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

Double Entry Book Keeping Ts Grewal Vol. 1 2019 Solutions for Class 12 Commerce ACCOUNTANCY Chapter 5 - Admission Of A Partner

Question 16:


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.

Answer:


 

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

Question 17:


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.

Answer:


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

 

Question 18:


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

 

Answer;


 

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

 

Question 19: Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner Kailash is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash's admission, goodwill of the firm is valued at 75,000 and Kailash brings his share of goodwill in cash which is retained in the business. Journalise the above transactions.


Answer:


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)

 

Question 20:


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.

Answer:


(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

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 4 – Admission Of A Parnter

 

Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35