Published on August 20, 2014
23 6. Share of goodwill of new partner will be credited to sacrificing partners into their sacrificing ratio. 7. At the admission of new partner Profit & Loss on revaluation of assets and liabilities and balances of accumulated profits & losses will be distributed among old partners (only) in old ratio. Ql. At the time of change in profit sharing ratio among the existing partners, where will you record an unrecorded liability? Ans. Revaluation Account-Debit side Q2. Anand, Bhutan and Chadha are partners sharing profits in ratio of 3:2:1. On 1st April 2007, they decided to share profits equally.Name the partners who is gaining on consequence of such change. Ans. Chadha. Q3. Give two characteristics of goodwill. Ans. (i) it is an intangible asset having a definite value. (ii) It helps in earning more profit. Q4. Name any two factors affecting goodwill of a partnership firm. Ans. (i) Favorable location (ii) Time period Q5. In a partnership firm assets are Rs.5, 00,000 and liabilities are Rs. 2, 00,000. The normal profit rate is 15%. State the amount of normal profits. Ans. Rs.45,000 Q6. Profit of the last year was Rs.20, 000. Ans. Rs.40,000 Q7. among the existing partners? Ans. Revaluation Account- Credit Side.