Question 26 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 26 Chapter 5 of +2- Part-
Q-26. - CH-2 - Usha +2 Book 2018 - Solution


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 tp admit C into partnership on the following terms for a third share in the future profits :

  1. That C should bring in Rs. 20,000 as capital.
  2. 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: – 

i)Cash A/cDr. 20,000 
 To Goodwill A/c   20,000
 (Being existing goodwill written off . )   
ii)C’s current A/cDr. 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
To A’s capital A/c  3,000To Balance b/d20,00015,000 
To B’s Capital A/c  2,000To Cash A/c  20,000
    To C’s capital A/c3,0002,000 
To Balance c/d23,00017,00015,000    
 23,00017,00015,000 23,000

Calculation of new profit sharing ratio 

Let total profit of the firm = Re.1

Share of profit acquired by C=1
Remaining share=11
A’s New share=3x2
B’s New share=2x2


 C’s share=1or5
New Ratio=6:4:5

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm



error: Content is protected !!