Solve 30 Q30 P and Q are partners sharing profit losses as 2 : 3 - Accountancy - Reconstitution- Admission of a Partner

Question

Solve 30

Q30 P and Q are partners sharing profit &
losses as 2 : 3 R and S are amities and profit sharing ratio
becomes 3 : 4 : 3 : 2 Goodwill is valued at 3,00,000, R
brings required goodwill and Rs 2,00,000 cash for Capital
S brings in Rs 1,00,000 cash and Motor Vehicle for
Rs/80,000 as his Capital in addition to the required amount of
goodwill in cash
Show the necessary journal entries
[Ans Sacrificing Ratio 9 : 16 ]

Neha Chopra · Accepted Answer

Dear Student,

Old ratio between P & Q was 2:3 ; New ratio after R & S's
admission is 3:4:3:2
Sacrificing ratio = 9:16

Date

Particulars
LF

Amount (in Rs)

Cash A/c
Dr

2,75,000

To R's Capital A/c

2,00,000

To Premium for Goodwill A/c (3,00,000*3/12)

75,000

(R brings his share of Capital & Goodwill)

Cash A/c
Dr

1,50,000

Motor Vehicle A/c

80,000

To S's Capital A/c

1,80,000

To Premium for Goodwill A/c (3,00,000*2/12)

50,000

(S brings his share of Capital & goodwill)

Premium for Goodwill A/c (1,25,000)
Dr

1,25,000

To P's Capital A/c

45,000

To Q's Capital A/c

80,000

(Goodwill divided among old partners in sacrificing
ratio)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
	Cash A/c	Dr	2,75,000
	To R's Capital A/c			2,00,000
	To Premium for Goodwill A/c (3,00,000*3/12)			75,000
	(R brings his share of Capital & Goodwill)

	Cash A/c	Dr	1,50,000
	Motor Vehicle A/c		80,000
	To S's Capital A/c			1,80,000
	To Premium for Goodwill A/c (3,00,000*2/12)			50,000
	(S brings his share of Capital & goodwill)

	Premium for Goodwill A/c (1,25,000)	Dr	1,25,000
	To P's Capital A/c			45,000
	To Q's Capital A/c			80,000
	(Goodwill divided among old partners in sacrificing ratio)