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

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

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Question 49 Chapter 5 of +2-A

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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: –

 

DateParticulars
L.F.DebitCredit
 Cash A/cDr 50,000 
 Machinery A/cDr 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/cDr 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/cDr 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=31
43
 =9 – 4
12
 =5 Sacrifice
 12

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F’s Sacrificing Share=11
45
 =3 – 4
12

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 =(-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=1,20,000X3
1
 =3,60,000
  

 

F’s Share of Goodwill=Firm’s Goodwill  XGaining share of F’s
 =3,60,000X1
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)

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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