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

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

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

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

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