12th | Admission Of A Partner | Question No. 16 To 20 | Ts Grewal Solution 2023-2024

A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after E's admission.

	A		B		C		D
OLD RATIO  =	36	:	24	:	20	:	20

E is admitted for 20/100 share

Let combined share of profit of all partners after E’s admission = 1

Combined share of A, B, C and D after E’s admission = 1 − E’s Share
=1-20/100

=80/100

New Ratio = Combined of A, B, C and D  Agreed Share of A, B, C and D

A’s

=80/100×3/10

=24/100

B’s

=80/100×4/10

=32/100

C’s

=80/100×2/10

=16/100

D’s

=80/100×1/10

=8/100

A

B

C

D

E

New profit sharing ratio =

24/100

:

32/100

:

16/100

:

8/100

:

20/100

=

6

:

8

:

4

:

2

:

5

Amit and Vidya are partners sharing profits in the ratio of 3 : 2. They admit Chintan into partnership who acquires 1/5th of his share from Amit and 4/25th share from Vidya. Calculate New Profit-sharing Ratio and Sacrificing Ratio.

Calculation of New Profit Sharing Ratio

Amit: Vidya=3:2 (Old Ratio)

Chintan acquires 1/5th of his share from Amit And,

Remaining 4/5th (1−1/5) of his share from Vidya.

If 4/5th share of Chintan =4/25

Chintan 's share=4/25×54=5/25

Amit 's sacrifice=1/5×1/5=1/25

Vidya 's sacrifice=4/25

Amit 's new share=3/5−1/25=1/5−1/25=14/25

Vidya 's new share=2/5−4/25=10−4/25=6/25

Chintan 's new share=1/5×5/5=5/25

Amit: Vidya:R=14:6:5

Sacrificing Ratio=1:4

 

Gold and Silver are partners sharing profits and losses in the ratio of 2 : 5. They admit Copper on the condition that he will bring    ` 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper's share in the future profits or losses will be 1/4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by Copper will be received by Gold and Silver? 

 

	A	B
OLD RATION	2  :	5

C is admitted for 1/4share

Let the combined share of A, B and C be = 1

Combined share of A and B after C’s admission = 1 − C’s share

=1-1/4

=3/4

New Ratio = Old Ratio - Combined share of A and B

A’s	=2/7×3/4
	=6/28
B’s	=5/7×3/4
	=15/28

New profit sharing ratio=

A		B		C
6/28	:	15/28	:	1/4
6/28	:	15/28	:	7/28
6	:	15	:	7

Distribution of C’s share of Goodwill OR A and B will be covered

C’s share of Goodwill =    ` 14,000

A will get =14,000×2/7=4,000

B will get =14,000×5/7=10,000

 

Old Ratio of Vimal and Nirmal is 3:2

Share of Profits Kailash will get from Vimal 1/5th of his share 3/5

= 3/5×1/5=3/25

Share of Profits Kailash will get from Nirmal 2/5th of his share 2/5

= 2/5×2/5=4/25

Remaining of –

Vimal  =  3/5 - 3/25 = 12/25

Nirmal= 2/5 - 4/25 = 6/25

Share of Kailash= 3/25 + 4/25=3+4/25=7/25

New Profit sharing ratio of Vimal, Nirmal and Kailash= 12/25 : 6/25 : 7/25

Kailash brings his share of goodwill in cash =75,000 × 7/25 = 21,000

Vimal and Nirmal will be compensated in sacrificing =3:4

Vimal =21,000×3/7=9,000

Nirmal =21,000×4/7=12,000

 

Journal Entry for Goodwill:

 

	Bank A/c    To Premium for Goodwill A/c (Being Goodwill brought in Cash)	Dr.     Dr.	21,000     21,000	21,000     21,000
	Premium for Goodwill A/c    To Vimal’s Capital A/c    To Nirmal Capital A/c (Being partners compensated in sacrificing ratio 3:4)

 

Pass Journal entries to record the following arrangements in the books of the firm:
(a) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of    ` 2,000 for 1/4th share of the profits, shares shares of B and C remain as before.
(b) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of    ` 2,100 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C.

(a)

Journal
Date	Particulars		L.F.	Debit    `	Credit    `
	Cash A/c	Dr.		2,000
	To Premium for Goodwill A/c				2,000
	(D brought Premium for Goodwill)
	Premium for Goodwill A/c	Dr.		2,000
	To B’s Capital A/c				1,200
	To C’s Capital A/c				800
	(Premium for Goodwill distributed between B and C in sacrificing ratio i.e. 3:2)

Working Note:

Distribution of premium for Goodwill-

B will get =2,000×3/5=1,200

A will get =2,000×2/5=800

 

(b)

Journal
Date	Particulars		L.F.	Debit    `	Credit    `
	Cash A/c	Dr.		2,100
	To Premium for Goodwill A/c				2,100
	(D brought his share of goodwill in cash)
	Premium for Goodwill A/c	Dr.		2,100
	To B’s Capital A/c				1,400
	To C’s Capital A/c				700
	(Premium for Goodwill brought distributed between B and C in sacrificing Ratio i.e. 2:1)

Working Note:

WN1

	B		C
Sacrificing ratio =	1/6	:	1/12
	2	:	1

WN2

Distribution of Premium for Goodwill-

B will get =21,00×2/3=1.400

C will get =21,00×1/3=700