Question 32 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part

Question 32 Chapter 5 of +2-Part-1

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The solution of Question 32 Chapter 5 of +2 Part-1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

32. (Goodwill is brought in-kind) P and Q are partners in a 3: 2 ratio. They agreed to admit R for 1/4th share. He paid Rs. 30,000 for capital, however for goodwill he gave stock Rs. 10,000 and furniture Rs. 5,000. Show entries in the journal.

The solution of Question 32 Chapter 5 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit	Credit

i)	Bank A/c	Dr.		30,000
	Stock A/c	Dr.		10,000
	Furniture A/c	Dr.		5,000
	To R’s Capital A/c				30,000
	To Premium for Goodwill A/c				15,000
	(Being assets brought in by R as his capital and premium)

ii)	Premium for Goodwill A/c	Dr.		15,000
	To P’s Capital A/c				9,000
	To Q’s Capital A/c				6,000
	(Being R’s share of goodwill distributed in sacrificing ratio 3:2)