Question 26 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 26 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 26 Chapter 5 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

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 Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

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