Question 25 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 25 Chapter 5 of Class 12 Part – 1 Usha Publication

25.(Profits at the end of the year are given) P and S are partners sharing profits in the ratio 3:2. their books showed goodwill at Rs. 20,000, R is admitted with the 1/5 share which he acquires equally from P and s. R brings Rs. 20,000 as his capital and Rs. 10,000 as his share of goodwill. Profits at the end of the year were of the amount of Rs. 1,00,000. you are required to give journal entries to carry out the above arrangement.

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The video consists solution of question numbers from 24 to 32 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 25 from the flowing video by using time stamps of the video.

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The solution of Question 25 Chapter 5 of Class 12 Part – 1 Usha Publication: -

Journal

Date	Particulars		L.F.	Debit	Credit
i)	P’s Capital A/c	Dr.		12,000
	S’s Capital A/c	Dr.		8,000
	To Goodwill A/c				20,000
	(Being existing goodwill written off)
ii)	Cash A/c	Dr.		30,000
	To R’s Capital A/c				20,000
	To Premium for Goodwill A/c				10,000
	(Being capital and premium brought in by R)
iii)	Premium for Goodwill A/c	Dr.		10,000
	To P’s Capital A/c				5,000
	To S's Capital A/c				5,000
	(Being goodwill distributed among old partners in their sacrificing ratio i.e. 1 : 1)
iv)	Profit and loss A/c	Dr.		1,00,000
	To P’s Capital A/c				50,000
	To S’s Capital A/c				30,000
	To R’s Capital A/c				20,000
	(Being Profit Rs. 1,00,000 distributed among all partners in their new ratio 5:3:2 )

Calculation of new profit sharing ratio:-

D’s share	=	1
		5

Sacrifice share of P & S = 1 : 1

P’s Sacrificed Share	=	1	X	1
		5		2
	=	1
		10

S’s Sacrificed Share	=	1	X	1
		5		2
	=	1
		10

P’s New Share	=	3	-	1
		5		10
	=	5
		10

S’s New Share	=	2	-	1
		5		10
	=	3
		10

R’s Share	=	1	X	2
		5		2
	=	2
		10

New Profit Sharing Ratio = 5 : 3 : 2

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