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Samacheer Kalvi 12th Computer Science Solutions Chapter 5 Python – Variables and Operators

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Tamilnadu Samacheer Kalvi 12th Computer Science Solutions Chapter 5 Python – Variables and Operators

Samacheer Kalvi 12th Computer Science Python – Variables and Operators Text Book Back Questions and Answers

PART – 1
I. Choose The Best Answer

Question 1.
Who developed Python?
(a) Ritche
(b) Guido Van Rossum
(c) Bill Gates
(d) Sunder Pitchai
Answer:
(b) Guido Van Rossum

Question 2.
The Python prompt indicates that Interpreter is ready to accept instruction?
(a) >>>
(b) <<<
(c) #
(d) <<
Answer:
(a) >>>

Question 3.
Which of the following shortcut is used to create new Python Program?
(a) Ctrl + C
(b) Ctrl + F
(c) Ctrl + B
(d) Ctrl + N
Answer:
(d) Ctrl + N

Question 4.
Which of the following character is used to give comments in Python Program?
(a) #
(b) &
(c) @
(d) $
Answer:
(a) #

Question 5.
This symbol is used to print more than one item on a single line?
(a) Semicolon
(b) Dollor($)
(c) Comma(,)
(d) Colon(;)
Answer:
(c) Comma(,)

Question 6.
Which of the following is not a token?
(a) Interpreter
(b) Identifiers
(c) Keyword
(d) Operators
Answer:
(a) Interpreter

Question 7.
Which of the following is not a Keyword in Python?
(a) Break
(b) While
(c) Continue
(d) Operators
Answer:
(d) Operators

Question 8.
Which operator is also called as Comparative operator?
(a) Arithmetic
(b) Relational
(c) Logical
(d) Assignment
Answer:
(b) Relational

Question 9.
Which of the following is not Logical operator?
(a) And
(b) Or
(c) Not
(d) Assignment
Answer:
(d) Assignment

Question 10.
Which operator is also called as Conditional operator?
(a) Ternary
(b) Relational
(c) Logical
(d) Assignment
Answer:
(a) Ternary

PART – II
II. Answer The Following Questions

Question 1.
What are the different modes that can be used to test Python Program?
Answer:
In Python, programs can be written in two ways namely Interactive mode and Script mode. The Interactive mode allows us to write codes in Python command prompt (>>>) whereas in script mode programs can be written and stored as separate file with the extension .py and executed. Script mode is used to create and edit python source file.

Question 2.
Write short notes on Tokens?
Answer:
Python breaks each logical line into a sequence of elementary lexical components known as Tokens. The normal token types are;

Identifiers
Keywords
Operators
Delimiters
Literals

Whitespace separation is necessary between tokens, identifiers or keywords.

Question 3.
What are the different operators that can be used in Python?
Answer:
In computer programming languages operators are special symbols which represent computations, conditional matching etc. The value of an operator used is called operands. Operators are categorized as Arithmetic, Relational, Logical, Assignment etc.

Question 4.
What is a literal? Explain the types of literals?
Answer:
Literal is a raw data given in a variable or constant. In Python, there are various types of literals.

Numeric
String
Boolean

Question 5.
Write short notes on Exponent data?
Answer:
An Exponent data contains decimal digit part, decimal point, exponent part followed by one or more digits.
12.E04, 24.e04 # Exponent data

PART – III
III. Answer The Following Questions

Question 1.
Write short notes on Arithmetic operator with examples?
Answer:
Arithmetic operators:
An arithmetic operator is a mathematical operator that takes two operands and performs a calculation on them. They are used for simple arithmetic. Most computer languages contain a set of such operators that can be used within equations to perform different types of sequential calculations.
Python supports the following Arithmetic operators.

Question 2.
What are the assignment operators that can be used in Python?
Answer:
Assignment operators:
In Python, = is a simple assignment operator to assign values to variable. Let a = 5 and b = 10 assigns the value 5 to a and 10 to b these two assignment statement can also be given as a, b = 5, 10 that assigns the value 5 and 10 on the right to the variables a and b respectively. There are various compound operators in Python like + =, – =,* =, / = % =,** = and //= are also available.

Question 3.
Explain Ternary operator with examples?
Answer:
Conditional operator:
Ternary operator is also known as conditional operator that evaluate something based on a condition being true or false. It simply allows testing a condition in a single line replacing the multiline if – else making the code compact.
The Syntax conditional operator is,
Variable Name = [on – true] if [Test expression] else [on – false]
Example:
min = 50 if 49 < 50 else 70 # min = 50 min = 50 if 49 > 50 else 70 # min = 70

Question 4.
Write short notes on Escape sequences with examples?
Answer:
Escape Sequences:
In Python strings, the backslash “\” is a special character, also called the “escape” character. It is used in representing certain whitespace characters: “\t” is a tab, “\n” is a newline, and “\r” is a carriage return. For example to print the message “It’s raining”, the Python command is >>> print (“It\’s rainning”)
It’s rainning
Python supports the following escape sequence characters.

Question 5.
What are string literals? Explain?
Answer:
String Literals:
In Python a string literal is a sequence of characters surrounded by quotes. Python supports single, double and triple quotes for a string. A character literal is a single character surrounded by single or double quotes. The value with triple – quote is used to give multi – line string literal.
Strings = “This is Python”
char = “C”
multiline _ str = “This is a multiline string with more than one line code”.

PART – IV
IV. Answer The Following Questions

Question 1.
Describe in detail the procedure Script mode programming?
Answer:
Script mode Programming:
Basically, a script is a text file containing the Python statements. Python Scripts are reusable code. Once the script is created, it can be executed again and again without retyping. The Scripts are editable.
Creating Scripts in Python:
(I) Choose File → New File or press Ctrl + N in Python shell window.

(II) An untitled blank script text editor will be displayed on screen

(III) Type the following code in Script editor
a = 100
b = 350
c = a + b
print (“The Sum = “, c)

Saving Python Script
(I) Choose File → Save or Press Ctrl + S

(II) Now, Save As dialog box appears on the screen

(III) In the Save As dialog box, select the location where you want to save your Python code, and type the file name in File Name box. Python files are by default saved with extension .py. Thus, while creating Python scripts using Python Script editor, no need to specify the file extension.

(IV) Finally, click Save button to save your Python script.
Executing Python Script

(I) Choose Run → Run Module or Press F5

(II) If your code has any error, it will be shown in red color in the IDLE window, and Python describes the type of error occurred. To correct the errors, go back to Script editor, make corrections, save the file using Ctrl + S or File → Save and execute it again.

(III) For all error free code, the output will appear in the IDLE window of Python:

Question 2.
Explain input ( ) and print ( ) functions with examples?
Answer:
Input and Output Functions:
A program needs to interact with the user to accomplish the desired task; this can be achieved using Input – Output functions. The input ( ) function helps to enter data at run time by the user and the output function print ( ) is used to display the result of the program on the screen after execution.
The print ( ) function
In Python, the print Q function is used to display result on the screen. The syntax for print Q is as follows:
Example
print (“string to be displayed as output ”)
print (variable)
print (“String to be displayed as output ”, variable)
print (“String1 ”, variable, “String 2”, variable, “String 3”)
Example
>>> print (“Welcome to Python Programming”)
Welcome to Python Programming
>>> x = 5
>>> y = 6
>>> z = x + y
>>> print (z)
11
>>> print (“The sum = ”, z)
The sum = 11
>>> print (“The sum of”, x, “and”, y, “is”, z)
The sum of 5 and 6 is 11
Th print ( ) evaluates the expression before printing it on the monitor. The print ( ) displays an entire statement which is specified within print ( ). Comma ( , ) is used as a separator in print ( ) to print more than one item.
input ( ) function
In Python, input ( ) function is used to accept data as input at run time. The syntax for input ( ) function is,
Variable = input (“prompt string”)
Where, prompt string in the syntax is a statement or message to the user, to know what input can be given.
If a prompt string is used, it is displayed on the monitor; the user can provide expected data from the input device. The input ( ) takes whatever is typed from the keyboard and stores the entered data in the given variable. If prompt string is not given in input ( ) no message is displayed on the screen, thus, the user will not know what is to be typed as input.

Example 1:
input ( ) with prompt string
>>> city = input (“Enter Your City: ”)
Enter Your City: Madurai
>>> print (“I am from “, city)
I am from Madurai

Example 2:
input ( ) without prompt string
>>> city = input ( )
Rajarajan
>>> print (I am from”, city)
I am from Rajarajan
Note that in example – 2, the input ( ) is not having any prompt string, thus the user will not know what is to be typed as input. If the user inputs irrelevant data as given in the above example, then the output will be unexpected. So, to make your program more interactive, provide prompt string with input ( ).
The input ( ) accepts all data as string or characters but not as numbers. If a numerical value is entered, the input values should be explicitly converted into numeric data type. The int ( ) function is used to convert string data as integer data explicitly. We will leam about more such functions in later chapters.

Example 3:
x = int (input(“Enter Number 1: ”))
y = int (input(“Enter Number 2: ”))
print (“The sum =”, x + y)
Output:
Enter Number 1:34
Enter Number 2:56
The sum = 90

Example 4:
Alternate method for the above program
x, y = int (input(“Enter Number 1 :”)), int(input(“Enter Number 2:”))
print (”X = “,x,”Y = “,y)
Output:
Enter Number 1:30
Enter Number 2:50
X = 30 Y= 50

Question 3.
Discuss in detail about Tokens in Python?
Answer:
Tokens:
Python breaks each logical line into a sequence of elementary lexical components known as Tokens. The normal token types are

Identifiers
Keywords
Operators
Delimiters
Literals.

Whitespace separation is necessary between tokens, identifiers or keywords.

(I) Identifiers:
An Identifier is a name used to identify a variable, function, class, module or object.

An identifier must start with an alphabet (A..Z or a..z) or underscore ( _ ).
Identifiers may contain digits (0 .. 9)
Python identifiers are case sensitive i.e. uppercase and lowercase letters are distinct.
Identifiers must not be a python keyword.
Python does not allow punctuation character such as %, $, @ etc., within identifiers.

Example of valid identifiers
Sum, total _ marks, regno, num 1

Example of invalid identifiers
12 Name, name$, total – mark, continue

(II) Keywords
Keywords are special words used by Python interpreter to recognize the structure of program. As these words have specific meaning for interpreter, they cannot be used for any other purpose.

(III) Operators
In computer programming languages operators are special symbols which represent computations, conditional matching etc. The value of an operator used is called operands. Operators are categorized as Arithmetic, Relational, Logical, Assignment etc. Value and variables when used with operator are known as operands.

Arithmetic operators:
An arithmetic operator is a mathematical operator that takes two operands and performs a calculation on them. They are used for simple arithmetic. Most computer languages contain a set of such operators that can be used within equations to perform different types of sequential calculations.
Python supports the following Arithmetic operators.

Relational or Comparative operators:
A Relational operator is also called as Comparative operator which checks the relationship between two operands. If the relation is true, it returns True; otherwise it returns False.

Logical operators:
In python, Logical operators are used to perform logical operations on the given relational expressions. There are three logical operators they are and, or and not.

Assignment operators:
In Python, = is a simple assignment operator to assign values to variable. Let a = 5 and b = 10 assigns the value 5 to a and 10 to b these two assignment statement can also be given as a, b = 5, 10 that assigns the value 5 and 10 on the right to the variables a and b respectively. There are various compound operators in Python like + =, – =, * =, / =, % =, ** = and //= are also available.

Conditional operator:
Ternary operator is also known as conditional operator that evaluate something based on a condition being true or false. It simply allows testing a condition in a single line replacing the multiline if – else making the code compact.
The Syntax conditional operator is,
Variable Name = [on _ true] if [Test expression] else [on _ false]
Example:
min = 50 if 49 < 50 else 70 # min = 50 min = 50 if 49 > 50 else 70 # min = 70

(IV) Delimiters
Python uses the symbols and symbol combinations as delimiters in expressions, lists, dictionaries and strings. Following are the delimiters.

(V) Literals
Literal is a raw data given in a variable or constant. In Python, there are various types of literals.

Numeric
String
Boolean

1. Numeric Literals:
Numeric Literals consists of digits and are immutable (unchangeable). Numeric literals can belong to 3 different numerical types Integer, Float and Complex.

2. String Literals:
In Python a string literal is a sequence of characters surrounded by quotes. Python supports single, double and triple quotes for a string. A character literal is a single character surrounded by single or double quotes. The value with triple-quote is used to give multi-line string literal.

3. Boolean Literals:
A Boolean literal can have any of the two values: True or False.

Escape Sequences:
In Python strings, the backslash “\” is a special character, also called the “escape” character. It is used in representing certain whitespace characters: “\t” is a tab, “\n” is a newline, and “\r” is a carriage return. For example to print the message “It’s raining”, the Python command is
>>>print (“It\’s rainning”)
It’s rainning
Python supports the following escape sequence characters.

Samacheer kalvi 12th Computer Science Python – Variables and Operators Additional Questions and Answers

PART – 1
I. Choose The Best Answer:

Question 1.
Python language was released in the year …………………………….
(a) 1991
(b) 1993
(c) 1995
(d) 1997
Answer:
(a) 1991

Question 2.
CWI means ……………………………
Answer:
Centrum Wiskunde & Information

Question 3.
Python got its name from ……………………………
Answer:
Monthly Python’s Flying Circus

Question 4.
Find the wrong statement from the following.
(a) Python supports procedural approaches
(b) Python supports object oriented approaches
(c) Python is DBMS tool
Answer:
(c) Python is DBMS tool

Question 5.
IDLE means ……………………………
Answer:
Integrated Development Learning Environment

Question 6.
How many modes of programming are there in python?
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(a) 2

Question 7.
The extension for python file is ……………………………
(a) .pyt
(b) .pt
(c) .py
(d) .pyth
Answer:
(c) .py

Question 8.
…………………………… mode is used to create and edit python source file.
(a) Line
(b) Script
(c) Interactive
(d) Interface
Answer:
(b) Script

Question 9.
Which mode can be used as a simple calculator?
(a) Line
(b) Script
(c) Interactive
(d) Interface
Answer:
(c) Interactive

Question 10.
What does prompt (>>>) indicator?
(a) Compiler is ready to debug
(b) Results are ready
(c) Waiting for the Input data
(d) Interpreter is ready to accept Instructions
Answer:
(d) Interpreter is ready to accept Instructions

Question 11.
Which command is used to get output ……………………………
(a) Cout
(b) Print
(c) Print f
(d) Write
Answer:
(b) Print

Question 12.
Find the correct one from the following.
(a) Scripts are reusable and not editable
(b) Scripts are not reusable and they are editable
(c) Scripts are not reusuable, not editable
(d) Scripts are both reusable and editable
Answer:
(d) Scripts are both reusable and editable

Question 13.
Which command is selected from file menu create new script text editor?
(a) New
(b) New file
(c) New editor
(d) New Script file
Answer:
(b) New file

Question 14.
What is the default name for blank script text editor?
(a) Untitled
(b) Untitled 1
(c) Document 1
(d) Editor 1
Answer:
(b) Untitled 1

Question 15.
What is the keyboard shortcut to Run?
(a) F5
(b) Alt + F5
(c) Shift + F5
(d) Ctrl + F5
Answer:
(a) F5

Question 16.
…………………………… command is used to execute python script?
(a) Run
(b) Compile
(c) Run → Run Module
(d) Compile → Compile Run
Answer:
(c) Run → Run Module

Question 17.
Errors in the python script appears in …………………………… color.
(a) Yellow
(b) Red
(c) Blue
(d) Black
Answer:
(b) Red

Question 18.
…………………………… function helps to enter data at run time by the user.
Answer:
input ( )

Question 19.
If …………………………… is not given in input ( ), no message is displayed on the screen.
Answer:
Prompt sting

Question 20.
Identify the wrong statement from the following. The input ( ) accepts all data as
(a) Strings
(b) Characters
(c) Numbers
(d) All the above
Answer:
(c) Numbers

Question 21.
The …………………………… function is used to convert string data as integer data explicitly.
Answer:
int ( )

Question 22.
…………………………… are ignored by the python interpreter.
(a) Keywords
(b) Tokens
(c) Delimiters
(d) Comments
Answer:
(d) Comments

Question 23.
Comments are of …………………………… or …………………………… lines.
Answer:
Single, multi

Question 24.
…………………………… are used to indicate blocks of codes in python.
(a) Whitespaces
(b) { }
(c) [ ]
(d) < >
Answer:
(a) Whitespaces

Question 25.
Python breaks each logical line into a sequence of elementary lexical components called ……………………………
Answer:
Tokens

Question 26.
How many types of tokens are there?
(a) 1
(b) 2
(c) 5
(d) 10
Answer:
(c) 5

Question 27.
Pick the odd one out.
Identifiers, Keywords, Delimiters, Comments, Literals
Answer:
Comments

Question 28.
An identifier is a name used to identify a ……………………………
(a) Variable
(b) Function
(c) Class
(d) All of these
Answer:
(d) All of these

Question 29.
Pick the odd one out.
(a) Sum, regno, numl, 12Name, – Marks
(b) False, class, is, as, if, end
(c) Relational, while, logical, Assignment,
(d) + * % ** = =
Answer:
(a) 12 Name, (b) end, (c) while, (d) =

Question 30.
Find the correct statement from the following
(a) Continue is an identifier
(b) Sum is a keyword
(c) ** = is a delimiter
(d) = = is an assignment operator
Answer:
(c) ** = is a delimiter

Question 31.
How many types of operators are there?
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(d) 5

Question 32.
Match the following
1. // – (i) Modulus
2. # – (ii) Floor division
3. % – (iii) Strings
4. ||| ||| – (iv) Comments
(a) 1 – (ii), 2 – (iv), 3 – (i), 4 – (iii)
(b) 1 – (i), 2 – (ii), 3 – (iii), 4 – (iv)
(c) 1 – (iv), 2 – (ii), 3 – (i), 4 – (iii)
(d) 1 – (iv), 2 – (i), 3 – (iii), 4 – (ii)
Answer:
(a) 1 – (ii), 2 – (iv), 3 – (i), 4 – (iii)

Question 33.
…………………………… are special words used by Python Interpreter
Answer:
Keywords

Question 34.
The value of an operator used is ……………………………
(a) 0
(b) 1
(c) Operands
(d) NULL
Answer:
(c) Operands

Question 37.
Match the following expressions with their equivalent output a = 100, b = 10
(1) >>> a % 30 – (i) 100
(2) >>> a // 30 – (ii) 10.0
(3) >>> a/b – (iii) 3
(4) >>> a * b – (iv) 10
(a) 1 – (iv), 2 – (iii), 3 – (ii), 4 – (i)
(b) 1 – (i), 2 – (ii), 3 – (iii), 4 – (iv)
(c) 1 – (i), 2 – (ii), 3 – (iv), 4 – (iii)
(d) 1 – (iv), 2 – (ii), 3 – (iii), 4 – (i)
Answer:
(a) 1 – (iv), 2 – (iii), 3 – (ii), 4 – (i)

Question 38.
Which operator checks the relationship between two operands.
(a) Relational
(b) Comparative
(c) Both
(d) None of the these
Answer:
(c) Both

Question 39.
Assume a = 100 and b = 35. Find the true statements.
(i) >>> a > b
(ii) >>> a = = b
(iii) >>> a ! = b
(a) (i), (iii) are true
(b) (ii), (iii) are true
(c) (i), (ii) are true
Answer:
(a) (i), (iii) are true

Question 40.
Identify Not equal to operator in python?
(a) < >
(b) ==
(c) NOT EQUAL
(d) ! =
Answer:
(d) ! =

Question 41.
How many logical operators are there?
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

Question 42.
How many comparative operators are there?
(a) 4
(b) 5
(c) 6
(d) 7
Answer:
(c) 6

Question 43.
…………………………… is the simple assignment operator.
(a) ! =
(b) >
(c) >>
(d) =
Answer:
(d) =

Question 44.
Compound operators comes under the category of …………………………… operators.
Answer:
Assingnment

Question 45.
Find the wrongly matched pair.
(a) ! = – relational operator
(b) not a > b – Comparative Operator
(c) **= – delimitors operator
(d) Assingnment Operator
Answer:
(b) not a > b – Comparative Operator

Question 46.
Identify which is not a delimiter
(a) & =
(b) :
(c) ;
(d) ::
Answer:
(d) ::

Question 47.
How many types of literals are there?
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

Question 48.
Numeric literals are ……………………………
(a) Integer, Float, Complex
(b) Int, Float, Void
(c) Int, Float, Char
(d) Int, Float, Boolean
Answer:
(a) Integer, Float, Complex

Question 49.
Strings in python are represented using
(a) ”
(b) “”
(c) “‘ “‘
(d) All of these
Answer:
(d) All of these

Question 50.
Multiline string literal is given by ……………………………
Answer:
“‘ “‘ triple quotes

Question 51.
The two values accepted by Boolean literals are …………………………… or ……………………………
Answer:
True, False

Question 52.
…………………………… is the escape character.
(a) +
(b) t
(c) \
(d) %
Answer:
(c) \

Question 53.
Which one of the following is the newline character?
(a) \t
(b) \v
(c) \r
(d) \n
Answer:
(d) \n

Question 54.
…………………………… is the escape character for carriage return.
Answer:
\r

Question 55.
Pick the odd one out.
(a) Tuples, for, list, dictionaries, Number
(b) \n, \”, V, \r, \k
(c) and, or, not, true
(d) >, > =, <, < =, < >
Answer:
(a) for, (b) \k, (c) true, (d) <>

Question 56.
How many Interger data are there?
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

Question 57.
OX represents …………………………… integer.
Answer:
Hexadecimal

Question 58.
Octal integer uses …………………………… to denote octal digits
(a) OX
(b) O
(c) OC
(d) Od
Answer:
(b) O

Question 59.
Find the hexadecimal Integer.
(a) 0102
(b) 0876
(c) 0432
(d) 0X102
Answer:
(d) 0X102

Question 60.
How many floating point values are there in a complex number?
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(b) 2

Question 61.
What is the another name for fundamental data type?
(a) Class
(b) Built – in
(c) Typedef
(d) User defined
Answer:
(b) Built – in

Question 62.
Which one of the following statement is wrong?
(a) Octal Integer uses upper and lower case O
(b) Hexadecimal Integer uses upper and lower case OX
(c) Long integer uses upper and lower case 1.
Answer:
(c) Long integer uses upper and lower case 1.

PART – II
II. Answer The Following Questions.

Question 1.
How will you create scripts in python?
Answer:
(I) Choose File → New File or press Ctrl + N in Python shell window.

(II) An untitled blank script text editor will be displayed on screen.

Question 2.
Write note on keywords. Give examples?
Answer:
Keywords are special words used by Python interpreter to recognize the structure of program. As these words have specific meaning for interpreter, they cannot be used for any other purpose. Eg, While, if.

PART – III
III. Answer The Following Questions.

Question 1.
What are the key features of python?
Answer:
Key features of Python:
It is a general purpose programming language which can be used for both scientific and non – scientific programming
It is a platform independent programming language.
The programs written in Python are easily readable and understandable

Question 2.
How will you execute python script?
Executing Python Script
(I) Choose Run → Run Module or Press F5

(III) For all error free code, the output will appear in the IDLE window of Python.

Question 3.
Give the syntax for print ( ) function?
Answer:
The syntax for print ( ) is as follows:
Example:
print (“string to be displayed as output ” )
print (variable)
print (“String to be displayed as output ”, variable)
print (“String 1 ”, variable, “String 2”, variable, “String 3”)

Question 4.
Explain the Syntax of input ( ) function?
Answer:
The syntax for inputQ function is,
Variable = input (“prompt string”)
Where, prompt string in the syntax is a statement or message to the user, to know what input can be given.

If a prompt string is used, it is displayed on the monitor; the user can provide expected data from the input device. The input) ) takes whatever is typed from the keyboard and stores the entered data in the given variable. If prompt string is not given in input() no message is displayed on the screen

Question 5.
Give an example for input with and without prompt string?
Example 1: input ( ) with prompt string
>>> city = input (“Enter Your City: ”)
Enter Your City: Madurai

Example 2: input ( ) without prompt string
>>> city = input ( )
Rajarajan

Question 6.
Write a short note on comments?
Answer:
Comments in Python
In Python, comments begin with hash symbol (#). The lines that begins with # are considered as comments and ignored by the Python interpreter. Comments may be single line or no multi – lines. The multiline comments should be enclosed within a set of # as given below.
# It is Single line Comment
# It is multiline comment
which contains more than one line #

Question 7.
Mention some rules for Identifiers?
Answer:

An identifier must start with an alphabet (A..Z or a..z) or underscore (_).
Identifiers may contain digits (0 .. 9)
Python identifiers are case sensitive i.e. uppercase and lowercase letters are distinct.
Identifiers must not be a python keyword.
Python does not allow punctuation character such as %,$, @ etc., within identifiers.

Question 8.
Give any 6 keywords in Python?
Answer:
false, class, none, continue, finally, return, is

Question 9.
Give an example program for Ternary operator?
To test Conditional (Ternary) Operator:
# Program to demonstrate conditional operator
a, b = 30, 20
# Copy value of a in min if a < b else copy b
min = a if a < b else b print (“The Minimum of A and B is “,min) # End of the Program Output: The Minimum of A and B is 20.

Question 10.
Write any 6 delimiters in python?
Answer:

PART – IV
IV. Answer The Following Questions

Question 1.
Explain operators in detail?
Answer:
Operators: In computer programming languages operators are special symbols which represent computations, conditional matching etc. The value of an operator used is called operands. Operators are categorized as Arithmetic, Relational, Logical, Assignment etc. Value and variables when used with operator are known as operands.

(I) Arithematic operators An arithmetic operator is a mathematical operator that takes two operands and performs a calculation on them. They are used for simple arithmetic. Most computer languages contain a set of such operators that can be used within equations to perform different types of sequential calculations.

Python supports the following Arithmetic operators.

To test Arithmetic Operators: #Demo Program to test Arithmetic Operators a = 100 b = 10 print (“The Sum = “,a + b) print (“The Difference = “,a – b) print (“The Product = “,a * b) print (“The Quotient = “,a / b) print (“The Remainder = “,a % 30) print (“The Exponent = “, a ** 2) print (“The Floor Division =”, a // 30) #Program End Output: The Sum = 110 The Difference = 90 The Product = 1000 The Quotient = 10.0 The Remainder = 10 The Exponent = 10000 The Floor Division = 3

(II) Relational or Comparative operators A Relational operator is also called as Comparative operator which checks the relationship between two operands. If the relation is true, it returns True; otherwise it returns False.

To test Relational Operators: #Demo Program to test Relational Operators a = int (input(“Enter a Value for A:”)) b = int (input(“Enter a Value for B:”)) print (“A = “,a,” and B = “,b) print (“The a = = b = “,a = = b) print (“The a > b = “,a > b)
print (“The a < b = “,a < b) print (“The a > = b = “, a > = b)
print (“The a! = b = “,a! = 0)
print (“The a! = b = “,a! = b)
#Program End

Output:
Enter a Value for A: 35
Enter a Value for B: 56
A = 35 and B = 56
The a = =b = False
The a > b = False
The a < b = True The a > = b = False
The a < = b = False
The a ! = b = True

(III) Logical operators
In python, Logical operators are used to perform logical operations on the given relational expressions. There are three logical operators they are and, or and not.

To test Logical Operators:

(IV) Assignment operators
In Python, = is a simple assignment operator to assign values to variable. Let a = 5 and b = 10 assigns the value 5 to a and 10 to b these two assignment statement can also be given as a, b = 5, 10 that assigns the value 5 and 10 on the right to the variables a and b respectively. There are various compound operators in Python like + =, – =, * =, /=, % =, ** = and //= are also available.

To test Assingnment Operators:

(V) Conditional operator
Ternary operator is also known as conditional operator that evaluate something based on a condition being true or false. It simply allows testing a condition in a single line replacing the multiline if – else making the code compact.
The Syntax conditional operator is,
Variable Name = [on _ true] if [Test expression] else [on _ false]
Example:
min = 50 if 49 < 50 else 70 # min = 50 min = 50 if 49 > 50 else 70 # min = 70
To test Conditional (Ternary) Operator:
# Program to demonstrate conditional operator
a, b = 30, 20
# Copy value of a in min if a < b else copy b
min = a if a < b else b print (“The Minimum of A and B is “,min) # End of the Program Output: The Minimum of A and B is 20.

Question 2.
Write the Output for the given program?
Answer:

Question 3.
Explain literals and its types?
Answer: Literal is a raw data given in a variable or constant. In Python, there are various types of literals.

(I) Numeric Literals Numeric Literals consists of digits and are immutable (unchangeable). Numeric literals can belong to 3 different numerical types Integer, Float and Complex. To demonstrate Numeric literals # Program to demonstrate Numeric Literals a = Ob 1010 #Binary Literals b = 100 #Decimal Literal c = 0o310 #Octal Literal d = Ox 12c #Hexadecimal Literal print (“Integer Literals :”,a, b, c, d) #Float Literal float_1 = 10.5 float_2 = 1.5e2 print (“Float Literals :”,float_1, float_2) #Complex Literal x = 1 + 3.14 j print (“Complex Literals:”, x) Print (“x = “, x , “Imaginary part of x = “, x.imag, “Real part of x = “, x.real) #End of the Program Output: Integer Literals: 10 100 200 300 Float Literals: 10.5 150.0 Complex Literals: x = (1.3.14) Imaginary part of x = 3.14 Real part of 9 x = 1.0

(II) String Literals: In Python a string literal is a sequence of characters surrounded by quotes. Python supports single, double and triple quotes for a string. A character literal is a single character surrounded by single or double quotes. The value with triple-quote is used to give multi – line string literal. To test String Literals # Demo Program to test String Literals strings = “This is Python” char = “C” multiline_str = ‘”This is a multiline string with more than one line code.'” print (strings) print (char) print (multiline_str) # End of the Program Output: This is Python C C This is a multiline string with more than one line code.

(III) Boolean Literals A Boolean literal can have any of the two values: True or False. # Demo Program to test String Literals boolean _ 1 = True boolean _ 2 = False print (“Demo Program for Boolean Literals”) print (“Boolean Value 1 :”,boolean_1) print (“Boolean Value2 :”,boolean_2) # End of the Program Output: Demo Program for Boolean Literals Boolean Value 1: True Boolean Value2: False (iv) Escape Sequences In Python strings, the backslash “\” is a special character, also called the “escape” character. It is used in representing certain whitespace characters: “\t” is a tab, “\n” is a newline, and “\r” is a carriage return. For example to print the message “It’s raining”, the Python command is >>> print (“ItVs rainning”)
It’s rainning
Python supports the following escape sequence characters.

Question 4.
Explain data types in python?
Answer:
Python Data types:
All data values in Python are objects and each object or value has type. Python has Built-in or Fundamental data types such as Number, String, Boolean, tuples, lists and dictionaries.

Number Data type:
The built – in number objects in Python supports integers, floating point numbers and complex numbers.
Integer Data can be decimal, octal or hexadecimal. Octal integer use O (both upper and lower case) to denote octal digits and hexadecimal integer use OX (both upper and lower case) and L (only upper case) to denote long integer.
Example:
102, 4567, 567 # Decimal integers
0102, o876, 0432 # Octal integers
0X102, oX876, 0X432 # Hexadecimal integers
34L, 523L # Long decimal integers
A floating point data is represented by a sequence of decimal digits that includes a decimal point. An Exponent data contains decimal digit part, decimal point, exponent part followed by one or more digits.
Example :
123.34, 456.23, 156.23 # Floating point data
12.E04, 24.e04 # Exponent data
Complex number is made up of two floating point values, one each for the real and imaginary parts.

Boolean Data type:
A Boolean data can have any of the two values: True or False.

Example:
Bool_varl = True
Bool_var2 = False

String Data type:
String data can be enclosed with single quote or double quote or triple quote.

Example:
Char_data = ‘A’
String_data = “Computer Science”
Multiline_data= “““String data can be enclosed with single quote or double quote or triple quote.”””

Samacheer Kalvi 12th Accountancy Solutions Chapter 4 Goodwill in Partnership Accounts

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 4 Goodwill in Partnership Accounts

Samacheer Kalvi 12th Accountancy Goodwill in Partnership Accounts Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Which of the following statements is true?
(a) Goodwill is an intangible asset
(b) Goodwill is a current asset
(c) Goodwill is a fictitious asset
(d) Goodwill
Answer:
(a) Goodwill is an intangible asset

Question 2.
Super profit is the difference between ………………..
(a) Capital employed and average profit
(b) Assets and liabilities
(c) Average profit and normal profit
(d) Current year’s profit and average profit
Answer:
(c) Average profit and normal profit

Question 3.
The average rate of return of similar concerns is considered as ………………..
(a) Average profit
(b) Normal rate of return
(c) Expected rate of return
(d) None of these
Answer:
(b) Normal rate of return

Question 4.
Which of the following is true?
(a) Super profit = Total profit / number of years
(b) Super profit = Weighted profit / number of years
(c) Super profit = Average profit – Normal profit
(d) Super profit = Average profit x Years of purchase
Answer:
(c) Super profit = Average profit – Normal profit

Question 5.
Identify the incorrect pair ………………..
(a) Goodwill under Average profit method – Average profit x Number of years of purchase
(b) Goodwill under Super profit method – Super profit x Number of years of purchase
(c) Goodwill under Annuity method – Average profit x Present value of annuity factor
(d) Goodwill under Weighted average profit method – Weighted average profit x Number of years of purchase
Answer:
(c) Goodwill under Annuity method – Average profit x Present value of annuity factor

Question 6.
When the average profit is ₹ 25,000 and the normal profit is ₹ 15,000, super profit is ………………..
(a) ₹ 25,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) ₹ 15,000
Answer:
(c) ₹ 10,000

Question 7.
Book profit of 2017 is ₹ 35,000; non – recurring income included in the profit is ₹ 1,000 and abnormal loss charged in the year 2017 was ₹ 2,000, then the adjusted profit is ………………..
(a) ₹ 36,000
(b) ₹ 35,000
(c) ₹ 38,000
(d) ₹ 34,000
Answer:
(a) ₹ 36,000

Question 8.
The total capitalised value of a business is ₹ 1,00,000; assets are ₹ 1,50,000 and liabilities are ₹ 80,000. The value of goodwill as per the capitalisation method will be ………………..
(a) ₹ 40,000
(b) ₹ 70,000
(c) ₹ 1,00,000
(d) ₹ 30,000
Answer:
(d) ₹ 30,000

II. Very Short Answer Questions

Question 1.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profit. It is the present value of a firm’s future excess earnings. It is an intangible asset as it has no physical existence.

Question 2.
What has acquired goodwill?
Answer:
Goodwill acquired by making payment in cash or kind is called acquired or purchased goodwill. When a firm purchases an existing business, the price paid for purchase of such business may exceed the net assets (Assets – Liabilities) of the business acquired.

Question 3.
What is a super profit?
Answer:
Super profit is the excess of average profit over the normal profit of a business.
Super profit = Average profit – Normal profit.
Average profit is calculated by dividing the total of adjusted actual profit of certain number of years by the total number of such years. Normal profit is the profit earned by the similar business firms under normal conditions.
Normal profit = Capital employed x Normal rate of return Capital employed = Fixed assets + Current assets – Current liabilities

Question 4.
What is the normal rate of return?
Answer:
Normal rate of return = It is the rate at which profit is earned by similar business entities in the industry under normal circumstances.

Question 5.
State any two circumstances under which goodwill of a partnership firm is valued?
Answer:

When there is a change in the profit-sharing ratio.
When a new partner is admitted into a firm.
When an existing partner retires from the firm or when a partner dies.
When a partnership firm is dissolved.

III. Short Answer Questions

Question 1.
State any six factors determining goodwill.
Answer:

The profitability of the firm
Favourable location of the business enterprises
good quality of goods or services offered
Tenure of the business enterprises
Efficiency of management.
Degree of Competition

Question 2.
How is goodwill calculated under the super-profits method?
Answer:
1. Purchase of super profit method: Goodwill is calculated by multiplying the super profit by a certain number of years of purchase.
Goodwill = super profit x No. of years of purchase

2. Annuity method: The value of goodwill is calculated by multiplying the super profit with the present value of the annuity.
Goodwill = Super profit x Present value annuity factor

3. Capitalisation of super profit method: Goodwill = x 100

Question 3.
How is the value of goodwill calculated under the capitalisation method?
Answer:
Capitalisation method:
Under Capitalisation method, goodwill is the excess of capitalised value of average profit of the business over the actual capital employed in the business.
Goodwill = Total capitalised value of the business – Actual capital employed
The total capitalised value of the business is calculated by capitalising the average profits on the basis of the normal rate of return.
Capitalised value of the business = x 100
Actual capital employed = Fixed assets (excluding goodwill) + Current assets – Current liabilities

Question 4.
Compute average profit from the following information.
Answer:
Calculation of Average profit:
2016 – ₹ 8,000; 2017 – ₹ 10,000; 2018 – ₹ 9,000

Valuation of goodwill = ₹ 9,000

Question 5.
Calculate the value of goodwill at 2 years purchase of average profit when the average profit is ₹ 15,000.
Answer:
Goodwill: ₹ 30,000

IV. Exercises

Simple average profit method:
Question 1.
The following are the profits of a firm in the last five years:

Answer:

Valuation of goodwill = Average profit x No. of years purchase
= ₹ 12,000 x 2 years
= ₹ 24,000

Question 2.
From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.

Answer:
Calculation of goodwill:

Valuation of goodwill = Average profit x No. of years purchase = ₹ 4,000 x 3
= ₹ 12,000

Question 3.
From the following information relating to a partnership firm, find out the value of its goodwill based on 3 years purchase of average profits of the last 4 years:

Profits of the years 2015, 2016, 2017 and 2018 are ₹ 10, 000, ₹ 12, 500, ₹ 12, 000 and ₹ 11, 500, respectively.
The business was looked after by a partner and his fair remuneration amounts to ₹ 1, 500 per year. This amount was not considered in the calculation of the above profits.

Answer:
Valuation of goodwill
Calculation of average profit Year Profit

(-) Remuneration = ₹ 1,500
Net average profit = ₹ 10,000
Valuation of goodwill = Average profit x No. of years purchase
= ₹ 10,000 x 3
= ₹ 30,000

Question 4.
From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profits of 3 years.

Profits for the years ending 31^st December 2016, 2017 and 2018 were ₹ 1,75,000, ₹ 1,50,000 and ₹ 2,00,000, respectively.
A non – recurring income of ₹ 45,000 is included in the profits of the year 2016.
The closing stock of the year 2017 was overvalued by ₹ 30,000.

Answer:
Calculation of adjusted profit

Average profit = <
Average profit = $\frac { 4, 80, 000 }{ 3 }$ = ₹ 1,60,000
Goodwill = Average profit x No. of year purchase = ₹ 1,60,000 x 4
= ₹ 64,00,000

Question 5.
The following particulars are available in respect of the business carried on by a partnership firm:

Profits earned: 2016: ₹ 25,000; 2017: ₹ 23,000 and 2018: ₹ 26,000.
Profit of 2016 includes a non – recurring income of ₹ 2,500.
Profit of 2017 is reduced by ₹ 3,500 due to stock destroyed by fire.
The stock was not insured. But, it is decided to insure the stock in future. The insurance premium is estimated to be ₹ 250 per annum.

You are required to calculate the value of goodwill of the firm on the basis of 2 years purchase of average profits of the last three years.
Answer:
Calculation of adjusted profit

Total profit = 22,250 + 26, 250 + 25, 750 = ₹ 74, 250

Valuation of goodwill = Average profit x No.of year purchase
= ₹ 24, 750 x 2 years = ₹ 49, 500

Weighted average profit method:
Question 6.
Find out the value of goodwill at three years purchase of weighted average profit of last four years.

Answer:
Calculation of weighted average profit

Goodwill = Weighted average profit x No. of years purchase
= ₹ 15,400 x 3 = ₹ 46,200

Purchase of super profit method:
Question 7.
From the following details, calculate the value of goodwill at 2 years purchase of super profit:

Total assets of a firm are ₹ 5,00,000
The liabilities of the firm are ₹ 2,00,000
Normal rate of return in this class of business is 12.5 %.
Average profit of the firm is ₹ 60,000.

Answer:
Capital employed = fixed assets + current assets – current liabilities
= 5, 00, 000 – 2, 00, 000 = 3, 00, 000
Normal profit = Capital employed x Normal rate of return
= 3,00,000 x $\frac { 12.5 }{ 100 }$ = 3, 75, 000
Super profit = Average profit – Normal profit
= 60, 000 – 37, 500 = 22, 500
Goodwill = Super profit x Number of years of purchase
= ₹ 22,500 x 2
= ₹ 45,000

Question 8.
A partnership firm earned net profits during the last three years as follows:
2016: ₹ 20,000; 2017: ₹ 17,000 and 2018: ₹ 23,000
The capital investment of the firm throughout the above mentioned period has been ₹ 80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.
Answer:
Calculation of average profit Year Profit

Normal profit = Capital employed x Normal rate of return
= 80,000 x $\frac { 15 }{ 100 }$ = 12,000
Super profit = 8,000
Valuation of goodwill = Super profit x No. of years purchase
= ₹ 8,000 x 2
= ₹ 16,000

Annuity method:
Question 9.
From the following information, calculate the value of goodwill under annuity method:

Average profit – ₹ 14,000
Normal profit – ₹ 4,000
Normal rate of return – 15%
Years of purchase of goodwill – 5

Present value of ₹ 1 for 5 years at 15% per annum as per the annuity table is 3.352
Answer:
Super profit = Average profit – Normal profit
= 14, 000 – ₹ 4, 000 = ₹ 10, 000
Goodwill = Super profit x Present value of annuity factor
= ₹ 10,000 x 3.352 = ₹ 33, 520

Capitalisation of super profit method:
Question 10.
Find out the value of goodwill by capitalising super profits:

Normal Rate of Return 10%
Profits for the last four years are ₹ 30,000, ₹ 40,000, ₹ 50,000 and ₹ 45,000.
Anon – recurring income of ₹ 3,000 is included in the above mentioned profit of ₹ 30,000.
Average capital employed is ₹ 3,00,000.

Answer:

Average profit = = $\frac { 1, 62, 000 }{ 4 }$
= ₹ 40,500
Normal profit = Capital employed x Normal rate of return
= 3,00,00 x $\frac { 10 }{ 100 }$ = 30,000
Super profit = 10,500
Capitalisation super profit method = x 100
= $\frac { 10, 500 }{ 10 }$ = ₹ 1, 05, 000

Capitalisation method:
Question 11.
From the following information, find out the value of goodwill by capitalisation method :

Average profit ₹ 20, 000
Normal rate of return 10%
Tangible assets of the firm ₹ 2, 20, 000
Liabilities of the firm ₹ 70, 000

Answer:
Capital Assets – Liabilities
= 2, 20, 000 – 70, 000 = ₹ 1, 50, 000
Capitalised value of business = x 100
= $\frac { 20, 000 }{ 10 }$ x 100 = ₹ 2, 00, 000
Value of goodwill = Total capitalised average profit – Capital employed
= 2, 00, 000 – 1, 50, 000
= ₹ 50,000

Samacheer Kalvi 12th Accountancy Goodwill in Partnership Accounts Additional Questions and Answers

I. Choose the correct answer

Question 1.
Goodwill is valued under ………………
(a) Average profit method
(b) Super profit method
(c) Capitalisation method
(d) All of these
Answer:
(d) All of these

Question 2.
Average profit method can be further divided ………………
(a) Simple average profit
(b) Weighted average profit
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 3.
Super profit is
(a) Average profit – Normal profit
(b) Normal profit – Average profit
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Average profit – Normal profit

Question 4.
Kinds of goodwill ………………
(a) Purchased goodwill
(b) Self – generated goodwill
(c) None of these
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Question 5.
Nature of goodwill is ………………
(a) Reputation of business firm
(b) Profit of firm
(c) total asset of firm
(d) None of these
Answer:
(a) Reputation of business firm

Question 6.
Factor of goodwill is ………………
(a) Location of the business
(b) Efficient management
(c) Nature of the goods
(d) All of these
Answer:
(b) Efficient management

Question 7.
Arrange the following in ascending or descending order:
1. Super profit = Weighted average profit x No. of years purchase
2. Capitalistion method = x 100
3. Weighted Average method = Average profit – Normal profit
4. Capitalisation super profit = Total profit/No. of years purchase
(a) 1, 2, 3, 4
(b) 2, 4, 1, 2
(c) 3, 4, 1, 2
(d) 4, 3, 2, 1
Answer:
(c) 3, 4, 1, 2

Question 8.
Goodwill of the firm on the basis of 2 years purchase of average profit of the last 3 years is ₹ 25,000. Find average profit ………………
(a) ₹ 50,000
(b) ₹ 25,000
(c) ₹ 10,000
(d) ₹ 12,500
Answer:
(a) ₹ 50,000

Question 9.
Calculate the value of goodwill at 3 years purchase when capital employed is ₹ 2,50,000. Average profit ₹ 30,000 and normal rate of return is 10% ………………
(a) ₹ 3,000
(b) ₹ 25,000
(c) ₹ 30,000
(d) ₹ 15,000
Answer:
(d) ₹ 15,000

Question 10.
Adjusted profit = Actual profit
(a) + past expenses not required in the future
(b) – past revenue not likely to be eached in the future
(c) + additional income expected in the future
(d) All of these
Answer:
(d) All of these

II. Fill in the blanks:

Question 11.
Goodwill brought in cash by new partner is divided among the old partner by debiting is ________ A/c and crediting ________ A/c.
Answer:
Goodwill; capital.

Question 12.
Calculation of goodwill under simple average profit method is ________
Answer:
Total profit =

Question 13.
Super profit method normal profit is ________
Answer:
Normal profit = Capital employed x Normal rate of return

Question 14.
Under average profit method ________
Answer:
x 100

Question 15.
Super profit = ________
Answer:
Average profit – Normal profit

III. Short answer questions

Question 1.
What are the nature of goodwill?
Answer:
The nature of the goodwill can be described as follows:

Goodwill is an tangible fixed asset. It is tangible because it has no physical existence. It cannot be seen or touched.
It has a definite value depending on the profitability of the business enterprise.
It cannot be separated from the business.
It helps in earning more profit and attracts more customers.
It can be purchased or sold only when the business is purchased or sold in full or in part.

Question 2.
What is average profit method?
Answer:
Under this method, goodwill is calculated as certain years of purchase of average profits of the past years. The number of years of purchase is generally determined on the basis of the average period a new business will take in order to bring it to the current state of the existing business.

Question 3.
What is meant by simple average profit method?
Answer:
Goodwill is calculated by multiplying the average profit by a certain number of years of purchase. Simple average profit is calculated by adding the adjusted profits of certain number of years by dividing the total number of such years.
Goodwill = Average profit x Number of years purchase Total profit.
Average profit =

Question 4.
Weighted average profit method.
Answer:
Goodwill is calculated by multiplying the weighted average profit by a certain number of years of purchase.
Goodwill = Weighted average profit x Number of years purchase
In this method, weights are assigned to each year’s profit. Weighted profit is ascertained by multiplying the weights assigned with the respective year’s profit.
Weighted average profit =

Question 5.
What is meant by annuity method of valuation of goodwill?
Answer:
Value of goodwill is calculated by multiplying the super profit with the present value of annuity.
Goodwill = Super profit x Present value annuity factor
Present value annuity factor is the present value of annuity of rupee one at a given time. It can be found out from annuity table or by using formula.

Question 6.
What is annuity factor?
Answer:
Annuity refers to series of uniform cash flows at regular intervals. The table value gives the present value of annuity of rupee one received at the end of every year for a specified number of years.

where, i = interest rate ; n = estimated number of years

Question 7.
What is capitalisation of super profit method?
Answer:
Under this method, value of goodwill is calculated by capitalising the super profit at normal rate of return, that is, goodwill is the capitalised value of super profit.
Goodwill = x 100

IV. Exercise

Question 1.
Goodwill is to be valued at three years purchase of five years average profits. The profit for the last five years were 2010 – ₹ 4,200; 2011 — ₹ 4,500; 2012 – ₹ 4,700; 2013 – ₹ 4,600; and 2014 – ₹ 5,000.
Solution:
Calculation of average profit:

Calculation of goodwill = Average profit x No. of years purchase
= ₹ 4,600 x 3 = ₹ 13,800

Question 2.
A firm’s profit for the last 5 years were ₹ 20,000, ₹ 30,000, ₹ 40,000. ₹ 50,000, and ₹ 60,000. Calculated the value of firm’s goodwill on the basis of three years purchase of weighted average profit after using weight of 1, 2, 3, 4, 5 respectively.
Solution:

Goodwill = Weighted avg. profit x Number of years purchase = 46,667 x 3 = ₹ 1,40,000 (appr.)

Question 3.
A business has earned average profit ₹ 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of goodwill.

Capitalisation of super profit method.
Super profit method of the goodwill is valued at 3 years purchase of super profit. The assets of the business were ₹ 10,00,000 and liabilities of ₹ 1,80,000.

Solution:
1. Capital employed = Assets – libilities
= 10,00,000 – 1,80,000
= ₹ 8,20,000
Normal profit = Capital employed x
8,20,000 = 1 x $\frac { 10 }{ 100 }$ = 82,000
Super profit = Average profit – Normal profit
= ₹ 1,00,000 – ₹ 82,000 = ₹ 18,000

2. Capitalisation method Super profit
Goodwill = x 100
= $\frac { 18, 000 }{ 10 }$ = ₹ 1, 80,000
as per super profit method Goodwill = super profit x No. of years purchase
= ₹ 18000 x 3 = ₹ 54,000

Question 4.
The average profit earned by the firm is Z 80,000 which includes under valuation of stock an average basis the capital invested in the business and normal rate of return is 8%. Calculate the goodwill of the firm on the basis of times the super profit.
Solution:
Average profit – ₹ 80,000
(A) Under value of stock – ₹ 8,000
Actual Average profit – ₹ 88,000
Normal profit = Capital investment x Normal rate of return
= ₹ 88,000 – ₹ 64,000
= ₹ 24,000
Goodwill = Super profit x 7
= ₹ 24,000 x 7
= ₹ 1,68,000

Question 5.
Capital investment is ₹ 5,00,000; firms profit ₹ 1,50,000 Assuming that normal rate of return is 20%. Calculate the goodwill

Capitalisation method.
Super profit method if the goodwill is valued @ 2 years purchase

Solution:
1. Capitalisation of average profit method.
Goodwill = x 100
= $\frac { 1,50,000 }{ 20 }$ = ₹ 7,50,000
Goodwill = Total capital employed – capital employed
= ₹ 7,50,000 – ₹ 5,00,000 = ₹ 2,50,000

2. Super profit method
Normal profit = Capital employed x
Normal profit = ₹ 5,00,000 x $\frac { 20 }{ 100 }$ = ₹ 1,00,000
Super profit = Average profit – Normal profit
= ₹ 1,50,000 – 1,00,000
= ₹ 50,000
Value of Goodwill = Super profit x No. of years purchase
= ₹ 50,000 x 2
= ₹ 1,00,000

Question 6.
Calculate the value of goodwill of the firm of 2 partners
(a) At the 3 years purchase of average profits
(b) At 3 years purchase of super profits
(c) On the basis of capitalisation of super profits
(d) On the basis of capitalisation of average profits

(i) Average capital employed ₹ 7,00,000
(ii) Net trading results of the firm 2014 – ₹ 1,47,600 2015 – Loss ₹ 1,48,100. Profit for 2016 – ₹ 4,48,700
(iii) Rate of interest on capital @ 18%
(iv) Remunuration ₹ 500/- per month
Solution:
Calculation of Average profit and super profit
Total profit = ₹ 1,47,600 – ₹ 1,48,100 + ₹ 4,48,700 = ₹ 4,48,200
Average profit = = ₹ 1,49,400
Less: Remunration of 2 partner (2 x 500 x 1/2) $\frac { 12,000 }{ 1,37,400 }$
Less: Normal profit = Capital employed x
= 7,00,000 x $\frac { 18 }{ 100 }$ = ₹ 1,26,000
Super profit = ₹ 11,400

(a) Average profit – Average profit x No. of year purchase
= ₹ 1,37,400 x 3 = ₹ 4,12,200

(b) Super profit – Super profit x No. of year purchase
= ₹ 11,400 x 3 = ₹ 34,200

(d) Capitalisation of average profit = x 100
= $\frac { 1,37,400 }{ 100 }$ x 100
= ₹ 7,63,333
(-) Actual capital employed = ₹ 7,00,000
Goodwill = ₹ 63,333

Samacheer Kalvi 12th Accountancy Solutions Chapter 5 Admission of a Partner

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 5 Admission of a Partner

Samacheer Kalvi 12th Accountancy Admission of a Partner Text Book Back Questions and Answers

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:
(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:
(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:
(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:
(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:
(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:
(d) The existing agreement does not come to an end

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

Answer:
(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:
(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:
(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:
(d) 1:2

II. Very Short Answer Questions

Question 1.
What is meant by the revaluation of assets and liabilities?
Answer:
When a partner is admitted into the partnership, the assets and liabilities are revealed 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.

Question 2.
How are accumulated profits and losses distributed among the partners at the time of admission of a new partner?
Answer:
Profits and losses of previous years which are not distributed to the partners are called accumulated profit and losses. This belongs to the old partners and hence these should be distributed to the old partners in the old profit sharing ratio.

Question 3.
What is sacrificing ratio?
Answer:
The sacrificing ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner.
The share sacrificed is calculated by deducting the new share from the old share.
Share sacrificed = Old share – New share

Question 4.
Give the journal entry for writing off existing goodwill at the time of admission of a new partner.
Answer:
Journal Entry

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

Depreciation on assets
Unrecorded liability
Provision for outstanding expenses
Appreciation of assets

Answer:

Depreciation on assets – Debited
Unrecorded liability – Debited
Provision for outstanding expenses – Debited
Appreciation of assets – Debited

III. Short Answer Questions

Question 1.
What are the adjustments required at the time of admission of a partner?
Answer:
The following adjustment is necessary 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 ration and sacrificing ratio
Adjustment for goodwill
Adjustment of capital on the basis of new profit sharing ratio (if so agreed)

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

Question 3.
Write a short note on the accounting treatment of goodwill.
Answer:
1. For the goodwill brought in cash credited to old partner’s capital account

2. For the goodwill brought in kind (in the form of the asset) credited to the old partner’s capital account

3. For withdrawal of cash received for goodwill by the old partners

III. Exercises

Question 1.
Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of ₹ 42,000. Pass the journal entry to distribute the general reserve.
Answer:

Question 2.
Anjali and Nithya are partners of firm sharing profits and losses in the ratio of 5 : 3. They admit Pramila on 1.1.2018. On that date, their balance sheet showed an accumulated loss of ₹ 40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.
Answer:

Question 3.
Oviya and Kavya are partners in firm sharing profits and losses in the ratio of 5:3. They admit Agalya into the partnership. Their balance sheet as on 31^st March, 2019 is as follows:
Balance Sheet as on 31^st March 2019

Pass journal entry to transfer the accumulated profits and reserve on admission.

Question 4.
Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5:3:2. As of 1^st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4:3:2:1. The following adjustments are to be made.

Increase the value of premises by ₹ 60,000.
Depreciate stock by ₹ 5,000, furniture by ₹ 2,000 and machinery by ₹ 2,500.
Provide for an outstanding liability of ₹ 500.

Pass journal entries and prepare revaluation account.
Journal Entries

Revaluation Account

Question 5.
Seenu and Siva are partners sharing profits and losses in the ratio of 5:3. In view of Kowsalya admission, they decided

To increase the value of the building by ₹ 40,000.
To bring into record investments at ₹ 10,000, which have not so far been brought into account.
To decrease the value of machinery by ₹ 14,000 and furniture by ₹ 12,000.
To write off sundry creditors by ₹ 16,000.

Pass journal entries and prepare revaluation account.

Revaluation Account

Question 6.
Sai and Shankar are partners, sharing profits and losses in the ratio of 5 : 3. The firm’s balance sheet as on 31^st December 2017, was as follows:

On 31^st December 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with ₹ 12,000 as capital subject to the following adjustments.

Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000
Provision for doubtful debts is to be increased to ₹ 5,500
An unrecorded investment of ₹ 6,000 is to be brought into account
An unrecorded liability ₹ 2,500 has to be recorded now

Pass journal entries and prepare Revaluation Account and capital account of partners after admission.
Journal Entries

Revaluation Account

Capital Account

Question 7.
Amal and Vimal are partners in firm sharing profits and losses in the ratio of 7 : 5. Their balance sheet as on 31^st March, 2019, is as follows:

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of 30,000 for 1/3 share in the future profit subject to the following adjustments.

Stock to be depreciated by ₹ 5,000
Provision for doubtful debts to be created for ₹ 3,000
Land to be appreciated by ₹ 20,000

Prepare revaluation account and capital account of partners after admission.
Answer:
Revaluation Account

Capital Account

Question 8.
Praveena and Dhanya are partners sharing profits in the ratio of 7 : 3. They admit Malini into the firm. The new ratio among Praveena, Dhanya and Malini is 5 : 2 : 3. Calculate the sacrificing ratio.
Answer:
Sacrificing Ratio = Old Ratio – New Ratio
Praveena = $\frac { 7 }{ 10 }$ – $\frac { 5 }{ 10 }$ = $\frac { 2 }{ 10 }$
Dhanya = $\frac { 3 }{ 10 }$ – $\frac { 2 }{ 10 }$ = $\frac { 1 }{ 10 }$
Sacrificing Ratio = 2 : 1

Question 9.
Ananth and Suman are partners sharing profits and losses in the ratio of 3 : 2. They admit Saran for 1/5 share, which he acquires entirely from Ananth. Find out the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Ananth = $\frac { 3 }{ 5 }$ – $\frac { 1 }{ 5 }$ = $\frac { 2 }{ 5 }$
Suman = $\frac { 2 }{ 5 }$ – = $\frac { 2 }{ 5 }$
Ananth = $\frac { 1}{ 5 }$ – = $\frac { 1 }{ 5 }$
New Profit sharing Ratio = 2 : 2 : 1
Sacrificing Ratio = 1 : 0

Question 10.
Raja and Ravi are partners, sharing profits in the ratio of 3 : 2. They admit Ram for 1/4 share of the profit. He takes 1/20 share from Raja and 4/20 from Ravi. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio = Old Ratio – Sacrificing Ratio
Raja = $\frac { 3 }{ 5 }$ – $\frac { 1 }{ 20 }$ = $\frac { 12 – 1 }{ 20 }$ = $\frac { 11 }{ 20 }$
Ravi = $\frac { 2 }{ 5 }$ – $\frac { 4 }{ 20 }$ = $\frac { 8 – 4 }{ 20 }$ = $\frac { 4 }{ 20 }$
Ram = $\frac { 1 }{ 20 }$ + $\frac { 4 }{ 20 }$ = $\frac { 5 }{ 20 }$
New Profit sharing Ratio = 11 : 4 : 5
Sacrificing Ratio = $\frac { 1 }{ 20 }$ : $\frac { 4 }{ 20 }$

Question 11.
Vimala and Kamala are partners, sharing profits and losses in the ratio of 4:3. Vinitha enters into the partnership and she acquires 1/14 from Vimala and 1/14 from Kamala. Find out the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio = Old Ratio – Sacrificing Ratio
Vimala = $\frac { 4 }{ 7 }$ – $\frac { 1 }{ 14 }$ = $\frac { 8 – 1 }{ 14 }$ = $\frac { 7 }{ 14 }$
Kamala = $\frac { 3 }{ 7 }$ – $\frac { 1 }{ 14 }$ = $\frac { 6 – 1 }{ 14 }$ = $\frac { 5 }{ 14 }$
Vinitha = $\frac { 1 }{ 14 }$ + $\frac { 1 }{ 14 }$ = $\frac { 2 }{ 14 }$
New Profit Sharing Ratio = 7 : 5 : 2
Sacrificing Ratio = 1 : 1

Question 12.
Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Govind = $\frac { 5 }{ 9 }$ x $\frac { 2 }{ 9 }$ = $\frac { 10 }{ 81 }$ ; $\frac { 5 }{ 9 }$ – $\frac { 10 }{ 81 }$ = $\frac { 45 – 10 }{ 81 }$ = $\frac { 35 }{ 81 }$
Gopal = $\frac { 4 }{ 9 }$ x $\frac { 1 }{ 9 }$ = $\frac { 4 }{ 81 }$ ; $\frac { 3 }{ 8 }$ – $\frac { 3 }{ 64 }$ = $\frac { 24 – 3 }{ 64 }$ = $\frac { 21 }{ 64 }$
Rahim = $\frac { 2 }{ 9 }$ + $\frac { 1 }{ 9 }$ = $\frac { 3 }{ 9 }$ ; $\frac { 10 }{ 81 }$ + $\frac { 4 }{ 81 }$ = $\frac { 14 }{ 81 }$
New Profit Sharing Ratio = 35 : 32 : 14
Sacrificing Ratio = $\frac { 10 }{ 81 }$ : $\frac { 4 }{ 81 }$ = 5 : 2

Question 13.
Prema and Chandra share profits in the ratio of 5:3. Hema is admitted as a partner. Prema surrendered 1/8 of her share and Chandra surrendered 1/8 of her share in favour of Hema. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Prema = $\frac { 5 }{ 8 }$ x $\frac { 1 }{ 8 }$ = $\frac { 5 }{ 64 }$ ; $\frac { 5 }{ 8 }$ – $\frac { 5 }{ 64 }$ = $\frac { 40 – 5 }{ 64 }$ = $\frac { 35 }{ 64 }$
Chandra = $\frac { 3 }{ 8 }$ x $\frac { 1 }{ 8 }$ = $\frac { 3 }{ 64 }$ ; $\frac { 3 }{ 8 }$ – $\frac { 3 }{ 64 }$ = $\frac { 24 – 3 }{ 64 }$ = $\frac { 21 }{ 64 }$
Hema = $\frac { 5 }{ 64 }$ + $\frac { 3 }{ 64 }$ = $\frac { 8 }{ 64 }$
New Profit Sharing Ratio = 35 : 21 : 8
Sacrificing Ratio = 5 : 3

Question 14.
Karthik and Kannan are equal partners. They admit Kailash with 1/4 share of the profit. Kailash acquired his share from old partners in the ratio of 7:3. Calculate the new profit sharing ratio and sacrificing ratio.
New Profit Sharing Ratio:
Karthik = $\frac { 1 }{ 4 }$ x $\frac { 7 }{ 10 }$ = $\frac { 7 }{ 40 }$ ; $\frac { 1 }{ 2 }$ – $\frac { 7 }{ 40 }$ = $\frac { 20 – 7 }{ 40 }$ = $\frac { 13 }{ 40 }$
Kannan = $\frac { 1 }{ 4 }$ x $\frac { 3 }{ 10 }$ = $\frac { 3 }{ 40 }$ ; $\frac { 1 }{ 2 }$ – $\frac { 3 }{ 40 }$ = $\frac { 20 – 3 }{ 40 }$ = $\frac { 17 }{ 40 }$
Kailash = $\frac { 1 }{ 4 }$ x 10 = $\frac { 10 }{ 40 }$
New Profit Sharing Ratio = 13 : 17 : 10
Sacrificing Ratio = 7 : 3

Question 15.
Selvam and Senthil are partners sharing profit in the ratio of 2:3. Siva is admitted into the firm with 1/5 share of profit. Siva acquires equally from Selvam and Senthil. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Siva’s share = $\frac { 1 }{ 5 }$ x $\frac { 1 }{ 2 }$ = $\frac { 1 }{ 10 }$
Selvam’s share = $\frac { 2 }{ 5 }$ – $\frac { 1 }{ 10 }$ = $\frac { 4 – 1 }{ 10 }$ = $\frac { 3 }{ 10 }$
Senthil’s share = $\frac { 3 }{ 5 }$ – $\frac { 1 }{ 10 }$ = $\frac { 6 – 1 }{ 10 }$ = $\frac { 5 }{ 10 }$
Siva’s share = $\frac { 1 }{ 10 }$ + $\frac { 1 }{ 10 }$ = $\frac { 2 }{ 10 }$
New Profit sharing Ratio = 3 : 5 : 2
Sacrificing Ratio = 1 : 1

Question 16.
Mala and Anitha are partners, sharing profits and losses in the ratio of 3 : 2. Mercy is admitted into the partnership with 1/5 share in the profits. Calculate new profit sharing ratio and sacrificing ratio.
Answer:
Calculate New Profit Sharing Ratio = 1 – $\frac { 1 }{ 5 }$ = $\frac { 4 }{ 5 }$
Mala = $\frac { 3 }{ 5 }$ x $\frac { 4 }{ 5 }$ = $\frac { 12 }{ 25 }$
Anitha = $\frac { 2 }{ 5 }$ x $\frac { 4 }{ 5 }$ = $\frac { 8 }{ 25 }$
Mercy = $\frac { 1 }{ 5 }$ x 5 = $\frac { 5 }{ 25 }$
New Profit Sharing Ratio = 12 : 8 : 5
Sacrificing Ratio = Old share – New share
Mala = $\frac { 3 }{ 5 }$ – $\frac { 12 }{ 25 }$ = $\frac { 15 – 12}{ 25 }$ = $\frac { 3 }{ 25 }$
Anitha = $\frac { 2 }{ 5 }$ – $\frac { 8 }{ 25 }$ = $\frac { 2 }{ 25 }$
Sacrificing Ratio = 3 : 2

Question 17.
Ambika, Dharani, and Padma are partners in firm sharing profits in the ratio of 5:3:2. They admit Ramya for 25% profit. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
Ramya share = 25% = 100% – 25% = 75% = $\frac { 3 }{ 4 }$
Ambika’s share = $\frac { 5 }{ 10 }$ x $\frac { 3 }{ 4 }$ = $\frac { 15 }{ 40 }$
Dharani’s share = $\frac { 3 }{ 10 }$ x $\frac { 3 }{ 4 }$ = $\frac { 9 }{ 40 }$
Padma’s share = $\frac { 2 }{ 10 }$ x $\frac { 3 }{ 4 }$ = $\frac { 6 }{ 40 }$
Mercy’s share
New Profit Sharing Ratio
Sacrificing Ratio = Old share – New share
Ambika’s share = $\frac { 5 }{ 10 }$ – $\frac { 15 }{ 40 }$ = $\frac { 20 – 15 }{ 40 }$ = $\frac { 5 }{ 40 }$
Dharani’s share = $\frac { 3 }{ 10 }$ – $\frac { 9 }{ 40 }$ = $\frac { 12 – 9 }{ 40 }$ = $\frac { 3 }{ 40 }$
Padma’s share = $\frac { 2 }{ 10 }$ – $\frac { 6 }{ 40 }$ = $\frac { 8 – 6 }{ 40 }$ = $\frac { 2 }{ 40 }$
Sacrificing Ratio = 5 : 3 : 2

Question 18.
Aparna and Priya are partners who share profits and losses in the ratio of 3 : 2. Brindha joins the firm for 1/5 share of profits and brings in cash for her share of the goodwill of ₹ 10,000. Pass necessary journal entry for adjusting goodwill on the assumption that the fluctuating capital method is followed and the partners withdraw the entire amount of their share of goodwill.
Adjustment of goodwill
Journal Entries

Question 19.
Deepak, Senthil, and Santhosh are partners sharing profits and losses equally. They admit Jerald into a partnership for 1/3 share in future profits. The goodwill of the firm is valued at ₹ 45,000 and Jerald brought cash for his share of goodwill. The existing partners withdraw half of the amount of their share of goodwill. Pass necessary journal entries for adjusting goodwill on the assumption that the fluctuating capital method is followed.
Journal Entries

Jerald’s Share of goodwill = ₹ 45000 x 1/3 = ₹ 1,500
As the sacrifice made by the existing partners is not mentioned. It is assumed that they sacrifice in their old share profit ratio = 1 : 1 : 1.
Therefore, Sacrificing ratio = 1 : 1 : 1.

Question 20.
Malathi and Shobana are partners sharing profits and losses in the ratio of 5 : 4. They admit Jayasri into a partnership for 1/3 share of profit. Jayasri pays cash ₹ 6,000 towards her share of goodwill. The new ratio is 3 : 2 : 1. Pass necessary journal entry for adjusting goodwill on the assumption that the fixed capital method is followed.
Adjusting Goodwill: Old share – New Share
Malathi’s share = $\frac { 5 }{ 9 }$ – $\frac { 3 }{ 6 }$ = $\frac { 10 – 9 }{ 18 }$ = $\frac { 1 }{ 18 }$
Shobana’s share = $\frac { 4 }{ 9 }$ – $\frac { 2 }{ 6 }$ = $\frac { 8 – 6 }{ 18 }$ = $\frac { 2 }{ 18 }$

Question 21.
Anu and Arul were partners in firm sharing profits and losses in the ratio of 4 : 1. They have decided to admit Mano into the firm for 2/5 share of profits. The goodwill of the firm on the date of admission was valued at ₹ 25,000. Mano is not able to bring in cash for his share of goodwill. Pass necessary journal entry for goodwill on the assumption that the fluctuating capital method is followed.
Answer:
Mano’s shares: 25000 x $\frac { 2 }{ 5 }$ = Rs 10000

Question 22.
Varun and Barath are partners sharing profits and losses 5 : 4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1 : 1 : 1. Dhamu’s share of goodwill is valued at ₹ 15,000 of which he pays ₹ 10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.
Answer:
Dhamu’s share of goodwill against sacrificing ratio:
Sacrificing Ratio = Old share – New share
Varun = $\frac { 5 }{ 9 }$ – $\frac { 1 }{ 3 }$ = $\frac { 5 – 3 }{ 9 }$ = $\frac { 2 }{ 9 }$
Barath = $\frac { 4 }{ 9 }$ – $\frac { 1 }{ 3 }$ = $\frac { 4 – 3 }{ 9 }$ = $\frac { 1 }{ 9 }$
Goodwill value = $\frac { 15000 }{ 3 }$ = ₹ 5000.

Question 23.
Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm at ₹ 30,000. By assuming fluctuating capital method, pass the necessary journal entry if the partners decide to

write off the entire amount of existing goodwill
write off ₹ 20,000 of the existing goodwill.

Answer:
Journal Entries
(a) Write off the entire amount of existing goodwill

(b) Write off ₹ 20,000 of the existing goodwill

Question 24.
Raj an and Selva are partners sharing profits and losses in the ratio of 3:1. Their balance sheet as on 31^st March 2017 is as under:

On 1.4.2017, they admit Ganesan as a new partner on the following arrangements:

Ganesan brings ₹ 10,000 as capital for 1/5 share of profit.
Stock and furniture are to be reduced by 10%, a reserve of 5% on debtors for doubtful debts is to be created.
Appreciate buildings by 20%.

Prepare revaluation account, partners’ capital account, and the balance sheet of the firm after admission.
Revaluation Account

Capital Account

Balance Sheet

Question 25.
Sundar and Suresh are partners sharing profits in the ratio of 3:2. Their balance sheet as on 1^st January, 2017 was as follows:

They decided to admit Sugumar into a partnership for 1/4 share in the profits on the following terms:

Sugumar has to bring in ₹ 30,000 as capital. His share of goodwill is valued at ₹ 5,000. He could not bring cash towards goodwill.
That the stock is valued at ₹ 20, 000.
That the furniture is depreciated by ₹ 2,000.
That the value of the building is depreciated by 20%.

Prepare necessary ledger accounts and the balance sheet after admission.
Answer:
Revaluation Account

Capital Account

Balance Sheet as on 31.12.17

Question 26.
The following is the balance sheet of Janies and Justina as of 1.1.2017. They share profits and losses equally.

On the above date, Balan is admitted as a partner with a 1/5 share in future profits. Following are the terms for his admission:

Balan brings ₹ 25,000 as capital.
His share of goodwill is ₹ 10,000 and he brings cash for it.
The assets are to be valued as under:

Building ₹ 80,000; Debtors ₹ 18,000; Stock ₹ 33,000 Prepare necessary ledger accounts and the balance sheet after admission.
Answer:
Revaluation Account

Capital Account

Cash Account

Balance Sheet as on 01.01.2017

Question 27.
Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:

Rajesh is admitted for 1/5 share on the following terms:

Goodwill of the firm is valued at ₹ 80,000 and Rajesh brought cash ₹ 6,000 for his share of goodwill.
Rajesh is to bring ₹ 1,50,000 as his capital.
Motor car is valued at ₹ 2,00,000; stock at ₹ 3,80,000 and debtors at ₹ 3,50,000.
Anticipated claim on workmen compensation fund is ₹ 10,000
Unrecorded investment of ₹ 5,000 has to be brought into account.

Prepare revaluation account, capital accounts, and balance sheet after Rajesh’s admission.
Revaluation Account

Capital Account

Balance Sheet as on 31.03.2018

Samacheer Kalvi 12th Accountancy Admission of a Partner Additional Questions and Answers

I. Choose the correct answer

Question 1.
At the time of admission of a partner calculation of net profit ratio is ………………
(a) not necessary
(b) necessary
(c) optional
Answer:
(b) necessary

Question 2.
In admission, undistributed profit or loss transferred to ………………
(a) New Partners only
(b) Old Partners only
(c) All the Partners
Answer:
(b) Old Partners only

Question 3.
To get sacrificing ratio should be deducted from old share ………………
(a) Gaining share
(b) New share
(c) Neither of the two
Answer:
(b) new share

Question 4.
A person who is admitted to the firm is known as ………………
(a) Outgoing partners
(b) Incoming partner
(c) Both
Answer:
(b) incoming partner

Question 5.
At the time of admission of a new partner, the following are revalued ………………
(a) Assets
(b) Liabilities
(c) Both
Answer:
(c) Both

Question 6.
New profit ratio is calculated at the time of admission, by deducting ………………
(a) Sacrifice from the old ratio
(b) Old ratio from the sacrifice
(c) Sacrifice from the new ratio
Answer:
(a) Sacrifice from the old ratio

Question 7.
On the admission of a new partner ………………
(a) Old firm has to be dissolved
(b) Old partnership has to be dissolved
(c) Both old firm and partnership have to be dissolved
(d) Neither partnership nor firm has to be dissolved
Answer:
(b) Old partnership has to be dissolved

Question 8.
When a new partner brings his share of goodwill in cash, the amount is debited to ………………
(a) Premium A/c
(b) Cash A/c
(c) Capital A/c of old partner
(d) Capital A/c of new partner
Answer:
(b) Cash A/c

Question 9.
Goodwill already appearing in the Balance sheet at the time of admission of a partner is transferred to ………………
(a) New Partners’ Capital A/c
(b) Old Partners’ Capital A/c
(c) Revaluation A/c
(d) None of the above
Answer:
(b) Old Partners’ Capital A/c

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This privacy policy has been compiled to better serve those who are concerned with how their ‘Personally identifiable information’ (PII) is being used online. PII, as used in US privacy law and information security, is information that can be used on its own or with other information to identify, contact, or locate a single person, or to identify an individual in context. Please read our privacy policy carefully to get a clear understanding of how we collect, use, protect or otherwise handle your Personally Identifiable Information in accordance with our website.

Comments

When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection.

An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

When do we collect information?

We collect information from you when you subscribe to a newsletter or enter information on our site.

How do we use your information?

We may use the information

To improve our website in order to better serve you.
To allow us to better service you in responding to your customer service requests.

How do we protect visitor information?

We only provide articles and information, we never ask for personal or private information like email addresses, or credit card numbers.

Do we use ‘cookies’?

Yes. Cookies are small files that a site or its service provider transfers to your computer’s hard drive through your Web browser (if you allow) that enables the site’s or service provider’s systems to recognize your browser and capture and remember certain information. For instance, we use cookies to help us remember and process the items in your shopping cart. They are also used to help us understand your preferences based on previous or current site activity, which enables us to provide you with improved services. We also use cookies to help us compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future.

Third Party Disclosure

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information unless we provide you with advance notice. This does not include website hosting partners and other parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others’ rights, property, or safety.

However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

Third party links

Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

Google

Google’s advertising requirements can be summed up by Google’s Advertising Principles. They are put in place to provide a positive experience for users. https://support.google.com/adwordspolicy/answer/1316548?hl=en

We use Google AdSense Advertising on our website.

Google, as a third party vendor, uses cookies to serve ads on our site. Google’s use of the DART cookie enables it to serve ads to our users based on their visit to our site and other sites on the Internet. Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.

We have implemented the following:

Google Display Network Impression Reporting
Demographics and Interests Reporting
DoubleClick Platform Integration

We along with third-party vendors, such as Google use first-party cookies (such as the Google Analytics cookies) and third-party cookies (such as the DoubleClick cookie) or other third-party identifiers together to compile data regarding user interactions with ad impressions, and other ad service functions as they relate to our website.

Opting out:

Users can set preferences for how Google advertises to you using the Google Ad Settings page. Alternatively, you can opt out by visiting the Network Advertising initiative opt out page or permanently using the Google Analytics Opt Out Browser add on.

Disclaimer

SamacheerKalvi.Guru is purely made for education purpose and we keep every measure to avoid any possibility of offensive material. If anyone finds a content which is injuring your rights then you can provide us with a clue on our contact us and we will make changes as soon as possible.

Contact Us

SamacheerKalvi.Guru
26-42-128, KK Plaza, 7, Service Rd,
Board Office Chouraha, Zone-II,
Maharana Pratap Nagar,
Bhopal, Madhya Pradesh-462011

About Us

SamacheerKalvi.Guru provides e-learning solutions for K-12 students in form of downloadable PDFs, online tests, practice sets, videos and homework help. It is one of the most trusted websites among Tamilnadu State Board students and teachers.

SamacheerKalvi.Guru provides solutions for the web-based education system and develops e-learning software products for the virtual education market in India. The content in Tamilnadu State Board Solutions has been prepared by teachers with more than 10 years of teaching experience in schools.

SamacheerKalvi.Guru is a student-centric educational web portal which provides quality test papers and study materials for the students preparing for Board Exams or targeting various entrance exams. During the past few years, a number of surveys on students were made to better understand their problems regarding their studies and their basic requirement. This website is basically a conclusive solution to the surveys. Test and study materials are according to the student’s needs.

We are working for free education so that all the students can have access to the content and use it to get successful in their lives. We are trying to provide maximum help in the field of Tamilnadu State Board Solutions, Material, Test Papers, Assignments, Study material of different subjects. Till now we are providing free study material, book solutions, notes, sample papers and much more.

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