Question 32 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 32 Chapter 5 of Class 12 Part – 1 Usha Publication

32. (Goodwill is brought in-kind) P and Q are partners in a 3: 2 ratio. They agreed to admit R for 1/4th share. He paid Rs. 30,000 for capital, however for goodwill he gave stock Rs. 10,000 and furniture Rs. 5,000. Show entries in the journal.

The solution of Question 32 Chapter 5 of Class 12 Part – 1 Usha Publication: -

Journal

Date	Particulars		L.F.	Debit	Credit
i)	Bank A/c	Dr.		30,000
	Stock A/c	Dr.		10,000
	Furniture A/c	Dr.		5,000
	To R’s Capital A/c				30,000
	To Premium for Goodwill A/c				15,000
	(Being assets brought in by R as his capital and premium)
ii)	Premium for Goodwill A/c	Dr.		15,000
	To P’s Capital A/c				9,000
	To Q’s Capital A/c				6,000
	(Being R’s share of goodwill distributed in sacrificing ratio 3:2)

Notes: Sacrificing ratio remains the same as the old ratio in observation of any specific information.

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