Question 37 Chapter 5 of +2- Part-

Question 37 Chapter 5 of +2-Part-1

37. (Comprehensive) A, B and C are partners in 3 : 2: 1 ratio. They admitted D and the new ratio is 4: 4:1 1. D will bring capital 1,25,000. The goodwill is valued at Rs. 1,00,000 Record the entries in journal in the following cases:
(a) Goodwill is brought in cash by new partner.
(b) Goodwill is brought in cash by new partner and goodwill already appears at Rs. 37,500.
(c) Goodwill is brought in cash by new partners and it is withdrawn
(d) Goodwill is brought in cash new partner Rs. 7,500.by A and C.
(e) Goodwill is brought in cash by new partner Rs. 7,500 and goodwill exists Rs. 50,000.Goodwill is not brought in cash.
(g) Goodwill is brought in cash and goodwill exist in books Rs. 1,50,000.
(h) Goodwill is brought in the form of equipment of Rs. 5,000 but valued at Rs. 7,500 by the firm.

The solution of Question 37 Chapter 5 of +2 Part-1: – 

Journal
DateParticulars
L.F.DebitCredit
2019     
a)Cash A/cDr. 1,25,000 
 To D’s Capital A/c   1,25,000
 (Being D brings capital)   
     
i)Cash A/cDr. 2,500 
 To Premium A/c   1,250
 (Being C’s share of capital adjusted in sacrificing ratio
i.e. equall)
    
      
ii)Premium A/cDr. 10,000 
 B’s Capital A/c (1,00,000 X 1/15)Dr. 6,667 
 To A’s Capital A/c   10,000
 To C’s Capital A/c   6,667
 (Being sacrificing partners compensated by new partner and B in 3:2)    
      
b)Entry 2 (i) and (ii) and the following entries    
      
 A’s Capital A/cDr. 18,750 
 B’s Capital A/cDr. 12,500 
 C’s Capital A/cDr. 6,250 
 To Cash A/c   37,500
 (Being goodwill written off)    
      
c)Entry 2 (i) and (ii) and the following entries    
      
 A’s Capital A/cDr. 10,000 
 C’s Capital A/cDr. 6,667 
 To Cash A/c   16,667
 (Being goodwill withdrawn by A and C)    
      
d)Cash A/cDr. 7,500 
 D’s Capital A/cDr. 2,500 
 To Premium A/c   10,000
 (Being goodwill brought in by D Rs. 7,500 and balance is adjusted from capital)    
      
ii)Premium A/cDr. 10,000 
 B’s Capital A/cDr. 6,667 
 To A’s Capital A/c   10,000
 To C’s Capital A/c   6,667
 (Being goodwill brought of D and B’s share given to A and C sacrifice ratio)    
      
e)Entry D (i) and (ii) and the following entries    
 A’s Capital A/cDr. 25,000 
 B’s Capital A/cDr. 16,667 
 C’s Capital A/cDr. 8,333 
 To goodwill A/c   50,000
 (Being goodwill written off)    
      
f)D’s Capital A/cDr. 10,000 
 B’s Capital A/cDr. 6,667 
 To A’s Capital A/c   10,000
 To C’s Capital A/c   6,667
 (Being goodwill not brought in cash adjusted from D’s capital and B’s capital)    
      
g)Entry 2 (i) and (ii) and the following entries    
 A’s Capital A/cDr. 75,000 
 B’s Capital A/cDr. 50,000 
 C’s Capital A/cDr. 25,000 
 To goodwill A/c   1,50,000
 (Being goodwill written off)    
      
h)Equipment A/cDr. 7,500 
 D’s Capital A/cDr. 2,500 
 To Premium A/c   10,000
 (Being goodwill brought in by D Rs. 7,500 in equipment and balance Rs. 2,500 adjusted from capital)    
     

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 37 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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