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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Anil and Sunil are partners in a firm with fixed capitals of ₹3,20,000 and ₹2,40,000 respectively. They admitted Charu as a new partner for a 1/4th share in the profits on 1st April, 2024. Charu brought ₹3,20,000 as her share of capital. Calculate the value of goodwill and record the necessary Journal entries. (AI 2013)
Total capital based on Charu’s share = ₹3,20,000 × 4/1 = ₹12,80,000; actual capital = ₹3,20,000 + ₹2,40,000 + ₹3,20,000 = ₹8,80,000. Hidden Goodwill = ₹12,80,000 – ₹8,80,000 = ₹4,00,000; Charu’s share = ₹4,00,000 × 1/4 = ₹1,00,000 (sacrificing ratio 1 : 1).
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2024 Apr 1 | Bank A/c Dr. | 3,20,000 | ||
| To Charu’s Capital A/c | 3,20,000 | |||
| (Capital brought in by Charu) | ||||
| 2024 Apr 1 | Charu’s Current A/c Dr. | 1,00,000 | ||
| To Anil’s Current A/c | 50,000 | |||
| To Sunil’s Current A/c | 50,000 | |||
| (Charu’s share of goodwill adjusted through Current Accounts) |
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.38 - 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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