commercemine

12th | Admission of a Partner | Question No.  41 To 45 | Ts Grewal Solution 2022-2023

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
April 1


Cash A/c


Dr.

 


50,000

 

 

Machinery A/c

Dr.

 

70,000

 

 

To Premium for Goodwill A/c

 

 

1,20,000

 

(G brought cash    ` 50,000 and Machinery
 
 ` 70,000 for his share of Goodwill)

 

 

 

 

 

 

 

 

April 1

Premium for Goodwill A/c

Dr.

 

1,20,000

 

 

To E’s Capital A/c

 

 

1,20,000

 

(G share of goodwill transferred to E’s Capital Account)

 

 

 

 

 

 

 

 

April 1

F’s Capital A/c

Dr.

 

30,000

 

 

To E’s Capital A/c

 

 

30,000

 

(F’s share of gain in goodwill charged from his capital and transferred to E’s capital)

 

 

 

 

 

 

 

 


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

 

= -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(b) When the amount of goodwill is fully withdrawn.
(c) When 50% of the amount of goodwill is withdrawn.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

S.No.

Particulars

L.F.

Debit              `

Credit    `

Case (a)

 

 

 

 

 

Cash A/c

Dr.

 

24,000

 

 

To Ghosh's Capital A/c

 

 

 

20,000

 

To Premium for Goodwill A/c

 

 

 

4,000

 

(Capital and Goodwill his share brought by Ghosh)

 

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

4,000

 

 

To Verma's Capital A/c

 

 

 

2,500

 

To Sharma's Capital A/c

 

 

 

1,500

 

(Goodwill brought by Ghosh credited to Old Partners in Sacrificing ratio)

 

 

 

 

 

 

 

 

Case (b)

Cash A/c

Dr.

 

24,000

 

 

To Ghosh Capital A/c

 

 

 

20,000

 

To Premium for Goodwill A/c

 

 

 

4,000

 

(Capital and Goodwill brought by Ghosh for (1/5)share of profit)

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

4,000

 

 

To Verma's Capital A/c

 

 

 

2,500

 

To Sharma's Capital A/c

 

 

 

1,500

 

(Goodwill brought by Ghosh credited in Old Partner in Sacrificing Ratio)

 

 

 

 

 

 

 

 

 

Verma's Capital A/c

Dr.

 

2,500

 

 

Sharma's Capital A/c

Dr.

 

1,500

 

 

To Cash A/c

 

 

 

4,000

 

(Amount of Premium for Goodwill withdrawn by Old Partners)

 

 

 

 

 

 

 

 

Case (c)

Cash A/c

Dr.

 

24,000

 

 

To Ghosh's Capital A/c

 

 

 

20,000

 

To Premium for Goodwill A/c

 

 

 

4,000

 

(Capital and Goodwill brought by Ghosh for (1/5)share of profit)

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

Verma's Capital A/c

Dr.

 

1,250

 

 

Sharma's Capital A/c

 

 

750

 

 

To Cash A/c

 

 

 

2,000

 

(Half of the amount of premium for goodwill withdrawn by Old partners)

 

 

 

 

 

 

 

 

Case (d)

No entry: Goodwill was not brought into firm

 

 

 

 

Question 43:


Arun and Vijay are partners in a firm sharing profit & loss in the ratio of 3: 2.

BALANCE SHEET (Extract)

Liabilities

`

Assets

`

 

 

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

 

 

     To Machinery A/c

 

 

 

16,000

 

(Value of machinery decreased)

 

 

 

 

 

 

 

 

 

 

 

Building A/c

Dr.  

 

40,000

 

 

    To Revaluation A/c 

 

 

 

40,000

 

(Value of building increased)

 

 

 

 

 

 

 

 

 

 

(ii)

Revaluation A/c 

 

 

 

 

 

     To Provision for Doubtful Debts A/c

Dr

 

4,000

 

 

(Provision created on debtors)

 

 

 

4,000

 

 

 

 

 

 

(iii)

Revaluation A/c 

Dr.

 

12,000

 

 

     To Provision for Warranty Claims A/c

 

 

 

12,000

 

(Liability  recorded)

 

 

 

 

 

 

 

 

 

 

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

 

 

    To Revaluation A/c 

 

 

 

20,000

 

(Investments recorded)

 

 

 

 

 

 

 

 

 

 

(ii)

Revaluation A/c 

Dr.  

 

5,000

 

 

     To Creditors A/c

 

 

 

5,000

 

(Liability  recorded)

 

 

 

 

 

 

 

 

 

 

(iii)

Creditors  A/c

 

 

 

 

 

    To Revaluation A/c 

Dr

 

1,600

 

 

(Liability decreased)

 

 

 

1,600

 

 

 

 

 

 

 

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

Click on below links for 

12th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021