Question 26 Chapter 5 – Unimax Class 12 Part 1 – 2021
Table of Contents
26. R and S are partners sharing profits and losses in the ratio 5 : 3. They agree to admit Q for 1/3rd share in profits. Q brings Rs. 150000 as capital. Goodwill of firm is valued at Rs. 120000. But Q is unable to bring his share of goodwill in cash. Pass necessary journal entries.
The solution of Question 26 Chapter 5 – Unimax Class 12 Part 1
| Date | Particulars | L.F. | Debit | Credit | |
| Cash a/c | Dr. | 150000 | |||
| To Q’s Capital a/c | 150000 | ||||
| (Being Capital contributed by new partner) | |||||
| Q’s Capital a/c | Dr. | 40000 | |||
| To R’s Capital a/c | 25000 | ||||
| To S’s Capital a/c | 15000 | ||||
| (Being compensation paid by Q to R and S for his share of goodwill) |
Working Note
Q’s share of goodwill = 120000 X 1/3 = Rs. 40000
(iii) If nothing has been mentioned in the sum about partner’s sacrificing ratio, so they will sacrifice in their old ratio.
What is Partnership – Meaning and Its 4 Types
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. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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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