Practice Test

A, B and C are equal Partners in a Firm with Capital of Rs.16,800, Rs.12,600 respectively, Bills payable Rs.3,300, Creditors Rs.6,000, Cash Rs.600, Debtors Rs.10,800, Stock. Rs.11,400, Furniture Rs.2,400 and Building Rs.19,000. E admitted to the Firm and bring Rs.9,000 as Goodwill and Rs.15,000 as Capital.Half the Goodwill is withdrawn by old Partners, and Stock and Furniture is depreciated by 10%. A provision of 5% on Debtors is created and value of Building is Rs.27,000. Profit on revaluation will be -

Mr. X is admitted into a Partnership Firm for 1/4th share of profits. The Total Capital of the old partners stood at Rs.45,000 after carrying adjustment of Goodwill, revaluation of Assets and liabilities and transfer of Reserves and Surplus . What amount should be brought in by new Partners as his share of Capital at the time admission ?

Guaranteed profit is generally given to____________