Question 25 Chapter 5 of +2- Part-

Question 25 Chapter 5 of +2-Part-1

25.(Profits at the end of the year are given) P and S are partners sharing profits in the ratio 3:2. their books showed goodwill at Rs. 20,000, R is admitted with the 1/5 share which he acquires equally from P and s. R brings Rs. 20,000 as his capital and Rs. 10,000 as his share of goodwill. Profits at the end of the year were of the amount of Rs. 1,00,000. you are required to give journal entries to carry out the above arrangement.

The solution of Question 25 Chapter 5 of +2 Part-1: – 

Journal
DateParticulars
L.F.DebitCredit
2019     
i)P’s Capital A/cDr. 12,000 
 S’s Capital A/cDr. 8,000 
 To Goodwill A/c   20,000
 (Being existing goodwill written off . )   
     
ii)Cash A/cDr. 30,000 
 To R’s Capital A/c   20,000
 To Premium A/c   10,000
 (Being capital and premium brought in by R)    
      
iii)Premium A/cDr. 10,000 
 To P’s Capital A/c   5,000
 To Cash A/c   5,000
 (Being goodwill distributed equally )    
      
iv)Profit and loss A/cDr. 1,00,000 
 To P’s Capital A/c   50,000
 To S’s Capital A/c  30,000
 To R’s Capital A/c  20,000
 (Being Profit Rs. 1,00,000 distributed in the new ratio 3:2 )   
     

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 25 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Parat - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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