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Worksheet for Class 12 Accountancy Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner
Class 12 Accountancy students should refer to the following printable worksheet in Pdf for Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner in Grade 12. This test paper with questions and solutions for Standard 12 Accountancy will be very useful for tests and exams and help you to score better marks
Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner Class 12 Accountancy Worksheet Pdf
Question. The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called:
(A) Surplus
(B) Super profits
(C) Reserve
(D) Goodwill
Answer. D
Question. Assets are revalued and liabilities are reassessed at the time of change in profit sharing ratio so that
(a) assets and liabilities are shown at their present values
(b) no partner is put to an advantage or disadvantage
(c) sacrificing partner is partly compensated
(d) assets and liabilities are shown at their market value.
Answer. B
Question. A,B and C are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. Workmen compensation Reserve appearing in Balance Sheet on that date when no information as to workmen compensation claim is given will be
(a) distributed among partners in their capital ratio
(b) distributed among partners in their new profit sharing ratio
( c) distributed among partners in their old profit sharing ratio.
(d) carried forward to new Balance Sheet.
Answer. C
Question. A and B are partners sharing profits in the ratio of 3:2. They changed their profit sharing ratio to 2:3 w.e.f 1st April,2021. The Balance Sheet as on the date of change in profit sharing ratio showed credit balance in profit and loss a/c of Rs.1,00,000,which the partners decide to carry forward and not distribute. The balance of Rs.1,00,000 will be adjusted by
(a) crediting A’s capital a/c and debiting B’s capital a/c by Rs.1,00,000
(b) crediting A’s capital a/c and debiting B’s capital a/c by Rs.20,000
(d) debiting A’s capital a/c and debiting B’s capital a/c by Rs.1,00,000
(b) debiting A’s capital a/c and debiting B’s capital a/c by Rs.20,000
Answer. B
Question. Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of new· agreement is called:
(a) Revaluation of partnership
(b) Reconstitution of partnership
(c) Realisation of partnership
(d) None of the above
Answer. B
Question. A and B are partners in a firm sharing profits in the ratio of 3 : 2. They decided to share fu-ture profits equally. Calculate A’s gain or sacrifice
(a) 2/10 (sacrifice)
(b) 5/10 (gain)
(c) 1/10 (Gain)
(d) 1/10 (sacrifice)
Answer. D
Short Answer Questions
Read the passage below and answer the questions given:
1.Mohan and Sohan, two college friends started a restaurant business in partnership sharing profit and loss in the ratio of 3:2 in the year 2019. Mohan also had a family business of gar-ments, which he took over after his father’s death. As a result, he devoted less time to the res-taurant. Sohan, being his best friend understood this and supported him fully.
However, in the year 2020, due to Covid-19, the restaurant business slowed down Sohan ap-proached Mohan and suggested that they share profits equally.
Mohan readily agreed to it.
The Goodwill of the firm was valued at Rs. 30,000. Also, there is a Workmen Compensation Reserve and General Reserve of Rs. 90,000 and Rs.12,000 respectively.
Question. What single adjusting entry will be passed for goodwill adjustment?
Answer. Debit Sohan and Credit Mohan by Rs 3.000
Question. What journal entry will be passed in case there is a claim on Workmen Compensation Re-serve of Rs. 45,000 ?
Answer. Workmen Compensation Reserve A/c Dr. 90,000
To claim on Workmen Compensation Reserve A/c 45,000
To Mohan’s capital A/c 27,000
To Sohan’s capital A/c 18,000
Question. What journal entry will be used for General Reserve?
Answer. General reserve A/c Dr. 12,000
To Mohan’s capital A/C 7,200
To Sohan’s capital A/C 4,800
2. Bhavna and Rajiv were partners in a partnership firm carrying on a restaurant in Kolkata. Bhavna noticed that a lot of food is left at the end of the day. To avoid wastage, she suggested that it can be distributed to the needy. Rajiv wanted that it should be mixed with the food being served in the next day. Rajiv then give a proposal that if his share in the profit in-creased, he will not mind free distribution of leftover food. Bhavna happily agreed. So, they decided to change their profit-sharing ratio 1:2 with immediate effect. On that day revalua-tion of assets and reassessment of liabilities was carried out that resulted into again of Ra. 18,000. On that date the good will of the firm wasvaluedatRs.1,20,000.
Based on the above in formation, you are required to answer the following questions:
Question. Sacrifice/Gain of Bhavna and Rajiv will be
Answer. Bhavna sacrifice1/6,Rajiv Gain1/6
Question. At thetimeofchangeinProfitSharingratio,gaining partnercapitalaccountis
……………………andsacrificingpartneris ........................ foradjustmentofGoodwill.
Answer. Debited, Credited
3. Karthik and Amit were partners in a firm carrying on a tiffin service in Delhi. Karthik no-ticed that a lot of food is left at the end of the day. To avoid wastage he suggested that it can be distributed to the needy, Amit wanted that it should be mixed with the food being served the next day.
Amit then gave a proposal that if his share in the profit increased, he will not mind free distri-bution of left over food. Karthik happily agreed. So, they decided to change their profit shar-ing ratio 1:2 with immediate effect. On that date, revaluation of assets and reassessment of liabilities was carried out that resulted into a gain of Rs.36,000 On that date the goodwill of the firm was valued at Rs.2,40,000
Question. Sacrifice/gain of Karthik and Amit will be
Answer. Karthik sacrifice 1/6, Amit gains 1/6
Question. At the time of change in profit sharing ratio, gaining partner’s capital a/c is-------- and sac-rificing partner’s capital a/c is ----------------- for adjustment of goodwill
Answer. debited, credited
Question. Pass the journal entry for adjustment of goodwill
Answer. Amit’s capital A/c Dr 40,000
To Karthik’s capital A/c 40,000
Question. What adjustments are required at the time of reconstitution of a partnership firm ?
Answer. Following adjustments are required at the time of reconstitution of a partnership firm:
(i) Determination of sacrificing ratio
(ii) Accounting for Goodwill
(iii) Accounting treatment of reserves and accumulated profits
(iv) Accounting for revaluation of assets and liabilities
(v) Adjustment of capitals
Question. Any changes in the relations of partnership will result in the reconstitution of the partnership firm. Why are reserves and surplus distributed among the partners into existing profit-sharing ratio.
Answer. Reserves and accumulated profits are credited to the capital accounts of all partners in their old profit sharing ratio because they have been set apart out of the profits earned in the period before change. If they are not adjusted , they will get adjusted later in the new profit sharing ratio which will result in loss to the sacrificing partner and gain to the gaining partner.
Question. A and B are partners sharing profits and losses in the ratio of 3:1. It was decided that with effect from 1st April,2021 the profit sharing ratio will be 5:3. Goodwill is to be valued at 2year’s purchase of average of 3years profits. The profits for the years ending 31st March 2019,2020 and 2021 were Rs.36,000 , Rs.32,000 and Rs.40,000 respectively.
Pass the necessary journal entry for the treatment of goodwill.
Answer. B’s capital A/c Dr 9000
To A’s capital A/ 9000
18 Following is the balance sheet of X, Y and Z sharing profits and losses in the ratio 3:3:2.
Please click on below link to download CBSE Class 12 Accountancy Change in Profit Sharing Worksheet Set A
CBSE Class 12 Accountancy Accounting For Not For Profit Organisation Worksheet |
CBSE Class 12 Accountancy Not For Profit Organisation Worksheet Set A |
CBSE Class 12 Accountancy Not For Profit Organisation Worksheet Set B |
CBSE Class 12 Accountancy Accounting For Companies Worksheet |
CBSE Class 12 Accountancy Accounting For Share Capital Worksheet |
CBSE Class 12 Accountancy Financial Statements of A Company Worksheet |
CBSE Class 12 Accountancy Analysis of Financial Statements Worksheet |
CBSE Class 12 Accountancy Tools of Analysis Worksheet Set A |
CBSE Class 12 Accountancy Tools of Analysis Worksheet Set B |