Question 39 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 39 Chapter 5 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 39 Chapter 5 – Unimax Class 12 Part 1

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

39. Varun and Nishant are partners in a firm sharing profits in the ratio of 3 : 1. They admit Jatin for 1/4th share. Jatin will bring Rs. 50000 as his capital and only Rs. 10000 for goodwill. The goodwill of the firm is valued at Rs. 60000. Pass necessary journal entries.

The solution of Question 39 Chapter 5 – Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	Cash a/c	Dr.		60,000
	To Jatin’s Capital a/c				50,000
	To Premium a/c				10,000
	(Being goodwill and capital brought in cash by new partner)
	Premium a/c	Dr.		10,000
	Jatin’s Capital a/c			5,000
	To Varun’s Capital a/c				11,250
	To Nishant’s Capital a/c				3,750
	(Being compensation paid and goodwill credited to old partners capital a/c)

Working Note
Let total profit = 1
Jatin’s Share =1/4
Remaining Share = 1 -1/4 =4-1/4 =3/4
Varun’s new share =1/4 X 3/4
=9/16
Nishant’s new share =1/4 X 3/4
=3/16
V’s Sacrifice =3/4_9/16 =3/16
N’s Sacrifice =1/4_3/16 =1/16
So S.R. =3/16:1/16
= 3 : 1