Question 35 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 35 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 35 Chapter 5 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

35. A and B are partners with capitals of Rs. 13000 and Rs. 11000. They admit C as a new partner with 1/5th share in the profits of the firm. C brings Rs. 8000 as his share of capital. Pass necessary journal entries regarding goodwill.

The solution of Question 35 Chapter 5 – Unimax Class 12 Part 1

Date Particulars   L.F. Debit Credit
  Cash a/c Dr.   8,000  
      To C’s Capital a/c       8,000
  (Being Capital brought by new partner in cash)        
  C’s Capital a/c  Dr.   1,600  
      To A’s Capital a/c       800
      To B’s Capital a/c       800
  (Being compensation paid by C to A & B for his share of G.W.)        

Working Note :
Total Capital of firm = 8000 X 5/1 
                                = Rs. 40000
Value of G.W. = 40000 – (13000 + 11000 + 8000)
                      =Rs. 8000
C’s Share of goodwill = 1/5 X 8,000
                                  = Rs. 1,600

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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