Question 41 Chapter 5 – Unimax Class 12 Part 1 – 2021
41. X and Y are partners in a firm sharing profits and losses in 3 : 2. They admit Z as a new partner for 1/5th share. This share is contributed by them in the ratio of 2 : 3. The goodwill of the firm has been valued at Rs. 50000. Z brings in the necessary amount in cash as his share of goodwill and Rs. 30000 as his capital. Pass necessary journal entries assuming that the capitals are fixed under each of the following alternatives :
Case 1 : When amount of goodwill is retained in the firm.
Case 2 : When amount of goodwill is withdrawn by the concerned partners to the extent of 50% of what is credited to them.
The solution of Question 41 Chapter 5 – Unimax Class 12 Part 1
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Cash a/c | Dr. | 40,000 | |||
| To Premium a/c | 10,000 | ||||
| To Z’s Capital a/c | 30,000 | ||||
| (Being goodwill and capital brought in cash by new partner) | |||||
| Premium a/c | Dr. | 10,000 | |||
| To X’s Current a/c | 4,000 | ||||
| To Y’s Current a/c | 6,000 | ||||
| (Being goodwill credited to old partners capital A/c in sacrificing ratio) | |||||
| (Cash I) No entry | 3,750 | ||||
| (Cash II) | |||||
| X’s Current A/c | Dr. | 2000 | |||
| Y’s Current A/c | Dr. | 3000 | |||
| To Cash a/c | 5000 | ||||
| (Being 50% of goodwill withdrawn by old partners) |
What is Partnership – Meaning and Its 4 Types
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. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication