Question 36:
On
the admission of Ritu, goodwill of Murty and Shah is valued at ₹ 30,000. Ritu is to get 1/4th share of profits.
Previously Murty and Shah shared profits in the ratio of 3 : 2. Ritu 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
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Journal |
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Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
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Ritu’s Capital A/c |
Dr. |
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7,500 |
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To Murty’s Capital A/c |
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4,500 |
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To Shah’s Capital A/c |
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3,000 |
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(Ritu’s
share of goodwill charged |
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(b) Goodwill does not exist in the books at ₹10,000.
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Journal |
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Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
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Murty’s Capital A/c |
Dr. |
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6,000 |
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Shah’s Capital A/c |
Dr. |
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4,000 |
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To Goodwill A/c |
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10,000 |
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(Goodwill
written-off at the time of Ritu’s |
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Ritu’s Capital A/c |
Dr. |
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7,500 |
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To Murty’s Capital A/c |
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4,500 |
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To Shah’s Capital A/c |
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3,000 |
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(Ritu’s
share of goodwill charged from his |
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Working Notes;
WN1: Calculation of Ritu’s share of Goodwill
Ritu’s share of goodwill=30,000×1/4=7,500
WN2: Adjustment of Ritu’s share of Goodwill
Murty will get =7,500×3/5=4,500
Shah will get =7,500×2/5=3,000
Question 37:
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:
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Journal |
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Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
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Bank A/c |
Dr |
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3,30,000 |
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To D’s Capital A/c |
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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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To Premium for Goodwill A/c |
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90,000 |
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(Capital and Goodwill brought in cash) |
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C’s Capital A/c |
Dr. |
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36,000 |
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E’s Capital A/c |
Dr. |
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45,000 |
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Premium for Goodwill A/c |
Dr. |
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90,000 |
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To A’s Capital A/c |
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1,35,000 |
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To B’s Capital A/c |
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36,000 |
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(Goodwill adjusted) |
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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 38:
Tushar and Paresh are partners in a firm with capital of ₹ 60,000 and ₹ 1,20,000 respectively. They decide to admit Nitish into the partnership for 1/4th share in the future profits. Nitish 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 = Tushar’s Capital + Paresh’s Capital + Nitish’s Capital
= 60,000 + 1, 20,000 + 70,000 = ₹ 2, 50,000
Capitalised value of the firm on the basis Nitish’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 39:
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, 2026. Charu brought ₹ 3,20,000 as her share of capital.
Calculate value of goodwill and record necessary Journal entries.
(AI 2013 C)
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
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2012 April 1 |
Bank A/c |
Dr. |
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3,20,000 |
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To Charu’s Capital A/c |
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3,20,000 |
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(Capital brought in by Charu) |
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Charu’s Current A/c |
Dr. |
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1,00,000 |
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To Anil’s Current A/c |
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50,000 |
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To Sunil’s Current A/c |
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50,000 |
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(Charu’s share of goodwill adjusted through current accounts) |
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Working Notes: Calculation of Hidden Goodwill
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Total capital of the firm on the basis od Charu’s capital=3,20,000×4/1= |
12,80,000 |
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Less- adjusted cpital of partners + new partner’s capital= |
(8,80,000) |
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4,00,000 |
Charu’s share of goodwill=4,00,000×1/4=1,00,000
Question 40:
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:
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Date |
Particulars |
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Dr. (₹) |
Cr. (₹) |
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(i) |
Bank A/c |
Dr. |
90,000 |
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To Nisha's Capital A/c |
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90, 000 |
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(Being Nisha brought for her capital) |
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(ii) |
Nisha's Current A/c |
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22, S00 |
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To Vanshika's Capital A/c |
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11,250 |
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To Shikha's Capital A/c |
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11,250 |
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(Being premium shared) |
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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
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I