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12th | Admission of a Partner | Question No.  36 To 40 | Ts Grewal Solution 2022-2023

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)

 

 

 

 

 

 

 

 

 

 

 

Charu’s Current A/c

Dr.

 

1,00,000

 

 

   To Anil’s Current A/c

 

 

 

50,000

 

   To Sunil’s Current A/c

 

 

 

50,000

 

(Charu’s share of goodwill adjusted through current accounts)

 

 

 

 


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

 

 

  To Atul’s Capital A/c

 

 

 

75,000

 

(for capital brought on Atul’s admission)

 

 

 

 

 

 

 

 

 

 

April 1

Atul’s Capital A/c

Dr.

 

25,000

 

 

  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)

 

 

 

 

 

 

 

 


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

 

 

To Asin’s Capital A/c

 

 

 

1,00,000

 

To Shreya’s Capital A/c

 

 

 

1,00,000

 

(Ajay’s share of goodwill distributed among
the old partners in their sacrificing ratio 1:1.)

 

 

 

 

 

 

 

 

 

 


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


Bank A/c

 
Dr.

 


3,00,000

 

 

 

   To Hina’s Capital A/c

 

 

 

3,00,000

 

 

(Capital brought in by Hina)

 

 

 

 

 

April 1

Hina’s Current A/c

Dr.

 

84,000

 

 

 

To Disha’s Current A/c

 

 

 

50,400

 

 

To Divya’s Current A/c

 

 

 

33,600

 

 

(Hina’s Share of Goodwill adjusted through current accounts)

 

 

 

 

 

 

 

 

 

 

 

 


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
Question No. 66 To 70
Question No. 71 To 75

Question No. 76 To 80
Question No. 81 To 83
Question No. 84 To 86

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12th TS Grewal’s Accountancy Solutions

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