Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Geeta and Sunita are partners in a firm sharing profits in the ratio of 3 : 2. They admit Anita as a new partner. The new profit-sharing ratio between Geeta, Sunita and Anita will be 5 : 3 : 2. Anita brought in ₹25,000 for her share of premium for goodwill. Pass the necessary Journal entries for the treatment of goodwill.
Sacrifice: Geeta = 3/5 – 5/10 = 1/10; Sunita = 2/5 – 3/10 = 1/10. Sacrificing ratio = 1 : 1.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Cash A/c Dr. | 25,000 | |||
| To Premium for Goodwill A/c | 25,000 | |||
| Premium for Goodwill A/c Dr. | 25,000 | |||
| To Geeta’s Capital A/c | 12,500 | |||
| To Sunita’s Capital A/c | 12,500 | |||
| (Premium distributed in the sacrificing ratio 1 : 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.23 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Chapter 4 Q.23 - Admission of a Partner" instantly.