TS Grewal Solutions for Class 12 Accountancy Vol 1 Chapter 5
TS Grewal Solutions for Class 12 Accountancy 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.
Class 12 TS Grewal Solutions Accountancy Vol 1 Chapter 5:Download PDF Here
Board  CBSE 
Class  Class 12 
Subject  Accountancy 
Chapter  Chapter 5 
Chapter Name  Admission of a partner 
Number of questions solved  06 
Category  TS Grewal 
Chapter 5 – Admission of a partner explains the belowmentioned 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 and Y are partners sharing profits in the ratio of 6:4. Z is admitted for 1/4th share in the profits. Compute the new profit sharing ratio of the partners.
Solution:
Calculation of New profit sharing ratio –
Old profit sharing ratio of X and Y = 6:4 or 6/10: 4/10
Let the total share be = 1; Z’s share = 1/4
The remaining share of X and Y = 1¼ = 3/4
Distribute the remaining share of 3/4 in the old profit sharing ratio of 6:4 between X and Y.
X’s new share = 3/4 X 6/10 = 18/40
Y’s new share = 3/4 X 4/10 = 12/40
Z’s new share = 1/4 or 10/40
Hence, New profit sharing ratio of X, Y and Z = 18/40:12/40:10/40
= 18:12:10
Question 2
Mahesh and Harish are partners sharing profits in the ratio of 3:2. They admit Suresh into the partnership for 25% of the share of profit. Suresh acquired the share from the old partners in the ratio of 4:3. Calculate the new profit sharing ratio.
Solution:
Suresh acquires 25% i.e. 1/4th share in the profit from Mahesh and Harish in the ratio of 4:3m it is,
Suresh gets from Mahesh = 4/7 of 1/4 = 4/28
From Harish = 3/7 of 1/4 = 3/28
Suresh’s share = 4/28 + 3/28 = 7/28
New share = Old share – Share surrendered
New share of Mahesh = 3 /5 4/28 = 8420/140 = 64/140
New share of Harish = 2/5 – 7/28 = 5635 = 21/140
Share of Suresh = 1 /4 or 35/140
Thus, the new profit sharing ratio = 64/140:21/140:35/140
= 64:21:35
Question 3
A, B and C are partners sharing profits in the ratio of 2:2:1. D is admitted as a new partner doe 1/6th share. C will retain his share. Now, compute the New Profit Sharing Ratio.
Solution:
Let the total share of the firm be = 1
Share of C and D = ⅕ + ⅙ = 6+5/30 = 11/30
Remaining share = 1 – 11/30 = 19/30
New shares of A and B are computed by dividing the remaining share in their profit sharing ratio, i.e., 2:2 or 1:1 as under:
A’s new share = 19/30 X ½ = 19/60
B’s new share = 19/30 X ½ = 19/60
Hence, New Profit Sharing Ratio of A, B, C and D = 19/60:19/60:⅕:⅙
= 19:19:12:10
Question 4
V and W are partners sharing profits in the ratio of 5:3. X is admitted fo 3/10th share of profits out of which half share was gifted by V and the remaining share was taken by X equally from V and W. Compute New Profit Sharing Ratio.
Solution:
V  W  
Their old share  ⅝  ⅜ 
Share gifted by V  3/10 X ½ = 3/20  – 
Share acquired by X  3/20 X ½ = 3/40  3/20 X ½ = 3/40 
New share of V = Old share – Share gifted – Share acquired by X
= ⅝ – 3/20 – 3/40 = 2563 divided by 40 = 16/40
New share of W = ⅜ – 3/40 = 153 divided by 40 = 12/40
Hence, New Profit Sharing Ratio of V, W and X = 16/40:12/40:3/10
= 4:3:3
Question 5
P and Q are partners in the firm sharing profits in the ratio of 3:2. P and Q surrender ½ of their respective shares in the favour of R. R is to bring his share of premium for goodwill in cash. Goodwill of the firm is valued at ₹. 50,000/.
Pass the necessary journal entries for recording goodwill in the above case.
Solution:
JOURNAL ENTRIES
Date  Particulars  L.F.  Dr. (₹)  Cr. (₹) 
Cash or Bank a/c Dr.
To premium for goodwill a/c (WN 3) (Being the share of premium brought in cash by R) 
25,000  25,000  
Premium for goodwill a/c Dr.
To P’s capital a/c To Q’s capital a/c (Being the distribution of premium among the sacrificing partners in their sacrificing ratio and i.e., 3:2 WN 1, 2 and 3) 
25,000  15,000
10,000 
Alternatively:
JOURNAL ENTRIES
Date  Particulars  L.F.  Dr. (₹)  Cr. (₹) 
Cash or Bank a/c Dr.
To R’s capital a/c (Being the amount brought by R for his share of goodwill) 
25,000  25,000  
R’s capital a/c Dr.
To P’s capital a/c To Q’s capital a/c (Being the distribution of premium among the sacrificing partners in their sacrificing ratio and i.e., 3:2 WN 1, 2 and 3) 
25,000  15,000
10,000 
Working Notes:
Working note 1 –
P’s sacrifice = 3/5 X 1/2 = 3/10
Q’s sacrifice = 2/5 X 1/2 = 2/10
Sacrificing ratio between P and Q = 3:2
Working note 2 –
R’s share = 3/10 + 2/10 + 5/10 or 1/2
Working note 3 –
Goodwill brought by R = 1/2 of 50,000 = 25,000
Question 6
C and D are partners in an enterprise sharing profits in the ratio of 4:3. On 1st April 2018, they admitted E as a partner. E brought in ₹. 2,00,000/ for his capital and ₹. 24,000/ for a 1/3rd share of goodwill premium. On E’s admission, goodwill appeared in the books of the enterprise @ ₹. 28,000/. Pass the necessary journal entries on E’s admission.
Solution:
JOURNAL ENTRIES
Date  Particulars  L.F.  Dr. (₹)  Cr. (₹) 
2018 April 1  C’s capital a/c Dr.
D’s capital a/c Dr. To Goodwill a/c (Being the existing goodwill written off prior to E’s admission) 
16,000
12,000 
28,000  
2018 April 1  Bank a/c Dr.
To E’s capital a/c To premium for goodwill a/c (Being E brought in cash for his capital and his share of goodwill) 
2,24,000  2,00,000
24,000 

2018 April 1  Premium for goodwill a/c Dr.
To C’s capital a/c To D’s capital a/c (Being the goodwill or premium for goodwill brought in by E, transferred to the capital a/c of C and D in their sacrificing ratio of (4:3) 
24,000  13,714
10,286 
Question 7
(New Partner does not bring cash for goodwill)
A and B who share profits in the ratio of 2:3 had capitals of ₹2,00,000 and ₹1,50,000 respectively. They agree to admit C into partnership from 1st April 2019 on the following terms for 1/3rd share in future profits:
(i) That C to bring ₹2,00,000 as capital
(ii) That C is unable to bring his share of goodwill, goodwill of the firm is valued at ₹1,50,000. Pass necessary journal entries in the books of the firm.
Solution:
Date  Particulars  L.F  Dr. ₹  Cr. ₹  
2019
April 1 
Bank A/c  Dr.  2,00,000  
To C’s Bank A/c
(Being the amount of capital brought in by C in the firm) 
2,00,000  
April 1  C’s capital/Current A/c (₹1,50,000 x1/3)  Dr.  50,000  
To A’s Capital A/c
To B’s Capital A/c (Being the capital accounts of A and B credited in their sacrificing ratio, i.e, 3:2 for C’s share of goodwill on his admission) 
30,000
20,000 
Note: When a new partner doesn’t bring his share of goodwill, the premium for goodwill may be adjusted either through a capital account or the current account of the new partner.
Also Check: Important Questions for Admission of a partner
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