Admission of New Partner

FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

Question

Sanni and Ajayi are in partnership, sharing profits or losses equally. If Kunle is admitted as a new partner to take one-fifth as his share, what is the new profit or loss sharing ratio?

Answer

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Tags: Admission of New Partner, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2012

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

Question

Which of the following adjustments is required to remove goodwill from the books of partnership business, when a new partner is admitted?

A. Debit capital accounts of all partners in new profit-sharing ratio, credit goodwill account

B. Debit capital accounts of old partners in old profit-sharing ratio, credit goodwill account

C. Debit capital accounts of old partners in old profit-sharing ratio, credit capital accounts of all partners in new profit-sharing ratio

D. Debit capital accounts of all partners in new profit-sharing ratio, credit old partners’ capital accounts in old profit-sharing ratio

E. Credit capital accounts of all partners in new profit-sharing ratio, credit cash

Answer

Find Related Questions by Tags, levels, etc.

Tags: Admission of New Partner, Goodwill, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2023

FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

Question

Sanni and Ajayi are in partnership, sharing profits or losses equally. If Kunle is admitted as a new partner to take one-fifth as his share, what is the new profit or loss sharing ratio?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Admission of New Partner, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2012

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

Question

Which of the following adjustments is required to remove goodwill from the books of partnership business, when a new partner is admitted?

A. Debit capital accounts of all partners in new profit-sharing ratio, credit goodwill account

B. Debit capital accounts of old partners in old profit-sharing ratio, credit goodwill account

C. Debit capital accounts of old partners in old profit-sharing ratio, credit capital accounts of all partners in new profit-sharing ratio

D. Debit capital accounts of all partners in new profit-sharing ratio, credit old partners’ capital accounts in old profit-sharing ratio

E. Credit capital accounts of all partners in new profit-sharing ratio, credit cash

Answer

Find Related Questions by Tags, levels, etc.

Tags: Admission of New Partner, Goodwill, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2023

Question Tag: Admission of New Partner

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FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

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FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

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FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

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FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts

Identifying the new profit-sharing ratio when a new partner is admitted.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q28 – Partnership Accounts"

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

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