# Question 41 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.41 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 41 Chapter 5 of +2-A

41. Anil and Sunil are partners in a firm with fixed capitals of 3,20,000 and
2,40,000 respectively. They admitted Charu as a new partner for 1/4th share in the profits of the firm on 1st April, 2012. Charu brought 3,20,000 as her share of capital.
Calculate value of goodwill and record necessary Journal entries

## The solution of Question 41 Chapter 5 of +2-A: –

 Date Particulars L.F. Debit Credit Bank A/c Dr 3,20,000 To Charu’s Capital A/c 3,20,000 (Being Charu’s share of goodwill adjusted with his capital account) Charu’s Current A/c Dr 1,00,000 To Anil’s Capital A/c 50,000 To Sunil’s Capital A/c 50,000 (Being Charu’s share of goodwill adjusted through current accounts)

### Working Note: –

Total Capital of the firm on the Basis of Charu’s Capital

Total Capital of the firm = Charu’s Capital * Reciprocal of his share

 = 3,20,000 * 4 1 = 12,80,000

Actual Capital of Firm = Capital of Old Partners + Incoming Partner’s Capital

 = 3,20,000 + 2,40,000 + 3,20,000 = 8,80,000

 Goodwill = Total Capital of the firm on basis of Charu’s Capital – Actual Capital of Firm = 12,80,000 +8,80,000 = 4,00,000
 Charu’s Share of Goodwill = Firm’s Goodwill  x Share of E’s
 = 4,00,000 X 1 4 = 1,00,000

Sacrificing Ratio of Anil and Sunil = 1 : 1

 Anil will get Share of Goodwill = Charu’s Goodwill  x Sacrifice share of A

 = 1,00,000 X 1 2 = 50,000

 Sunil will get Share of Goodwill = Charu’s Goodwill  x Sacrifice share of A
 = 1,00,000 X 1 2 = 50,000

### 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