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12th | Admission Of A Partner | Question No. 26 To 30 | 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 26:


Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at  `4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1.
Raja brought  `1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at  `2,50,000.
Record necessary Journal entries in the books of the firm for the above transactions.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

 

Anu’s Capital A/c

Dr.

 

3,30,000

 

 

Bhagwan’s Capital A/c

Dr.

 

1,10,000

 

 

  To Goodwill A/c

 

 

 

4,40,000

 

(Old goodwill written off in old ratio)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,50,000

 

 

  To Raja’s Capital A/c

 

 

 

1,00,000

 

  To Premium for Goodwill A/c

 

 

 

50,000

 

(Capital and goodwill brought in by Raju)

 

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

50,000

 

 

Bhagwan’s Capital A/c 320×2,50,000

Dr.

 

37,500

 

 

  To Anu’s Capital A/c 720×2,50,000

 

 

 

87,500

 

(Premium for goodwill adjusted)

 

 

 

 

Working Notes:

WN1 Calculation of Share in Old Goodwill

Anu's share=4,40,000×3/4=3,30,000

Bhagwan's share=4,40,000×1/4=1,10,000

WN2 Calculation of Raja's Share of Goodwill

Raja's Share of Goodwill=Firm's Goodwill×Raja's Profit Share                                            

=2,50,000×1/5=50,000

WN3 Calculation of Sacrificing Ratio

Sacrificing Ratio=Old Share-New Share

Anu's=3/4-2/5=7/20(sacrifice)

Bhagwan's=1/4-2/5=-3/20(gain)

 

Question 27:


Ram and Mohan are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2023, they admit Sohan as a partner for 1/4th share in the profits. Sohan contributed following assets towards his capital and for his share of goodwill:
Stock  
 ` 60,000; Debtors    ` 80,000; Land    ` 1,00,000, Plant and Machinery    ` 40,000.
On the date of admission of Sohan, the goodwill of the firm was valued at  
 ` 6,00,000.
Pass necessary Journal entries in the books of the firm on Sohan's admission.

(1)   Partners do not withdraw share of goodwill.

(2)   Partners withdraw half of their share of goodwill.

 

Answer:


(1)               Partners do not withdraw share of goodwill.

 

Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2023

 

 

 

 

April 1


Stock A/c


Dr.

 


60,000

 

 

Debtors A/c

Dr.

 

80,000

 

 

Land A/c

Dr.

 

1,00,000

 

 

Plant and Machinery A/c

Dr.

 

40,000

 

 

To Sohan’s Capital A/c

 

 

1,30,000

 

To Premium for Goodwill A/c

 

 

1,50,000

 

(Z brought assets for his share of goodwill and Capital)

 

 

 

 

 

 

 

 

April 1


Premium for Goodwill A/c


Dr.

 


1,50,000

 

 

  To Ram’s Capital A/c

 

 

90,000

 

  To Mohan’s Capital A/c

 

 

60,000

 

(Sohan’s share of Goodwill distributed between Ram and  Mohan in sacrificing ratio)

 

 

 

 

 

 

 

 


Working Notes:

WN1

SOHAN’s share of goodwill=6,00,000×1/4=1,50,000

 

WN2

Distribution of SOHAN’s Goodwill

RAM will get =1,50,000×3/5=90,000

MOHAN will get =1,50,000×2/5=60,000

 

(2)               Partners withdraw half of their share of goodwill.

 

Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2023

 

 

 

 

April 1


Stock A/c


Dr.

 


60,000

 

 

Debtors A/c

Dr.

 

80,000

 

 

Land A/c

Dr.

 

1,00,000

 

 

Plant and Machinery A/c

Dr.

 

40,000

 

 

To Sohan’s Capital A/c

 

 

1,30,000

 

To Premium for Goodwill A/c

 

 

1,50,000

 

(Z brought assets for his share of goodwill and Capital)

 

 

 

 

 

 

 

 

April 1


Premium for Goodwill A/c


Dr.

 


1,50,000

 

 

  To Ram’s Capital A/c

 

 

90,000

 

  To Mohan’s Capital A/c

 

 

60,000

 

(Sohan’s share of Goodwill distributed between Ram and  Mohan in sacrificing ratio)

 

 

 

 

 Ram’s Capital A/c                                               Dr.

 

75,000 

 

 

 Mohan’s Capital A/c                                           Dr.

 

 

45,000

 

   To Bank  A/c

 

 

30,000

 

(Partners withdraw half of their share of goodwill)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1

SOHAN’s share of goodwill=6,00,000×1/4=1,50,000

 

WN2

Distribution of SOHAN’s Goodwill

RAM will get =1,50,000×3/5=90,000

MOHAN will get =1,50,000×2/5=60,000

 

WN3

Both the partners have withdrawn half of share of goodwill as follow:

RAM will get =90,000×1/2=45,000

MOHAN will get =60,000×1/2=30,000

 

 

Question 28:


A and B are partners in a business sharing profits and losses in the ratio of 1/3rd and 2/3rd. On 1st April, 2022, their capitals were    ` 8,000 and    ` 10,000 respectively. On that date, they admit C in partnership and give him 1/4th share in the future profits. C brings    ` 8,000 as his capital and    ` 6,000 as goodwill. The amount of goodwill is withdrawn by the old partners in cash. Pass the journal entries and show the Capital Accounts of all the Partners. Calculate proportion in which partners would share profits and losses in future.

Answer:


Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2022

 

 

 

 

April 1


Cash A/c


Dr.

 


14,000

 

 

To C’s Capital A/c

 

 

8,000

 

To Premium for Goodwill A/c

 

 

6,000

 

(C brought capital and his share of goodwill)

 

 

 

 

 

 

 

 

April 1


Premium for Goodwill A/c


Dr.

 


6,000

 

 

To A’s Capital A/c

 

 

2,000

 

To B’s Capital A/c

 

 

4,000

 

(C’s share of goodwill distributed between
A and B in sacrificing ratio i.e. 1:2)

 

 

 

 

 

 

 

 

 

A’s Capital A/c

Dr.

 

2,000

 

 

B’s Capital A/c

Dr.

 

4,000

 

 

To Cash A/c

 

 

6,000

 

(Amount of goodwill withdrawn by A and B)

 

 

 

 

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

 

 

 

 

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

Cash

2,000

4,000

-

Balance b/d

8,000

10,000

-

 

 

 

 

Cash

-

-

8,000

 

 

 

 

Premium for Goodwill

2,000

4,000

 

Balance c/d       

8,000

10,000

8,000

 

 

 

 

 

10,000

14,000

8,000

 

10,000

14,000

8,000

 

 

 

 

 

 

 

 


Calculation of New (Future) Ratio

 

A

B

OLD RATION

1  :

2  :

C is admitted for  ¼ share of profit

Let combined share of all partners after C’s admission 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 in the new firm

A’s

=1/3×3/4

 

=3/12

B’s

=2/3×3/4

 

=6/12

 

 

A

 

B

 

C

New profit sharing ratio=

3/12

:

6/12

:

1/4

=

3/12

:

6/12

:

3/12

=

1

:

2

:

1

Distribution of Premium for Goodwill

A will get =6,000×1/3=2,000

B will get =6,000×2/3=4,000

 

Question 29:


A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C as a new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2 : 2 : 3. C brought ` 2,00,000 as his capital and ` 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm.

Answer:


Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 

 

 

 

 

 

Cash A/c

Dr.

 

3,50,000

 

 

To C’s Capital A/c

 

 

2,00,000

 

To Premium for Goodwill A/c

 

 

1,50,000

 

(C brought capital and Premium for Goodwill)

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

1,50,000

 

 

To A’s Capital A/c

 

 

1,10,000

 

To B’s Capital A/c

 

 

40,000

 

(Premium for Goodwill distributed)

 

 

 

 

 

 

 

 

 

A’s Capital A/c

Dr.

 

55,000

 

 

B’s Capital A/c

Dr.

 

20,000

 

 

To Cash A/c

 

 

75,000

 

(Half of the goodwill withdrawn by A and B)

 

 

 

 

 

 

 

 


Calculation of Sacrificing Ratio

Sacrificing Ratio =Old ratio- new ratio

 

A’s

=3/5-2/7

 

 

 

=11/35

 

 

B’s

=2/5-2/7

 

 

 

=4/35

 

 

X

 

Y

Sacrificing Ratio =

11/35    

:

4/35

=

11     

:

4

Working Notes-

WN1

Distribution of Premium for Goodwill

A will get =1,50,000×11/35=1,10,000

B will get 1,50,000×4/35=40,000

WN2

Amount of Premium for Goodwill withdrawn

A will get =1,10,000×1/2=55,000

B will get =40,000×1/2=20,000

 

Question 30:


and B are partners sharing profits in the ratio of 2 : 1. They admit C for 1/4th share in profits. C brings in ` 30,000 for his capital and `8,000 out of his share of `10,000 for goodwill. Before admission, goodwill appeared in books at ` 18,000. Give Journal entries to give effect to the above arrangement.

Answer:


Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 

 

 

 

 

 

A’s Capital A/c

Dr.

 

12,000

 

 

B’s Capital A/c

Dr.

 

6,000

 

 

To Goodwill A/c

 

 

18,000

 

(Goodwill written-off)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

38,000

 

 

To C’s Capital A/c

 

 

30,000

 

To Premium for Goodwill

 

 

8,000

 

(C brought Capital and goodwill)

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

8,000

 

 

C’s Capital A/c

Dr.

 

2,000

 

 

To A’s Capital A/c

 

 

6,667

 

To B’s Capital

 

 

3,333

 

(C’s share of goodwill distributed between
A and B in Sacrificing Ratio)

 

 

 

 

 

 

 

 


Working Notes:

WN1 Writing-off of Goodwill

A’s Capital Account will be debited by =18,000×2/3=12,000

B’s Capital Account will be debited by =18,000×1/3=6,000

 

WN2 Distribution of C’s share of Goodwill

A will get =10,000×2/3=6,667

B will get =10,000×1/3=3.333

 

 

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