# Question 28 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 28 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 28 Chapter 5 – Unimax Class 12 Part 1 – 2021

28. P and Q were partners sharing profits and losses in 7 : 3. R was admitted as a new partner and new profit sharing ratio was 5 : 3 : 2. R was unable to pay cash for goodwill. Instead he gave stock Rs. 20,000 and furniture Rs. 15,000 for his share of goodwill. Apart from this he paid Rs. 70,000 for his capital. Pass necessary journal entries.

## The solution of Question 28 Chapter 5 – Unimax Class 12 Part 1

Journal

 Date Particulars L.F. Debit Credit Cash a/c Dr. 70000 Stock a/c Dr. 20000 Furniture a/c Dr. 15000 To Premium a/c 35000 To R’s Capital a/c 70000 (Being asset contributed as goodwill and capital brought in cash by new partner) Premium a/c Dr. 35000 To P’s Capital a/c 35000 (Being goodwill credited to old partners’ capital a/c in their sacrificing ratio)

Working Note
Calculation of sacrificing ratio
P’s sacrifice = Old Share – Share
=7/10 – 5/10
= 2/10
Q’s sacrifice = 3/10 -3/10
= 0 (no sacrifice)
All the amount of goodwill is credited to P’s Capital A/c.