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

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

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

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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

DateParticulars L.F.Debit Credit
 Cash a/cDr. 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/cDr. 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/cDr. 3750 
 N’s Capital a/cDr. 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 (Being ½ by M and 1/3 by N goodwill withdrawn by partners)    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

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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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