Question 36:
A, B and C
are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E
are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D
is to pay ` 90,000 for his
share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners
introduced ` 1,20,000 each as their capital. You are required to pass
necessary Journal entries.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr |
|
3,30,000 |
|
|
|
To D’s Capital A/c |
|
|
|
1,20,000 |
|
|
To E’s Capital A/c |
|
|
|
1,20,000 |
|
|
To Premium for
Goodwill A/c |
|
|
|
90,000 |
|
|
(Capital and Goodwill brought in
cash) |
|
|
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
36,000 |
|
|
|
E’s Capital A/c |
Dr. |
|
45,000 |
|
|
|
Premium for Goodwill A/c |
Dr. |
|
90,000 |
|
|
|
To A’s
Capital A/c |
|
|
|
1,35,000 |
|
|
To B’s
Capital A/c |
|
|
|
36,000 |
|
|
(Goodwill adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Sacrificing Ratio
A :B :C=5:4:1 (Old Ratio)
A :B :C 😀 :E=3:4:2:2:1 (New Ratio)
Sacrificing (or Gaining) Ratio = Old Ratio - New share
=510−312=30−1560=1560 (Share of sacrifice)
B's share =4/10−4/12=24−20/60=4/60 (Share of sacrifice)
C's share =1/10−2/12=6−10/60=−4/60 (Share of gain)
WN2: Adjustment of Goodwill
D's share in goodwill for 2/12th share=90,000
∴Total goodwill of the firm = 90,000×12/2= ` 5,40,000
E's share in goodwill = 5,40,000×1/12= ` 45,000
C's share in goodwill = 5,40,000×4/60= ` 36,000
Question 37:
A and B are partners in a firm with
capital of ` 60,000
and ` 1,20,000
respectively. They decide to admit C into the
partnership for 1/4th share in the future profits. C
is to bring in a sum of ` 70,000 as his
capital. Calculate amount of goodwill.
Answer:
Actual
Capital of the firm after admission of C = A’s Capital + B’s Capital + C’s
Capital
=
60,000 + 1, 20,000 + 70,000 = ` 2, 50,000
Capitalised value of the firm on the basis C’s share=
70,000×4/1=2,80,000
Goodwill= Capitalised value of the firm – actual capital of
the firm
=2,80,000-2,50,000
=30,000
Question 38:
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, 2024. 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) |
|
|
|
|
|
|
|
|
|
|
|
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|
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 39: Vanshika and Shikha
were partners in a firm with capitals of ` 1,00,000
and ` 80,000 respectively. They admitted Nisha on 1st April, 2022 as a new partner for 1/4 share in
the future profits of the firm. Nisha brought ` 90,000 as her capital. Nisha acquired her share equally from Vanshika
and Shikha. Calculate the value of goodwill of the
firm and pass necessary Journal entries on Nisha's
admission, assuming that Nisha did not bring her
share of goodwill premium in cash. Show the working clearly. (CBSE 2023)
Answer:
|
Date |
Particulars |
|
Dr. (`) |
Cr. (`) |
|
(i) |
Bank A/c |
Dr. |
90,000 |
|
|
|
To Nisha's Capital
A/c |
|
|
90,
000 |
|
|
(Being Nisha
brought for her capital) |
|
|
|
|
(ii) |
Nisha's Current A/c |
|
22, S00 |
|
|
|
To Vanshika's
Capital A/c |
|
|
11,250 |
|
|
To Shikha's
Capital A/c |
|
|
11,250 |
|
|
(Being premium shared) |
|
|
|
Working Notes:
1. Valued
capital of firm as per Nisha’s Capital = 90,000×4/1=3,60,000
2. Actual
Capital of all partner including Nisha =1,00,000 + 80,000+90,000=2,70,000
3. Goodwill of
the Firm (Hidden)= 3,60,000-2,70,000=90,000
Nisha's
Share in Goodwill×1/4 =22.500
Goodwill ` 22,500 will be shared by Vanshika and Shikha in
sacrificing ratio 1:1
Vanshika
=22,500×1/2=11,250
Shikha
=22,500×1/2=11,250
Question 40:
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
Ts Grewal Solution 2025-2026
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Class 12 / Volume – I