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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner, Kailash, is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash’s admission, goodwill of the firm is valued at ₹75,000, and Kailash brings his share of goodwill in cash, which is retained in the business. Journalise the above transactions.
Vimal’s sacrifice = 1/5 × 3/5 = 3/25; Nirmal’s sacrifice = 2/5 × 2/5 = 4/25. Kailash’s share = 7/25 → New Ratio = Vimal 12/25 : Nirmal 6/25 : Kailash 7/25 = 12 : 6 : 7. Kailash’s premium = ₹75,000 × 7/25 = ₹21,000, shared in the sacrificing ratio 3 : 4.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 21,000 | |||
| To Premium for Goodwill A/c | 21,000 | |||
| (Kailash brought in his share of goodwill in cash) | ||||
| Premium for Goodwill A/c Dr. | 21,000 | |||
| To Vimal’s Capital A/c | 9,000 | |||
| To Nirmal’s Capital A/c | 12,000 | |||
| (Premium distributed between Vimal and Nirmal in their sacrificing ratio 3 : 4) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 4 Q.20 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
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