Question 19 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 19 Chapter 5 of +2-A

Question 19 Chapter 5 of +2-A

19. A and B are partners sharing profits and losses in the ratio of 2 : 1. They take C as a partner for 1/5th share. Goodwill Account appears in the books at 15,000. For the purpose of C’s admission, goodwill of the firm is valued at 15,000. C is to pay proportionate amount as premium for goodwill which he pays to A and B privately. Pass necessary entries

 

The solution of Question 19 Chapter 6 of +2-A

 

Date Particulars
L.F. Debit Credit
  A’s Capital A/c Dr   10,000  
  B’s Capital A/c Dr   5,000  
  To Goodwill A/c       15,000
  (Being Goodwill written-off between A and B in the old ratio of 2:1)        



Working Note: Goodwill Written-off

A’s Capital will be debited by = 15,000 X 2
3
  = Rs 10,000    

 

B’s Capital will be debited by = 15,000 X 1
3
  = Rs 5,000    

 


T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 19 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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