Question 41 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 41 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 41 Chapter 5 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

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Case 2 : When amount of goodwill is withdrawn by the concerned partners to the extent of 50% of what is credited to them.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  (Being 50% of goodwill withdrawn by old partners)        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 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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