Question 33 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 33 Chapter 5 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 33 Chapter 5 – Unimax Class 12 Part 1

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

33. P and Q share profits in the ratio of 3 : 2. R is admitted as a new partner with 1/6th share. P and Q will in future get 2/6th and 3/6th share of profits respectively. R pays Rs. 30,000 as goodwill. Pass necessary journal entries.

The solution of Question 33 Chapter 5 – Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	Cash a/c	Dr.		30,000
	To Preamium a/c				30,000
	(Being goodwill brought by new partner in cash)
	Premium a/c	Dr.		30,000
	To P’s Capital a/c				30,000
	(Being goodwill credited to old partner’s capital a/c in his sacrificing ratio)
	Q’s Capital a/c	Dr.		18000
	To P’s Capital a/c				18000
	(Being compensation paid by Q to sacrificing partner)

Working Note :
Old PSR = 3 : 2
New PSR =2/6: 3/6: 1/6: = 2 : 3 : 1
P’s Sacrifice =3/5_2/6 =18-10/30 =8/30
Q’s Sacrifice =3/5_3/6
=12-15/30 =-3/30
Total goodwill of firm = 30,000 X 6/1
= Rs. 1,80,000
Compensation paid by Q = 3/30 X 1,80,000
= Rs. 18,000