Question 41:
E
and
F were partners in a firm sharing profits in the ratio of 3 : 1. They admitted G as a new partner on 1st
April, 2019 for 1/3rd share. It was decided that E, F and G
will share future profits equally. G brought ` 50,000 in cash and machinery valued at ` 70,000 as premium for goodwill.
Pass necessary Journal entries in the books of the firm.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
2022 |
|
|
|
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|
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Machinery A/c |
Dr. |
|
70,000 |
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To Premium for Goodwill A/c |
|
|
1,20,000 |
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|
(G brought
cash ` 50,000 and Machinery |
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April 1 |
Premium for Goodwill A/c |
Dr. |
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1,20,000 |
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To E’s Capital A/c |
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1,20,000 |
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(G share of goodwill transferred to E’s Capital Account) |
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April 1 |
F’s Capital A/c |
Dr. |
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30,000 |
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To E’s Capital A/c |
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30,000 |
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(F’s share of gain in goodwill charged from his capital and transferred to E’s capital) |
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Working Notes:
WN1
|
|
E |
F |
G |
|
OLD
RATION |
3 : |
1: |
|
|
NEW
RATIO |
1 : |
1 : |
1
: |
Sacrificing
Ratio =Old ratio- new ratio
|
E’s |
=3/4-1/3 |
|
|
=5/12 |
|
F’s |
=1/4-1/3 |
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|
= -1/12 |
WN2
Calculation of F’s share of gain in goodwill
G’s share of Goodwill = 50,000 + 70,000 = ` 1, 20,000
Goodwill of the firm on the basis of G’s share =120000×3/1=3,60,000
F’s share of gain in goodwill =3,60,000×1/12=30,000
Question 42:
Verma and Sharma are partners in a
firm sharing profits and losses in the ratio of 5 : 3.
They admitted Ghosh as a new partner for 1/5th share of profits. Ghosh is to
bring in ` 20,000 as capital and ` 4,000 as his share
of goodwill premium. Give the necessary Journal entries:
(a) When the amount of goodwill is retained in the business.
(b) When the amount of goodwill is fully withdrawn.
(c) When 50% of the amount of goodwill is withdrawn.
(d) When goodwill is paid privately.
Answer:
|
Journal Entries |
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|
S.No. |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
Case (a) |
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|
|
|
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|
Cash
A/c |
Dr. |
|
24,000 |
|
|
|
To
Ghosh's Capital A/c |
|
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|
20,000 |
|
|
To
Premium for Goodwill A/c |
|
|
|
4,000 |
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|
(Capital
and Goodwill his share brought by Ghosh) |
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|
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Premium
for Goodwill A/c |
Dr. |
|
4,000 |
|
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To
Verma's Capital A/c |
|
|
|
2,500 |
|
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To
Sharma's Capital A/c |
|
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|
1,500 |
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|
(Goodwill brought by Ghosh
credited to Old Partners in Sacrificing ratio) |
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Case (b) |
Cash
A/c |
Dr. |
|
24,000 |
|
|
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To
Ghosh Capital A/c |
|
|
|
20,000 |
|
|
To
Premium for Goodwill A/c |
|
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|
4,000 |
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|
(Capital
and Goodwill brought by Ghosh for (1/5)share of profit) |
|
|
|
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|
|
|
|
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|
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|
Premium
for Goodwill A/c |
Dr. |
|
4,000 |
|
|
|
To
Verma's Capital A/c |
|
|
|
2,500 |
|
|
To
Sharma's Capital A/c |
|
|
|
1,500 |
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|
(Goodwill brought by Ghosh
credited in Old Partner in Sacrificing Ratio) |
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Verma's Capital A/c |
Dr. |
|
2,500 |
|
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Sharma's
Capital A/c |
Dr. |
|
1,500 |
|
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To
Cash A/c |
|
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|
4,000 |
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|
(Amount
of Premium for Goodwill withdrawn by Old Partners) |
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Case (c) |
Cash
A/c |
Dr. |
|
24,000 |
|
|
|
To
Ghosh's Capital A/c |
|
|
|
20,000 |
|
|
To
Premium for Goodwill A/c |
|
|
|
4,000 |
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|
(Capital
and Goodwill brought by Ghosh for (1/5)share of profit) |
|
|
|
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|
|
|
|
|
|
|
|
|
Premium
for Goodwill A/c |
Dr. |
|
4,000 |
|
|
|
To
Verma's Capital A/c |
|
|
|
2,500 |
|
|
To
Sharma's Capital A/c |
|
|
|
1,500 |
|
|
(Premium for Goodwill
credited to Old Partner's Capital Account in sacrificing ratio) |
|
|
|
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|
Verma's Capital A/c |
Dr. |
|
1,250 |
|
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Sharma's
Capital A/c |
|
|
750 |
|
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To
Cash A/c |
|
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2,000 |
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(Half of the amount of
premium for goodwill withdrawn by Old partners) |
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Case (d) |
No
entry: Goodwill was not brought into firm |
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Question 43:
Arun and Vijay are partners in a firm sharing profit & loss in the ratio of 3: 2.
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BALANCE SHEET (Extract) |
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Liabilities |
` |
Assets |
` |
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Machinery |
2,00,000 |
If the value of machinery in the Balance Sheet is excess by 33 1/3, find the value of machinery to be shown in the New Balance Sheet.
Answer:
If the value of machinery in the Balance Sheet is excess by 33 1/3
Then the book value is 100+33 1/3= 133 1/3
Excess Value of Machinery is 2,00,000×33 1/3 ÷ 133 1/3
Or
= 2,00,000×100/3 ×3/400 = 50,000
Value of machinery to be shown in the New Balance Sheet = 2,00,000 -50,000 = 1,50,000
Question 44:
Pass entries in the
firm's journal for the following on admission of a partner:
(i) Machinery be reduced by ` 16,000
and Building be appreciated by ` 40,000.
(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to ` 80,000.
(iii) Provision for warranty claims be increased by` 12,000.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
Revaluation A/c |
Dr. |
|
16,000 |
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To Machinery A/c |
|
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16,000 |
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|
(Value of machinery decreased) |
|
|
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Building A/c |
Dr. |
|
40,000 |
|
|
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To Revaluation A/c |
|
|
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40,000 |
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|
(Value of building increased) |
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(ii) |
Revaluation A/c |
|
|
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|
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To Provision for Doubtful Debts A/c |
Dr |
|
4,000 |
|
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(Provision created on debtors) |
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|
4,000 |
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(iii) |
Revaluation A/c |
Dr. |
|
12,000 |
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|
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To Provision for Warranty Claims A/c |
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12,000 |
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|
(Liability recorded) |
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Question 45:
Pass entries in
firm's Journal for the following on admission of a partner:
(i) Unrecorded Investments worth `20,000
are to be accounted.
(ii) Unrecorded liability towards suppliers for ` 5,000 is to be
accounted.
(iii) An item of `
1,600 included in Sundry Creditors is not likely to be claimed and hence should
be written back.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
Investment A/c |
Dr. |
|
20,000 |
|
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To Revaluation A/c |
|
|
|
20,000 |
|
|
(Investments recorded) |
|
|
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(ii) |
Revaluation A/c |
Dr. |
|
5,000 |
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To Creditors A/c |
|
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5,000 |
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(Liability recorded) |
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(iii) |
Creditors A/c |
|
|
|
|
|
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To Revaluation A/c |
Dr |
|
1,600 |
|
|
|
(Liability decreased) |
|
|
|
1,600 |
|
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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