Question 30 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 30 Chapter 5 of Class 12 Part – 1 Usha Publication

30. (Partner Partly brings the G/W) X, Y, and Z were partners sharing profits and losses as to X one-half: Y one-third; Z one-sixth. As from 1st January, they agreed to admit A into a partnership for a one-sixth share in profits and losses which he acquires equally from X and Y and he had to bring in Rs. 20,000 for his capital and Rs. 10,000 as a premium for goodwill. A paid in his capital money but in respect of premium for goodwill, he could bring in only Rs. 5,000.
You are required to:

1. Give the journal entries to carry out the above arrangements,
2. Work out the new profit-sharing ratio of partners.

The solution of Question 30 Chapter 5 of Class 12 Part – 1 Usha Publication: -

Journal

Date	Particulars		L.F.	Debit	Credit
2019
i)	Cash A/c	Dr.		25,000
	To A’s Capital A/c				20,000
	To Premium for Goodwill A/c				5,000
	(Being capital and premium brought In cash by A )
ii)	Premium A/c	Dr.		5,000
	To X’s Capital A/c				2,500
	To Y’s Capital A/c				2,500
	(Being Premium for goodwill distributed among old partners in their sacrificing ratio)
iii)	A’s Capital A/c	Dr.		5,000
	To X’s Capital A/c				2,500
	To Y’s Capital A/c				2,500
	(Being premium for goodwill no brought in in cash by A adjusted through his current account)

Calculation of new profit sharing ratio

Old ratio	=	1	:	1	:	1
		2		3		6
Or	=	2	:	3	:	6

New partner A’s share	=	1	which he acquired equally from X and Y
		6

New Share = Old share – sacrifice

X’s new share	=	3	-	1
		6		2
	=	6 - 1
		12
	=	5
		12

Y’s new share	=	2	-	1
		6		2
	=	4 - 1
		12
	=	3
		12

Z’s new share	=	1	X	2
		6		2
	=	2
		12
	=	1	X	2
A's New Share		6		2
	=	2
		12

New profit Sharing Ratio = 5 : 3 : 2 : 2