Accountancy · Class 12 Commerce
Ch 6Admission of a Partner — Class 12 Accountancy, concept-first.
When an existing partnership firm takes in an additional person as a partner, this event is called Admission of a Partner. Under the Indian Partnership Act, 1932, a new partner can be admitted only with the consent of ALL existing partners, unless the partnership deed itself provides otherwise — admission is, in effect…
Key concepts
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Sacrificing Ratio
The Sacrificing Ratio is the ratio in which the old partners give up part of their former profit share to make room for the new partner.
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of Admission of a Partner and the New Profit-Sharing Ratio
When an existing partnership firm takes in an additional person as a partner, this event is called Admission of a Partner.
Sacrificing Ratio
Admitting a new partner necessarily means the old partners must each give up some part of the share of profit they earlier enjoyed, to make room for the incoming partner's share — this reduction is ca…
Goodwill: Meaning, Need for Valuation, and Its Treatment on Admission
Goodwill is the money value of the reputation, customer loyalty and superior earning capacity that a firm has built up over the years of running its business — it is what allows an established firm to…
Revaluation of Assets and Liabilities
On the date a new partner is admitted, the firm's assets and liabilities are almost never still worth exactly what they were recorded at years earlier — a building may have appreciated, stock may have…
Adjustment of Capital Accounts on Admission
Once the new partner's capital contribution, his premium for goodwill, and each partner's share of revaluation profit or loss have all been settled, a firm will often want the partners' CAPITAL BALANC…
Exercises
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- Q10Distinguish between the New Profit-Sharing Ratio and the Sacrificing Ratio.Free
- Q11State the accounting treatment when a new partner brings his share of goodwill in cash, and the treatment when he is unable to do so.Preview
- Q12On admission of a new partner, the profit or loss on revaluation of assets and liabilities is transferred to the Capital Accounts of: (a) Al…Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Kumar and Suresh are partners sharing profit and losses in the ratio of 3:2 respectively. Their Balance Sheet as on March 31, 2015 was as un…Preview
- Q2X and Y are partners sharing profit and losses in the 1:2 ratio. They have decided to admit 'Z' by giving him 1/4 share in future profits. C…Preview
- Q3Given below is the Balance Sheet of Pinky and Sony, who are carrying a partnership business on 31-12-2017. Pinky and Sony are sharing profit…Preview
- Q4Write a short note on: Sacrificing Ratio.Preview
- Q5Dinesh and Ramesh are partners in a firm sharing profits and losses in the ratio of 3:2. They decided to admit Vasu as a partner with 1/5 sh…Preview
- Q6Ram and Shyam are partners sharing Profit and Loss equally. They have admitted Krishna as partner by giving him 1/5th share in future profit…Preview
- Q7Dinesh and Ramesh are partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to admit Vasu as a partner with 1/5…Preview
- Q8Bunny and Sunny are partners sharing profits in the ratio of 3 : 2. They admitted Chinni as a new partner for 1/6th share in future profits…Preview
More questions
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- Q1A and B are partners sharing profits in the ratio 3:2. They admit C for 1/5th share in future profits, which he acquires equally from A and…Free
- Q2P and Q share profits in the ratio 5:3. They admit R, who acquires his share of 1/4 from P and Q in the ratio 3:1. Find the new profit-shari…Free
- Q3X and Y share profits equally. They admit Z into partnership for 1/4 share. It is agreed that the new profit-sharing ratio of X, Y and Z wil…Free
- Q4A and B share profits in the ratio 3:2. They admit C for 1/4 share. C brings ₹80,000 as capital and ₹20,000 as premium for goodwill in cash,…Preview
- Q5Continuing the facts of the previous illustration (A and B, ratio 3:2; C admitted for 1/4 share, bringing ₹80,000 capital and ₹20,000 premiu…Preview
- Q6D and E share profits equally. They admit F for 1/5 share. The goodwill of the firm is valued at ₹1,00,000, but F is unable to bring his sha…Preview
- Q7A and B share profits equally. On admission of C, the partners agree to the following revaluation: Building is appreciated by ₹15,000; Stock…Preview
- Q8P and Q share profits in the ratio 3:2. Their Balance Sheet as on 31 March 2025 shows Capitals: P ₹1,20,000, Q ₹80,000; Creditors ₹40,000; a…Preview
- Q9X and Y share profits in the ratio 3:2. On admission of Z for 1/5 share, it is agreed that the capitals of all partners shall be made propor…Preview