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Question 36 Chapter 5 – Unimax Class 12 Part 1 – 2021
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36. A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 3 respectively. Two new partners D and E are introduced. The new profit sharing ratio is 3 : 4 : 2 : 2 : 1 respectively. D pays Rs. 30000 for his share of goodwill but E is unable to bring cash to pay for goodwill. Both the new partners introduced Rs. 40000 each as their capitals. Give necessary journal entries.
The solution of Question 36 Chapter 5 – Unimax Class 12 Part 1
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Cash a/c | Dr. | 1,10,000 | |||
| To D’s Capital a/c | 40,000 | ||||
| To E’s Capital a/c | 40,000 | ||||
| To Premium a/c | 30,000 | ||||
| (Being goodwill and capital brought in cash by new partners) | |||||
| Premium a/c | Dr. | 30,000 | |||
| To A’s Capital a/c | 20,000 | ||||
| To C’s Capital a/c | 10,000 | ||||
| (Being goodwill brought by D credited to sacrificing partners) | |||||
| E’s Capital a/c | Dr. | 15000 | |||
| To A’s Capital a/c | 10000 | ||||
| To C’s Capital a/c | 5000 | ||||
| (Being compensation paid by E to A and C for his share of goodwill) |
Working Note :
Total G.W. of firm = 30000 X 12/2
= Rs. 1,80,000
E’s share of G.W. = 1,80,000 X 1/12
=Rs. 15000
A’s sacrifice = Old share – New share
= 5/12 – 3/12 = 2/12
B’s sacrifice = 4/12 – 4/12 = 0
C’s sacrifice = 3/12 – 2/12 = 1/12
S.R. = 2/12 : 1/12 = 2 : 1
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What is Partnership – Meaning and Its 4 Types
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication