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

Free Accounting book Solution - Class 11 and Class 12

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  (Being ½ by M and 1/3 by N goodwill withdrawn by partners)        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

 

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

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

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