Question 36 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 36 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 36 Chapter 5 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

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

 

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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