Class 12 Accountancy NCERT Solutions Chapter 3 - Reconstitution of a Partnership Firm: Admission of a Partner
NCERT Solutions for CBSE Class 12 Accountancy Chapter 3 Reconstitution for Partnership Firm: Admission of A Partner are available in Vedantu. These NCERT Solutions are designed as per the latest Syllabus of NCERT Accountancy for Class 12. This PDF Covers solutions for all questions that are provided in the CBSE Class 12 Accountancy textbook in Chapter 3. All the solutions are explained in a detailed manner. Students can refer to these solutions for learning the important questions and prepare for their board exams. These NCERT Solutions for CBSE Class 12 Accountancy Chapter 3 Reconstitution for Partnership Firm: Admission of A Partner are available in a PDF format and can be downloaded for free.
Topics Covered in Class 12 Reconstitution for Partnership Firm: Admission of A Partner solutions are as follows:
Modes of Reconstitution of a partnership
Admission of a new partner
Adjustment of capitals
Change in profit sharing ratio among the existing partners
NCERT Solution for Class 12 Accountancy Partnership Accounts Chapter 3 PDF - Free PDF Download
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NCERT Solutions for Class 12 Accountancy Partnership Accounts Chapter 3 Reconstitution of a Partnership Firm- Admission of a Partner can be downloaded from Vedantu in a PDF format.
NCERT Solution for Class 12 Accountancy Chapter 3 Part 1 - Free PDF Download
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NCERT Solutions for Class 12 Accountancy Part 1 Chapter 3
Chapter 3: Reconstitution of a Partnership Firm - Admission of a Partner
Class 12 Accountancy Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner discusses everything that students need to know about the addition of a partner in a firm. If a student is facing issues in understanding this chapter, he or she can search for real-life case studies. Using case studies will allow students to gain a better understanding of everything that is discussed in the chapter. If this tip does not work, students can take live classes on Vedantu. We, at Vedantu, have a team of in-house teachers who go to great lengths to ensure that students always score the best possible marks.
Important points to note:
Meaning of Reconstruction
Change in Profit Sharing Ratio
Accounting Treatment of Goodwill
Format of Revaluation Account
Marks Weightage of CBSE Chapter 3 of Accounts Part 1 Class 12
Class 12th Accounts Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner falls under unit 1 and Part A. According to the guidelines set by CBSE, Part A of Accountancy will constitute a total of 52 marks in the final examination.
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All solutions are written according to the final examination guidelines that were set by CBSE. Following the same pattern for writing answers will ensure that students get the best marks.
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The file is available in a PDF format and can be downloaded for free.
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Important Questions from Reconstitution for Partnership Firm: Admission of A Partner (Short, Long & Practice)
Short Answer Type Questions
1. What is meant by Issued Capital ?
2. What is meant by ‘ Employees Stock Option Plan?
3. A and B are in partnership sharing profits and losses in the ratio of 3:2. They admit C into partnership with 1/5th share which he acquires equally from A and B. Accountant has calculated a new profit sharing ratio as 5:3:2. Is the accountant correct?
Long Answer Type Questions
1. A firm earned an average profit of₹ 3,00,000 during the last few years. The normal rate of return of the industry is 15%. The assets of the business were ₹ 17,00,000 and its liabilities were ₹ 2,00,000. Calculate the goodwill of the firm by capitalisation of average profits.
2. Amar and Akbar are equal partners in a firm. They admitted Anthony as a new partner and the new profit sharing ratio is 4 : 3 : 2. Anthony could not bring his share of goodwill ₹ 45,000 in cash. It is decided to do adjustments for goodwill without opening goodwill accounts. Pass the necessary journal entry for the treatment of goodwill.
3. New Profit Sharing ratio = 5:2:3 .Sacrificing ratio = 2:1 .On April 1, 2018, a firm had assets of ₹ 1,00,000 excluding stock of ₹ 20,000. The current liabilities were ₹ 10,000 and the balance constituted Partners’ Capital Accounts. If the normal rate of return is 8%, the Goodwill of the firm is valued at ₹ 60,000 at four years purchase of super profit, find the actual profits of the firm.
1. At the time of admission of a partner, who decides the share of profit of the new partner out of the firm’s profit?
2. Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1.1.2015 they admitted Yogita as a new partner for 1/10 th share in the profits. On Yogita’s admission, the Profit and Loss Account of the firm was showing a debit balance of ₹ 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the accountant give the correct treatment? Give reason in support of your answer.
3. State one occasion on which a firm can be reconstituted.
Key Features of NCERT Solutions for CBSE Class 12 Accountancy Chapter 3
All the Solutions are accurately written to help students in quickly finding solutions.
Concepts are explained in detail for all questions from CBSE Class 12 Accountancy Chapter 3, Reconstitution for Partnership Firm: Admission of A Partner.
All solutions are easy to understand and learn as they are clearly written by subject experts to match the curriculum.
NCERT solutions for CBSE Class 12 Accountancy Chapter 3 help in developing a good conceptual foundation for students, which is important in the final stages of preparation for board and competitive exams.
These solutions are absolutely free and available in a PDF format.
Access Other Chapters of NCERT Solutions for Class 12 Accountancy - Partnership Accounts (Part 1)
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Access Other Chapters of NCERT Solutions for Class 12 Accountancy - Partnership Accounts (Part 1)
NCERT Solutions for Class 12 Accountancy Chapter 3 on the reconstitution of a partnership firm, specifically focusing on the admission of a partner, provide invaluable insights into the world of business partnerships. This chapter equips students with a deep understanding of the various methods of admitting a partner, accounting for changes in profit-sharing ratios, and the legal formalities involved in the process. By mastering these concepts, students are better prepared to navigate the complexities of real-world business scenarios. These solutions, offered by NCERT and Vedantu, serve as a crucial resource for students to excel in their accountancy studies, making them well-equipped for a successful future in the world of commerce and business.
FAQs on NCERT Solutions for Class 12 Accountancy Chapter 3 - Reconstitution Of A Partnership Firm: Admission Of A Partner
1. What is the Definition of Sacrificing Ratio? What is the Formula for Calculating the Sacrificing Ratio?
Sacrificing ratio is the ratio of shared profits that are sacrificed by the current members of a firm when a new partner joins them.
The formula for calculating the sacrificing ratio is:
Sacrificing ratio = old profit sharing ratio - new profit sharing ratio
2. Define Goodwill.
Goodwill can be defined as the intangible assets that are used for representing the firm value and the reputation of the brand name in the current market.
3. What are the Various Methods for the Treatment of Goodwill on the Addition of a New Member?
These methods for the treatment of goodwill on the addition of a new member are:
4. Is the Solution PDF Free to Download?
Yes. Students can download the solutions of all chapters for free on Vedantu.
5. Where can I find NCERT Solutions for Class 12 Accountancy Chapter 3: Partnership?
NCERT Solutions for Class 12 Accountancy chapter 3: Partnership can be found on Vedantu. Subjects like Accountancy have a lot of real-world applications which students can use in their daily lives. Vedantu provides students with the opportunity to download NCERT Solutions for Class 12 Accountancy Chapter 3 Partnership for free. NCERT Solutions are helpful for all Class 12 students as they will help them score well in their examinations. All the Chapters in NCERT Solutions are written in detail and are explained in simple language. These solutions are available at free of cost on Vedantu(vedantu.com) and mobile app.
6. Why is it important to ascertain a new profit sharing ratio for old partners when a new partner is admitted?
A new partner can join a firm depending on the terms and conditions of the partnership firm. When a new partner is admitted into a new firm, then the old partners in the partnership firm have to sacrifice their share of profit in favour of the new partner. This in turn leads to the reduction of the share of profit for the old partner. Therefore, for this reason, it is important to ascertain a new profit sharing ratio for old partners whenever a new partner joins the firm.
7. Is there a need to reevaluate the assets and liabilities of a firm on the admission of a new partner?
Yes, there is a need to reevaluate the assets and liabilities of a firm on the admission of new partners. When a new partner enters the firm partnership, it becomes necessary to re-evaluate the assets and liabilities of a firm. This is mainly so that in case of admission of a partner, this incoming partner is put to neither an advantage nor a disadvantage. This happens because of the change in the market value of all assets and liabilities when a new partner enters the firm.
8. What are the factors that affect goodwill according to Chapter 3 of Class 12 Accountancy?
Factors that affect goodwill can be internal and external. Internal factors refer to the factors which are within the company. While external factors refer to the factors that are a part of the economic environment of the company. Some of the factors that affect goodwill include Efficient Management, Location, Quality of Goods and Services, Contracts, Access to Supplies, After-Sale Services to Customers, Patents owned by the Firm, Effective Advertisement, and Good Customer Relations. These are important factors in terms of the goodwill of a company.
9. What is Sacrificing Ratio and why is it calculated?
Sacrificing ratio refers to the portion of profit sharing which is sacrificed by current partners when a new partner joins a firm. It is calculated as the difference between the new profit ratio and the old profit ratio. The sacrificing ratio is calculated because the new partner needs to reimburse the existing partner in order for the new partner to make the sacrifice of profit. This reimbursement is paid to the partner in terms of goodwill.