Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Mahesh and Suresh were partners in a firm sharing profits and losses in the ratio of 2 : 1. They admitted Nita for a 1/4th share. Nita brought ₹2,00,000 for her capital and the requisite amount of goodwill premium in cash. Goodwill of the firm was valued at ₹12,00,000. The new profit-sharing ratio is 2 : 1 : 1. Mahesh and Suresh withdrew their share of goodwill. Pass the necessary Journal entries. (CBSE 2023)
Nita’s premium = ₹12,00,000 × 1/4 = ₹3,00,000. Sacrificing ratio: Mahesh 2/3 – 2/4 = 2/12; Suresh 1/3 – 1/4 = 1/12 → 2 : 1.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 5,00,000 | |||
| To Nita’s Capital A/c | 2,00,000 | |||
| To Premium for Goodwill A/c | 3,00,000 | |||
| Premium for Goodwill A/c Dr. | 3,00,000 | |||
| To Mahesh’s Capital A/c | 2,00,000 | |||
| To Suresh’s Capital A/c | 1,00,000 | |||
| (Premium distributed in the sacrificing ratio 2 : 1) | ||||
| Mahesh’s Capital A/c Dr. | 2,00,000 | |||
| Suresh’s Capital A/c Dr. | 1,00,000 | |||
| To Bank A/c | 3,00,000 | |||
| (Mahesh and Suresh withdrew their share of goodwill) |
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.32 - 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.32 - Admission of a Partner" instantly.