
Question 36 Chapter 5 of +2-Part-1
36. (Hidden Goodwill) A and B are partners with capitals of Rs. 8,000 and Rs. 6,000 respectively. They admit C as a partner with 1/4th share in the profit of the firm. C brings Rs. 8,000 as his share of capital. Give journal entries to record goodwill.
The solution of Question 36 Chapter 5 of +2 Part-1: –
Journal | |||||
Date | Particulars |
L.F. | Debit | Credit | |
i) | Cash A/c | Dr. | 8,000 | ||
To C’s Capital A/c | 8,000 | ||||
(Being cash brought by C as capital ) | |||||
ii) | C’s capital A/c | Dr. | 2,500 | ||
To A’s Capital A/c | 1,250 | ||||
To B’s Capital A/c | 1,250 | ||||
(Being C’s share of capital adjusted in sacrificing ratio i.e. equall) |
|||||
Working notes:
Calculation of hidden Goodwill: Total capital of the firm after C’s admission:
Rs.(8000+6000+8000)= Rs. 22,000
Firm’s capital taking C’s capital as a base | = | 4 | X | 8,000 |
1 | ||||
= | Rs 32,000 | |||
Hidden Goodwill = Rs.(32,000-22,000) | ||||
= | Rs. 10,000 |
C’s share of Goodwill | = | 4 | X | 10,000 |
1 | ||||
= | Rs 2,500 |
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
