Question 29 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 29 Chapter 5 - Unimax Class 12 Part 1 - 2021

29. A and B are partners in a firm sharing profits and losses in 3 : 4. They admit C for 3/7th share which he acquires 2/7th from A and 1/7th from B. C brings Rs. 1,500 as premium out of his share of Rs. 2,400. Pass necessary journal entries if capital brought by C is Rs. 10,000.

The solution of Question 29 Chapter 5 - Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	Cash a/c	Dr.		11500
	To C’s Capital a/c				10000
	To Premium a/c				1500
	(Being goodwill and capital brought in cash by new partner)
	C’s Capital a/c	Dr.	900
	Premium a/c	Dr.	1500
	To A’s Capital a/c				1600
	To B’s Capital a/c				800
	(Being compensation paid transferred to old partner’s capital a/c in sacrificing ratio)

Working Note
C’s share of G.W = Rs. 2,400
Premium (G.W.) = Rs. 1,500
Compensation through capital = Rs. 2,400 – 1,500 = Rs. 900
Sacrifice of A = 2/7
Sacrifice of B = 1/7
So, S.R. = 2 : 1

 

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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication