Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner › Which matter needs adjustment when a new partner…
Which matter needs adjustment when a new partner is admitted?
AIssue of debentures to partners
BAllotment of shares to the public
CDistribution of accumulated profits
DPayment of dividend to shareholders
Answer & Solution
Correct answer: C. Distribution of accumulated profits
Reserves and accumulated profits belong to the old partners and are shared among them before the new partner joins.
Related questions
Giri and Shanta share equally. Kachroo pays Rs. 20,000 goodwill for 1/5, old-ratio sacrifiAverage profit Rs. 90,000, capital Rs. 8,00,000, normal rate 10%. Goodwill at 4 years' supProfits were 16,000; 20,000; 24,000; 32,000 on capital Rs. 1,00,000 at 18%. Goodwill at 3 Two equal partners admit C and the ratio becomes 2:1:2. Their sacrificing ratio?A and B share 2:1; with C the ratio becomes 3:2:1. Who sacrifices?Two equal partners admit C for 1/3, taken equally from both. New ratio?AS 26 defines an intangible asset as identifiable and what else?Purchased goodwill kept in books should be written off over at most how long?