Start learning →

CA Foundation Reconstitution Admission — practice questions

Explore 6 free Reconstitution Admission questions in CA Foundation Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

Practise Reconstitution Admission with Quill →

Reconstitution Admission questions and exercises with answers

Showing questions 1–6 of 6.

On admission of a partner, the existing profit-sharing ratio between old partners is calledRead the answer and worked solution →Sacrificing ratio is computed asRead the answer and worked solution →Goodwill brought in by a new partner is credited toRead the answer and worked solution →A and B share profits 3:2. C is admitted for 1/5 share with C bringing in cash for goodwill. New ratio isRead the answer and worked solution →Revaluation A/c is prepared on admission toRead the answer and worked solution →Reserves in the books at the time of admission are distributed amongRead the answer and worked solution →

Worked practice questions

On admission of a partner, the existing profit-sharing ratio between old partners is called

  1. Sacrificing ratio
  2. Gaining ratio
  3. Old ratio
  4. New ratio
Show answer and solution

Correct answer: C. Old ratio

1. The 'old ratio' refers to the profit-sharing ratio of partners before reconstitution. 2. Sacrificing ratio = Old ratio − New ratio; it shows what the old partners give up. 3. Gaining ratio arises in retirement/death cases. 4. Hence (C) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.1 ¶§3.1_

Open this question →

Sacrificing ratio is computed as

  1. New ratio − Old ratio
  2. Old ratio − New ratio
  3. Old ratio + New ratio
  4. Capital ratio
Show answer and solution

Correct answer: B. Old ratio − New ratio

1. Sacrificing ratio is the proportion in which the old partners surrender share to the incoming partner. 2. Mathematically: Old ratio − New ratio (positive values). 3. It is used to allocate goodwill brought in by the new partner. 4. Hence (B) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.1 ¶§3.1_

Open this question →

Goodwill brought in by a new partner is credited to

  1. Goodwill A/c (typical) (typical)
  2. Profit & Loss A/c (typical)
  3. New partner (typical) (typical)
  4. Old partners in sacrificing ratio
Show answer and solution

Correct answer: D. Old partners in sacrificing ratio

1. The premium for goodwill compensates the old partners for the share they sacrifice. 2. Hence it is credited to old partners in their sacrificing ratio. 3. It does not stay in a Goodwill A/c on the books, nor go back to the new partner. 4. Hence (B) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.2 ¶§3.2_

Open this question →

How to practise

  1. Choose a Reconstitution Admission question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Reconstitution Admission practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Reconstitution Admission →

More Accountancy topics

Partnership AccountsIntroduction to Accounting & Recording TransactionsAccounting for Partnership Firms: Retirement and Death of a PartnerCompany AccountsIndian Partnership Act 1932Analysis of Financial StatementsBills of ExchangeTrial Balance and Rectification of Errors