Question 30 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 30 Chapter 5 - Unimax Class 12 Part 1 - 2021

30. P and Q are two partners sharing profits and losses in ratio of 3 : 2. Their books showed goodwill at Rs. 2,000. R is admitted with 1/4th share of profits and brings Rs. 10,000 as capital but is not able to bring in cash his share of goodwill Rs. 3,000. Pass necessary journal entries.

The solution of Question 30 Chapter 5 - Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	P’s Capital a/c	Dr.		1200
	Q’s Capital a/c	Dr.		800
	To Goodwill a/c				2000
	(Being old goodwill w/o by old partner’s in old ratio)
	Cash a/c	Dr.		10000
	To R’s Capital a/c				10000
	(Being capital introduced by new partner in the firm)
	R’s Capital a/c	Dr.		3000
	To P’s Capital a/c				1800
	To Q’s Capital a/c				1200
	(Being compensation paid by R to P and Q for his share of goodwill)

Working Note
If nothing has been mentioned in deed then partner will sacrifice in their old profit sharing ratio

 

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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