# Question 32 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 32 Chapter 5 – Unimax Class 12 Part 1 – 2021

32. M and N are partners sharing profits and losses in the ratio of 2 : 1. They admit P into partnership for 1/4th share, which he acquires equally from M and N. P brings Rs. 35,000 for Capital and Rs. 15,000 as his share of goodwill. Pass necessary journal entries if M withdraws ½ and N withdraws 1/3rd of the amount of goodwill credited to them.

## The solution of Question 32 Chapter 5 – Unimax Class 12 Part 1

Journal

 Date Particulars L.F. Debit Credit Cash a/c Dr. 50,000 To P’s Capital a/c 35,000 To Premium a/c 15,000 (Being goodwill and capital brought in cash by new partner) Premium a/c Dr. 15000 To M’s Capital a/c 7,500 To N’s Capital a/c 7,500 (Being goodwill brought by new partner credited to old partners a/c in sacrificing ratio M’s Capital a/c Dr. 3750 N’s Capital a/c Dr. 2500 To Cash a/c 6250 (Being ½ by M and 1/3 by N goodwill withdrawn by partners)

Let total profit = 1
P’s Share =1/4
Remaining Profit = 1 -1/4=4-1/4=3/4
A’s new share =2/3_[1/2 X 1/4]
=2/3_1/8=16-3/24=13/24
B’s new share =1/3_[1/2 X 1/4]
=1/3_1/8=8-3/24=5/24
A : B : C : D = 13 : 5 : 6
A’s Sacrifice =2/3_13/24
=16-13/24=1/8
B’s Sacrifice =1/3-5/24
=8-5/24=1/8
S.R. = 1 : 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)