Question 30 Chapter 5 of +2-Part-1
30. (Partner Partly brings the G/W) X, Y, and Z were partners sharing profits and losses as to X one-half: Y one-third; Z one-sixth. As from 1st January, they agreed to admit A into a partnership for a one-sixth share in profits and losses which he acquires equally from X and Y and he had to bring in Rs. 20,000 for his capital and Rs. 10,000 as a premium for goodwill. A paid in his capital money but in respect of premium for goodwill, he could bring in only Rs. 5,000.
You are required to:
- Give the journal entries to carry out the above arrangements,
- Work out the new profit-sharing ratio of partners.
The solution of Question 30 Chapter 5 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| i) | Cash A/c | Dr. | 25,000 | ||
| To A’s Capital A/c | 20,000 | ||||
| To Premium for Goodwill A/c | 5,000 | ||||
| (Being capital and premium brought In cash by A ) | |||||
| ii) | Premium A/c | Dr. | 5,000 | ||
| To X’s Capital A/c | 2,500 | ||||
| To Y’s Capital A/c | 2,500 | ||||
| (Being Premium for goodwill distributed among old partners in their sacrificing ratio) | |||||
| iii) | A’s Capital A/c | Dr. | 5,000 | ||
| To X’s Capital A/c | 2,500 | ||||
| To Y’s Capital A/c | 2,500 | ||||
| (Being premium for goodwill no brought in in cash by A adjusted through his current account) | |||||
Calculation of new profit sharing ratio
| Old ratio | = | 1 | : | 1 | : | 1 |
| 2 | 3 | 6 | ||||
| Or | = | 2 | : | 3 | : | 6 |
| New partner A’s share | = | 1 | which he acquired equally from X and Y |
| 6 |
New Share = Old share – sacrifice
| X’s new share | = | 3 | – | 1 |
| 6 | 2 | |||
| = | 6 – 1 | |||
| 12 | ||||
| = | 5 | |||
| 12 |
| Y’s new share | = | 2 | – | 1 |
| 6 | 2 | |||
| = | 4 – 1 | |||
| 12 | ||||
| = | 3 | |||
| 12 |
| Z’s new share | = | 1 | X | 2 |
| 6 | 2 | |||
| = | 2 | |||
| 12 | ||||
| = | 1 | X | 2 | |
| A’s New Share | 6 | 2 | ||
| = | 2 | |||
| 12 |
New profit Sharing Ratio = 5 : 3 : 2 : 2
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
