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

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

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

Free Accounting book Solution - Class 11 and Class 12

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  (Being half of goodwill withdrawn by each partner)        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

Working Note :
If nothing has been mentioned in partnership deed then partners will sacrifice in their profit sharing ratio i.e. 1 : 1 : 1.

 

What is Partnership – Meaning and its Types

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)

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

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

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