Questions

1.       What is partnership?                                                                                      

2.       What is sacrificing ratio?                                                                                

3.       Describe the essential features of partnership?                                 

Rinni, Rikki and Riya have been sharing profits in the ratio of 5:3:2. Rinni retires, Rikki takes  share from Rinni and Riya takes share from Rinni. Calculate new ratio?               

1.        Ravi and Kavi are partners, sharing profits and losses in the ratio 5:3. Their Balance Sheet on 31^st December, 2011 was as follows:

Liabilities	Rs.	Assets	Rs.
Creditors B/P General Reserve Capitals: Ravi 60,000 Kavi 50,000 Current Accounts: Ravi 15,000 Kavi  6,000	15,000 10,000 8,000 1,10,000 21,000	Cash Debtors Stock Investments Machinery Building Goodwill	12,500 20,000 30,000 7,500 40,000 30,000 24,000
	1,64,000		1,64,000

Savi is admitted on the following conditions:

1.       New profits sharing ratio will be 4:2:1.

2.       Savi will bring Rs. 40,000 as capital and Rs. 10,000 as goodwill in cash.

3.       Half of the goodwill will be withdrawn by the old partners.

4.       The value of stock will decreased by Rs 5,000.

5.       Rs. 1,000 is to be received as commission, hence to be account for.

6.       Rs. 1,100 is to be provided for unforeseen liability, hence to be accounted for.

7.       Investments were valued at Rs. 6,000 and taken over by Ravi at this value.

Prepare the necessary accounts and the balance sheet of new firm.

                  



Practice these questions & submit on 12th of June 2014