Question 59 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 59 Chapter 5 - Unimax Class 12 Part 1 - 2021

59. A and B are partners sharing profits in ratio of 3 : 1. Their capitals were : A, Rs. 50000 and B, Rs. 30000. C is admitted for 1/5th share. C will pay Rs. 20000 as his share of goodwill and will introduce proportionate capital. Revaluation of assets and liabilities on the date of admission of C resulted in loss of Rs. 12000. Calculate the amount of capital to be brought in by C. Pass the Journal Entries and prepare Capital accounts of partners.

The solution of Question 59 Chapter 5 - Unimax Class 12 Part 1: -

Journal

Date	Particulars		L.F.	Debit	Credit
	A’s Capital a/c	Dr.		9000
	B’s Capital A/c	Dr.		3000
	To Revaluation a/c				12000
	(Being loss transferred to old partners’ capital a/c in old ratio)
	Cash a/c	Dr.		20000
	To Premium a/c				20000
	(Being goodwill brought by new partner in business)
	Premium A/c	Dr.		20000
	To A’s Capital a/c				15000
	To B’s Capital A/c				5000
	(Being goodwill credited to old partners’ capital a/c in sacrificing ratio)
	Cash A/c	Dr.		22000
	To C’s capital a/c				22000
	(Being proportionate capital brought by new partner in business)

Capital Accounts

Particulars	A	B	C	Particulars	A	B	C
To Loss on revaluation	9000	3000	-	By Balance b/d	50000	30000	-
To Balance c/d	56000	32000	22000	By Cash A/c	-	-	22000
				By Premium A/c	15000	5000	-
	65000	35000	22000		65000	35000	22000

Working Note:

Calculation of capital contributed by C :

For 4/5th share of profit capital contributed = Rs. 88000
For 1 Share of profit capital contributed = 88000 X 5/4
For 1/5th share of profit capital contributed = 88000 X 5/4 X 1/5 = Rs. 22000

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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