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

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

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)