Home
Class 12
ACCOUNTS
(New Partner does not bring Cash for Goo...

(New Partner does not bring Cash for Goodwill).
A and B who share profits in the ratio of 3 : 2 had capitals of RS 2,00,000 and RS 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 RS 2,00,000 as capital.
(ii) That C is unable to bring his share of goodwill of the firm is valued at RS 1,50,000.
Pass necessary Journal entries in the books of the firm.

Text Solution

Verified by Experts


Note: When a new partner does not bring his share of goodwill, premium for goodwill may be adjusted either through Capital Accounts or Current Account of the new partner.
Promotional Banner

Topper's Solved these Questions

  • Admission of a Partner

    TS GREWAL|Exercise ANSWERS TO QUESTIONS|7 Videos

  • Admission of a Partner

    TS GREWAL|Exercise QUESTIONS|10 Videos

  • ACCOUNTING RATIOS

    TS GREWAL|Exercise Exercise|147 Videos

  • CASH FLOW STATEMENT

    TS GREWAL|Exercise CASH FLOW FROM INVESTING ACTIVITES|1 Videos

Similar Questions

Explore conceptually related problems

A and B are partners in a firm with capital of RS.60,000 and RS.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 RS.70,000 as his capital. Calculate amount of goodwill.

Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were RS 1,60,000 and RS 1,00,000 respectively. They admitted Somesh on 1st April, 2013 as a new partner 1/5th share in the future porfits. Somesh brought RS 1,20,000 as his capital. Caluclate the value of goodwill of the firm and record necessary Journal entries for the above transctions on Somesh's admission.

Bhuwan and Shivam were partners in a firm sharing profit in the ratio of 3 : 2. Their capitals were RS.50,000 and RS.75,000 respectively. They admitted Atul on 1st April, 2018 as a new partner for 1/4th share in future profits. Atul brought RS.75,000 as his capital. Calculate the value of goodwill of the firm and record necressary Journal entries for the above transactions on Atul's admission.

Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is RS.4,80,000 and of Divya is RS.3,00,000. On 1st April, 2019 they admitted Hina as a new partner for 1/5th shar in future profits. Hina brought RS.3,00,000 as hre capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina's admission.

(Premium brought in Kind). X and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019, they admit Z as new partner for 3/13th share in the profits. New ratio will be 5 :5 :3. Z contributed the following assets to his capital and his share for goodwill: Stock RS 80, 000, Debtors RS 1,20,000, Land RS 2,00,000, Plant and Machinery RS 1,00,2000. On the date of admission of Z, goodwill of the firm was valued at RS 10,40,000, Pass necessary Journal entries in the books of the firm on Z's admission.

Aun and Bhagwan were partners in a firm sharing profits in the ratio 3 : 1. Goodwill appeared in the books at RS.4,40,000. Raja was admitted to the partnership. New profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought RS.1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at RS.2,50,000. Record necessary Journal entries in the books of the firm for the above transactios.

X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.2,00,000 and Rs.1,00,000 respectively. Interest on capitals is allowed @8% p.a. Firm earned a profit of Rs.60,000 for the year ended 31st March 2019. Interest on Capital will be :

TS GREWAL-Admission of a Partner-EXERCISE
  1. (New Partner does not bring Cash for Goodwill). A and B who share pr...

    Text Solution

    |

  2. X, Y and Z are partners sharing profits and losses in the ratio of 5 :...

    Text Solution

    |

  3. Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit...

    Text Solution

    |

  4. A and B are partners sharing and losses in the porportion of 7 : 5. Th...

    Text Solution

    |

  5. A, B and C were partners in a firm sharing profits in the ratio of 3 :...

    Text Solution

    |

  6. Bharati and Astha were partners sharing profits in the ratio of 3 : 2....

    Text Solution

    |

  7. X and Y are partners in a firm sharing profits and losses in the ratio...

    Text Solution

    |

  8. R and S are partners sharing profits in the ratio of 5 : 3. T joins th...

    Text Solution

    |

  9. Kabir and Farid are partners in a firm sharing profits and losses in t...

    Text Solution

    |

  10. Find New Profit-sharing Ratio: (i) R and T are partners in a firm sh...

    Text Solution

    |

  11. X and Y are partners sharing profits in the ratio of 3 : 2. They admit...

    Text Solution

    |

  12. Rakesh and Suresh are sharing profits in the ratio of 4 : 3. Zaheer jo...

    Text Solution

    |

  13. A and B are partners sharing profits in the ratio of 3 : 2. C is admi...

    Text Solution

    |

  14. A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. D i...

    Text Solution

    |

  15. A, B, C and D are in partnership sharing profits and losses in the rat...

    Text Solution

    |

  16. X and Y are partners sharing profits and losses in the of 3 : 2. They ...

    Text Solution

    |

  17. A, B and C are partners sharing profits in the ratio of 2 : 2 : 1, D i...

    Text Solution

    |

  18. A and B are in partnership sharing profits and losses as 3 : 2. C is a...

    Text Solution

    |

  19. P and Q are partners sharing profits in the ratio of 3 : 2. They admit...

    Text Solution

    |

  20. A and B are partners sharing profits and losses in the ratio of 2 : 1....

    Text Solution

    |

  21. A and B are partners sharing profits and losses in the ratio of 2 : 5....

    Text Solution

    |