Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Rohit and Mohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Rahul was admitted for a 1/3 share in profits. Goodwill of the firm was valued at ₹30,000. Rahul brought ₹40,000 as capital and ₹5,000 out of his share of goodwill premium in cash. At the time of admission, goodwill appeared in the books at ₹15,000. Pass the necessary Journal entries. (CBSE 2023)
Rahul’s share of goodwill = ₹30,000 × 1/3 = ₹10,000, of which he brings ₹5,000 in cash; the balance ₹5,000 is adjusted through his Current Account. Sacrificing ratio 3 : 2.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Rohit’s Capital A/c Dr. | 9,000 | |||
| Mohit’s Capital A/c Dr. | 6,000 | |||
| To Goodwill A/c | 15,000 | |||
| (Existing goodwill written off in the old ratio 3 : 2) | ||||
| Bank A/c Dr. | 45,000 | |||
| To Rahul’s Capital A/c | 40,000 | |||
| To Premium for Goodwill A/c | 5,000 | |||
| Premium for Goodwill A/c Dr. | 5,000 | |||
| Rahul’s Current A/c Dr. | 5,000 | |||
| To Rohit’s Capital A/c | 6,000 | |||
| To Mohit’s Capital A/c | 4,000 | |||
| (Rahul’s share of goodwill ₹10,000 credited to Rohit and Mohit in 3 : 2) |
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.34 - 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.34 - Admission of a Partner" instantly.