Question 48 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 48 Chapter 5 of +2-A

Question 48 Chapter 5 of +2-A

48. Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2
respectively. The fixed capital of Disha is 4,80,000 and of Divya is 3,00,000. On 1st April, 2019 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought 3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina’s admission.

The solution of Question 48 Chapter 5 of +2-A: –

 

Date Particulars
L.F. Debit Credit
  Bank A/c Dr   3,00,000  
  To Hina’s Capital A/c       3,00,000
  (Being share of capital brought by the Hina)        
  Hina’s Capital A/c Dr   84,000  
  To Disha’s Capital A/c       50,400
  To Divya’s Capital A/c       33,600
  (Being Hina’s Share of Goodwill adjusted through current accounts)        

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

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

  = 3,00,000 * 5
1
  = 15,00,000
   

Total Firm’s Capital = Disha’s Capital + Divya’s Capital + Hina’s Capital

  = 4,80,000 + 3,00,000 + 3,00,000
  = 10,80,000

 

Goodwill = Total Capital of the firm
on basis of Hina’s Capital
-Actual Capital of Firm
  = 15,00,000 -10,80,000
  = 4,20,000  

 

Hina’s Share of Goodwill = Firm’s Goodwill  x  Share of Hina
  = 4,20,000 X 1
5
  = 84,000
   

Sacrificing Ratio of Disha and Dviya = 3 : 2

Disha will get Share of Goodwill = Hina’s Goodwill  X Sacrifice share of Disha
  = 84,000 X 3
5
  = 50,400
   

 

Dviya will get Share of Goodwill = Hina’s Goodwill  X  Sacrifice share of Dviya
  = 84,000 X 2
5
  = 33,600
   

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

 

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2 Book 1 min - Question 48 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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