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

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

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)