnership who is to get 1/6th share in the profits. He acquire this share as 1/18 from M
and 1/9 from N.
Q3: A, B and C are the partners sharing profit and losses in the ratio of 3:2:1. They decided
to share admit D as a new partner for which A surrender 1/20th of his share and B surrender
1/10th of his share. Calculate new profit sharing ratio of the new partnership firm.
Q4: A and B are the partners sharing profit and losses in the ratio of 3:2 decided to admit C as
a new partner. At the time of admission of partner balance sheet of A and B as
follow:
Liabilities Amount Assets Amount
Creditors
Bills payable
Bank loan
A’s capital
B’s capital
500000
500000
500000
500000
500000
Land
Building
Stock
Debtors
Cash
Goodwill
500000
1000000
400000
200000
300000
100000
2500000 2500000
Prepare Revaluation Account on the following terms:-
1) C admits with a capital of Rs 500000 and 50000 as his share of goodwill.
2) Land and building has been appr. by 10%.
3) Make provision for doubtful debts @5%.
4) Stock is to be depreciated by 20%.
Prepare Revaluation account, partner’s capital account and balance sheet.
Q5: M and N are the partners sharing profit and losses in the ratio of 7:3. They decide to admit
O as a new partner for 1/10th share. New partner will bring Rs 200000 as capital and Rs 100000
as his share of goodwill. Following is the Balance Sheet of M and N at the time of admission
of O:-
Balance sheet
Liabilities Amount Assets Amount
Capital: Goodwill 40000

2. M
N
General Reserve
Creditors
Bank loan
Bill Payable
O/s Rent
200000
200000
300000
75000
150000
15000
5000
Plant & Machinery
Land & Building
Cash
Debtors
Bill receivable
Stocks
300000
400000
20000
130000
5000
50000
945000 945000
Draw journal entries with narration and Prepare Revaluation account & show all the workings
clearly after giving effect of following adjustments:
 Plant is to be depreciated by 10%.
 Value of Land and building is raised up to 500000.
 Provide a provision @ 5% for doubtful debt on Debtors.
 Creditors amounting Rs 5000 not likely to be claim.
Prepare Revaluation account, partner’s capital account and balance sheet.