Question 31:
A and B were partners in a firm sharing
profits and losses in the ratio of 3 : 2. They
admitted C as a new partner for 3/7th share
in the profit and the new profit-sharing ratio will be 2 :
2 : 3. C brought` 2,00,000 as his capital and ` 1,50,000 as
premium for goodwill. Half of their share of premium was withdrawn by A and B
from the firm. Calculate sacrificing ratio and pass necessary
Journal entries for the above transactions in the books of the firm.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Cash
A/c |
Dr. |
|
3,50,000 |
|
|
|
To C’s Capital A/c |
|
|
2,00,000 |
|
|
|
To Premium for Goodwill
A/c |
|
|
1,50,000 |
|
|
|
(C
brought capital and Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium
for Goodwill A/c |
Dr. |
|
1,50,000 |
|
|
|
To A’s Capital A/c |
|
|
1,10,000 |
|
|
|
To B’s Capital A/c |
|
|
40,000 |
|
|
|
(Premium
for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
|
|
|
A’s
Capital A/c |
Dr. |
|
55,000 |
|
|
|
B’s
Capital A/c |
Dr. |
|
20,000 |
|
|
|
To Cash A/c |
|
|
75,000 |
|
|
|
(Half
of the goodwill withdrawn by A and B) |
|
|
|
|
|
|
|
|
|
|
|
Calculation of Sacrificing Ratio
Sacrificing Ratio =Old ratio- new ratio
|
A’s |
=3/5-2/7 |
|
|||
|
|
=11/35 |
|
|||
|
B’s |
=2/5-2/7 |
|
|||
|
|
=4/35 |
|
|||
|
|
X |
|
Y |
|||
|
Sacrificing
Ratio = |
11/35 |
: |
4/35 |
|||
|
= |
11 |
: |
4 |
|||
Working Notes-
WN1
Distribution
of Premium for Goodwill
A will get =1,50,000×11/35=1,10,000
B will get 1,50,000×4/35=40,000
WN2
Amount
of Premium for Goodwill withdrawn
A will get =1,10,000×1/2=55,000
B will get =40,000×1/2=20,000
Question 32: Mahesh and Suresh were partners in a
firm sharing profits and losses in the ratio of 2 : 1.
They decided to admit Nita into partnership with 1/4th share in the profits.
Nita brought ` 2,00,000 for her capital and the
requisite amount of goodwill premium in cash. The goodwill of the firm is
valued at ` 12,00,000. The new profit-sharing ratio of the
partners is 2: 1:1. Mahesh and Suresh withdraw their share of goodwill
Pass
necessary Journal entries in the books of the firm for the above transactions.
(CBSE 2023)
Answer:
|
Date |
Particulars |
|
Dr. (`) |
Cr. (`) |
|
(i) |
Bank A/c |
Dr. |
5,00,000 |
|
|
|
To Nita's Capital A/c |
|
|
2,00,
000 |
|
|
To Premium for Goodwill A/c |
|
|
3,00,000 |
|
|
(Being Nita brought for her capital
and amount of goodwill premium in cash) |
|
|
|
|
(ii) |
Premium for Goodwill A/c |
|
3,00, 000 |
|
|
|
To Mahesh's Capital A/c |
|
|
2,00,000 |
|
|
To Suresh's Capital A/c |
|
|
1,00,000 |
|
|
(Being premium shared) |
|
|
|
|
(iii) |
Mahesh's Capital A/c |
|
2,00,000 |
|
|
|
Suresh’s Capital A/c |
|
1,00,000 |
|
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
(Being Mahesh and Suresh withdraw
their share of goodwill) |
|
|
|
Working note:
1.
Nita brought the requisite amount of goodwill premium =12,00,000×1/4=3,00,000
Premium 3,00,000 will be shared by Mahesh and Suresh in sacrificing
ratio 2:1
Mahesh=3,00,000×2/3=2,00,000
Suresh=3,00,000×1/3=1,00,000
2. Gaining and sacrificing Ratio
|
|
|
New Ratio |
|
Old Ratio |
|
|
|
|
|
|
Mahesh |
= |
2/3 |
- |
2/4 |
= |
8-6/12 |
= |
2/12 |
Sacrificing Ratio |
|
Suresh |
= |
1/3 |
- |
1/4 |
= |
4-3/12 |
= |
1/12 |
Sacrificing Ratio |
|
Nita |
= |
0/3 |
- |
1/4 |
= |
0-3/12 |
= |
-3/12 |
Gaining Ratio |
Question 33:
A and B are partners sharing profits
in the ratio of 2 : 1. They admit C for 1/4th share in
profits. C brings in ` 30,000 for his
capital and`8,000
out of his share of`10,000
for goodwill. Before admission, goodwill appeared in books at` 18,000. Give
Journal entries to give effect to the above arrangement.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
A’s
Capital A/c |
Dr. |
|
12,000 |
|
|
|
B’s
Capital A/c |
Dr. |
|
6,000 |
|
|
|
To Goodwill A/c |
|
|
18,000 |
|
|
|
(Goodwill
written-off) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
A/c |
Dr. |
|
38,000 |
|
|
|
To C’s Capital A/c |
|
|
30,000 |
|
|
|
To Premium for Goodwill |
|
|
8,000 |
|
|
|
(C
brought Capital and goodwill) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium
for Goodwill A/c |
Dr. |
|
8,000 |
|
|
|
C’s
Capital A/c |
Dr. |
|
2,000 |
|
|
|
To A’s Capital A/c |
|
|
6,667 |
|
|
|
To B’s Capital |
|
|
3,333 |
|
|
|
(C’s
share of goodwill distributed between |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1Writing-off of Goodwill
A’s
Capital Account will be debited by =18,000×2/3=12,000
B’s
Capital Account will be debited by =18,000×1/3=6,000
WN2Distribution
of C’s share of Goodwill
A will get =10,000×2/3=6,667
B will get =10,000×1/3=3.333
Question
34:
Rohit and Mohit were partners in a firm sharing profits and losses in
the ratio of 3: 2. Rahul was admitte
into partnership for 1/3 share in profits. Goodwill of the firm was valued at
30,000. Rahul brought 40,000 as capital and 5,000 out
of his share of goodwill premium in cash. At the time of Rahul's
admission, goodwill was appearing in the books of the firm at 15,000.
Pass necessary Journal entries
for the above transactions in the books of the firm on Rahul's
admission.
(CBSE 2023)
Answer:
|
Date
|
Particulars |
|
L.F. |
(Dr.) ₹ |
(Cr.) ₹ |
|
1. |
Rohit's Capital A/c |
Dr. |
|
15,000 |
|
|
|
Mohit's Capital A/c |
|
|
|
9,000 |
|
|
To
Goodwill A/c |
|
|
|
6,000 |
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
45,000 |
|
|
|
To Z's Capital A/c |
|
|
|
5,000 |
|
|
To Premium for Goodwill
A/c |
|
|
|
40,000 |
|
|
|
|
|
|
|
|
2. |
Premium
for Goodwill A/c |
Dr. |
|
5,000 |
|
|
|
Rahul's Current A/c |
Dr. |
|
5,000 |
|
|
|
To Rohit's Capital A/c |
|
|
|
6,000 |
|
|
To Mohit's
Capital A/c |
|
|
|
4,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working
note:
WN
1: calculation of Goodwill of Rahul
Rahul Share of Goodwill
= 30,000×1/3=10,000
Note :
Since, full amount of goodwill is not brought by Rahul
in cash therefore balance is to adjusted by Rahul’s
Current.
Question
35:
On
the admission of Rao, goodwill of Murty
and Shah is valued at ` 30,000. Rao is to get 1/4th
share of profits. Previously Murty and Shah shared
profits in the ratio of 3 : 2. Rao
is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when:
(a) Goodwill does not exist in the books
(b)
Goodwill does not exist in the books at `10,000.
Answer:
(a)
Goodwill does not exist in the books
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Rao’s
Capital A/c |
Dr. |
|
7,500 |
|
|
|
To Murty’s
Capital A/c |
|
|
4,500 |
|
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
|
(Rao’s share of goodwill charged |
|
|
|
|
|
|
|
|
|
|
|
(b)
Goodwill does not exist in the books at `10,000.
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Murty’s
Capital A/c |
Dr. |
|
6,000 |
|
|
|
Shah’s
Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Goodwill A/c |
|
|
10,000 |
|
|
|
(Goodwill
written-off at the time of Rao’s |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rao’s
Capital A/c |
Dr. |
|
7,500 |
|
|
|
To Murty’s
Capital A/c |
|
|
4,500 |
|
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
|
(Rao’s share of goodwill charged from his |
|
|
|
|
|
|
|
|
|
|
|
Working Notes;
WN1: Calculation
of Rao’s share of Goodwill
Rao’s
share of goodwill=30,000×1/4=7,500
WN2: Adjustment
of Rao’s share of Goodwill
Murty will get =7,500×3/5=4,500
Shah will get =7,500×2/5=3,000
Ts Grewal Solution 2025-2026
Click below for more Questions
Class 12 / Volume – I