# Question 37 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.37 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 37 Chapter 5 of +2-A

37. A and B are partners sharing profits in the ratio of 3 : 2. Their books show
goodwill at 2,000. C is admitted as partner for 1/4th share of profits and brings in 10,000 as his capital but is not able to bring in cash for his share of goodwill 3,000. Draft Journal entries.

## The solution of Question 37 Chapter 5 of +2-A: –

 Date Particulars L.F. Debit Credit A’s Capital A/c Dr 1,200 B’s Capital A/c Dr 800 To Goodwill A/c 2,000 (Being goodwill written off which is already in the books) Cash A/c Dr 10,000 To C’s Capital A/c 10,000 (Being C brought his share of goodwill) C’s Capital A/c Dr 3,000 To A’s Capital A/c 1,800 To B’s Capital A/c 1,200 (Being C’s share of goodwill adjusted with his capital account )

### Working Note: –

Goodwill in the books = 2,000

 A’s share of Goodwill = 2,000 X 3 5 = 1,200

 B’s share of Goodwill = 2,000 X 2 5 = 800

Sacrificing Ratio of A and B=3 : 2

 A will get Share of Goodwill = C’s Goodwill  X Sacrifice share of A
 = 3,000 X 3 5 = 1,800

 B will get Share of Goodwill = C’s Goodwill x Sacrifice share of B
 = 3,000 X 2 5 = 1,200

### 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. 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

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