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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Vanshika and Shikha were partners in a firm with capitals of ₹1,00,000 and ₹80,000 respectively. They admitted Nisha on 1st April, 2022 as a new partner for a 1/4 share in the future profits. Nisha brought ₹90,000 as her capital and acquired her share equally from Vanshika and Shikha. Calculate the value of goodwill and pass the necessary Journal entries, assuming Nisha did not bring her share of goodwill premium in cash. (CBSE 2023)
Total capital based on Nisha’s share = ₹90,000 × 4/1 = ₹3,60,000; actual capital = ₹1,00,000 + ₹80,000 + ₹90,000 = ₹2,70,000. Hidden Goodwill = ₹90,000; Nisha’s share = ₹90,000 × 1/4 = ₹22,500 (sacrificing ratio 1 : 1).
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2022 Apr 1 | Bank A/c Dr. | 90,000 | ||
| To Nisha’s Capital A/c | 90,000 | |||
| (Capital brought in by Nisha) | ||||
| 2022 Apr 1 | Nisha’s Current A/c Dr. | 22,500 | ||
| To Vanshika’s Capital A/c | 11,250 | |||
| To Shikha’s Capital A/c | 11,250 | |||
| (Nisha’s share of goodwill adjusted, credited in the sacrificing ratio 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.39 - 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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