Admission of New Partner

Q. What is meant by the word ‘Company’? Describe its characteristics.

Q. New partner gets two rights in the firm, right in assets and share in future profits. For right in assets he brings capital and for share in future profits he brings goodwill premium.

1. True
2. False

Q.

Someone who announces and plays music on the radio

Q.

What is the full form of GFC?

Q.

Synergy means interaction between two or more organizations, to produce a __________ effect greater than the sum of their separate effects.

1. Both combined and individual

2. combined

3. individual

4. None of these

Q.

At the time of admission of a partner in an existing partnership business, what happens with the profit sharing ratio?

1. none of the above

2. decide and calculate new profit sharing ratio

3. continue with existing profit sharing ratio

4. no treatment

Q.

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted ?

Q.

Can a partner be admitted into the partnership firm with the consent of majority partners?

Q.

Why a retiring/deceased partner is entitled to a share of goodwill of the firm?

Q.

Synergy means interaction between two or more organizations, to produce a combined effect _______ than the sum of their separate effects.

1. less

2. none of the above

3. smaller

4. greater

Q. Short answer type question:
For which share of goodwill a partner is entitled at the time of retirement?

Q.

How is goodwill LBO calculated?

Q. If the new partner brings in his share of goodwill in cash and if goodwill also appears in books, how is existing amount of goodwill dealt with?

Q.

What is meant by the ‘full goodwill’ method?

Q. State 'True' or 'False'

A new partner is admitted in the firm for getting additional capital and skill.

Q. When the minor elects not to become a partner, his share is not liable for any acts of the firm done _________.

1. After his admission to benefits of partnership
2. After the date of giving public notice
3. After the date of attaining majority
4. After the date of dissolution of firm

Q.

Why i is it necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

Q. Why should a new partner contribute for goodwill on admission?

Q. What is meant by Private Placement of Shares?

Q.

A person may be admitted as a partner with the consent of:

1. working partners

2. all the existing partners

3. senior partners

4. majority of the partners

Q. What do you mean by purchasing years?

1. No. of years in which goodwill is purchased.
2. No. of years the goodwill is expected to remain.
3. Both of these
4. None of these

Q. Name the following:
1. A person who lends his name and goodwill for the benefits of a partnership film.
2. A person who contributes capital but does not take part in the business of the firm.
3. A document containing terms and conditions of partnership.
4. A partnership set up for a specific project
5. A person who contributes capital, participates in the business but whose identity is not disclosed to outsiders.

Q. Enumerate the two conditions necessary for formation of Joint Hindu Family Business.

Q. State the reason of contributing for goodwill by a new partner at the time of his admission.

Q. State 'True' or 'False'

The new partner must pay his share of goodwill in cash only.

Q. A Company has current ratio of 3:1 and quick ratio of 9:7 if inventories = 175000 then find current assets , current liabilities And working capital

Q.

In case of admission of a partner, suppose in the question it is only mentioned that the new partner is to bring in 30000 as his share of capital and the firms goodwill is valued at Rs. 28000. His share in profits is 2/10. So his share of goodwill will be 5600. Here it is not mentioned whether he brought his share of goodwill in cash or not. So at the time of his admission, cash a/c will be debited by what amount? 30000 or 35600?

How will I know when I have to credit premium for goodwill a/c and when I have to credit new partners capital a/c?

Q. The objective of admission of a partner is to add value by creating .

1. synergies
2. customer
3. cash
4. asset

Q.

Why is the entry for hidden goodwill is New Cap a/c Dr.

To Old partner cap a/c ?

Thats the enrtywhen the new partner doesnt bring his share of goodwill ryight?

Q. A, B, C and D were partners in a firm. One of the terms of partnership deed was that A could introduce into partnership any of his sons on their attaining the age of 18. As son attained the age of 18 and he proposed to make him a partner. C and D objected to admission of As son. is admission of As son justified?