Question 34 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 34 Chapter 5 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 34 Chapter 5 – Unimax Class 12 Part 1

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

34. A, B and C were in partnership sharing profits equally. On 31st December, 2020 their capital accounts were as follows : A Rs. 15000 ; B Rs. 10000 ; C Rs. 5000. On 1st January, 2021 D was admitted as a new partner for 1/4th share. He agreed to bring Rs. 4000 as capital and Rs. 3000 for goodwill. Each of the partners was to leave half of his share of goodwill in business and withdrew the other half. Pass necessary journal entries and prepare Capital A/cs.

The solution of Question 34 Chapter 5 – Unimax Class 12 Part 1

Date	Particulars		L.F.	Debit	Credit
	Cash a/c	Dr.		7,000
	To Q’s Capital a/c				4,000
	To Premium a/c				3,000
	(Being goodwill and capital brought in cash by new partner)
	Premium a/c	Dr.		3,000
	To A’s Capital a/c				1,000
	To B’s Capital a/c				1,000
	To C’s Capital a/c				1,000
	(Being goodwill credited in old partners’ capital a/c in their sacrificing ratio)
	A’s Capital a/c	Dr.		500
	B’s Capital a/c	Dr.		500
	C’s Capital a/c	Dr.		500
	To Cash a/c				1,500
	(Being half of goodwill withdrawn by each partner)

Partners’ Capital Accounts

Particulars	A	B	C	D	Particulars	A	B	C	D
To Cash A/c	500	500	500	–	By Balance b/d	15,000	10000	5000	–
To Balance c/d	15,500	10,500	5,500	4000	By Cash A/c	–	–	–	4,000
					By Premium A/c	1,000	1,000	1,000	–

	16,000	11,000	6,000	4,000		16,000	11,000	6,000	4,000