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

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

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)