Question 42 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 42 Chapter 5 of +2-A

Question 42 Chapter 5 of +2-A

42. A and B are partners in a firm with capital of 60,000 and 1,20,000
respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of 70,000 as his capital. Calculate amount of goodwill.

The solution of Question 42 Chapter 5 of +2-A: –

 

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

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

  = 70,000 * 4
1
  = 2,80,000
   


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

  = 60,000 + 1,20,000 + 70,000
  = 2,50,000

 

Goodwill = Total Capital of the firm
on basis of Cs Capital
– Actual Capital of Firm
  = 2,80,000 +2,50,000
  = 30,000  

 

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)

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

2 Book 1 min - Question 42 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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