# Question 49 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.49 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 49 Chapter 5 of +2-A

49. E and F were partners in a firm sharing profits in the ratio of 3 : 1. They
admitted G as a new partner on 1st April, 2019 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought 50,000 in cash and machinery valued at 70,000 as premium for goodwill.
Pass necessary Journal entries in the books of the firm.

## The solution of Question 49 Chapter 5 of +2-A: –

 Date Particulars L.F. Debit Credit Cash A/c Dr 50,000 Machinery A/c Dr 70,000 To Premium for Goodwill A/c 1,20,000 (Being G brought cash Rs 50,000 and Machinery Rs 70,000 for his share of Goodwill) Premium for Goodwill A/c Dr 1,20,000 To E’s Capital A/c 1,20,000 (Being G share of goodwill transferred to E’s Capital Account) F’s Capital A/c Dr 30,000 To E’s Capital A/c 30,000 (Being G share of goodwill transferred to E’s Capital Account)

 Old Ratio of E and F = 3 : 1 New Ratio of E, F, and G = 1 : 1 : 1

Sacrificing Share = Old Ratio – New Ratio

 E’s Sacrificing Share = 3 – 1 4 3
 = 9 – 4 12
 = 5 Sacrifice 12

 F’s Sacrificing Share = 1 – 1 4 5
 = 3 – 4 12
 = (-1) Gain 12

Distribution of G’s share of Goodwill
G’s share of Goodwill = 1,20,000

F gaining the share in the firm’s profit so only E will received the share of goodwill brought by D and he will also receive the share of goodwill from F

 Total Firm’s Goodwill = 1,20,000 X 3 1 = 3,60,000

 F’s Share of Goodwill = Firm’s Goodwill  X Gaining share of F’s
 = 3,60,000 X 1 12 = 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

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