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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for a 1/5th share. C brings ₹30,000 as capital and ₹10,000 as goodwill. At the time of admission, goodwill appeared in the Balance Sheet at ₹3,000. The new profit-sharing ratio will be 5 : 3 : 2. Pass the necessary Journal entries.
Sacrifice: A = 3/5 – 5/10 = 1/10; B = 2/5 – 3/10 = 1/10. Sacrificing ratio 1 : 1.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| A’s Capital A/c Dr. | 1,800 | |||
| B’s Capital A/c Dr. | 1,200 | |||
| To Goodwill A/c | 3,000 | |||
| (Existing goodwill written off in the old ratio 3 : 2) | ||||
| Cash A/c Dr. | 40,000 | |||
| To C’s Capital A/c | 30,000 | |||
| To Premium for Goodwill A/c | 10,000 | |||
| Premium for Goodwill A/c Dr. | 10,000 | |||
| To A’s Capital A/c | 5,000 | |||
| To B’s Capital A/c | 5,000 | |||
| (C brought capital and premium; premium distributed 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.27 - 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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