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

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

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

Free Accounting book Solution - Class 11 and Class 12

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
Premium (G.W.) = Rs. 1,500
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

 

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

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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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