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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B are partners sharing profits in the ratio of 2 : 1. They admit C for a 1/4th share in profits. C brings in ₹30,000 for his capital and ₹8,000 out of his share of ₹10,000 for goodwill. Before admission, goodwill appeared in the books at ₹18,000. Give the Journal entries.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| A’s Capital A/c Dr. | 12,000 | |||
| B’s Capital A/c Dr. | 6,000 | |||
| To Goodwill A/c | 18,000 | |||
| (Existing goodwill written off in the old ratio 2 : 1) | ||||
| Cash A/c Dr. | 38,000 | |||
| To C’s Capital A/c | 30,000 | |||
| To Premium for Goodwill A/c | 8,000 | |||
| Premium for Goodwill A/c Dr. | 8,000 | |||
| C’s Capital A/c Dr. (share of goodwill not brought) | 2,000 | |||
| To A’s Capital A/c (10,000 × 2/3) | 6,667 | |||
| To B’s Capital A/c (10,000 × 1/3) | 3,333 | |||
| (C’s share of goodwill ₹10,000 credited to A and B 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.33 - 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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