Reconstitution of a Partnership Firm: Admission of a Partner: Class 12 Accountancy (MP Board) important questions and practice
Reconstitution of a Partnership Firm: Admission of a Partner is chapter 2 of 10 in MP Board Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- New profit sharing ratio and sacrificing ratio
- Goodwill: meaning, methods of valuation (average profit, super profit, capitalisation)
- Treatment of goodwill on admission (premium brought in cash or not)
- Revaluation of assets and liabilities (Revaluation Account)
- Treatment of reserves and accumulated profits/losses
- Adjustment of capitals in the new ratio
What examiners usually ask
- A and B share profits 3:2; C is admitted for 1/4 share which he acquires equally from A and B; calculate the new ratio and sacrificing ratio
- Calculate goodwill by the super profit method when average profit is Rs 60,000, capital employed is Rs 4,00,000 and normal rate of return is 10 percent
- Prepare the Revaluation Account, partners' capital accounts and the Balance Sheet of the new firm on C's admission
Exam tip
Compute the sacrificing ratio before touching goodwill, credit the premium to old partners in that ratio, and write off existing goodwill in the old ratio first; the Balance Sheet should tally if the revaluation profit was shared in the old ratio.
Reconstitution of a Partnership Firm: Admission of a Partner on other boards and exams
Frequently asked questions
What are the important questions from Reconstitution of a Partnership Firm: Admission of a Partner for MP Board Class 12?
The question types listed above repeat most often in MP Board Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Reconstitution of a Partnership Firm: Admission of a Partner in the MP Board Class 12 Accountancy syllabus?
Yes. Reconstitution of a Partnership Firm: Admission of a Partner is part of the current MP Board Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Reconstitution of a Partnership Firm: Admission of a Partner MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.