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

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

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

Free Accounting book Solution - Class 11 and Class 12

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

 

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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