# Question 33 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.33 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 33 Chapter 5 of +2-A

33. A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C  as a new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2 : 2 : 3. C brought 2,00,000 as his capital and 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm.

The solution of Question 33 Chapter 6 of +2-A

 Date Particulars L.F. Debit Credit Cash A/c Dr 3,50,000 To C’s capital A/c 2,00,000 To Premium for Goodwill A/c 1,50,000 (Being C brought his share of capital and goodwill) Premium for Goodwill A/c Dr 1,50,000 To A’s Capital A/c 1,10,000 To B’s Capital A/c 40,000 (Being goodwill brought by C distributed among the old partners) A’s Capital A/c Dr 55,000 B’s Capital A/c Dr 20,000 To Cash A/c 75,000 (Being Amount of goodwill withdrawn by A and B)

 Old Ratio of A and B = 3 : 2 New Ratio of A, B, and C = 2 : 2 : 3

Sacrificing Share = Old Ratio – New Ratio

 A’s New Ratio = 3 – 2 5 7
 = 21 – 10 35
 = 11 Sacrifice 35

 B’s Sacrificing Share = 2 – 2 5 7
 = 14 – 10 35

 = 4 Sacrifice 35

 C’s Share of Goodwill = 1,50,000
 Sacrificing Ratio of X and Y = 11 : 4

 A will get Share of Goodwill = C’s Goodwill  x Sacrifice share of A
 = 1,50,000 X 11 15 = 1,10,000

 B will get Share of Goodwill = C’s Goodwill  x Sacrifice share of B
 = 1,50,000 X 4 15 = 40,000

Amount of goodwill withdrawal by the old partners

 A will withdrawal Goodwill = A’s Share Goodwill  X Half amount withdrawal

 = 1,10,000 X 1 2 = 55,000

 B will withdrawal Goodwill = B’s Share Goodwill  X Half amount withdrawal
 = 40,000 X 1 2 = 20,000

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

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement