TS Grewal Solutions Class 12 Accountancy Vol 1 Chapter 5
TS Grewal Accountancy Class 12 Solutions Chapter 5 – Admission of a partner is considered to be an essential concept to be learnt completely by the students. Here, we have provided TS Grewal Accountancy solutions for class 12 in a simple and a step by step manner, which is helpful for the students to score well in their upcoming board examinations.
| Board |
CBSE |
| Class |
Class 12 |
| Subject |
Accountancy |
| Chapter |
Chapter 5 |
| Chapter Name |
Admission of a partner |
| Number of questions solved |
25 |
| Category |
TS Grewal |
Chapter 5 – Admission of a Partner explains the below-mentioned concepts:
- Revaluation account, cash account and balance sheet
- Calculation of ratios
- Adjustment of Capital
- Goodwill: Valuation and Treatment
TS Grewal Solutions for Class 12 Accountancy Chapter 5 – Admission of a partner
Question 1
X, Y, and Z are partners sharing profits and losses in the ratio of 5 : 3: 2. They admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.
Solution:
Old Ratio = X: Y: Z = 5:3:2
1/5 share of profit is provided to A
Let assume the profit share for all partners after the admission of A is 1
So, X, Y, and Z combined share after A’s admission =1 − A’s share
= 1-
\(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{4}{5}\end{array} \)
(this is the combined share of X, Y, and Z)
New Ratio = Old Ratio X (combined share of X, Y, and Z)
X’s share =
\(\begin{array}{l}\frac{5}{10}\end{array} \)
X \(\begin{array}{l}\frac{4}{5}\end{array} \)
= \(\begin{array}{l}\frac{20}{50}\end{array} \)
Ys share =
\(\begin{array}{l}\frac{3}{10}\end{array} \)
X \(\begin{array}{l}\frac{4}{5}\end{array} \)
= \(\begin{array}{l}\frac{12}{50}\end{array} \)
Z’s share =
\(\begin{array}{l}\frac{2}{10}\end{array} \)
X \(\begin{array}{l}\frac{4}{5}\end{array} \)
= \(\begin{array}{l}\frac{8}{50}\end{array} \)
So, the profit sharing ratio between X, Y, Z, and A will be
\(\begin{array}{l}\frac{20}{50}\end{array} \)
: \(\begin{array}{l}\frac{12}{50}\end{array} \)
: \(\begin{array}{l}\frac{8}{50}\end{array} \)
: \(\begin{array}{l}\frac{1}{50}\end{array} \)
or 10 : 6: 4 :5 respectively
Question 2
Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate the new profit-sharing ratio.
Solution:
The old ratio of Ravi and Mukesh is
\(\begin{array}{l}\frac{7}{10}\end{array} \)
: \(\begin{array}{l}\frac{3}{10}\end{array} \)
\(\begin{array}{l}\frac{3}{7}\end{array} \)
share of profit is admitted by Ashok
Ravi sacrifice
\(\begin{array}{l}\frac{2}{7}\end{array} \)
in favour of Ashok
Mukesh sacrifice
\(\begin{array}{l}\frac{1}{7}\end{array} \)
in favour of Ashok
New Ratio = Old Ratio – Sacrificing Ratio
Ravi’s Share =
\(\begin{array}{l}\frac{7}{10}\end{array} \)
– \(\begin{array}{l}\frac{2}{7}\end{array} \)
= \(\begin{array}{l}\frac{29}{70}\end{array} \)
Mukesh’s share =
\(\begin{array}{l}\frac{3}{10}\end{array} \)
– \(\begin{array}{l}\frac{1}{7}\end{array} \)
= \(\begin{array}{l}\frac{11}{70}\end{array} \)
So, the new profit sharing ratio between Ravi, Mukesh, and Ashok will be,
Ravi
\(\begin{array}{l}\frac{29}{70}\end{array} \)
: Mukesh \(\begin{array}{l}\frac{11}{70}\end{array} \)
: Ashok \(\begin{array}{l}\frac{3}{7}\end{array} \)
= \(\begin{array}{l}\frac{29:11:3}{70}\end{array} \)
= 29:11:3
Question 3
A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B. Calculate new profit-sharing ratio.
Solution:
The old ratio of A and B = 7:5
\(\begin{array}{l}\frac{1}{6}\end{array} \)
share of profit is admitted by C
A sacrifice
\(\begin{array}{l}\frac{1}{24}\end{array} \)
in favour of C
B sacrifice
\(\begin{array}{l}\frac{1}{8}\end{array} \)
in favour of C
New Ratio = Old Ratio – Sacrificing Ratio
As Share =
\(\begin{array}{l}\frac{7}{12}\end{array} \)
– \(\begin{array}{l}\frac{1}{24}\end{array} \)
= \(\begin{array}{l}\frac{13}{24}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{5}{12}\end{array} \)
– \(\begin{array}{l}\frac{1}{8}\end{array} \)
= \(\begin{array}{l}\frac{7}{24}\end{array} \)
So, the new profit sharing ratio between A, B, and C will be =
\(\begin{array}{l}\frac{13}{24}\end{array} \)
: \(\begin{array}{l}\frac{7}{24}\end{array} \)
: \(\begin{array}{l}\frac{1}{6}\end{array} \)
= \(\begin{array}{l}\frac{13:7:4}{24}\end{array} \)
= 13:7:4
Question 4
A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D.
Solution:
The profit-sharing ratio of A, B, and C = 3:2:1
Original share of A =
\(\begin{array}{l}\frac{3}{6}\end{array} \)
D’s share =
\(\begin{array}{l}\frac{1}{8}\end{array} \)
(out of which \(\begin{array}{l}\frac{1}{6}\end{array} \)
is acquired from B and C each
New share of B =
\(\begin{array}{l}\frac{2}{6}\end{array} \)
– \(\begin{array}{l}\frac{1}{16}\end{array} \)
= \(\begin{array}{l}\frac{13}{48}\end{array} \)
New share of C =
\(\begin{array}{l}\frac{1}{6}\end{array} \)
– \(\begin{array}{l}\frac{1}{16}\end{array} \)
= \(\begin{array}{l}\frac{5}{48}\end{array} \)
So, the new profit sharing ratio between A, B, C, and D is =
\(\begin{array}{l}\frac{3}{6}\end{array} \)
: \(\begin{array}{l}\frac{13}{48}\end{array} \)
: \(\begin{array}{l}\frac{5}{48}\end{array} \)
: \(\begin{array}{l}\frac{1}{8}\end{array} \)
= \(\begin{array}{l}\frac{24:13:5:6}{48}\end{array} \)
= 24:13:5:6
Question 5
Bharati and Astha were partners sharing profits in the ratio of 3 : 2. They admitted Dinkar as a new partner for 1/5th share in the future profits of the firm which he got equally from Bharati and Astha. Calculate the new profit-sharing ratio of Bharati, Astha and Dinkar.
Solution:
The old ratio of Bharati and Astha = 3:2
Dinkar share =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
Bharati sacrifices =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{2}\end{array} \)
= \(\begin{array}{l}\frac{1}{10}\end{array} \)
Astha sacrifices =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{2}\end{array} \)
= \(\begin{array}{l}\frac{1}{10}\end{array} \)
Bharati’s New Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{6-1}{10}\end{array} \)
= \(\begin{array}{l}\frac{5}{10}\end{array} \)
Astha’s New share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{4-1}{10}\end{array} \)
= \(\begin{array}{l}\frac{3}{10}\end{array} \)
Dinkar’s New share =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{2}{2}\end{array} \)
= \(\begin{array}{l}\frac{2}{10}\end{array} \)
So, Bharati : Astha : Dinkar = 5 : 3 : 2
Question 6
X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as a partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio.
Solution:
The old ratio of X and Y = 3:2
\(\begin{array}{l}\frac{1}{4}\end{array} \)
th share of profit is admitted by Z
Sacrificing ratio of X and Y is 2:1
Z acquired share from X =
\(\begin{array}{l}\frac{2}{3}\end{array} \)
X \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{2}{12}\end{array} \)
Z acquired share from Y =
\(\begin{array}{l}\frac{1}{3}\end{array} \)
X \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{2}{12}\end{array} \)
New Ratio = Old ratio – Sacrificing ratio
X’s New Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{2}{12}\end{array} \)
= \(\begin{array}{l}\frac{36-10}{60}\end{array} \)
= \(\begin{array}{l}\frac{26}{60}\end{array} \)
Y’s New share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{2}\end{array} \)
= \(\begin{array}{l}\frac{24-5}{60}\end{array} \)
= \(\begin{array}{l}\frac{19}{60}\end{array} \)
Z’s New share =
\(\begin{array}{l}\frac{1}{4}\end{array} \)
X \(\begin{array}{l}\frac{15}{15}\end{array} \)
= \(\begin{array}{l}\frac{15}{60}\end{array} \)
So, X : Y : Z = 26 : 19 : 15
Question 7
R and S are partners sharing profits in the ratio of 5 : 3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner. Find out new profit-sharing ratio.
Solution:
The old ratio of R and S = 5 : 3
Sacrificing ratio = Old Ratio X Surrender Ratio
Sacrificing ratio of R and =
\(\begin{array}{l}\frac{5}{8}\end{array} \)
X \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{5}{32}\end{array} \)
Sacrificing ratio of S and =
\(\begin{array}{l}\frac{3}{8}\end{array} \)
X \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{3}{40}\end{array} \)
New Ratio = Old Ratio – Sacrificing Ratio
R’s New Share =
\(\begin{array}{l}\frac{5}{8}\end{array} \)
– \(\begin{array}{l}\frac{5}{32}\end{array} \)
= \(\begin{array}{l}\frac{15}{32}\end{array} \)
S’s New share =
\(\begin{array}{l}\frac{3}{8}\end{array} \)
– \(\begin{array}{l}\frac{3}{40}\end{array} \)
= \(\begin{array}{l}\frac{15}{32}\end{array} \)
T’s Share = R’s sacrifice + S’s sacrifice
T’s Share =
\(\begin{array}{l}\frac{5}{32}\end{array} \)
+ \(\begin{array}{l}\frac{3}{40}\end{array} \)
= \(\begin{array}{l}\frac{25+12}{160}\end{array} \)
= \(\begin{array}{l}\frac{37}{160}\end{array} \)
New profit sharing ratio between R, S, and T =
\(\begin{array}{l}\frac{15}{32}\end{array} \)
: \(\begin{array}{l}\frac{15}{32}\end{array} \)
: \(\begin{array}{l}\frac{37}{160}\end{array} \)
= \(\begin{array}{l}\frac{75:48:37}{160}\end{array} \)
or 75 : 48 : 37
Question 8
Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7 : 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing ratio.
Solution:
The old ratio of Kabir : Farid = 7:5
Kabir sacrifice
\(\begin{array}{l}\frac{2}{10}\end{array} \)
in favour of Jyoti
Farid sacrifice
\(\begin{array}{l}\frac{1}{10}\end{array} \)
in favour of Jyoti
Jyoti’s share =
\(\begin{array}{l}\frac{2}{10}\end{array} \)
+ \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{3}{10}\end{array} \)
New Ratio = Old Ratio – Sacrificing Ratio
Kabir’s New Share =
\(\begin{array}{l}\frac{7}{10}\end{array} \)
– \(\begin{array}{l}\frac{2}{10}\end{array} \)
= \(\begin{array}{l}\frac{5}{10}\end{array} \)
Farid’s New share =
\(\begin{array}{l}\frac{3}{10}\end{array} \)
– \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{2}{10}\end{array} \)
So, the new profit sharing ratio between Kabir, Farid, and Jyoti will be = 5 : 2 : 3
The Sacrificing ratio of Kabir and Farid is
\(\begin{array}{l}\frac{2}{10}\end{array} \)
and \(\begin{array}{l}\frac{1}{10}\end{array} \)
= 2:1
Question 9
Find New Profit-sharing Ratio:
(i) R and T are partners in a firm sharing profits in the ratio of 3 : 2. S joins the firm. R surrenders 1/4th of his share and T 1/5th of his share in favour of S.
(ii) A and B are partners. They admit C for 1/4th share. In the future, the ratio between A and B would be 2 : 1.
(iii) A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C for 1/5th share in the profit. C acquires 1/5th of his share from A and 4/5th share from B.
(iv) X, Y and Z are partners in the ratio of 3 : 2 : 1. W joins the firm as a new partner for 1/6th share in profits. Z would retain his original share.
(v) A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th share respectively.
(vi) A and B are partners sharing profits/losses in the ratio of 3 : 2 . C is admitted for 1/4th share. A and B decide to share equally in future.
Solution:
(i) The old ratio of R : T = 7:5
Sacrificing ratio = Old ratio X Surrender ratio
R’s Sacrificing Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3}{20}\end{array} \)
T’s Sacrificing Share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{2}{25}\end{array} \)
New Ratio = Old Ratio – Sacrificing Ratio
R’s New Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{3}{20}\end{array} \)
= \(\begin{array}{l}\frac{9}{20}\end{array} \)
T’s New share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{2}{25}\end{array} \)
= \(\begin{array}{l}\frac{8}{25}\end{array} \)
S’s share = R’s sacrificing share + T’s sacrificing share
=
\(\begin{array}{l}\frac{3}{20}\end{array} \)
+ \(\begin{array}{l}\frac{2}{25}\end{array} \)
= \(\begin{array}{l}\frac{23}{100}\end{array} \)
So, the new profit sharing ratio between R, T, and S will be =
\(\begin{array}{l}\frac{9}{20}\end{array} \)
: \(\begin{array}{l}\frac{8}{25}\end{array} \)
: \(\begin{array}{l}\frac{23}{100}\end{array} \)
= \(\begin{array}{l}\frac{45: 32 : 23}{100}\end{array} \)
or 45: 32 : 23
(ii) The old ratio of A : B = 1 : 1
\(\begin{array}{l}\frac{1}{4}\end{array} \)
th profit share is admitted by C
Combined share of A and B = 1- C‘s share = 1-
\(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3}{4}\end{array} \)
New ratio = Combined share of A and B X
\(\begin{array}{l}\frac{2}{3}\end{array} \)
A’s New Share =
\(\begin{array}{l}\frac{3}{4}\end{array} \)
X \(\begin{array}{l}\frac{2}{3}\end{array} \)
= \(\begin{array}{l}\frac{6}{12}\end{array} \)
B’s New share =
\(\begin{array}{l}\frac{3}{4}\end{array} \)
X \(\begin{array}{l}\frac{1}{3}\end{array} \)
= \(\begin{array}{l}\frac{3}{12}\end{array} \)
New Profit sharing ratio A : B : C =
\(\begin{array}{l}\frac{6}{12}\end{array} \)
: \(\begin{array}{l}\frac{3}{12}\end{array} \)
: \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{6: 3 : 3}{100}\end{array} \)
= 2 : 1 :1
(iii) The old ratio of A : B = 3 : 2
\(\begin{array}{l}\frac{1}{5}\end{array} \)
th profit share is admitted by C
A’s sacrifice = C’s share X
\(\begin{array}{l}\frac{1}{5}\end{array} \)
=
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{1}{25}\end{array} \)
B’s sacrifices= C’s share X
\(\begin{array}{l}\frac{4}{5}\end{array} \)
=
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{4}{5}\end{array} \)
= \(\begin{array}{l}\frac{4}{25}\end{array} \)
New Ratio = Old Ratio – Sacrificing Ratio
A’s share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{25}\end{array} \)
= \(\begin{array}{l}\frac{15-1}{25}\end{array} \)
= \(\begin{array}{l}\frac{14}{25}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{4}{25}\end{array} \)
= \(\begin{array}{l}\frac{10-4}{25}\end{array} \)
= \(\begin{array}{l}\frac{6}{25}\end{array} \)
New Profit Sharing Ratio = A : B : C =
\(\begin{array}{l}\frac{14}{25}\end{array} \)
: \(\begin{array}{l}\frac{6}{25}\end{array} \)
: \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{14 : 6 : 1}{25}\end{array} \)
= 14 : 6 : 1
(iv) The old ratio of X : Y : Z = 3 : 2 : 1
\(\begin{array}{l}\frac{1}{6}\end{array} \)
th profit share is admitted by W
After admitting W and combining all the partner’s share , let the share be = 1
X and Y combined share in the new firm = 1 – Z’s share – W’s share
= 1 –
\(\begin{array}{l}\frac{1}{6}\end{array} \)
– \(\begin{array}{l}\frac{1}{6}\end{array} \)
= \(\begin{array}{l}\frac{4}{6}\end{array} \)
New Ratio = Old Ratio X combined share of X and Y
X’s share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
X \(\begin{array}{l}\frac{4}{6}\end{array} \)
= \(\begin{array}{l}\frac{12}{30}\end{array} \)
Y’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
X \(\begin{array}{l}\frac{4}{6}\end{array} \)
= \(\begin{array}{l}\frac{8}{30}\end{array} \)
New Profit Sharing Ratio = X : Y : Z : W =
\(\begin{array}{l}\frac{12}{30}\end{array} \)
: \(\begin{array}{l}\frac{8}{30}\end{array} \)
: \(\begin{array}{l}\frac{1}{6}\end{array} \)
: \(\begin{array}{l}\frac{1}{6}\end{array} \)
= \(\begin{array}{l}\frac{12 : 8 : 5 : 5}{30}\end{array} \)
or 12 : 8 : 5 : 5
(v) The old ratio of A : B = 1:1
\(\begin{array}{l}\frac{1}{5}\end{array} \)
th profit share is admitted by C
\(\begin{array}{l}\frac{1}{6}\end{array} \)
th profit share is admitted by D
After admitting C and D and combining all the partner’s share , let the share be = 1
Combined share of profit of A and B after C and D’s admission = 1 – C’s share – D’s share
A and B combined share after C and D’s admission = 1 – Z’s share – W’s share
= 1 –
\(\begin{array}{l}\frac{1}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{6}\end{array} \)
= \(\begin{array}{l}\frac{19}{30}\end{array} \)
New Ratio = Old Ratio X combined share of A and B
A’s share =
\(\begin{array}{l}\frac{1}{2}\end{array} \)
X \(\begin{array}{l}\frac{19}{30}\end{array} \)
= \(\begin{array}{l}\frac{19}{60}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{1}{2}\end{array} \)
X \(\begin{array}{l}\frac{19}{30}\end{array} \)
= \(\begin{array}{l}\frac{19}{60}\end{array} \)
New Profit Sharing Ratio = A : B : C : D =
\(\begin{array}{l}\frac{19}{60}\end{array} \)
: \(\begin{array}{l}\frac{19}{60}\end{array} \)
: \(\begin{array}{l}\frac{1}{5}\end{array} \)
: \(\begin{array}{l}\frac{1}{6}\end{array} \)
= \(\begin{array}{l}\frac{19 : 19 : 12 : 10}{60}\end{array} \)
or 19 : 19 : 12 : 10
(vi) The old ratio of A : B = 3 : 2
\(\begin{array}{l}\frac{1}{4}\end{array} \)
th profit share is admitted by C
After admitting C and combining all the partner’s share , let the share be = 1
Combined share of profit of A and B after D’s admission = 1 – C’s share
= 1 –
\(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3}{4}\end{array} \)
A and B New Ratio = combined share of A and B X
\(\begin{array}{l}\frac{1}{2}\end{array} \)
A and B New Ratio =
\(\begin{array}{l}\frac{3}{4}\end{array} \)
X \(\begin{array}{l}\frac{1}{2}\end{array} \)
= \(\begin{array}{l}\frac{3}{8}\end{array} \)
New Profit Sharing Ratio = A : B : C =
\(\begin{array}{l}\frac{3}{8}\end{array} \)
: \(\begin{array}{l}\frac{3}{8}\end{array} \)
: \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3 : 3 : 2}{8}\end{array} \)
or 3 : 3 : 2
Question 10
X and Y were partners sharing profits in the ratio of 3 : 2. They admitted P and Q as new partners. X surrendered 1/3rd of his share in favour of P and Y surrendered 1/4th of his share in favour of Q. Calculate new profit-sharing ratio of X, Y, P and Q.
Solution:
The old ratio of X : Y = 3 : 2
Sacrificing ratio = Old ratio X Surrender ratio
X’s Sacrificing Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{3}\end{array} \)
= \(\begin{array}{l}\frac{3}{15}\end{array} \)
Y’s Sacrificing Share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{2}{20}\end{array} \)
New Ratio = Old Ratio – Sacrificing Ratio
X’s share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{3}{15}\end{array} \)
= \(\begin{array}{l}\frac{6}{15}\end{array} \)
Y’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{2}{20}\end{array} \)
= \(\begin{array}{l}\frac{6}{20}\end{array} \)
X sacrificed for P =
\(\begin{array}{l}\frac{3}{15}\end{array} \)
Y sacrificed for Q =
\(\begin{array}{l}\frac{2}{10}\end{array} \)
So, the profit sharing ratio between X, Y, P, and Q will be
\(\begin{array}{l}\frac{6}{15}\end{array} \)
: \(\begin{array}{l}\frac{6}{20}\end{array} \)
: \(\begin{array}{l}\frac{3}{15}\end{array} \)
: \(\begin{array}{l}\frac{2}{10}\end{array} \)
= \(\begin{array}{l}\frac{24 : 8 : 12 : 6}{60}\end{array} \)
or 10 : 6: 4 :5 respectively
Question 11
Rakesh and Suresh are sharing profits in the ratio of 4 : 3. Zaheer joins and the new ratio among Rakesh, Suresh and Zaheer is 7 : 4 : 3. Find out the sacrificing ratio.
Solution:
The old ratio of Rakesh : Suresh = 4 : 3
New ratio for Rakesh, Suresh and Zaheer = 7 : 4 : 3
Sacrificing ratio = Old ratio – New ratio
Rakesh’s Share =
\(\begin{array}{l}\frac{4}{7}\end{array} \)
– \(\begin{array}{l}\frac{7}{14}\end{array} \)
= \(\begin{array}{l}\frac{1}{14}\end{array} \)
Suresh’s Share =
\(\begin{array}{l}\frac{3}{7}\end{array} \)
– \(\begin{array}{l}\frac{4}{14}\end{array} \)
= \(\begin{array}{l}\frac{2}{14}\end{array} \)
So, sacrificing ratio of Rakesh and Suresh =
\(\begin{array}{l}\frac{1}{14}\end{array} \)
: \(\begin{array}{l}\frac{2}{14}\end{array} \)
= 1 : 2
Question 12
A and B are partners sharing profits in the ratio of 3 : 2. C is admitted as a partner. The new profit-sharing ratio among A, B and C is 4 : 3 : 2. Find out the sacrificing ratio.
Solution:
The old ratio A : B = 3 : 2
New ratio for A, B and C = 4 : 3 : 2
Sacrificing ratio = Old ratio – New ratio
A’s Share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{4}{9}\end{array} \)
= \(\begin{array}{l}\frac{7}{45}\end{array} \)
B’s Share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{3}{9}\end{array} \)
= \(\begin{array}{l}\frac{3}{45}\end{array} \)
So, sacrificing ratio of A and B =
\(\begin{array}{l}\frac{7}{45}\end{array} \)
: \(\begin{array}{l}\frac{3}{45}\end{array} \)
= 1 : 2
Question 13
A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. D is admitted for 1/3rd share in future profits. What is the sacrificing ratio?
Solution:
Old Ratio = A : B : C = 4 : 3 : 2
\(\begin{array}{l}\frac{1}{3}\end{array} \)
th profit share is admitted by D
Let A, B, C, and D combined share be 1
So, A, B, and C combined share after D’s admission =1 − D’s share
= 1-
\(\begin{array}{l}\frac{1}{3}\end{array} \)
= \(\begin{array}{l}\frac{2}{3}\end{array} \)
New Ratio = Old Ratio X (combined share of A, B, and C)
A’s share =
\(\begin{array}{l}\frac{4}{9}\end{array} \)
X \(\begin{array}{l}\frac{2}{3}\end{array} \)
= \(\begin{array}{l}\frac{8}{27}\end{array} \)
Bs share =
\(\begin{array}{l}\frac{3}{9}\end{array} \)
X \(\begin{array}{l}\frac{2}{3}\end{array} \)
= \(\begin{array}{l}\frac{6}{27}\end{array} \)
C’s share =
\(\begin{array}{l}\frac{2}{9}\end{array} \)
X \(\begin{array}{l}\frac{2}{3}\end{array} \)
= \(\begin{array}{l}\frac{4}{27}\end{array} \)
Sacrificing ratio = Old ratio – New ratio
A’s share =
\(\begin{array}{l}\frac{4}{9}\end{array} \)
– \(\begin{array}{l}\frac{8}{27}\end{array} \)
= \(\begin{array}{l}\frac{4}{27}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{3}{9}\end{array} \)
– \(\begin{array}{l}\frac{6}{27}\end{array} \)
= \(\begin{array}{l}\frac{3}{27}\end{array} \)
C’s share =
\(\begin{array}{l}\frac{2}{7}\end{array} \)
– \(\begin{array}{l}\frac{4}{27}\end{array} \)
= \(\begin{array}{l}\frac{2}{27}\end{array} \)
So, sacrificing ratio of A : B : C will be
\(\begin{array}{l}\frac{4}{27}\end{array} \)
: \(\begin{array}{l}\frac{3}{27}\end{array} \)
: \(\begin{array}{l}\frac{2}{27}\end{array} \)
or 4 : 3 :2
Question 14
A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after E’s admission .
Solution:
Old Ratio = A : B : C : D = 36 : 24 : 20 : 20
\(\begin{array}{l}\frac{20}{100}\end{array} \)
th profit share is admitted by E
Let A, B, C, and D combined share be 1
So, A, B, C, and D combined share after E’s admission =1 − E’s share
= 1-
\(\begin{array}{l}\frac{20}{100}\end{array} \)
= \(\begin{array}{l}\frac{80}{100}\end{array} \)
New Ratio = Combined share of A, B, C, and D X Agreed share of A, B, C, and D
A’s share =
\(\begin{array}{l}\frac{80}{100}\end{array} \)
X \(\begin{array}{l}\frac{3}{10}\end{array} \)
= \(\begin{array}{l}\frac{24}{100}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{80}{100}\end{array} \)
X \(\begin{array}{l}\frac{4}{10}\end{array} \)
= \(\begin{array}{l}\frac{32}{100}\end{array} \)
C’s share =
\(\begin{array}{l}\frac{80}{100}\end{array} \)
X \(\begin{array}{l}\frac{2}{10}\end{array} \)
= \(\begin{array}{l}\frac{16}{100}\end{array} \)
D’s share =
\(\begin{array}{l}\frac{80}{100}\end{array} \)
X \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{8}{100}\end{array} \)
New sacrificing ratio of A : B : C : D : E =
\(\begin{array}{l}\frac{24}{100}\end{array} \)
: \(\begin{array}{l}\frac{32}{100}\end{array} \)
: \(\begin{array}{l}\frac{16}{100}\end{array} \)
: \(\begin{array}{l}\frac{8}{100}\end{array} \)
: \(\begin{array}{l}\frac{20}{100}\end{array} \)
= 6 : 8 : 4 : 2 : 5
Question 15
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership. X gives 1/3rd of his share while Y gives 1/10th from his share to Z. Calculate new profit-sharing ratio and sacrificing ratio.
Solution:
Old Ratio = X : Y = 3 : 2
X’s sacrificing share =
\(\begin{array}{l}\frac{1}{3}\end{array} \)
X \(\begin{array}{l}\frac{3}{5}\end{array} \)
= \(\begin{array}{l}\frac{3}{15}\end{array} \)
Y’s sacrificing share =
\(\begin{array}{l}\frac{1}{10}\end{array} \)
Sacrificing ratio =
\(\begin{array}{l}\frac{3}{15}\end{array} \)
: \(\begin{array}{l}\frac{1}{10}\end{array} \)
or 2 : 1
New share = Old Share – Sacrificed Share
X’s share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{3}{15}\end{array} \)
= \(\begin{array}{l}\frac{6}{15}\end{array} \)
Y’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{3}{10}\end{array} \)
Z’s share =
\(\begin{array}{l}\frac{3}{15}\end{array} \)
– \(\begin{array}{l}\frac{1}{10}\end{array} \)
= \(\begin{array}{l}\frac{9}{30}\end{array} \)
New Ratio =
\(\begin{array}{l}\frac{6}{15}\end{array} \)
: \(\begin{array}{l}\frac{3}{10}\end{array} \)
: \(\begin{array}{l}\frac{9}{30}\end{array} \)
= 4 : 3 : 3
Question 16
A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio.
Solution:
New Profit Sharing Ratio Evaluation
Old Ratio = A : B : C = 2 : 2 : 1
E admitted
\(\begin{array}{l}\frac{1}{6}\end{array} \)
th share and C retained his share \(\begin{array}{l}\frac{1}{5}\end{array} \)
Remaining Share = 1-
\(\begin{array}{l}\frac{1}{6}\end{array} \)
– \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{30-5-6}{30}\end{array} \)
= \(\begin{array}{l}\frac{19}{30}\end{array} \)
A and B will share the other ratio in 2 : 2 old ratio
A’s new share =
\(\begin{array}{l}\frac{19}{30}\end{array} \)
X \(\begin{array}{l}\frac{2}{4}\end{array} \)
= \(\begin{array}{l}\frac{38}{120}\end{array} \)
B’s new share =
\(\begin{array}{l}\frac{19}{30}\end{array} \)
X \(\begin{array}{l}\frac{2}{4}\end{array} \)
= \(\begin{array}{l}\frac{28}{120}\end{array} \)
C’s new share =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{24}{24}\end{array} \)
= \(\begin{array}{l}\frac{24}{120}\end{array} \)
D’s new share =
\(\begin{array}{l}\frac{1}{6}\end{array} \)
X \(\begin{array}{l}\frac{20}{20}\end{array} \)
= \(\begin{array}{l}\frac{20}{120}\end{array} \)
Since, the sacrificed ratio is not mentioned it is assumed that A and B sacrificed their share is their old ratio
Sacrificing ratio = Old ratio – New ratio
A’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{19}{60}\end{array} \)
= \(\begin{array}{l}\frac{24-19}{60}\end{array} \)
= \(\begin{array}{l}\frac{5}{60}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{19}{60}\end{array} \)
= \(\begin{array}{l}\frac{24-19}{60}\end{array} \)
= \(\begin{array}{l}\frac{5}{60}\end{array} \)
So, sacrificing ratio of A : B : C is 5 : 5 or 1 : 1
Question 17
A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards D enters for 20 paise in the rupee. Compute profit-sharing ratio of A, B, C and D after D’s admission.
Solution:
Old Ratio = A : B = 3 : 2
C admitted
\(\begin{array}{l}\frac{1}{6}\end{array} \)
th profit share
Let A, B, C, and D combined share be 1
So, A, B, C, and D combined share after E’s admission =1 − E’s share
= 1-
\(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3}{4}\end{array} \)
New Ratio = Old ratio X combined share of A and B
A’s share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
X \(\begin{array}{l}\frac{3}{4}\end{array} \)
= \(\begin{array}{l}\frac{9}{20}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
X \(\begin{array}{l}\frac{3}{4}\end{array} \)
= \(\begin{array}{l}\frac{6}{20}\end{array} \)
New profit sharing ratio after admission of C = A : B : C =
\(\begin{array}{l}\frac{9}{20}\end{array} \)
: \(\begin{array}{l}\frac{6}{20}\end{array} \)
: \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{9 : 6 : 5}{20}\end{array} \)
or 9 : 6 : 5
After C’s admission the profit sharing ratio will become old ratio when determining the new profit ratio after D’s admission
Ratio before admission of D = A : B : C = 9 : 6 : 5
D admitted
\(\begin{array}{l}\frac{20}{100}\end{array} \)
th profit share
Let combines share of A, B, and C, after Ds admission be 1
So, A, B, and C combined share after D’s admission =1 − D’s share
= 1-
\(\begin{array}{l}\frac{20}{100}\end{array} \)
= \(\begin{array}{l}\frac{80}{100}\end{array} \)
New Ratio = Old ratio X combined share of A, B, and C
A’s share =
\(\begin{array}{l}\frac{9}{20}\end{array} \)
X \(\begin{array}{l}\frac{80}{100}\end{array} \)
= \(\begin{array}{l}\frac{72}{200}\end{array} \)
B’s share =
\(\begin{array}{l}\frac{6}{20}\end{array} \)
X \(\begin{array}{l}\frac{80}{100}\end{array} \)
= \(\begin{array}{l}\frac{48}{200}\end{array} \)
C’s share =
\(\begin{array}{l}\frac{5}{20}\end{array} \)
X \(\begin{array}{l}\frac{80}{100}\end{array} \)
= \(\begin{array}{l}\frac{40}{200}\end{array} \)
So, new profit sharing ratio between A : B : C : D will be
\(\begin{array}{l}\frac{72}{200}\end{array} \)
: \(\begin{array}{l}\frac{48}{200}\end{array} \)
: \(\begin{array}{l}\frac{40}{200}\end{array} \)
: \(\begin{array}{l}\frac{20}{100}\end{array} \)
= 9 : 6 : 5 : 5
Question 18
P and Q are partners sharing profits in the ratio of 3 : 2. They admit R into partnership who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New Profit-sharing Ratio and Sacrificing Ratio.
Solution:
Old Ratio P : Q = 3 : 2
\(\begin{array}{l}\frac{1}{5}\end{array} \)
of P’s share is acquired by R
Remaining share of P
\(\begin{array}{l}\frac{4}{5}\end{array} \)
(1-\(\begin{array}{l}\frac{1}{5}\end{array} \)
)of his share from Q
If R share
\(\begin{array}{l}\frac{4}{5}\end{array} \)
= \(\begin{array}{l}\frac{1}{25}\end{array} \)
P’s share =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{1}{25}\end{array} \)
Q’s share =
\(\begin{array}{l}\frac{4}{25}\end{array} \)
P’s new share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{1}{25}\end{array} \)
= \(\begin{array}{l}\frac{15-1}{25}\end{array} \)
= \(\begin{array}{l}\frac{14}{25}\end{array} \)
Q’s new share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{4}{25}\end{array} \)
= \(\begin{array}{l}\frac{10-4}{25}\end{array} \)
= \(\begin{array}{l}\frac{6}{25}\end{array} \)
R’s new share =
\(\begin{array}{l}\frac{1}{5}\end{array} \)
X \(\begin{array}{l}\frac{5}{5}\end{array} \)
= \(\begin{array}{l}\frac{5}{25}\end{array} \)
New Share P : Q : R = 14 : 6 :5
Sacrificing ratio = 1 : 4
Question 19
A and B are partners sharing profits and losses in the ratio of 2 : 1. They take C as a partner for 1/5th share. Goodwill Account appears in the books at ₹ 15,000. For the purpose of C’s admission, goodwill of the firm is valued at ₹ 15,000. C is to pay a proportionate amount as premium for goodwill which he pays to A and B privately.
Pass necessary entries.
Solution:
Journal
| Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
A’s Capital A/c Dr.
B’s Capital A/c Dr.
To Goodwill A/c
(Goodwill written-off between
A and B in the old ratio of 2:1)
|
|
10,000
5,000 |
15,000 |
Note- The goodwill brought by C will not be recorded in the journal books as the amount is paid privately to A and B.
Working Note: Goodwill Written-off Evaluation
Debited A’s capital = 15,000 X
\(\begin{array}{l}\frac{2}{3}\end{array} \)
= ₹ 10,000
Credited B’s capital = 15,000 X
\(\begin{array}{l}\frac{1}{3}\end{array} \)
= ₹ 5,000
Question 20
A and B are partners sharing profits and losses in the ratio of 2 : 5. They admit C on the condition that he will bring ₹ 14,000 as his share of goodwill to be distributed between A and B. C’s share in the future profits or losses will be 1/4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by C will be received by A and B?
Solution:
Old ratio A : B = 2 : 5
C admitted
\(\begin{array}{l}\frac{1}{4}\end{array} \)
th profit share
Let A, B, and C combined share be 1
A and B combined share after C’s admission = 1 – C’s share
1-
\(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{3}{4}\end{array} \)
New ratio = Old ratio X combined share of A and B
A’s share=
\(\begin{array}{l}\frac{2}{7}\end{array} \)
X \(\begin{array}{l}\frac{3}{4}\end{array} \)
= \(\begin{array}{l}\frac{6}{28}\end{array} \)
B’s share=
\(\begin{array}{l}\frac{5}{7}\end{array} \)
X \(\begin{array}{l}\frac{3}{4}\end{array} \)
= \(\begin{array}{l}\frac{15}{28}\end{array} \)
New Profit Sharing Ratio = A : B : C =
\(\begin{array}{l}\frac{6}{28}\end{array} \)
: \(\begin{array}{l}\frac{15}{28}\end{array} \)
: \(\begin{array}{l}\frac{1}{4}\end{array} \)
= \(\begin{array}{l}\frac{6 : 15 : 7}{28}\end{array} \)
= 6 : 15 : 7
C’s Goodwill share distribution
C’s goodwill share = ₹ 14,000
A will receive = 14,000 X
\(\begin{array}{l}\frac{2}{7}\end{array} \)
= ₹ 4,000
B will receive = 14,000 X
\(\begin{array}{l}\frac{5}{7}\end{array} \)
= ₹ 10,000
Question 21
A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/5th of his share and B surrenders 2/5th of his share and B surrenders 2/5th of his share in favour of C. For the purpose of C’s admission, goodwill of the firm is valued at ₹ 75,000 and C brings in his share of goodwill in cash which is retained in the firm’s books. Journalise the above transactions.
Solution:
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
Cash A/c |
Dr. |
|
21,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
21,000 |
|
(Premium Goodwill brought by C) |
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
21,000 |
|
|
To A’s Capital A/c |
|
|
|
9,000 |
|
To B’s Capital A/c |
|
|
|
12,000 |
|
(Distributed Goodwill Premium brought by C between A and B in sacrificing ratio 3:4) |
|
|
|
|
Old ratio A : B = 3 : 2
A sacrifices =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
X \(\begin{array}{l}\frac{1}{5}\end{array} \)
= \(\begin{array}{l}\frac{3}{25}\end{array} \)
B sacrifices =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
X \(\begin{array}{l}\frac{2}{5}\end{array} \)
= \(\begin{array}{l}\frac{4}{25}\end{array} \)
Sacrificing ratio of A : B =
\(\begin{array}{l}\frac{3}{25}\end{array} \)
: \(\begin{array}{l}\frac{4}{25}\end{array} \)
= 3 : 4
New ratio – Old ratio – Sacrificing ratio
A’s new ratio share =
\(\begin{array}{l}\frac{3}{5}\end{array} \)
– \(\begin{array}{l}\frac{3}{25}\end{array} \)
= \(\begin{array}{l}\frac{12}{25}\end{array} \)
B’s new ratio share =
\(\begin{array}{l}\frac{2}{5}\end{array} \)
– \(\begin{array}{l}\frac{4}{25}\end{array} \)
= \(\begin{array}{l}\frac{6}{25}\end{array} \)
C’s new ratio share = A sacrifice + B sacrifice =
\(\begin{array}{l}\frac{3}{25}\end{array} \)
+ \(\begin{array}{l}\frac{4}{25}\end{array} \)
= \(\begin{array}{l}\frac{7}{25}\end{array} \)
So, New ratio A : B : C = 12 : 6 : 7
Goodwill premium bought by C= 75,000 X
\(\begin{array}{l}\frac{7}{25}\end{array} \)
= 21, 000
Goodwill premium distribution
Goodwill of A = 21,000 X
\(\begin{array}{l}\frac{3}{7}\end{array} \)
= 9, 000
Goodwill of B = 21,000 X
\(\begin{array}{l}\frac{4}{7}\end{array} \)
= 12, 000
Question 22
Give Journal entries to record the following arrangements in the books of the firm:
(a) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of ₹ 2,000 for 1/4th share of the profits, shares shares of B and C remain as before.
(b) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of ₹ 2,100 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C.
Solution:
(a)
| Journal |
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
|
|
|
Cash A/c |
Dr. |
|
2,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,000 |
|
(Goodwill Premium brought by D) |
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,000 |
|
|
To B’s Capital A/c |
|
|
|
1,200 |
|
To C’s Capital A/c |
|
|
|
800 |
|
(Distributed Goodwill Premium between B and C in sacrificing ratio 3:2) |
|
|
|
|
Working Note: Distribution of goodwill premium
Goodwill of B = 2,000 X
\(\begin{array}{l}\frac{3}{5}\end{array} \)
= 1,200
Goodwill of C = 2,000 X
\(\begin{array}{l}\frac{2}{5}\end{array} \)
= 800
(b)
| Journal |
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
Cash A/c |
Dr. |
|
2,100 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,100 |
|
(Goodwill share bought by D in cash) |
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,100 |
|
|
To B’s Capital A/c |
|
|
|
1,400 |
|
To C’s Capital A/c |
|
|
|
700 |
|
(Distributed Goodwill Premium between B and C in sacrificing Ratio 2:1) |
|
|
|
|
Working Note 1 : Distribution of goodwill premium
Sacrificing ratio = B : C = latex]\frac{1}{6}\end{array} \)
good
Thanks
nice
EXCELLENT WORK DONE GOOD FOR CHILDREN WHO NEEDED =KNOWLEDGE IS POWER
It helps me lot I thank you on behalf of my tuition students I am grateful
Thank for your help
It’s very helpful and thank you ☺️
Thank you so much 😍😍 😍
Nice work. This is very helpful for student
Thank you !! For your sport 😊