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

Question No.42 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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)

• 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