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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass Journal entries to record the following arrangements: (a) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of ₹2,000 for a 1/4th share of the profits; the shares of B and C remain as before. (b) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of ₹2,100 for a 1/4th share, which he acquires 1/6th from B and 1/12th from C.
(a) As B and C keep their old shares, they sacrifice in the old ratio 3 : 2.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Cash A/c Dr. | 2,000 | |||
| To Premium for Goodwill A/c | 2,000 | |||
| (D brought in premium for goodwill) | ||||
| Premium for Goodwill A/c Dr. | 2,000 | |||
| To B’s Capital A/c | 1,200 | |||
| To C’s Capital A/c | 800 | |||
| (Premium distributed in the sacrificing ratio 3 : 2) |
(b) Sacrificing ratio = 1/6 : 1/12 = 2 : 1.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Cash A/c Dr. | 2,100 | |||
| To Premium for Goodwill A/c | 2,100 | |||
| Premium for Goodwill A/c Dr. | 2,100 | |||
| To B’s Capital A/c | 1,400 | |||
| To C’s Capital A/c | 700 | |||
| (Premium distributed in the sacrificing ratio 2 : 1) |
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.21 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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