# Question 22 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.22 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 22 Chapter 5 of +2-A

22. Give Journal entries to record the following arrangements in the books of the firm:

1. B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of B and C remain as before.
2. B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of 2,100 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C.

The solution of Question 22 Chapter 6 of +2-A

Case A

 Date Particulars L.F. Debit Credit Cash A/c Dr 2,000 To Premium for Goodwill A/c 2,000 (Being C brought his share of goodwill) Premium for Goodwill A/c Dr 2,000 To B’s Capital A/c 1,200 To C’s Capital A/c 800 (Being goodwill distributed among the old partners’ in their sacrificing ratio)

Working Note: –

Distribution of C’s share of Goodwill
C’s share of Goodwill = 2,000

 A’s get share of Goodwill = 2,000 X 3 5 = 1,200

 B’s get share of Goodwill = 2,000 X 2 5 = 800

Case B

 Date Particulars L.F. Debit Credit Cash A/c Dr 2,100 To Premium for Goodwill A/c 2,100 (Being C brought his share of goodwill) Premium for Goodwill A/c Dr 2,100 To B’s Capital A/c 1,400 To C’s Capital A/c 700 (Being goodwill distributed among the old partners’ in their sacrificing ratio)

Working Note: –

 Sacrificing Ratio of A and B = 1 : 1 6 12
 = 2 : 1 12 12 = 2 : 1

Distribution of C’s share of Goodwill
C’s share of Goodwill = 2,100

 A’s get share of Goodwill = 2,100 X 2 3 = 1,400

 B’s get share of Goodwill = 2,100 X 1 3 = 700

### 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)

• 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