Question 36 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 36 Chapter 5 - Unimax Class 12 Part 1 - 2021

36. A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 3 respectively. Two new partners D and E are introduced. The new profit sharing ratio is 3 : 4 : 2 : 2 : 1 respectively. D pays Rs. 30000 for his share of goodwill but E is unable to bring cash to pay for goodwill. Both the new partners introduced Rs. 40000 each as their capitals. Give necessary journal entries.

The solution of Question 36 Chapter 5 - Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	Cash a/c	Dr.		1,10,000
	To D’s Capital a/c				40,000
	To E’s Capital a/c				40,000
	To Premium a/c				30,000
	(Being goodwill and capital brought in cash by new partners)
	Premium a/c	Dr.		30,000
	To A’s Capital a/c				20,000
	To C’s Capital a/c				10,000
	(Being goodwill brought by D credited to sacrificing partners)
	E’s Capital a/c	Dr.		15000
	To A’s Capital a/c				10000
	To C’s Capital a/c				5000
	(Being compensation paid by E to A and C for his share of goodwill)

Working Note :
Total G.W. of firm = 30000 X 12/2
                              = Rs. 1,80,000
E’s share of G.W. = 1,80,000 X 1/12
                            =Rs. 15000
A’s sacrifice = Old share – New share
                          = 5/12 – 3/12 = 2/12
B’s sacrifice = 4/12 – 4/12 = 0
C’s sacrifice = 3/12 – 2/12 = 1/12
S.R. = 2/12 : 1/12 = 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