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Question 47 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 47 Chapter 5 of +2-A
Question No.47 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 47 Chapter 5 of +2-A

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47. Verma and Sharma are partners in a firm sharing profits and losses in the
ratio of 5 : 3. They admitted Ghosh as a new partner for 1/5th share of profits. Ghosh is to bring in 20,000 as capital and 4,000 as his share of goodwill premium. Give the necessary Journal entries:
(a) When the amount of goodwill is retained in the business.
(b) When the amount of goodwill is fully withdrawn.
(c) When 50% of the amount of goodwill is withdrawn.
(d) When goodwill is paid privately.

The solution of Question 47 Chapter 5 of +2-A: –

 

(a) When the amount of goodwill is retained in the business.

DateParticulars
L.F.DebitCredit
 Cash A/cDr 24,000 
 To Ghosh’s Capital A/c   20,000
 To Premium for Goodwill A/c   4,000
 (Being share of capital and goodwill brought by the Ghosh)    
 Premium for Goodwill A/cDr 4,000 
 To Verma’s Capital A/c   2,500
 To Sharma’s Capital A/c   1,500
 (Being goodwill distributed among the old partners)    

(b) When the amount of goodwill is fully withdrawn.

DateParticulars
L.F.DebitCredit
 Cash A/cDr 24,000 
 To Ghosh’s Capital A/c   20,000
 To Premium for Goodwill A/c   4,000
 (Being share of capital and goodwill brought by the Ghosh)    
 Premium for Goodwill A/cDr 4,000 
 To Verma’s Capital A/c   2,500
 To Sharma’s Capital A/c   1,500
 (Being goodwill distributed among the old partners)    
 Verma’s Capital A/cDr 2,500 
 Sharma’s Capital A/cDr 1,500 
 To Cash A/c   4,000
 (Being Amount of Premium for Goodwill withdrawn by Old
Partners)
    

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(c) When 50% of the amount of goodwill is withdrawn.

DateParticulars
L.F.DebitCredit
 Cash A/cDr 24,000 
 To Ghosh’s Capital A/c   20,000
 To Premium for Goodwill A/c   4,000
 (Being share of capital and goodwill brought by the Ghosh)    
 Premium for Goodwill A/cDr 4,000 
 To Verma’s Capital A/c   2,500
 To Sharma’s Capital A/c   1,500
 (Being goodwill distributed among the old partners)    
 Verma’s Capital A/cDr 1,250 
 Sharma’s Capital A/cDr 750 
 To Cash A/c   2,000
 (Being Amount of Premium for Goodwill withdrawn by Old
Partners)
    

 

(d) When goodwill is paid privately.

No Journal entry will be recorded in the books because goodwill paid privately.

 

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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