Question 26: Aayush and Aarushi
are partners sharing profits and losses in the ratio of 3: 2. They admitted Naveen into partnership for 1/4th share. Goodwill of the
firm was to be valued at three years' purchase of super profits. Average net
profit of the firm was 20,000. Capital investment in the business was 50,000
and Normal Rate of Return was 10%. Calculate the amount of Goodwill premium
brought by Naveen. (CBSE 2023)
Answer:
Normal Profit = 50,000×10/100=5,000
Super Profit
= 20,000-5,000
Super Profit
= 15,000
Goodwill
=15,000×3=45,000
Goodwill
Premium brought by Naveen = 45,000×1/4 = 11,250
Question 27:
A and B are partners in a firm sharing
profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th
share. C brings ` 30,000 as capital and ` 10,000 as
goodwill. At the time of admission of C, goodwill
appeared in the Balance Sheet of A and B at` 3,000. New profit-sharing ratio of
the partners will be 5 : 3 : 2. Pass necessary Journal
entries.
Answer:
|
Journal Entries |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
A’s
Capital A/c |
Dr. |
|
1,800 |
|
|
|
B’s
Capital A/c |
Dr. |
|
1,200 |
|
|
|
To Goodwill A/c |
|
|
|
3,000 |
|
|
(Goodwill
written-off) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
A/c |
Dr. |
|
40,000 |
|
|
|
To C’s Capital A/c |
Dr. |
|
|
30,000 |
|
|
To Premium for Goodwill
A/c |
|
|
|
10,000 |
|
|
(C
brought capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium
for Goodwill |
Dr. |
|
10,000 |
|
|
|
To A’s Capital A/c |
|
|
|
5,000 |
|
|
To B’s Capital A/c |
|
|
|
5,000 |
|
|
(Premium
for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
|
|
|
A |
B |
C |
|
OLD RATION |
3
: |
2
: |
1 |
|
NEW RATIO |
5
: |
3
: |
2
|
Sacrificing
Ratio = Old Ratio − New Ratio
|
A’s |
=3/5-5/10 |
|
|||
|
|
=1/10 |
|
|||
|
B’s |
=2/5-3/10 |
|
|||
|
|
=1/10 |
|
|||
|
|
X |
|
Y |
|||
|
Sacrificing
Ratio = |
1/10 |
: |
1/10 |
|||
|
= |
1 |
: |
1 |
|||
Distribution of Premium for Goodwill C’s share of Goodwill)
A and B each will get =10,000×1/2=5,000
Goodwill written-off
A’s capital will be debited =3,000×3/5=1,800
B’s capital will be credited =3,000×2/5=1,200
Question
28:
X and Y are partners sharing
profits in the ratio of 5:3. Z is admitted as a partner for 3/10th share of
profit, half of which was gifted by X and remaining share was taken by Z
equally from X and Y. The goodwill of the firm is valued at 54,000. Z brings in
his requisite share of firm's goodwill. The profit for the first year of new
partnership amounts to 60,000.
Pass the necessary Journal
entries to adjust goodwill and to distribute profits.
Answer:
|
Date
|
Particulars |
|
L.F. |
(Dr.) ₹ |
(Cr.) ₹ |
|
1. |
Bank |
Dr. |
|
8,100 |
|
|
(a) |
To
Premium for Goodwill A/c |
|
|
|
8,100 |
|
|
|
|
|
|
|
|
(b) |
Premium
for Goodwill A/c |
Dr. |
|
8,100 |
|
|
|
To X's Capital A/c |
|
|
|
4,050 |
|
|
To Y's Capital A/c |
|
|
|
4,050 |
|
|
|
|
|
|
|
|
2. |
|
Dr. |
|
60,000 |
|
|
|
|
|
|
|
24,000 |
|
|
|
|
|
|
18,000 |
|
|
|
|
|
|
18,000 |
|
|
|
|
|
|
|
Working
Notes:
WN 1: Calculation of Share of Goodwill
of Z
Old ratio of X and Y =
5:3
Z is admitted for 3/10
share
Half (3/20) is gifted by X
Remaining 3/20 is taken equally from X and Y
Goodwill of firm =
₹54,000
Z's share of goodwill =
54,000 × 3/20 = ₹8,100
Profit for first year =
₹60,000
New ratio of X:Y:Z = 4:3:3
Sacrificing ratio between
X and Y for goodwill adjustment = 1:1
(because the 3/20 sacrificed is equally split by X and Y)
WN
2: Distribute net profit of ₹60,000 in new ratio (4:3:3)
Total profit =
₹60,000
New ratio: X:Y:Z = 4:3:3
X’s
share = 60,000 × 4/10 = ₹24,000
Y’s
share = 60,000 × 3/10 = ₹18,000
Z’s
share = 60,000 × 3/10 = ₹18,000
Question 29:
Ram and Mohan are partners in a firm
sharing profits in the ratio of 3 : 2. On 1st April,
2024, they admit Sohanas a
partner for 1/4th share in the profits. Sohancontributed 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 onSohan'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 ` |
|
|
2024 |
|
|
|
|
|
|
April
1 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 ` |
|
|
2024 |
|
|
|
|
|
|
April
1 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 30:
A and
B are partners in a business
sharing profits and losses in the ratio of 1/3rd and 2/3rd. On 1st April, 2025,
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 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
To A’s Capital A/c |
|
|
2,000 |
|
|
|
To B’s Capital A/c |
|
|
4,000 |
|
|
|
(C’s
share of goodwill distributed between |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Ts Grewal Solution 2025-2026
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Class 12 / Volume – I