Question 26 Chapter 5 of +2-Part-1
26.( Different cases of goodwill) A and B shared profits in the proportion of 3 and 2 had capitals of Rs. 20,000 and Rs. 15,000 respectively. They agree to admit C into partnership on the following terms for a third share in the future profits :
- That C should bring in Rs. 20,000 as capital.
- That as C is unable to bring his share of goodwill in cash the goodwill of the firm be valued at Rs. 15,000. set out the journal entries required , the capital accounts of partners. State the future profit sharing proportion of the partners.
We are providing a solution of Question 26 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
1. Check out the Solution of this question in Video Format:-
The video consists solution of question numbers from 24 to 32 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 26 from the flowing video by using time stamps of the video.
2. Check out the Solution of this question in Article Format:-
The solution of Question 26 Chapter 5 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| i) | Cash A/c | Dr. | 20,000 | ||
| To C’s Capital A/c | 20,000 | ||||
| (Being Capital brought by C) | |||||
| ii) | C’s current A/c | Dr. | 5,000 | ||
| To A’s Capital A/c | 3,000 | ||||
| To B’s Capital A/c | 2,000 | ||||
| (Being C’s share in goodwill adjusted in 3:2) | |||||
NOTE: Goodwill not brought in cash is adjusted through the current account of new partner due to provisions of AS-26
| Partners’ Capital Account |
|||||||
| Particulars |
A | B | C | Particulars |
A | B | C |
| By Balance b/d | 20,000 | 15,000 | |||||
| By Cash A/c | 20,000 | ||||||
| By C’s Current A/c | 3,000 | 2,000 | |||||
| To Balance c/d | 23,000 | 17,000 | 20,000 | ||||
| 23,000 | 17,000 | 20,000 | 23,000 |
17,000 | 20,000 | ||
Calculation of new profit sharing ratio
Let total profit of the firm = Rs.1
| Share of profit acquired by C | = | 1 |
| 3 |
| Remaining share | = | 1 | – | 1 |
| 3 | ||||
| = | 2 | |||
| 3 |
| A’s New share | = | 2 | x | 3 |
| 3 | 5 | |||
| = | 6 | |||
| 15 |
| B’s New share | = | 2 | x | 3 |
| 5 | 5 | |||
| = | 4 | |||
| 15 |
| C’s share | = | 1 | or | 5 |
| 3 | 15 |
| New Ratio | = | 6 | : | 4 | : | 5 |
| 15 | 15 | 15 | ||||
| = | 6 | : | 4 | : | 5 |
Thanks, Please Like and share with your friends
Comment if you have any questions.
Advertisement-X
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.
Thanks again.
End of Post
Download a PDF of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner):
If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.
Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Advertisement-X
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication