# Question 29 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 29 Chapter 5 – Unimax Class 12 Part 1 – 2021

29. A and B are partners in a firm sharing profits and losses in 3 : 4. They admit C for 3/7th share which he acquires 2/7th from A and 1/7th from B. C brings Rs. 1,500 as premium out of his share of Rs. 2,400. Pass necessary journal entries if capital brought by C is Rs. 10,000.

## The solution of Question 29 Chapter 5 – Unimax Class 12 Part 1

Journal

 Date Particulars L.F. Debit Credit Cash a/c Dr. 11500 To C’s Capital a/c 10000 To Premium a/c 1500 (Being goodwill and capital brought in cash by new partner) C’s Capital a/c Dr. 900 Premium a/c Dr. 1500 To A’s Capital a/c 1600 To B’s Capital a/c 800 (Being compensation paid transferred to old partner’s capital a/c in sacrificing ratio)

Working Note
C’s share of G.W = Rs. 2,400
Compensation through capital = Rs. 2,400 – 1,500 = Rs. 900
Sacrifice of A = 2/1
Sacrifice of B = 1/2
So, S.R. = 2 : 1

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)