Question 36:
Anil and Sunil are
partners in a firm with fixed capitals of
` 3,20,000
and ` 2,40,000 respectively. They admitted Charu as a new partner for
1/4th share in the profits of the firm on 1st April, 2012. Charu
brought ` 3,20,000 as her share of capital.
Calculate value of goodwill and record necessary Journal entries. (AI 2013 C)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
2012 April 1 |
Bank A/c |
Dr. |
|
3,20,000 |
|
|
|
To Charu’s Capital A/c |
|
|
|
3,20,000 |
|
|
(Capital brought in by Charu) |
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|
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|
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Charu’s Current A/c |
Dr. |
|
1,00,000 |
|
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To Anil’s Current A/c |
|
|
|
50,000 |
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To Sunil’s Current A/c |
|
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50,000 |
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|
(Charu’s share of goodwill adjusted through current accounts) |
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Working Notes: Calculation of Hidden Goodwill
|
Total capital of the firm on the basis od
Charu’s capital=3,20,000×4/1= |
12,80,000 |
|
Less- adjusted cpital of partners + new partner’s capital= |
(8,80,000) |
|
|
4,00,000 |
Charu’s share of goodwill=4,00,000×1/4=1,00,000
Question 37:
Bhuwan and Shivam were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were ` 50,000 and ` 75,000 respectively. They admitted Atul on 1st April, 2022 as a new partner for 1/4th share in future profits. Atul brought ` 75,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Atul's admission.
Answer:
The journal
entries are as follows:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
2022 |
|
|
|
|
|
|
April 1 |
Bank/Cash A/c |
Dr. |
|
75,000 |
|
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To Atul’s Capital A/c |
|
|
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75,000 |
|
|
(for capital brought on Atul’s admission) |
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April 1 |
Atul’s Capital A/c |
Dr. |
|
25,000 |
|
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To Bhuwan’s Capital A/c |
|
|
|
15,000 |
|
|
To Shivam’s Capital A/c |
|
|
|
10,000 |
|
|
(for goodwill distributed in sacrificing ratio of 3:2) |
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Here, Atul is entered into partnership for 1/4th share in future
profits. He contributes ` 75,000 towards his share of capital.
Taking Atul’s
capital as the base, we can calculate the firm’s capital as
Firm's Capital = New Partner's Capital × Reciprocal of his share
i. each = 75,000 × 4 = `3,00,000
However, the total capital as at that date is
` 2,00,000 (i.e.
50,000 + 75,000 + 75,000)
So, the difference of 1,00,000 is hidden goodwill.
Atul’s share in goodwill = 1/4th of 1,00,000 = ` 25,000
Note: In this case, as no information is provided for
the share sacrificed by the old partners, so it is assumed that the old
partners are sacrificing in their old profit share.
Question 38:
X and Y
are partners with capitals of ` 50,000 each. They admit Z as a partner for 1/4th
share in the profits of the firm. Z brings in ` 80,000 as his share of capital. The Profit and Loss Account
showed a credit balance of ` 40,000 as on date of admission of Z.
Give necessary journal entries to record the goodwill.
Answer:
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + undistributed Profit +
Z’s Capital
= 50,000 + 50,000 + 40,000 + 80,000
= ` 2,20,000
Capitalised value of the firm on the basis Z’s share= 80,000×4/1=3,20,000
Goodwill= Capitalised value of the firm – T otal captial after z’s admission
=3,20,000-2,20,000=1,00,000
Question 39:
Asin and Shreyas are partners in a firm. They admit Ajay as a new partner with 1/5th share in the profits of the firm. Ajay brings ` 5,00,000 as his share of capital. The value of the total assets of the firm was ` 15,00,000 and outside liabilities were valued at ` 5,00,000 on that date. Give necessary Journal entry to record goodwill at the time of Ajay's admission. Also show your workings.
Answer:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
|
Ajay’s Capital A/c |
Dr. |
|
2,00,000 |
|
|
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To Asin’s Capital A/c |
|
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1,00,000 |
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To Shreya’s Capital A/c |
|
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1,00,000 |
|
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(Ajay’s share of goodwill distributed among |
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Working Notes:
Calculation of Goodwill brought in by Ajay
|
Value of firm’s goodwill |
= Capitalised value of the firm – Net worth |
|
Capitalised value of the firm |
= Share of Ajay's capital × Reciprocal of Ajay's share = 5,00,000 ×5/1= ` 25,00,000 |
|
Net worth of the new firm |
= Total assets-Outside liabilities + Ajay's capital = 15,00,000 - 5,00,000 + 5,00,000= ` 15,00,000 |
|
Value of firm's goodwill |
= Capitalised value of firm - Net worth of the new firm =25,00,000 - 15,00,000 = ` 10,00,000 |
|
Ajay's share of goodwill |
= 10,00,000 × 1/5 = ` 2,00,000 |
Question
40:
Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is `4,80,000 and of Divya is `3,00,000. On 1st April, 2022 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought `3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina's admission. (Delhi 2013 C, Modified)
Answer:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
2022 April 1 |
|
|
|
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To Hina’s Capital A/c |
|
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3,00,000 |
|
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(Capital brought in by Hina) |
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April 1 |
Hina’s Current A/c |
Dr. |
|
84,000 |
|
|
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To Disha’s Current A/c |
|
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50,400 |
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To Divya’s Current A/c |
|
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33,600 |
|
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(Hina’s Share of Goodwill adjusted through current accounts) |
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Working Note:
Calculation of Hidden Goodwill
|
Total capital of the firm on the basis of Hina’s capital=(3,00,000×5/1)= |
15,00,000 |
|
Less- adjusted cpital of partners + new partner’s capital= |
(10,80,000) |
|
|
4,20,000 |
|
|
|
Hina’s share of
goodwill=4,20,000×1/5=84,000
Ts Grewal Solution 2022-2023
Click below for more Questions
Class 12 / Volume – I
Chapter 1 – Admission of a Partner
Question No. 1 To 5
Question No. 5 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
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55
Question No. 56 To 60
Question No. 61 To 65
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Question No. 81 To 83
Question No. 84 To 86
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