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Standard X

Mathematics

Basic Formulae

A and B are p...

Question

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.

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Solution

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Cash A/c

Dr.

21,000

To Premium for Goodwill A/c

21,000

(C brought Premium for Goodwill)

Premium for Goodwill A/c

Dr.

21,000

To A’s Capital A/c

9,000

To B’s Capital A/c

12,000

(Premium for Goodwill brought by C distributed

between A and B in sacrificing ratio i.e. 3:4)

C’s share = A’s sacrifice + B’s sacrifice

New Ratio is 12:6:7

C’s will bring Premium for Goodwill

Distribution of Premium for Goodwill-

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Similar questions

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

surrender

1 / 5^{t h}

of his share and

B

surrender

2 / 5^{t h}

of his share in favour of

C

. For the purpose of

C^{'} s

admission, goodwill of the firm is valued at

R s . 75, 000

and

C

brought in his share of goodwill in cash which is retained in the firm's books. Journalise the above transactions.

Q. 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 / 4^{t h}

of his share and

T

surrenders

1 / 5^{t h}

of his share in favour of

S

.
(ii)

A

and

B

are partners.They admit

C

for

1 / 4^{t h}

share. In 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 / 5^{t h}

share in profit.

C

acquires

1 / 5^{t h}

of his share from

A

and

4 / 5^{t h}

share from

B

.
(iv)

X, Y

and

Z

are partners in the ratio of

3 : 2 : 1

W

joins the firm as a new partners for

1 / 6^{t h}

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 / 5^{t h}

and

1 / 6^{t h}

share respectively.
(vi)

A

and

B

are partners sharing profits/losses in the ratio of

3 : 2

C

is admitted for

1 / 4^{t h}

share.

A

and

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decide to share equally in future.

Q. 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.

Q. Kabir and Farid are partners in a firm sharing profits and losses in the ratio of

7 : 3

. Kabir surrenders

2 / 10^{t h}

from his share and Farid surrenders

1 / 10^{t h}

from his share in favour of Jyoti; new partner.
Calculate new profit-sharing ratio and sacrifice ratio.

Q. A and B are partners sharing profits in the ratio of

7 : 3

. A surrenders

1 / 7

th of his share and B surrenders

1 / 3

rd of his share in favour of C, a new partner. The new profit sharing ratio and sacrificing ratio will be _________.

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Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Cash A/c	Dr.		21,000
	To Premium for Goodwill A/c				21,000
	(C brought Premium for Goodwill)

	Premium for Goodwill A/c	Dr.		21,000
	To A’s Capital A/c				9,000
	To B’s Capital A/c				12,000
	(Premium for Goodwill brought by C distributed between A and B in sacrificing ratio i.e. 3:4)