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12th | Admission of a Partner | Question No.  56 To 60 | Ts Grewal Solution 2022-2023

Question 56:


 X, Y and Z are equal partners with capitals of `15,000; `17,500 and `20,000 respectively. They agree to admit W into equal partnership upon payment in cash `15,000 for 1/4th share of the goodwill and `18,000 as his capital, both sums to remain in the business. The liabilities of the old firm were `30,000 and the assets, apart from cash, consist of Motors `12,000, Furniture `4,000, Stock `26,500 and Debtors `37,800. The Motors and Furniture were revalued at `9,500 and `3,800 respectively.

Pass Journal entries to give effect to the above arrangement and also show Balance Sheet of the new firm.

 

Answer:


Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 

 

 

 

 

 

Cash A/c

Dr.

 

3,3000

 

 

To W’s capital A/c

To Premium for Goodwill A/c

 

 

 

1,8000

1,5000

 

(Being C’s brought his share of goodwill and capital in cash)

 

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

1,5000

 

 

To X’s Capital A/c

To Y’s Capital A/c

To Z’s Capital A/c

 

 

 

5000

5000

5000

 

(Being A’s share of Goodwill transferred in their sacrificing Ratio)

 

 

 

Revaluation A/c                                        Dr.

  To Motor A/c

  To Furniture A/c

(Being decrease in value assets transferred to Revaluation a/c)

2700

 

2500

200

X’s Capital A/c                                         Dr.

Y’s Capital A/c                                         Dr.

Z’s Capital A/c                                          Dr.

  To Revaluation A/c         

(Being loss of Revaluation of transferred to old partners capital a/c)

900

900

900

 

 

 

2700

 

 

 

 

 

Working notes;

WN-1

Memorandum balance sheet is prepared to find out Cash balance.

 

Liabilities

   `

Assets

   `

Liabilities

30,000

Cash balance

(Balancing figure)

2200

X's Capital

15,000

 

Motor

1,2000

Y's Capital

Z’s Capital

17,500

20,000

 

5,250

furniture

Stock

4000

2,6500

 

 

 

Debtors

3,7800

 

8,250

8,2500

 

 

 

 

 

 

WN-2

Old ratio of X:Y:Z=1;1;1

W is admitted for ¼ share

Let total profit =1

Remaining profit after W’s admission= 1-1/4=3/4

X=3/4×1/3=3/12

Y=3/4×1/3=3/12

Z=3/4×1/3=3/12

W=1/4×3/3=3/12

Therefore share of X, Y , Z and W=3:3:3:3=1:1:1:1

Sacrificing ratio= old –new

X=1/3-1/4=1/12

Y=1/3-1/4=1/12

Z=1/3-1/4=1/12

Sacrificing ratio of X, Y , Z = 1:1:1

 

WN-4

 

Particulars

`

Particulars

`

To Motors A/c

To Furniture A/c

2500

200

By Loss

Capital a/c

X=2700×1/3=900

Y=2700×1/3=900

(In old Ratio)

 

 

 

2700

 

2700

 

2700

 

WN-5

Partners’ Capital a/c

 

Particulars

X

`

Y

`

Z

`

W

`

Particulars

X

`

Y

`

Z

`

W

`

To ravaluation a/c

To balance c/d

900

19,100

900

21,600

900

24,100

 

1,8000

By balance b/d

By Cash a/c

By Premium a/c

15,000

 

5000

17,500

 

5000

20,000

 

5000

 

18,000

 

20,000

22,500

25,000

18,000

 

20,000

22,500

25,000

18,000

 

Question 57:


Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2022:

 

Liabilities

   `

Assets

   `

Capital A/cs:

 

Building

25,000

A

15,000

 

Plant and Machinery

17,500

B

10,000

25,000

Stock

10,000

Sundry Creditors

 

32,950

Sundry Debtors

4,850

 

 

 

Cash in Hand

600

 

 

 

 

 

 

 

 

 

 

 

 

57,950

 

57,950

 

 

 

 

 


They admit C into partnership on the following terms:
(a) C was to bring  
` 7,500 as his capital and  `3,000 as goodwill for 1/4th share in the firm.
(b) Values of the Stock and Plant and Machinery were to be reduced by 5%.
(c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor  `375.
(d) Building was to be appreciated by 10%.
Pass necessary Journal entries to give effect to the arrangements. Prepare Profit and Loss Adjustment Account (or Revaluation Account), Partners' Capital Accounts and Balance Sheet of the new firm.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

 

 

 

 

 

 

Profit and Loss Adjustment A/c

Dr.

 

1,750

 

 

To Stock A/c

 

 

500

 

To Plant and Machinery A/c

 

 

875

 

To Reserve for Doubtful Debts A/c

 

 

375

 

(Decrease in stock and Plant and creation of Reserve for Doubtful Debt transferred to Profit and Loss Adjustment Account)

 

 

 

 

 

 

 

 

 

Building A/c

Dr.

 

2,500

 

 

To Profit and Loss Adjustment A/c

 

 

2,500

 

(Increase in value of Building of transferred to Profit and loss Adjustment Accounts)

 

 

 

 

 

 

 

 

 

Profit and Loss Adjustment A/c

 

750

 

 

To A’s Capital A/c

 

 

500

 

To B’s Capital A/c

 

 

250

 

(Profit on revaluation of asset and liabilities
distributed between A and B in their old ratio)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

10,500

 

 

To C’s Capital A/c

 

 

7,500

 

To Premium for Goodwill A/c

 

 

3,000

 

(C brought capital and share of goodwill)

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

3,000

 

 

To A’s Capital A/c

 

 

2,000

 

To B’s Capital A/c

 

 

1,000

 

(Premium for Goodwill distributed between
A and B in their sacrificing ratio i.e 2:1)

 

 

 

 

 

 

 

 

 

Profit and Loss Adjustment Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Stock

500

 

 

Plant and Machinery

875

Building                             

2,500

Reserve for Doubtful Debts

375

 

 

Profit transferred to

 

 

 

   A Capital

500

 

 

   B Capital

250

 

 

 

2,500

 

2,500

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

 

 

 

 

Balance b/d

15,000

10,000

 

 

 

 

 

Cash

 

 

7,500

 

 

 

 

Premium for Goodwill

2,000

1,000

 

Balance c/d        

17,500

11,250

7,500

Profit and Loss Adjustment (Profit)

500

250

 

 

17,500

11,250

7,500

 

17,500

11,250

7,500

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2022 after admission of C

Liabilities

`

Assets

`

 

 

 

 

Capital Accounts:                       

 

Building (25,000 + 2,500)

27,500

A

17,500

 

Plant and Machinery (17,500 – 875)

16,625

B

11,250

 

Stock (10,000 – 500)

9,500

C

7,500

36,250

 

 

Sundry Creditors

32,950

Sundry Debtors

4,850

 

 

 

Less: Provision for D. Debts

375

4,475

 

 

Cash in Hand (600 + 10,500)

11,100

 

69,200

 

69,200

 

 

 

 


Working Notes:

WN1

 

A

B

Sacrificing ratio

2  :

1


WN2
Distribution of Premium for Goodwill (in sacrificing ratio)
A will get =3,000×2/3=2,000

B will get =3,000×1/3=1,000



WN3
Distribution of Profit from Profit and loss Adjustment Account (in old ratio)

A will get =750×2/3=500

B will get =750×1/3=250

 

Question 58:


A and B are carrying on business in partnership and sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 stood as:   

 

Liabilities

   `

Assets

   `

Creditors

11,800

Cash

1,500

A's Capital

51,450

 

Stock

28,000

B's Capital

36,750

88,200

Debtors

19,500

 

 

 

Furniture

2,500

 

 

 

Machinery

48,500

 

 

 

 

 

 

 

 

 

 

 

 

1,00,000

 

1,00,000

 

 

 

 

 

 
They admit C into partnership on 1st April, 2022 and give him 1/8th share in future profits on the following terms:
(a) Goodwill of the firm be valued at twice the average of the last three years' profits which amounted to  
 ` 21,000;    ` 24,000 and    ` 25,560.
(b) C is to bring cash for the amount of his share of goodwill.
(c) C is to bring cash  
 ` 15,000 as his capital.
Pass Journal entries recording these transactions, draw out the Balance Sheet of the new firm and determine new profit-sharing ratio.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

2022

Apr.1


Cash A/c


Dr.

 


20,880

 

 

To C’s Capital A/c

 

 

15,000

 

To Premium for Goodwill A/c

 

 

5,880

 

(C brought capital and share of goodwill)

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

5,880

 

 

To A’s Capital A/c

 

 

3,528

 

To B’s Capital A/c

 

 

2,352

 

(Premium for Goodwill distributed between
A and B in sacrificing ratio i.e. 3:1)

 

 

 

 

 

 

 

 

 

Partners’ Capital Account

Dr.

 

 

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

 

 

 

 

Balance b/d

51,450

36,750

 

 

 

 

 

Cash

 

 

15,000

Balance c/d      

54,978

39,102

15,000

Premium for
Goodwill

3,528

2,352

 

 

54,978

39,102

15,000

 

54,978

39,102

15,000

 

 

 

 

 

 

 

 

 

Balance Sheet

after Admission of C

Liabilities

`

Assets

`

Capital:

 

Cash (1,500 + 20,880)

22,380

A

54,978

 

Stock

28,000

B

39,102

 

Debtors

19,500

C

15,000

1,09,080

Furniture

2,500

Creditors       

 

11,800

Machinery

48,500

 

 

1,20,880

 

1,20,880

 

 

 

 

 


Calculation of New Profit Sharing Ratio

 

A

 

B

Old ratio=

3 

:

2 



C is admitted for 1/8 share of profit
Let combined share of all partners after admission of C be = 1
Combined share of A and B after C’s admission = 1 − C’s share
=1-1/8

=7/8

 

New ratio= old ratio × combined share of X and Y

A’s

=3/5×7/8

 

=21/40

B’s

=2/5×7/8

 

=14/40

 

 

X

 

Y

 

Z

New profit sharing ratio=

21/40

:

14/40

:

1/8      

=

21/40

:

14/40

:

5/40     

=

21         

:

14

:

5       



Working Note-

WN1
Calculation of goodwill

Average profit =21,000+25,000+25,560/3=23,520

Goodwill= Average profit × no. of purchases years’

Goodwill=  23,520×2 =47,040

C‘s of goodwill=47,040×1/8 =5,880

WN2
Distribution of premium of goodwill

A will get =5,880×3/5=3528

B will get =5,880×2/5=2352

 

Question 59:


Given below is the Balance Sheet of A and B, who are carrying on partnership business on 31st March, 2022. A and share profits and losses in the ratio of 2 : 1.

BALANCE SHEET OF A AND B
as at 31st March, 2022

Liabilities

   `

Assets

   `

Bills Payable

10,000

Cash in Hand

10,000

Creditors

58,000

Cash at Bank

40,000

Outstanding Expenses

2,000

Sundry Debtors

60,000

Capital A/cs:

 

Stock

40,000

  A

1,80,000

 

Plant

1,00,000

  B

1,50,000

3,30,000

Building

1,50,000

 

4,00,000

 

4,00,000

 

 

 

 


C is admitted as a partner on 1st April, 2022 on the following terms:
(a) C will bring  
 ` 1,00,000 as his capital and    ` 60,000 as his share of goodwill for 1/4th share in the profits.
(b) Plant is to be appreciated to  
 ` 1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by  
 ` 4,000.
(d) A provision for doubtful debts is to be created at 5% of sundry debtors.
(e) Creditors were unrecorded to the extent of  
 ` 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partners' Capital Accounts, and show the Balance Sheet after the admission of C.

Answer:


Journal

Date

Particulars

L.F.

`

`

2022

Bank A/c

Dr.

 

1,60,000

 

Mar 31

  To C’s Capital A/c

 

 

1,00,000

 

  To Premium for Goodwill A/c

 

 

60,000

 

(Capital and premium for goodwill brought by C for 1/4 share)

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

60,000

 

 

  To A’s Capital A/c

 

 

 

40,000

 

  To B’s Capital A/c

 

 

 

20,000

 

(Premium for Goodwill brought transferred to old partners’ capital account in their sacrificing ratio)

 

 

 

 

 

Plant A/c

Dr.

 

20,000

 

 

Building A/c

Dr.

 

15,000

 

 

  To Revaluation A/c

 

 

 

35,000

 

(Increase in value of assets)

 

 

 

 

 

 

 

 

 

 

 

Revaluation A/c

Dr.

 

8,000

 

 

  To Stock

 

 

 

4,000

 

  To Provision for Doubtful Debts A/c

 

 

3,000

 

  To Creditors A/c (Unrecorded)

 

 

 

1,000

 

(Assets and liabilities revalued)

 

 

 

 

 

 

 

 

 

 

Revaluation A/c

Dr.

 

27,000

 

 

  To A’s Capital A/c

 

 

 

18,000

 

  To B’s Capital A/c

 

 

 

9,000

 

(Profit on revaluation transferred to old partners)

 

 

 

 

Revaluation Account

Dr.

Cr.

Particulars

 

 `

Particulars

`

Stock

4,000

Plant

20,000

Provision for Doubtful Debts

3,000

Building

15,000

Creditors (Unrecorded)

1,000

 

 

Revaluation Profit

 

 

 

  A’s Capital

18,000

 

 

 

  B’s Capital

9,000

27,000

 

 

 

35,000

 

35,000

 

 

 

 

 

Partners’ Capital Account

Dr.

Cr.

Particulars

A

B

C

Particulars

A

B

C

Balance c/d

2,38,000

1,79,000

1,00,000

Balance b/d

1,80,000

1,50,000

 

 

 

 

 

Bank

 

 

1,00,000

 

 

 

 

Premium for Goodwill

40,000

20,000

 

 

 

 

 

Revaluation

18,000

9,000

 

 

 

 

 

 

 

 

 

 

2,38,000

1,79,000

1,00,000

 

2,38,000

1,79,000

1,00,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2022

Liabilities

`

Assets

`

Bills Payable

10,000

Cash in Hand

10,000

Creditors

59,000

Cash at Bank

2,00,000

Outstanding Expenses

2,000

Sundry Debtors

60,000

 

Capital:

 

Less: Provision for Doubtful Debt

3,000

57,000

   A

2,38,000

 

Stock

36,000

   B

1,79,000

 

Plant

1,20,000

   C

1,00,000

5,17,000

Building

1,65,000

 

5,88,000

 

5,88,000

 

 

 

 


Note: Since no information is given about the share of sacrifice, it is assumed that the old partners are sacrificing in their old profit sharing ratio.

 

Question 60:


Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as follows:

BALANCE SHEET

as at 31st March, 2022

Liabilities

   `

Assets

   `

Reserve

1,00,000

Cash 

2,00,000

  J's Capital

1,50,000

 

Other Assets

1,50,000

  K's Capital

1,00,000

2,50,000

 

 

 

3,50,000

 

3,50,000

 

 

 

 


M joins the firm from 1st April, 2022 for a half share in the future profits. He is to pay
` 1,00,000 for goodwill and  `3,00,000 for capital. Draft the Journal entries and prepare Balance Sheet in each of the following cases:
(a) If M acquires his share of profit from the firm in the profit-sharing ratios of the partners.
(b) If M acquires his share of profits from the firm in equal proportions from the original partners.
(c) If M acquires his share of profit in the ratio of 3 : 1 from the original partners, ascertain the future profit-sharing ratio of the partners in each case.

Answer:


(a) If M acquires his share of profit from the firm in the original ratios of the partners.
 

Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2022

Apr.1


Cash A/c


Dr.

 


4,00,000

 

 

To M’s Capital A/c

 

 

3,00,000

 

To Premium for Goodwill A/c

 

 

1,00,000

 

(M brought capital and his of goodwill in cash)

 

 

 

 

 

 

 

 

Apr.1

Premium for Goodwill A/c

Dr.

 

1,00,000

 

 

To J’s Capital A/c

 

 

60,000

 

To K’s Capital A/c

 

 

40,000

 

(Premium for Goodwill distributed between
J and K in their Sacrificing Ratio)

 

 

 

 

 

 

 

 

Apr.1

Reserve A/c

Dr.

 

1,00,000

 

 

To J’s Capital A/c

 

 

60,000

 

To K’s Capital A/c

 

 

40,000

 

(Reserve distribution between M and J in their old ratio)

 

 

 

 

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

 

 

 

 

 

Cr.

Particulars

J

K

M

Particulars

J

K

M

 

 

 

 

Balance b/d

1,50,000

1,00,000

 

 

 

 

 

Cash

 

 

3,00,000

 

 

 

 

Premium for
Goodwill

60,000

40,000

 

Balance c/d

2,70,000

1,80,000

3,00,000

Reserve

60,000

40,000

 

 

2,70,000

1,80,000

3,00,000

 

2,70,000

1,80,000

3,00,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on April 01, 2022 after M’s admission

Liabilities

`

Assets

`

 

 

Cash (2,00,000 + 4,00,000)

6,00,000

  J’s Capital

2,70,000

Other Assets

1,50,000

  K’s Capital

1,80,000

 

 

  M’s Capital                     

3,00,000

 

 

 

7,50,000

 

7,50,000

 

 

 

 


Calculation of Future (New) Profit Sharing Ratio

 

M

J

OLD RATION

3  :

2  :


M is admitted for ½    share of profit
Let the combined share of all partners after admission of M be = 1


Combined share of J and K after M’s admission = 1 − M’s share

=1-1/2

=1/2

New ratio= old ratio –Combined share of B and C

J= 3/5×1/2=3/10

k=2/5×1/2=2/10

 

J

 

K

 

M

New profit sharing ratio=

3/10

:

2/10

:

1/2

=

3/10

:

2/10

:

5/10

=

3

:

2

:

5


Working Notes-

WN1
Distribution of Premium for Goodwill (in sacrificing ratio)

J will get =1,00,000×3/5=60,000

K will get =1,00,000×2/5=40,000


WN2
Distribution of General Reserve (in old ratio)
J will get =1,00,000×3/5=60,000

K will get =1,00,000×2/5=40,000

(b) If M acquires his share of profit from the firm in equal proportions from the original partners.
 

Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2022

 

 

 

 

April 1

Reserve A/c

Dr.

 

1,00,000

 

 

To J’s Capital A/c

 

 

60,000

 

To K’s Capital A/c

 

 

40,000

 

(Reserve distributed between J and K in old ratio)

 

 

 

 

 

 

 

 

April 1

Cash A/c

Dr.

 

4,00,000

 

 

To M’s Capital A/c

 

 

3,00,000

 

To J’s Premium for Goodwill A/c

 

 

1,00,000

 

(M brought capital and his share of goodwill)

 

 

 

 

 

 

 

 

April 1

Premium for Goodwill A/c

Dr.

 

1,00,000

 

 

To J’s Capital A/c

 

 

50,000

 

To K’s Capital A/c

 

 

50,000

 

(Premium for Goodwill distributed between J and K in sacrificing Raito i.e 1:1)

 

 

 

 

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

J

K

M

Particulars

J

K

M

 

 

 

 

Balance b/d

1,50,000

1,00,000

 

 

 

 

 

Cash

 

 

3,00,000

 

 

 

 

Premium for
Goodwill

50,000

50,000

 

Balance c/d

2,60,000

1,90,000

3,00,000

Reserve

60,000

40,000

 

 

2,60,000

1,90,000

3,00,000

 

2,60,000

1,90,000

3,00,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on April 01, 2022 after M’s admission

Liabilities

`

Assets

`

   J’s Capital

2,60,000

Cash (2,00,000 + 4,00,000)

6,00,000

   K’s Capital

1,90,000

Others Assets

1,50,000

   M’s Capital                      

3,00,000

 

 

 

7,50,000

 

7,50,000

 

 

 

 


Calculation of future (new) profit sharing ratio

 

J

K

Old ratio

3  :

2 

 


M is admitted for ½    share of profit
J and K each will sacrifice in favour of  M=1/2×1/2=1/4

New ratio= old ratio – Sacrificing Ratio

 

J’s

=3/5-1/4

 

 

 

=7/20

 

 

k’s

=2/5-1/4

 

 

 

=3/20

 

 

J

 

K

 

M

New profit sharing ratio=

7/20

:

3/20

:

1/2

=

7/20

:

3/20

:

10/20

=

7

:

3

:

10

 

 

J

 

K

 

Sacrificing ratio=

1/4

:

1/4

=1:1     





Working Notes:

WN1
Distribution of Premium for Goodwill (in Sacrificing ratio)
J and K each will get =1,00,000×1/2=50,000

WN2
Distribution of General Reserve (in old ratio)
J will get =1,00,000×3/5=60,000
K will get =1,00,000×2/5=40,000

(c) If M acquires his share of profit in the ratio of 3:1 from the orsiginal partner

Journal

Date
 

Particulars

L.F.

Debit

`

Credit

`

2022

Apr.1


Reserve A/c


Dr.

 


1,00,000

 

 

To J’s Capital A/c

 

 

60,000

 

(Reserve distributed between J and K at the time of M’s admission)

 

 

 

 

 

 

 

 

April 1

Cash A/c

Dr.

 

4,00,000

 

 

To M’s Capital A/c

 

 

3,00,000

 

To Premium for Goodwill A/c

 

 

1,00,000

 

(M brought Capital his share of Goodwill)

 

 

 

 

 

 

 

 

April 1

Premium for Goodwill A/c

Dr.

 

1,00,000

 

 

To J’s Capital A/c

 

 

75,000

 

To K’s Capital A/c

 

 

25,000

 

(Premium for Goodwill distributed between
J and K in their sacrificing ratio i.e 3:1)

 

 

 

 

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

J

K

M

Particulars

J

K

M

 

 

 

 

Balance b/d

1,50,000

1,00,000

 

 

 

 

 

Cash

 

 

3,00,000

 

 

 

 

Premium for
Goodwill

75,000

25,000

 

 

 

 

 

Reserve

60,000

40,000

 

Balance c/d

2,85,000

1,65,000

3,00,000

 

 

 

 

 

2,85,000

1,65,000

3,00,000

 

2,85,000

1,65,000

3,00,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on April 01, 2022 after M’s admission

Liabilities

`

Assets

`

   J’s Capital

2,85,000

Cash (2,00,000 + 4,00,000)

6,00,000

K’s Capital

1,65,000

Other Assets

1,50,000

   M’s Capital                   

3,00,000

 

 

 

7,50,000

 

7,50,000

 

 

 

 


Calculation of Future (New) Profit Sharing Ratio

 

J

K

Old ratio

3  :

2 

M is admitted for ½ share of profit

J’s sacrificing rato

=1/2×3/4

 

=2/8

K’s sacrificing rato

=1/2×1/4

 

=1/8

New Ratio = Old Ratio − Sacrificing Ratio

J’s

=3/5-3/8

 

 

=9/40

 

K’s

=2/5-1//8

 

 

=11/40

 

 

J

 

K

 

M

New profit sharing ratio=

9/40

:

11/40

:

1/2      

=

9/40

:

11/40

:

20/40     

=

9         

:

11

:

20       

 

Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
J will get =1,00,000×3/4=75,000

K will get =1,00,000×1/4=25,000


WN2
Distribution of Reserve (in old ratio)
J will get =1,00,000×3/5=60,000

K will get =1,00,000×2/5=40,000

 

Ts Grewal Solution 2022-2023

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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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