Partnership Questions for Class 12 Accounts

Overview: Explore important partnership questions for Class 12 accounts, including topics like profit-sharing, partner admissions, and partnership deeds, essential for scoring in the 30-mark chapter of the Class 12 Accountancy exam.

Class 12th is the crucial stage in academics. You need to concentrate on every topic to score better. If you are studying in the Accountancy stream, then one of the important chapters in Class 12 is Partnership. 

Accounting for Partnership Firm includes 30 marks weightage in the overall question paper. To score complete 30 marks, you need to be aware of which type of questions are asked in the exam.

This post shall take you through Partnership Questions for Class 12 Accountancy.  

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Important Concepts in Partnership for Class 12 Accountancy

The 2nd unit of the Class 12 accountancy syllabus is Accounting for Partnership Firms. Under this unit, we have various topics like the Basic concepts, Change in the profit-sharing ratio, Admission of a partner, and many more.

"Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all". The persons who have entered into a partnership with one another are individually called partners and partners collectively are known as a partnership firm.

Features/Characteristics of Partnership

• Two or more persons
• Agreement (written or oral)
• Business with the motive of earning profit
• Mutual agency
• Sharing of profits
• Unlimited liability
• Management and control
• Registration not compulsory

Partnership Deed The document containing the agreement in writing among partners is called partnership deed.

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Importance of Partnership Deed

Partnership deed and its registration is not compulsory but it is always better to have the agreement in writing for the following reasons

• It helps in settling any dispute or doubt with regard to the terms of partnership.
• It serves as an evidence in the court of Law.
• It regulates the duties and powers of each partner.

Maintenance of Capital Accounts of Partners

Capital accounts of partners can be maintained by the following two methods

• Fixed Capital Method: Under this method, two accounts are maintained namely partners' capital account and partners' current account. Transactions related to introduction and withdrawal of capital are recorded in capital accounts, rest of the transactions are recorded in current accounts. Capital account will always have credit balance and current account may have credit or debit balance.
• Fluctuating Capital Method: Under fluctuating capital method, one account is maintained, i.e partners' capital account. All transactions including introduction and withdrawal of capital are recorded in capital account. Generally, capital accounts have credit balance but in exceptional cases it may have debit balance due to heavy losses

Previous Year Questions asked from Accounting for Partnership Firms

As said earlier, the 12th accountancy question paper includes 30 marks weightage from this chapter. Let us check out marks-wise questions asked in previous year's board exams. 

1 Mark Questions

1. Give the meaning of ‘reconstitution of a partnership firm’. (India; Delhi2014)
2. State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partners. (All India 2013)
3. State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners.(Delhi 2013)
4. State any two occasions on which a firm can be reconstituted. (Delhi 2012,2008; All India 2011)
5. Why are ‘reserves and surplus’ distributed at the time of reconstitution of the firm? (Delhi, All India 2010)
6. State the right acquired by a newly admitted partner. (All India 2014,2009; Delhi 2008)
7. What is meant by sacrificing ratio? (Compartment 2014) or State the meaning of sacrificing ratio. (All India 2011)
8. List any two items that need adjustments in the books of accounts of a firm at the time of admission of a partner. (Compartment 2014)
9. X and Y are partners. Y wants to admit his son K into business. Can K become the partner of the firm? Give reason. (Compartment 2014)
10. State any one purpose for admitting a new partner in a firm. (All India 2012)
11. How is a new partner admitted to a firm?
12. State the other rights which a newly admitted partner acquires besides the right to share the profits of the firm. (All India 2009)
13. A and B are partners sharing profits in the ratio of 5: 4. They admit C for l/9 th share, which he acquires from A. Find the new profit sharing ratio. (Delhi 2008C)
14. Under what circumstances will the premium for goodwill paid by the incoming partner not be recorded in the books of accounts.      (Compartment 2014)
15. State the need for treatment of goodwill on the admission of a partner. (Delhi 2010)

2 Marks Questions

1. A and B are partners sharing profits in the ratio of 5 : 4. They admit C for 1/1 Oth share of profit which he acquires in equal proportion from both. Find the new profit sharing ratio. (Delhi 2011c, 2009)
2. A and B are partners sharing profits in the ratio of 5 : 4. They admit C for l/3rd share, which he acquires in equal proportion from both. Find the new profit sharing ratio.     (All India 2011)
3. A and B are partners sharing profits in the ratio of 7 : 3. They admit C for l/5th share,which he acquires in equal proportion from both. Find the new profit sharing ratio.    (All India 2009)
4. A and B are partners with capitals of Rs. 90,000 and Rs. 1,00,000 respectively. They decide to admit C into the partnership for 1/4 th share in the future profits. C is to bring a sum of Rs.  80,000 as his capital. Calculate the amount of goodwill. (All India 2008)
5. Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs. 1,60,000 and Rs.  1,00,000 respectively. They admitted Somesh on 1st April, 2013 as a new partner for 1/5  share in the future profits. Somesh brought Rs.  1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh’s admission.
6. Abhay and Beena are partners in a firm. They admit Chetan as a partner with l/4th share in the profits of the firm. Chetan brings Rs. 2,00,000 as his share of capital. The value of the total assets of the firm is Rs. 5,40,000 and outside liabilities are valued at Rs. 1,00,000 on that date. Give the necessary entry to record goodwill at the time of Chetan’s admission. Also show your working notes.
7. Asin and Shreyas are partners in a firm. They admit Ajay as a new partner with l/5th share in the profits of the firm. Ajay brings Rs.  5,00,000 as his share of capital. The value of the total assets of the firm was Rs.  15,00,000 and outside liabilities were valued at Rs. 5,00,000 on that date. Give the necessary journal entry to record goodwill at the time of Ajay’s admission. Also, show your workings. (All India 2013)
8. A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C as a new partner for 3/7th share in the profits and the new profit sharing ratio will be 2 : 2 : 3. C bought tRs. 2,00,000 as his capital and Rs. 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary journal entries for the above transactions in the books of the firm. (All India 2009)
9. A and B were partners in a firm sharing profits in the ratio of 4 : 3. They admitted C as a new partner for 3/7th share in the profits of the firm. The new profit sharing ratio will be 2 : 2 : 3. C brought Rs.  2,00,000 as his capital and Rs.  60,000 for his share of premium as goodwill, half of which was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary journal entries in the books of the firm for the above transactions. (All India 2009)

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4 Marks Question

1. Anita, Asha and Amrit are partners sharing profits in the ratio of 3:2:1 respectively From 1st January, 2010, they decided to share profits in the ratio of 1:1:1. The partnership deed provided that in the event of any change in profit sharing ratio, the goodwill should be valued at three years’ purchase of the average of five years’ profits. The profits and losses of the preceding five years are

Year	Profit
2005	Rs 120000
2006	Rs 300000
2007	Rs 340000
2008	Rs 380000
Loss
2009	Rs 140000

Showing the working clearly, give the necessary journal entry to record the above change.

2. (i) Rajeev and Sanjeev are partners in a firm sharing profits in the ratio of 3 : 2 respectively. They admit Vijay as a new partner. Rajeev surrenders 1/4 of his share and Sanjeev 1/3 of his share in favour of Vijay. Calculate new profit sharing ratio of Rajeev, Sanjeev and Vijay.
(ii)Anita and Sunita are partners in a firm sharing profits in the ratio of 3 : 2 respectively. They admitted Vinita as a new partner for1/4 share. The new profit sharing ratio between Anita and Sunita will be 2 : 1. Calculate their sacrificing ratio. (Compartment 2014)

3. i) Rohan and Mohan are partners in a firm sharing profits in the ratio of 5:3 respectively. They admit Bhim as a partner for 1/7 share in the profit. The new profit sharing ratio will be 4 : 2 : 1. Calculate the sacrificing ratio of Rohan and Mohan.
(ii) Amla and Kamla are partners in a firm sharing profits in the ratio of 4 : 1 respectively. They admitted Bimla as a new partner for1/4 share in the profits, which she acquired wholly from Amla. Determine the new profit sharing ratio of the partners. (Compartment 2014)

4. A and B are partners sharing profits and losses in the ratio of 2 : 1. They admit C for l/3 rd share which he acquires in equal proportion from both. Find the new profit sharing ratio.  (Foreign 2009)

6 Marks Questions

1. A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. A surrendered l/3rd of his share in favour of C and B surrendered 1/4 th of his share in favour of C. C brought Rs. 1,50,000 for his capital and Rs.  58,000 for his share of goodwill. Calculate new profit sharing ratio of A, B and C, sacrificing ratio of A and B and pass necessary journal entries for the above transactions on C’s admission. (Delhi 2008)
2. B and C were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted D as a new partner for l/4th share in the profits which he acquired from B and C in 3 : 4 ratio. D brought Rs. 1,80,000 for his capital and Rs. 42,000 for his 1/4th share in goodwill. Calculate new profit sharing ratio of B, C and D and pass necessary journal entries for the above transactions on D’s admission in the books of the firm. (Delhi 2008)
3. K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partner for l/3rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio. Z brought Rs. 80,000 for his capital and Rs.  30,000 for his l/3rd share as premium. Calculate the new profits sharing ratio of K, Y and Z and pass necessary journal entries for the above transactions in the books of the firm. (All India 2008)

Mastering the partnership questions in Class 12 Accountancy requires a blend of theoretical knowledge and practical application.

By focusing on the core areas of the partnership chapter and employing consistent practice and revision strategies, students can aim to secure excellent marks in this section of the exam.

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Key Takeaways:

• Clarity on Partnership Basics: A thorough understanding of basic partnership concepts is essential.
• Importance of Partnership Deed: Recognize the legal and practical significance of the partnership deed in managing relations among partners.
• Practice with Purpose: Regular practice of past papers and sample questions to build familiarity and confidence.
• Capital Account Management: Know the methods of maintaining capital accounts and their implications.
• Mock Tests for Mastery: Use mock tests as a strategic tool to improve timing and accuracy under exam conditions.