Question 37 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 37 Chapter 5 of Class 12 Part – 1 Usha Publication

37. (Comprehensive) A, B and C are partners in 3 : 2: 1 ratio. They admitted D and the new ratio is 4: 4:1 1. D will bring capital 1,25,000. The goodwill is valued at Rs. 1,00,000 Record the entries in journal in the following cases:
(a) Goodwill is brought in cash by new partner.
(b) Goodwill is brought in cash by new partner and goodwill already appears at Rs. 37,500.
(c) Goodwill is brought in cash by new partners and it is withdrawn
(d) Goodwill is brought in cash new partner Rs. 7,500.by A and C.
(e) Goodwill is brought in cash by new partner Rs. 7,500 and goodwill exists Rs. 50,000.Goodwill is not brought in cash.
(g) Goodwill is brought in cash and goodwill exist in books Rs. 1,50,000.
(h) Goodwill is brought in the form of equipment of Rs. 5,000 but valued at Rs. 7,500 by the firm.

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The solution of Question 37 Chapter 5 of Class 12 Part – 1 Usha Publication: -

Journal

Date	Particulars		L.F.	Debit	Credit
a)	Cash A/c	Dr.		1,25,000
	To D’s Capital A/c				1,25,000
	(Being cash brought in by D as a Capital)
i)	Cash A/c	Dr.		1000
	To Premium for Goodwill A/c				1,000
	(Being share of goodwill brought by D in cash)
ii)	Premium for Goodwill A/c	Dr.		10,000
	B’s Capital A/c (1,00,000 X 1/15)	Dr.		6,667
	To A’s Capital A/c				10,000
	To C’s Capital A/c				6,667
	(Being sacrificing partner compensated by new partner & partner B in their sacrificing ratio i.e. 3 : 2)
b)	Entry 2 (i) and (ii) and the following entries
	A’s Capital A/c	Dr.		18,750
	B’s Capital A/c	Dr.		12,500
	C’s Capital A/c	Dr.		6,250
	To Goodwill A/c				37,500
	(Being goodwill written off)
c)	Entry 2 (i) and (ii) and the following entries
	A’s Capital A/c	Dr.		6,000
	C’s Capital A/c	Dr.		4,000
	To Cash A/c				10,000
	(Being goodwill withdrawn by A and C)
d)	Cash A/c	Dr.		7,500
	D’s Current A/c	Dr.		2,500
	To Premium for Goodwill A/c				10,000
	(Being goodwill brought in by D ₹ 7,500 in cash and balance is adjusted through his current A/c)
ii)	Premium A/c	Dr.		10,000
	B’s Capital A/c	Dr.		6,667
	To A’s Capital A/c				10,000
	To C’s Capital A/c				6,667
	(Being goodwill brought of D and B’s share given to A and C sacrifice ratio)
e)	Entry D (i) and (ii) and the following entries
	A’s Capital A/c	Dr.		25,000
	B’s Capital A/c	Dr.		16,667
	C’s Capital A/c	Dr.		8,333
	To goodwill A/c				50,000
	(Being goodwill written off)
f)	D’s Current A/c	Dr.		10,000
	B’s Capital A/c	Dr.		6,667
	To A’s Capital A/c				10,000
	To C’s Capital A/c				6,667
	(Being goodwill not brought in cash by D adjusted through D’s current a/c and B’s Capital A/c
g)	Entry 2 (i) and (ii) and the following entries
	A’s Capital A/c	Dr.		75,000
	B’s Capital A/c	Dr.		50,000
	C’s Capital A/c	Dr.		25,000
	To goodwill A/c				1,50,000
	(Being goodwill written off)
h)	Equipment A/c	Dr.		7,500
	D’s Current A/c	Dr.		2,500
	To Premium for Goodwill A/c				10,000
	(Being goodwill brought in D ₹ 7,500 in equipment and balance ₹ 2,500 adjusted through his current A/c)