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Question 26 Chapter 5 of +2-Part-1
26.( Different cases of goodwill) A and B shared profits in the proportion of 3 and 2 had capitals of Rs. 20,000 and Rs. 15,000 respectively. They agree to admit C into partnership on the following terms for a third share in the future profits :
We are providing a solution of Question 26 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
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. 26 from the flowing video by using time stamps of the video.
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| i) | Cash A/c | Dr. | 20,000 | ||
| To C’s Capital A/c | 20,000 | ||||
| (Being Capital brought by C) | |||||
| ii) | C’s current A/c | Dr. | 5,000 | ||
| To A’s Capital A/c | 3,000 | ||||
| To B’s Capital A/c | 2,000 | ||||
| (Being C’s share in goodwill adjusted in 3:2) | |||||
NOTE: Goodwill not brought in cash is adjusted through the current account of new partner due to provisions of AS-26
Partners' Capital Account
| Particulars |
A | B | C | Particulars |
A | B | C |
|---|---|---|---|---|---|---|---|
| By Balance b/d | 20,000 | 15,000 | |||||
| By Cash A/c | 20,000 | ||||||
| By C’s Current A/c | 3,000 | 2,000 | |||||
| To Balance c/d | 23,000 | 17,000 | 20,000 | ||||
| 23,000 | 17,000 | 20,000 | 23,000 |
17,000 | 20,000 |
Calculation of new profit sharing ratio
Let total profit of the firm = Rs.1
| Share of profit acquired by C | = | 1 |
| 3 |
| Remaining share | = | 1 | - | 1 |
| 3 | ||||
| = | 2 | |||
| 3 |
| A’s New share | = | 2 | x | 3 |
| 3 | 5 | |||
| = | 6 | |||
| 15 |
| B’s New share | = | 2 | x | 3 |
| 5 | 5 | |||
| = | 4 | |||
| 15 |
| C’s share | = | 1 | or | 5 |
| 3 | 15 |
| New Ratio | = | 6 | : | 4 | : | 5 |
| 15 | 15 | 15 | ||||
| = | 6 | : | 4 | : | 5 |
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 26 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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