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

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

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Question 33 Chapter 5 of +2-A

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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 Half of their share of premium was withdrawn by A and B from the firm.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

DateParticulars
L.F.DebitCredit
 Cash A/cDr 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/cDr 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/cDr 55,000 
 B’s Capital A/cDr 20,000 
 To Cash A/c   75,000
 (Being Amount of goodwill withdrawn by A and B)    

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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=32
57
 =21 – 10
35
 =11Sacrifice
 35

 

B’s Sacrificing Share=22
57
 =14 – 10
35

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 =4Sacrifice 
 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
 =1,50,000X11
15
 =1,10,000
  

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B will get Share of Goodwill=C’s Goodwill  x Sacrifice share of B
 =1,50,000X4
15
 =40,000
  

Amount of goodwill withdrawal by the old partners

A will withdrawal Goodwill

=A’s Share Goodwill  X Half amount withdrawal

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 =1,10,000X1
2
 =55,000
  

 

B will withdrawal Goodwill

=B’s Share Goodwill  X Half amount withdrawal
 =40,000X1
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)

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

 

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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