12th Accountancy - Book Back Answers - Unit 5 - English Medium Guides ~ Kalvi Tips

12th - Accountancy - Book Back Answers - Unit 5 - English Medium

Tamil Nadu Board 12th Standard Accountancy - Unit 5: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 5 – from the Tamil Nadu State Board 12th Standard Accountancy textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Unit 5 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer,
2 Mark Questions: Very Short Answer Questions
3, 4, and 5 Mark Questions: Short Answer Questions, Excercises

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12th students! Prepare well and aim for top scores. Thank you!

Topic: Unit 5 : Admission Of A Partner

I. Choose the correct Answer

Question 1.
Revaluation A/c is a …………….
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Impersonal A/c
Answer Key:
(b) Nominal A/c

Question 2.
On revaluation, the increase in the value of assets leads to ……………..
(a) Gain
(b) Loss
(c) Expense
(d) None of these
Answer Key:
(a) Gain

Question 3.
The profit or loss on revaluation of assets and liabilities is transferred to the capital account of ……………..
(a) The old partners
(b) The new partner
(c) All the partners
(d) The Sacrificing partners
Answer Key:
(a) The old partners

Question 4.
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called ……………..
(a) Capital ratio
(b) Sacrificing ratio
(c) Gaining ratio
(d) None of these
Answer Key:
(b) Sacrificing ratio

Question 5.
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of ……………..
(a) all the partners
(b) the old partners
(c) the new partner
(d) the sacrificing partners
Answer Key:
(d) the sacrificing partners

Question 6.
Which of the following statements is not true in relation to admission of a partner?
(a) Generally mutual rights of the partners change
(b) The profits and losses of the previous years are distributed to the old partners
(c) The firm is reconstituted under a new agreement
(d) The existing agreement does not come to an end
Answer Key:
(d) The existing agreement does not come to an end

Question 7.
Match List I with List II and select the correct Answer Key using the codes given below:

List I				List II
(i) Sacrificing ratio				- 1. Investment fluctuation fund
(ii) Old profit sharing ratio				- 2. Accumulated profit
(iii) Revaluation Account				- 3. Goodwill
(iv) Capital Account				- 4. Unrecorded liability
Codes:		(i)	(ii)	(iii)	(iv)
	(a)	1	2	3	4
	(b)	3	2	4	1
	(c)	4	3	2	1
	(d)	3	1	2	4

Answer Key:
(b) 3 2 4 1

Question 8.
Select the odd one out:
(a) Revaluation profit
(b) Accumulated loss
(c) Goodwill brought by new partner
(d) Investment fluctuation fund
Answer Key:
(c) Goodwill brought by new partner

Question 9.
James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.
(a) 1:3
(b) 3:1
(c) 5:3
(d) 3:5
Answer Key:
(c) 5:3

Question 10.
Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.
(a) 1:3
(b) 3:1
(c) 2:1
(d) 1:2
Answer Key:
(d) 1:2

II.Very short answer questions

1. What is meant by revaluation of assets and liabilities?

When a partner is admitted into the partnership, the assets and liabilities are revalued as the current value may differ from the book value. Determination of current values of assets and liabilities is called revaluation of assets and liabilities.

1. How are accumulated profits and losses distributed among the partners at the time of admission of a new partner?

Profits and losses of previous years which are not distributed to the partners.
Any reserve and accumulated profits and losses belong to the old partners, these distributed old profit-sharing ratio.

3. What is sacrificing ratio?

The old partners may sacrifice a portion of the share of profit to the new partner. The sacrifice may be made by all the partners or some of the partners. Sacrificing ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner. Sacrificing ratio = Ratio of share sacrificed by the old partners

3. Give the journal entry for writing off existing goodwill at the time of admission of a new partner.

Date

Particulars

L.F

Debit

Credit

Old partners’ capital / current A/c Dr To Goodwill A/c

( Existing goodwill written off)

xxx

5. State whether the following will be debited or credited in the revaluation account.

(a) Depreciation on assets
(b Unrecorded liability
(c) Provision for outstanding expenses
(d) Appreciation of assets

(a) Depreciation on assets - Debit Account

(b) Unrecorded liability - Debit Account

(d) Appreciation of assets - Credit Account

III. Short answer questions

1. What are the adjustments required at the time of admission of a partner?

Distribution of accumulated profits, reserves and losses
Revaluation of assets and liabilities
Determination of new profit-sharing ratio and sacrificing ratio
Adjustment for goodwill
Adjustment of capital on the basis of new profit sharing ratio (if so agreed)

2. What are the journal entries to be passed on revaluation of assets and liabilities?

Date	Particulars		L.F	Debit	Credit
	1. For increase in the value of asset Concerned asset A/c To revaluation A/c	Dr.		xxx	xxx
	2.For decrease in the value of asset Revaluation A/c To Concerned asset A/c	Dr.		xxx	xxx
	3.For increase in the amount of liabilities Revaluation A/c Dr. To Concerned liability A/c			xxx	xxx
	4. For decrease in the amount of liability Concerned liability A/c To Revaluation A/c	Dr.		xxx	xxx
	5. For recording an unrecorded asset Concerned asset A/c To Revaluation A/c	Dr.		xxx	xxx
	6. For recording an unrecorded liability Revaluation A/c To Concerned liability A/c	Dr.		xxx	xxx
	7. For transferring the balance in revaluation A/c (a) If there is profit on revaluation Revaluation A/c Dr. To Old partners’ capital A/c (Individually in old ratio)			xxx	xxx
	(b) If there is loss on revaluation Old partners’ capital A/c (individually in old ratio) Dr. To Revaluation A/c			xxx	xxx

3. Write a short note on accounting treatment of goodwill.

When new partner brings cash towards goodwill
When the new partner does not bring goodwill in cash or in kind
When the new partner brings only a part of the goodwill in cash or in kind
Existing goodwill

IV. Excercises

12th Accountancy