Question 28 Chapter 5 of +2- Part-

Question 28 Chapter 5 of +2-Part-1

28. (New Partner doesn’t bring G/W in Cash) A and B are partners Sharing profits in the ratio of 3:2. Their bouks showed goodwill at Rs. 2,000. C is admitted with 1/4th share of profits and brings Rs. 10,000 as capital but is not able to bring in cash his share of goodwill Rs. 1000. Give necessary journal entries.

The solution of Question 28 Chapter 5 of +2 Part-1: – 

Journal
DateParticulars
L.F.DebitCredit
2019     
i)A’s Capital A/cDr. 12,000 
 B’s Capital A/cDr. 8,000 
 To goodwill A/c   20,000
 ( Being existing goodwill written of in old ratio 3:2)   
     
ii)Cash A/cDr. 10,000 
 To C’s Capital A/c   10,000
 (Being capital brought in by C)    
      
iii)C’s Current A/cDr. 3,000 
 To A’s Capital A/c   1,800
 To B’s Capital A/c   1,200
 (Being C’s Share goodwill adjusted through capital accounts in sacrificing Ratio i.e. 3:2)    
     

Working Note

Sacrificing Ratio = Old share of old partners – New share

X’s sacrifice=54
1010
     
 =1  
 10  
Y’s sacrifice=34
1010
1    
 =1  
 10  
Z’s sacrifice=11
1010
     
 =1  
 10  
Good will to be brought by Y and A=30,0000x1
10
     
 =Rs 3,000 Each  

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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 28 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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